PROJECT TITLE

TREND ANALYSIS OF LIQUIDITY, PROFITABILITY AND SOLVENCY IN BANKS

OBJECTIVE

Financial Statement Analysis is most relevant to shareholders, business decision-makers and planners, creditors and investors.

Any company should always financially stay healthy, competent, and profitable in a competitive and dynamic business environment. In order to measure the short and long term financial soundness of the company ratios help to examine the following:

i)- whether the company is able to utilize its assets effectively.

ii)- whether the profit margins are in line of its assets.

iii)- whether the company is having optimal investment in fixed assets.

iv)- whether the company is having optimal investment in current assets to maintain a balance between liquidity and profitability.

The objectives of this study are listed below:

1) To analyze the financial performance of Banks, by comparing the financial statement i.e. Income Statement; Retained Earnings Statement and the Balance Sheet.

2) To analyze the profitability of the company

3) To analyze the liquidity of the company.

4) To analyze the solvency of the company

5) To analyze whether the company is using its resources and funds effectively or not

6) To suggest ways to improve the profitability, liquidity, and solvency of the company.