You have been assigned as an analyst for comparing the performances of Blackburn Banking Corporation with Delta
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Question:
- You have been assigned as an analyst for comparing the performances of Blackburn Banking Corporation with Delta Banking Corporation during the year 2019; both the Banks have provided the following information:
Ratio | Blackburn | Delta |
ROE | 0.076 | 0.042 |
Operating Efficiency Ratio | 0.51 | 0.57 |
P/E Ratio | 10.5 | 10 |
Tax Management Efficiency | 0.44 | 0.51 |
Debt Ratio | 0.37 | 0.44 |
Net Profit Margin | 0.082 | 0.054 |
Asset Utilization | 0.94 | 0.79 |
DPS | 1.32 | 1.46 |
Market Book Ratio | 2.04 | 2.08 |
Times Interest Earned | 5.6 | 3.3 |
EPS | 3.26 | 1.81 |
In the annual report to the shareholders, the CFO of Blackburn Banking Corporation wrote, “2019 was a good year for the bank as we have made higher return and also shown better efficiency compared to our major competitor.” Is the CFO correct? Explain and use only relevant information and ratios in your analysis.
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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