Financial Ratios Analysis
Abstract
Financial analysis is an indispensable tool in order to get the most informative parameters. They provide objective and accurate picture of the financial condition of the company, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors. It is important to understand at what stage of development of the business owner starts to receive this income, and what are the opportunity costs affect this. For the objective assessment of the financial situation of the company, we must move from individual credentials to certain value-relations major factors - financial ratios. The use in the calculation of financial ratios makes it possible to improve the "quality" assessment, as well as an objective opinion on the financial situation of the company.
Consequently, it allows to determine the range of information that is important to users of financial statements in terms of decision-making, and represents an opportunity to more deeply assess the situation of the reporting unit in the system of management and trends.
Financial ratios analysis of Qatar’s financial institutions
Financial analysis in commercial bank plays a major role in enhancing the reliability and quality control, as the determining factor in the viability of an individual bank and the banking system as a whole.
Among the most important features of the banking, financial analysis include the fact that the activities of banks are closely connected with the phenomena and processes taking place in the environment of their operations. Therefore, objectively necessary to carry out the analysis of National Bank of Qatar (NBQ) and Commercial Bank of Qatar (CBQ) based on financial ratios.
The beginning and the biggest bank – Qatar National Bank established in 1964 as the first State Commercial Bank of Qatar, as 50% of the shares of the institution owned by the Qatar Investment Management. In this regard, "the National Bank of Qatar" with the capital of more than 51 billion dollars has privileges compared with other financial institutions of the emirate.
In addition, the bank is a leader in corporate issues: for several years, he was the first on the issue of government bonds. This is the largest bank has 41 branches in Qatar, which is usually carried out commercial operations. With regard to the activities of "National Bank of Qatar" abroad, its geography is vast (About QNB Group; n.d.).The second largest in Qatar is a "Commercial Bank of Qatar", created in 1975 as the first fully private commercial bank. To date, the total capital of the bank amounts to 20 billion dollars. The financial institution has 29 offices in Doha, as well as a broad and well-developed network of offices engaged in electronic money transfers around the world. It is remarkable that from year to year, "Commercial Bank of Qatar" steadily increasing their profits. For example, in 2009 the bank earned about 420 million dollars. It owns 7% of the total assets of the entire institution. "Commercial Bank of Qatar" has a 35% stake in the "National Bank of Oman", as well as …
