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Financial statement analysis of leading leasing industry in Bangladesh
- By Super Admin
- Published 7 September 2006
- Report, Assignment, Case Study and Term Paper
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Return on Total Assets:
The return on investment measures the overall effectiveness of management in generating profits with its available assets. In comparison, year 1998 was less than year 1997 in both companies because both companies reduced “net profit after tax” than increased “total assets”. ULC’s return on total assets was little bit better than IDLC.
1997 1998
IDLC
Net Profit after tax 89,396,230 47,628,454
Total Assets 1,425,467,974 1,412,017,378
Return on total assets 6.27% 3.37%
ULC
Net Profit After Tax 63,864,232 44,146,107
Total Assets 956,382,647 1,142,895,614
Return on total assets 6.67% 3.86%
Return on Equity:
The return on equity measures the return earned on the owners’ investment in the company. The return on equity of ULC is better than IDLC because the equity is of ULC is smaller than IDLC though net profit of ULC is smaller than IDLC.
1997 1998
IDLC
Net Profit after tax 89,396,230 47,628,454
Total Equity 325,848,845 336,023,982
Return on equity 27.43% 14.17%
ULC
Net Profit after tax 63,864,232 44,146,107
Total equity 249,837,687 282,039,720
Return on equity 25.56% 15.65%
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Financial statement analysis of leading leasing industry in Bangladesh