UBL Vs HBL

Ratio Analysis
Group Members:
M.Arslan 0042 Jawad Yaseen 0035
M.Noman 0020 Adeel Aness 0033
Shazaib 0063
UBL vs. HBL

 Outline:
 Introduction
 Ratio Analysis
 Interpret
 Comparison
 Question Session
United Bank Limited:

 Introduction:
• United Bank Limited (UBL) is one of Pakistan’s

largest banks in the private sector. It include 1,400+
branches across Pakistan and 19 branches overseas.
• The network also boasts 1,100 ATMs and 480+

Contact Centre Agents across Pakistan. With a
customer base of over 4 million
Habib Bank Limited:

 Introduction:
 HBL was the first commercial bank to be

established in Pakistan in 1947. Over the
years, HBL has grown its branch network
and maintained its position as the largest
private sector bank with over 1,700 branches
and 2,000 ATMs globally and a customer
base exceeding ten million relationships.
UBL vs. HBL

 Ratio Analysis:
 A ratio analysis is a quantitative analysis of

information contained in a company's financial
statements.
 No single ratio tells the whole picture
 Different ratios explain different aspects
Ratio Analysis

 Current Ratio:
 Measures ability to pay current liabilities with

current assets
 Formula:
= Current Assets / Current Liabilities
Ratio Analysis

 Acid Test Ratio:
 Shows ability to pay all current liabilities if they

came due immediately.
 Formula:
= Liquid Asset/ Current Liabilities
Ratio Analysis

 Gross Profit Percentage:
 Measures the profitability of each sales dollar

above cost of goods sold.
 Formula:
= Gross Profit / Net Sales
Ratio Analysis

 A/c Receivable turnover Ratio:
 Measures ability to collect cash from customers
 Formula:
= Net Credit Sales / Avg. net account receivable
Ratio Analysis

 Days sales in receivables:
 how many days it takes to collect the average level of

receivables
 Formula:
=365 / A/c receivable turnover ratio
Ratio Analysis

 Debt Ratio:
 Shows portion of assets financed with debt

 The higher the ratio, the higher the risk
 Formula:
= Total liabilities / Total Assets
Ratio Analysis

 Debt to equity ratio:
 The proportion of total liabilities to the proportion of

total equity that is financing the company’s assets
 Formula:
= Total liability / total equity
Ratio Analysis

 Times-interest-earned ratio:
 Measures number of times income can cover interest

expense
 High ratio indicates ease in paying interest
 Formula:
=EBIT / Interest Expense
Ratio Analysis

 Rate of return on total assets:
 Measures success in using assets to earn a profit
 Formula:
= net income+ interest expense / Average total assets
Ratio Analysis

 Rate of return on net sales:
 Percent of each sales dollar earned as net income
 Formula:
=Net income/Net sales
Ratio Analysis

 Rate of return on common stockholders’ equity:
 How much income is earned for each dollar invested by

common shareholders
 Formula:
= Net income – preferred dividend / Average common
stockholders’ equity
Ratio Analysis

 Earnings per share of common stock:
 Net income earned for each share of outstanding

common stock
 Formula:
= Net income – Preferred dividends / Number of
shares of common stock outstanding
UBL vs. HBL

 Comparison:
 Current Ratio:
UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Acid Test Ratio:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Gross Profit Percentage:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 A/c recevable Turnover ratio:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

Comparison:
 Days in receivable :
UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Debt ratio:
UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Debt to equity ratio:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Time interest earned ratio:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Rate on return on total assets:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Rate on return on net sales:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Rate on return on common stock holder’s equity:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Comparison:
 Earning per share of commmon stock:

UBL (2015), (2016)
HBL (2015), (2016)
UBL vs. HBL

 Result:



UBL Vs HBL

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Ratio Analysis

• United Bank Limited (UBL) is one of Pakistan’s

• The network also boasts 1,100 ATMs and 480+

 HBL was the first commercial bank to be

 A ratio analysis is a quantitative analysis of

 Measures ability to pay current liabilities with

 Shows ability to pay all current liabilities if they

 Measures the profitability of each sales dollar

 Measures ability to collect cash from customers

 how many days it takes to collect the average level of

 Shows portion of assets financed with debt

 The proportion of total liabilities to the proportion of

 Measures number of times income can cover interest

 Measures success in using assets to earn a profit

 Percent of each sales dollar earned as net income

 How much income is earned for each dollar invested by

 Net income earned for each share of outstanding

 Acid Test Ratio:

 Gross Profit Percentage:

 A/c recevable Turnover ratio:

 Debt to equity ratio:

 Time interest earned ratio:

 Rate on return on total assets:

 Rate on return on net sales:

 Rate on return on common stock holder’s equity:

 Earning per share of commmon stock:

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