Quantitative Analysis of RBC Financial Data (2009-2018)

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QUANTITATIVE SKILLS FOR BUSINESS
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Table of Contents
Introduction......................................................................................................................................2
Data..................................................................................................................................................2
Analysis...........................................................................................................................................7
Conclusion.......................................................................................................................................9
Reference.........................................................................................................................................9
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Introduction
This report is based on the data of the Royal Bank of Canada; which is the bank in Canada.
Royal Bank of Canada is a multinational bank. It provides financial services to its customers.
With the point of view of market capitalization, RBC is the largest bank in Canada. RBC has
been established in 1864 with some other name. The employees of the Royal Bank of Canada are
about 80,000 worldwide and about 16 million clients. The bank has about 1,209 clients. The
Royal Bank of Canada has been provided many services to its clients. In this report mean,
median and index number has been calculated and they are calculated based on total revenue,
total assets and net income of Royal Bank of Canada. This data has been taken from the annual
reports or the past 10 years (2009-2018).
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Data
Year Total
Revenue
Net
Income Total Assets Index Number
Net
Income
Total
Assets
2009 $
29,106.00
$
3,858.00
$
654,989.00
$
0.13 $ 22.50
2010 $
26,082.00
$
5,223.00
$
726,206.00
$
0.20 $ 27.84
2011 $
27,638.00
$
6,444.00
$
793,833.00
$
0.23 $ 28.72
2012 $
29,147.00
$
7,507.00
$
1,312,295.00
$
0.26 $ 45.02
2013 $
30,682.00
$
8,342.00
$
1,027,878.00
$
0.27 $ 33.50
2014 $
34,108.00
$
9,004.00
$
940,550.00
$
0.26 $ 27.58
2015 $
35,321.00
$
10,026.00
$
1,074,208.00
$
0.28 $ 30.41
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2016 $
38,405.00
$
10,458.00
$
1,180,258.00
$
0.27 $ 30.73
2017 $
40,669.00
$
11,469.00
$
1,212,853.00
$
0.28 $ 29.82
2018 $
42,576.00
$
12,431.00
$
1,334,734.00
$
0.29 $ 31.35
(rbc, 2019)
Index number is used in measuring the change that has been occurred in the variables over time.
Index number is used in economics. It is used to measure trends. Trends are measure in the large
variety of areas which include cost of living, stock market price, agricultural or industrial
production and in imports. In economics, index number has been most used tool of statistics.
Index number is generally expressed in percentages. This is used to study the changes and their
effects in some factors and these can factors cannot be measured directly. This technique is also
used to compare the phenomenon level on a particular date with the level on a past date. The
items in the index number should be measureable. Index number is calculated for some particular
reason (Vogt, & Barta, 2013).
Mean Sum of all items
Total number of
items
Total $
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Revenue 33,373.40
Net Income $
84,762.00
Total Assets $
10,257,804.00
(RBC, 2019)
The mean shows the average of all the numbers. This is also known as the arithmetic mean. For
calculating mean, ass all the numbers of the set and then divide them by the total count in the set.
It is very simple to calculate the arithmetic mean and also very easy to understand. For
calculation of mean all the values in the series are taken (Marrinan, et. at., 2014).
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Median
Total
Revenue
$
32,395.00
Net Income $
8,673.00
Total Assets $
1,051,043.00
(investors.rbs, 2019)
Median is the middle value in the set of data as its name suggests. In some series of data, the
median is very easy to calculate just by inspecting the series. But if the series contains large
numbers than it is difficult to calculate the median. The median is not affected by the extreme or
external values of series because its median lies in the middle part in a series. It can also be
calculated for the grouped frequency distribution. The open-ended series used the median the
most. The items have to be arranged before computing median and in the situation where the
items are in large number, the calculation process is very difficult. Mean is not affected by the
sampling fluctuations but the median has been affected by this (Deshpande, et. at., 2016).
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Analysis
Central tendency is a single value that describes the whole set of data. It describes within the set
of the data only by identifying the central position. Central tendency is also known as the
measure of central tendency or measure of central location. Central tendency shows a descriptive
summary of a set of data only from a single value. There are three measures of central tendency
that are mean, mode and median. All three have been calculated from the set of data (Deshpande,
et. at., 2016).
The mean shows the sum of all data or values from the dataset and then divides them by the
total number of items or values (Marrinan, et. at., 2014).
The median is calculated by arranging the dataset in ascending order and then after than middle
value will find out.
The model is computed by identifying the value which is frequently occurring most of the time.
Total revenue, net income and total assets of the Royal Bank of Canada have been used for the
calculation of mean, median, and an index number. The data has been taken from the past 10
years (2009-2018).
The index number has been calculated by selecting base data. Total revenue has been taken as
base data for calculation of the index number of net income and total assets. So, total revenue has
become 1 because by calculating total revenue with total revenue the answer will be 1. After
selecting the base data all the other data will be divided with the base data to find out the index
number (Vogt, & Barta, 2013).
The index number of net income from the year 2009 to 2013 is in increasing trend and after 2013
they are in fluctuating trend. For the total assets the index number is in increasing order from the
year 2009-2012 and after this, the index number is in fluctuating order. This measures the
changes in net income and total assets from 2009-2018.
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The mean is calculated by averaging the data of the set. The mean of total assets of the Royal
Bank of Canada is highest and total revenue has the lowest mean.
The median has been computed by finding the middle value of the series. The formula for the
calculation of the median is different for both the event and odd series. For the even series, the
median value is calculated by n/2 and for odd values in the series; the median is calculated by
n+1/2.
The median for the Royal Bank of Canada is the highest of total assets the same as the mean but
the lowest mean is of net income here (Vogt, & Barta, 2013).
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Conclusion
In the last of this report, it has been concluded that the Royal Bank of Canada is the largest bank
in Canada, which provides many services and they have a huge customer base as well as many
employees. From the past data of the Royal Bank of Canada mean, median and index number has
been calculated which is calculated by taking three variables from the annual reports of 2009-
2018. The variables taken are total revenue, total assets, and net income and based on this
information and data derived from the central tendency as well as index number are calculated.
Mean, mode and median are the measures of central tendency. The index number is used to
measure the changes in the set of data.
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Reference
 Deshpande, S., Gogtay, N. J., & Thatte, U. M. (2016). Measures of central tendency and
dispersion. Journal of the Association of Physicians of India, 64, 64-66.
 Groebner, D. F., Shannon, P. W., Fry, P. C., & Smith, K. D. (2013). Business statistics. Pearson
Education UK.
 investors.rbs. (2019). Retrieved 8 August 2019, from
https://www.investors.rbs.com/~/media/Files/R/RBS-IR/annual-reports/ar-2018/rbs-fy2018-
financial-statements.pdf
 Marrinan, T., Ross Beveridge, J., Draper, B., Kirby, M., & Peterson, C. (2014). Finding the
subspace mean or median to fit your need. In Proceedings of the IEEE Conference on Computer
Vision and Pattern Recognition (pp. 1082-1089).
 rbc. (2019). Retrieved 8 August 2019, from
http://www.rbc.com/investorrelations/pdf/ar_2014_e.pdf
 Vogt, A., & Barta, J. (2013). The making of tests for index numbers: Mathematical methods of
descriptive statistics. Springer Science & Business Media.
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