Financial Decision Making Contents Section A:3 Company Overview

Running Head: Financial decision making
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Project Report: Financial Decision Making

Financial decision making
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Contents
Section A:.........................................................................................................................3
Company overview.......................................................................................................3
Horizontal and vertical analysis....................................................................................3
Profit analysis...............................................................................................................3
Financial ratios..............................................................................................................4
Profitability ratios.....................................................................................................4
Dividend ratios..........................................................................................................7
Stability and liquidity ratios....................................................................................10
Efficiency ratios......................................................................................................12
Industry average analysis........................................................................................15
Stock exchange...........................................................................................................17
Comparative analysis..................................................................................................17
Conclusion..................................................................................................................17
Section B.........................................................................................................................19
Motives of acquisition................................................................................................19
Impact on brand and reputation..................................................................................19
Governance report......................................................................................................19
Vision and strategic financial parameters (Conclusion).............................................19
References.......................................................................................................................21
Appendix.........................................................................................................................23

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Section A:
Company overview:
DBS holdings group is a Singaporean company which is basically an investment
company and operates its business to offer the services to its clients about the investment.
This company also offers the commercial banking services. There are various subsidiaries of
the company which manages and operates the functions of the company. DBS bank limited
has engaged in various banking and investment services. Mainly the business of the company
is operated in Asia. The main services of the company are institutional banking, treasury,
wealth management, consumer banking etc. the segment of institutional banking offers
financial products and services to its institutional clients which includes non bank financial
institution, corporate, government lined companies, medium companies and small companies.
The total turnover of the company has been estimated and it is $ 10.28 billion
according to the annual report of the company of 2016. This company has been founded in
1968. The company has been registered in Singapore stock exchange by the name of D05.
Currently, around 22,194 people are employed by the company (Reuters, 2018). The major
competitor of the company is OCBC (overseas- Chinese Banking Corporation limited). The
total turnover of the OCBC bank has been estimated and it is $ 8.55 billion according to the
annual report of the company of 2016.
Horizontal and vertical analysis:
Horizontal analysis and the vertical analysis are the part of financial evaluation. It
assists the company to manage and evaluate the financial position of the company on the
basis of financial position of the company. Horizontal analysis compares the financial figures
of the company from last year’s data or a base year data to reach over a conclusion about the
position of the company (Weygandt, Kimmel and Kieso, 2009). On the other hand, vertical
analysis is used to evaluate the comparative study. The trend and the changes into the
financial position of the company have been given in the appendix.
Profit analysis:
Further, for evaluating the financial performance and the profitability position of DBS
group holdings, profit of the company and the industry has been evaluated. The study over

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financial industry explains that the performance of the industry is continuously increasing;
the financial industry has a great % in the total GDP of the country and at the same time, the
profitability position and the market position of the company has been way better in last few
years (Higgins, 2012). The economy position of the financial industry is quite impressive and
it attracts the investors to invest into the financial firms of the industry.
Financial ratios:
Further, it has been investigated that the ratios are the best way to evaluate the
position, performance and the profitability level of the company. Ratios make it easy for the
company to make a better decision about the performance of the company and the investment
in the company. Following study explains about the ratios study of the company:
Profitability ratios:
Profitability ratios are the part of the financial ratios. Profitability ratios takes the net
profit, gross profit, operating profit etc in the concern and compares it with the COGS, sales,
assets, equity etc of the company to evaluate the profitability level of the company and how
the company is using its profit? Profitability ratios include various ratios such as gross profit
ratio, net profit ratio, return on equity, return on assets etc. every profitability ratio is
calculated to make a different evaluation and the decision (Du and Girma, 2009).
Gross profit:
The position of gross profit explains the management and the stakeholders of the
company about the level of the gross profit in context with the total revenue of the company.
The gross profit level of the company is expressing about positive increment. Calculation of
gross profit ratio is as follows:
Description Formula DBS GROUP HOLDINGS LTD
2016 2015 2014 2013 2012
Gross Profit
Gross
profit/
revenues 74.94% 73.62% 70.64% 69.73% 69.35%

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Net margin:
The position of net profit explains the management and the stakeholders of the
company about the level of the net profit in context with the total revenue of the company.
Calculation of net profit ratio is as follows:
Descriptio
n Formula DBS GROUP HOLDINGS LTD
2016 2015 2014 2013 2012
Net margin
Net
profit/revenue
s 42.96% 45.80% 45.22% 45.98% 49.98%
(Morningstar, 2018)

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Return on equity:
The position of return on equity explains the management and the stakeholders of the
company about the level of the net profit in context with the total equity of the company.
Calculation of return on equity ratio is as follows:
Description Formula DBS GROUP HOLDINGS LTD
2016 2015 2014 2013 2012
Return on
equity
Net
profit/Equity 9.39% 10.94% 10.73% 10.73% 12.00%
(Morningstar, 2018)
Return on assets:
The position of return on assets explains the management and the stakeholders of the
company about the level of the net profit in context with the total assets of the company.
Calculation of return on assets ratio is as follows:
Description
Formul
a DBS GROUP HOLDINGS LTD
2016 2015 2014 2013 2012
Profitability