Asset Quality –Earnings Coverage

To assess the Asset Quality of Banks/Financial Institutions,the following ratios need to be analyzed:

Loans Loss Non-performing loans to total loans   Loan Recoveries ratio Loan Loss Reserves EARNINGS COVERAGE Capital Adequacy Capital Formation Ratio Capital to Assets Growth Gross Capital to Average Assets plus Reserves 

  Ratio Purpose Formula  Earnings Coverage Ratio [...]

Asset Quality – Adequacy Of Loan Loss Reserves

To assess the Asset Quality,the following ratios need to be analyzed:

Loans Loss Non-performing loans to total loans   Loan Recoveries ratio LOAN LOSS RESERVES   Earnings coverage Capital Adequacy Capital Formation Ratio Capital to Assets Growth Gross Capital to Average Assets plus Reserves

ADEQUACY OF LOAN LOSS RESERVE   

Ratio Purpose Formula [...]

Defensive Interval

One interesting liquidity ratio is the defensive interval which reflects theoretically how long the company can survive or defend itself in terms of its available cash plus cash equivalent ( most liquid cash) versus its daily cash operating requirement.

Ratio

Purpose Formula Defensive ratio Used to indicate the [...]

Asset Quality-Non Performing Loans To Total Loans

To assess the Asset Quality of Banks/Financial Institutions,the following ratios need to be analyzed:

Loans Loss NON-PERFORMING LOANS TO TOTAL LOANS Loans Recoveries Rate Loans Loss Reserve Earnings coverage Capital Adequacy Capital Formation Ratio Capital to Assets Growth Gross Capital to Average Assets plus Reserves

 

NON-PERFORMING LOANS TO TOTAL LOANS   

Asset Quality-Loans Loss

To assess the Asset Quality of Banks/Financial Institutions,the following ratios need to be analyzed:

LOANS LOSS Non-performing loans to Total Loans Loans Recoveries Ratio Loans Loss Reserves Earnings coverage Capital Adequacy Capital Formation Ratio

Capital to Assets Growth

Gross Capital to Average Assets plus Reserves

LOANS LOSS:

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