Financial Research Report - Math Problem Example

These locations are thus the operational locations of the bank. The bank has been operated throughout the past 115 years and during this long term history, banking system all over the world has underwent a lot of change with respect to the technologies along with innovated products and services. The most interesting feature of the bank is that its mode of operating and doing business within the community did not change along with the market trend during its past numerous years of existence. The Chairman of Capital City Bank Group believes that his bank provides a favorable environment to the employees who work over there and provides great benefits to them through promotion of family values and various other amenities for making them feel like home (Capital City Bank Group, 2011).

Capital City Bank Group is an outstanding performer in the US banking industry and the bank holds an excellent position of repute not only within the industry but within the business communities as well. The success of the bank is evident through the various achievements it has attained throughout its years of operations within the industry. During the recent past, the bank has expanded towards a wide geographical location outside the area of Tallahassee. Along with expansion through physical location spreading, the bank has also increased its reach of client towards various locations of the country (Capital City Bank Group, 2011).

Capital City Bank Group is a financial services company which comprehensively values to its customers and this form of the bank’s business operations has added genuine value towards the prospect of the company. The prospect will be validated in the next sections of this research paper in terms of ratio and trend analysis of the banks’ performance over the past three years and projecting those of the future three years. Along with the projection of future performance of the bank, the stock performance will also be compared with that of S&P’s 500 Index for evaluating the prospect of investing in the bank’s stocks.

Ratio Analysis The ratio analysis and the trend analysis in this section will be performed with the help of past three years’ financial figures collected from the annual reports of Capital City Bank Group. The sources from where the data related to financial performance of the bank has been collected have been provided at the end of this research report. Ratios Actual 2008 Actual 2009 Actual 2010 Projected 2011 Projected 2012 Projected 2013 Liquidity Ratios Current Ratio= Current asset / current liability 1.34 0.96 1.86 1.89 1.94 1.98 Debt to equity ratio= Total liabilities / Owner’s equity 7.53 8.13 8.99 9.23 9.46 9.55 Operating Efficiency Ratio 64.91 % 77.33 % 84.23 % 86.25 % 88.37 % 92.33 % Profitability Ratios Return on sales or profit margin= (Net profit / Net Sales) *100 10.

66 % - - 2.89 % 3.56 % 6.89 % Return on assets= (Net Profit / Total Assets)*100 0.59 % - - 0.52 % 0.56 % 0.62 % Return on equity= (Net profit / Owner’s equity)*100 5.06 % - - 4.11 % 6.45 % 9.12 % Note: Ratios related to net profit during the years 2009 and 2010 have been kept blank due to the reason that