Figure5: Showing liquid assets to total deposit of KUMARI BANK Limited

Analyzing the chart we can see the upward trend for both liquid assets and total deposit in the
financial statement of KUMARI BANK Limited. Upward trends denotes growth in the
organization and capturing market share. In 2074/75 total deposit of bank was 23256million
which reached in 52071 million in 2078/79 that means deposits has been rising in around 20%
every year.

Assets management ratio (activity ratios)

6) Loan and advance to total deposits ratio

Table6: showing loan and advance to total deposit ratio (IN MILLIONS)

Year

2074/75 2075/76 2076/77 2077/78 2078/79

Ratio 79.22 79.4 78.5 79.34 86.79

(%)

Loan 18425 21898 26246 30111 45195

and
advanc
e

Total 23256 27578 33422 37950 52071

deposit
 60000

50000

40000

30000

20000

10000

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure6: Showing loan and advance to total deposits

The above figure shows the ratio of loan and advance to total deposits for the year 2074/75 to
2078/79. As per the figure, we can see the ratio of loan and advance to borrowers with respect
to deposits made in bank. From the chart we can conclude that bank has highest ratio of loan
and advance to total deposit in the year 2078/79. And the amount landed by bank was 45195
million.

7) Total investment to total deposit ratio.

Figure7: Showing total investment to total deposit ratio of the bank (IN MILLIONS)

Year 2074/75 2075/76 2076/77 2077/78 2078/79

Ratio (%) 11.40 11.47 14.54 16.18 14.45

Total 2651 3164 4862 6142 7526

investmen
t

Total 23256 27578 33422 37950 52071

deposit
 60000

50000

40000

30000 Series 1
Series 2

20000

10000

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure7: Showing total investments to total deposits made by bank

From the given chart we can analyze the banks investment with respect to total deposit made
by depositors. In chart we can say that increasing deposit is increasing the investments of bank
too. In the year 2074/75 total investment of bank was 2651 million where it reached to 7526
million in the year 2078/79. Along with it deposit stood at 52071 million in the year 2078/79.

8) Net profit to total assets

Table 8: Showing net profit to total assets ratio

Year 2074/75 2075/7 2076/77 2077/7 2078/79

6 8

Ratio 1.83 1.765 1.67 1.72 1.12

(%)

Net 487 546 622 240 700

profit

Total 26540 31070 37374 43041 62639

 assets

70000

60000

50000

40000
Series 1
30000 Series 2

20000

10000

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure8: Showing net profit to total assets ratio

In the above table, we can demonstrate that net profit of company is growing rapidly along
with total assets of company. The ratio of net profit of company to total assets was 1.83 % in
the year and amounting is RS. 487 million in 2074/75 which reached to 700 million in the year
2078/79. The total deposits of bank are constantly rising to 62639 million.

9) Net profit to total deposit ratio

Table 9 showing net profit to total deposit (IN MILLION)

Year 2074/75 2075/76 2076/77 2077/78 2078/79

Ratio (%) 2.09 1.97 1.86 1.95 1.34

Net profit 487 546 622 740 700

 Total deposits 23256 27578 33422 37950 52071

2.5

1.5

Series 1
1

0.5

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure9: Showing the ratio of net profit to total deposit from the year 2074/75 to 2078/79.

We can see that net profit ratio to total deposits has been constantly declining over the period
even though net profit is increasing. The highest ratio was 2.09 in the year 2074/75 and lowest
in the year 2078/79.

EARNING PER SHARE (EPS)

Table 10: showing earning per share of company (In millions)

Year 2074/75 2075/76 2076/77 2077/78 2078/79

EPS 20.666 22.45 24.89 27.42 11.72

Net profit 487 546 622 740 700

 No. of share 23568957 24316815 24991670 26991700 59694600

30

25

20

15
Series 1

10

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure10: Showing earning per share of company.

In the given figure we can analyze the earning of company from the year 2074/75 to 2078/79.
From the figure what we can say is that the EPS of company is constantly rising from 2074/75 to
2078/79. But in the year 2078/79 EPS fell to 11.72 per share. In the year 2077/78 the earning of
company was highest and that was RS. 27.42 per share.

Leverage ratio

This ratio is called solvency ratio or capital structure ratio or debt management ratio. A firm
should have strong short term as well as long term financial position. To judge the long term
financial position of the firm, these ratio helps to measure the financial contribution of owner
and creditors comparatively. These ratio indicate the situation of the capital structure, which is
calculated to measure the company’s ability of using debt for the benefit of shareholders. Long-
term creditors like debenture holders, financial institution Etc. are more interested to the firms
long term financial health, debt servicing capacity and strength and weakness of the concerns.
This ratio may be calculated form the balance sheet items to determine the proportion of debt
in total financing. In summary debt ratio tell us the relative proportion of capital contribution by
creditors and by owners.
11. Debt assets ratio

Table 11 showing debt to assets ratio (IN MILLION)

Year 2074/75 2075/76 2076/77 2077/78 2078/79

Ratio (%) 89.58 90.43 91.04 90.5 87.1

Total debt 23775 28051 34025 38954 54556

Total assets 26540 31020 37374 43041 62639

70000

60000

50000

40000
Series 1
30000 Series 2

20000

10000

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure11: Showing Debt to total assets ratio of the company.

TOTAL DEBT TO TOTAL EQUITY
Figure 12 showing debt to total equity (IN MILLIONS)

Year 2074/75 2075/76 2076/77 2077/78 2078/79

Ratio (%) 11.63 10.57 9.8 10.49 14.81

Total debt 23775 28051 34025 38954 54556

Total 2765 2965 3347 4087 8081

equity

60000

50000

40000

30000 Series 1
Series 2

20000

10000

0
2074/75 2075/76 2076/77 2077/78 2078/79

Figure12 showing total debt to total equity

In the above figure, we can see the portion of equity and debt fund to total assets. From the
table we can say that the ratio of debt is constantly increasing with increasing equity. In the
figure, we total debt has been constantly rising from 2074/75 to 2078/79. And the equity has
also been rising to 8081 million from 2765 million from 2078/79 onwards. The company has
highest debt of RS. 54556 million in the year 2078/79.