Financial Statement Analysis of Sonali Bank Limited

Abstract

The study applies financial statement analysis of Sonali Bank Limited, Suihari Branch Dinajpur. It means evaluate how well the company performs. The actual objective is achieved through ratio analysis and trend analysis of financial position and overall activities of SBL. The actual objective was to compare and examine empirically the financial performance of this public bank. The main data has collected from the annual financial reports of SBL, from 2016 to 2020. Financial performance is evaluated through two method-Trend analysis and Ratio analysis. Trend analysis are conducted for total deposit, total loan, total profit or loss, from 2016-2020. Trend analysis of “total deposit” and “Income Statement” show chronological grow from 2016-2020, total loan and advance is the highest in 2020 than other year, total deposit in 2020 is highest than other year. Different financial ratio are evaluated such as Current Ratio (CR), Quick Ratio (QR), Net Working Capital, Activity Ratio, Total Asset Turnover, Investment to Deposit Ratio, Cash Reserve Ratio (CRR) are finally measure and analysis the performance for the period 2016-2020. The mathematical calculation, graphical analysis, and comparisons are applies for measuring the position of income and expenditure, net profit, total deposit and advance, loan and total profit for this bank. Current ratio is gradually increasing from 2016 to 2020. The current ratio improved over time marginally. The situation was almost stable. Net Working Capital was highest in 2020 as well as increase step by step. The study represents all results of financial performance measures go in favor of this bank average. However, the results also show the SBL is improving overtime considerably in those ratios and financial trends during the period under the study.