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:

Poor asset quality is reflected in the loans written off or loans loss ratio, […]

One of the fundamental reasons for a bank/financial institution to collapse is its poor asset quality namely giving out bad or poor credit standard loans Not even foreign exchange exposure, deposits, maturity mismatches and open positions can hit it so hard to cause a bank/financial institution to collapse ! When a bank/financial institution get […]

Earlier, the market/book ratio has been mentioned now we look at another useful market based ratio which is known as the Market value added ( MVA).
MVA is the difference between the market value of the company and the total capital invested in the company.
The formula of MVA is =
market capitalization ( number of equity shares […]

One of the essential ratio to investors and analysts is the market to book ratio.
This ratio expresses the relationship between a company’s value in the stock market and the net asset value as per the company’s balance sheet.
The formula is = market price per share/book value per share.
The purpose of this ratio is to indicate […]

The following are some articles on DuPont Model
 DUPONT System –Overview Of Return On Assets & Return On Equity
 DUPONT System-A Matter Of Leverage Or Is It Financial Efficiency