FINC 408: MICROFINANCE

Practice Question
Find in the table, spreadsheet ratio output on Support assurance Microfinance.

Ratio 2020 value 2019 value

Loans to deposits ratio 1 1
Operating profit margin 34.42% 31.01%
Portfolio to assets 43.90% 51.10%
Loan loss provision (impairment loss expense) ratio 5.12% 1.74%
Debt to equity (leverage) 4.546 3.035
Return on equity (ROE) 12.77% 9.80%
Equity to assets ratio 1 1
Liquid assets to total assets 1.007560976 1.006571
Operating efficiency ratio 44.10% 77.10%
Operational self-sufficiency 1.000032559 0.999943
Financial expense ratio 1 1
Return on assets (ROA) 2.60% 2.50%

Required
The management of Support Assurance Microfinance has tasked you to present a report that
reviews the performance of the company over the two-year period.