Sheet1UTTARA FINANCE AND INVSTMENT LTD20112010IDLC FINANCE LTD20112010UNITED LEASE20112010CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITIES3.90%3%2.25%3.52%1.80%1.95%NET PROFIT MARGIN=NET INCOME/SALES REVENUE34%24%38.35%40.35%30.39%27.83%RETURN ON EQUITY= NET INCOME/TOTAL EQUITY17%10%45.56%46.82%14.13%19%RETURN ON ASSET=NET INCOME/TOTAL ASSET4.30%2.20%4.97%4.85%1.90%2.25%TOTAL ASSET TURNOVER=SALES REVENUE/TOTAL ASSETS0.130.090.130.120.150.17INTEREST COVERAGE RATIO=EBIT/INTEREST EXPENSE0.791.110.580.770.690.74The above calculation shows us the ratio analysis of Uttara finance and investment ltd , IDLC finance ltd & United Lease.We can observe that there is a huge difference between these three finacialinstitution.In Current ratio we can see that in 2010 IDLC has 3.52% very less than Uttara Finance which is 93%And United Lease has a current ratio of 1.95% which is also less than uttara finance.The current ratio is an excellent diagnostic tool as it measures whether or not business has enough resources to pay its bills over the next 12 months.As uttara finance has greater current ratio it means uttara finance is doing well in the business.They are in the good position.Same goes for 2011, again we can see that the current ratio in Uttara Finance is higher which is 83.90% than IDLC with 2.25% and United lease with 2.25% They have all decreased than its previous year.This number is an indication of how effective a company is at cost control. The higher the net profit margin is, the more effective the company is at converting revenue into actual profit.Here in both the years of 2010 and 2011 IDLC is at the top from Uttara finance which is 40.35% in 2010 and 38.35% in 2011 and same goes for ULC. IDLC is making more profit than Uttara finance and ULC.ROE reveals the profit a company generates using the money that shareholders have invested in the company. ROE lets investors know how well their money is being utilized. It measures the companys ability to generate profit.In IDLC the ROE in 2010 was 46.82% then it decreased to 45.56%. And in Uttara finance it was 10% in 2010 and it increased to17% in 2011 and in ULC it was 19% in 2010, then it was 14% in 2011. Here if we compare we can see that the IDLC is again higher than the Uttara Finance and ULC.ROA gives an ideaas to how efficientmanagement isat using its assets to generate earningsIn IDLC it was 4.85% in 2010 and then it increased to 4.97% and in Uttara finaceand in Uttara finance it was 2.20% in 2010 and later it increased to 4.30% and in ULC it was 2.25% in 2010 then it decline to 1.9% in 2011 but both are still less than IDLC.The total asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales. This ratio considers all assets, current and fixed.We can see that in 2010 it was 0.12 then it slightly increased to 0.13 in IDLC. And in Uttara it was 0.09 in 2010. It has also increased to 0.13 same as IDLC in 2011.In ULC it was 0.17 in 2010 then it went down to 0.13 in 2011.In Uttara finance it was 1.11 in 2010 nd it has also decreased to 0.79 in 2011.

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