Question One Find below an extract of the financial statements of Camset Microfinance Limited. Required: Using the following ratios, assess the performance of the firm over the 2- year period, 2019 to 2020. (40 marks) i. Return on assets (ROA) ii. Return on equity (ROE) iii. Operating profit margin iv. Operating efficiency ratio Portfolio to assets Loan loss provision (impairment loss expense) ratio vii. Debt to equity (leverage) viii. Equity to assets ratio ix. Loans to deposits ratio Liquid assets to total assets xi. Operational self-sufficiency xii. Financial expense ratio V. vi. X. COMSET MICROFINANCE LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2020 2020 2019 GHS GHS 40,149,532 24,024,399 Interest and similar income -28,668,669 -16,768,396 Interest and similar expense 11,480,863 7,256,003 Net interest income 4,693,910 3,644,380 Fees and commission income -200,194 107,737 Other operating income 15,974,579 11,008,120 Total operating income -3,032,400 -797,816 Impairment loss 12,942,179 10,210,304 Net operating income -4,503,033 -3,254,808 Personal expenses -688,995 -816,399 Finance costs -3,295,524 -2,972,383 General, selling and administrative expenses -8,487,552 -7,043,590 Total operating expenses 4,454,627 3,166,714 Profit before Tax -1,138,209 -981,512 Income Tax 3,316,418 2,185,202 Profit after Tax Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE 3,316,418 2,185,202 YEAR Question One Find below an extract of the financial statements of Camset Microfinance Limited. Required: Using the following ratios, assess the performance of the firm over the 2- year period, 2019 to 2020. (40 marks) i. Return on assets (ROA) ii. Return on equity (ROE) iii. Operating profit margin iv. Operating efficiency ratio Portfolio to assets Loan loss provision (impairment loss expense) ratio vii. Debt to equity (leverage) viii. Equity to assets ratio ix. Loans to deposits ratio Liquid assets to total assets xi. Operational self-sufficiency xii. Financial expense ratio V. vi. X. COMSET MICROFINANCE LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DECEMBER 2020 2020 2019 GHS GHS 40,149,532 24,024,399 Interest and similar income -28,668,669 -16,768,396 Interest and similar expense 11,480,863 7,256,003 Net interest income 4,693,910 3,644,380 Fees and commission income -200,194 107,737 Other operating income 15,974,579 11,008,120 Total operating income -3,032,400 -797,816 Impairment loss 12,942,179 10,210,304 Net operating income -4,503,033 -3,254,808 Personal expenses -688,995 -816,399 Finance costs -3,295,524 -2,972,383 General, selling and administrative expenses -8,487,552 -7,043,590 Total operating expenses 4,454,627 3,166,714 Profit before Tax -1,138,209 -981,512 Income Tax 3,316,418 2,185,202 Profit after Tax Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE 3,316,418 2,185,202 YEAR
