ratio of owner's equity 8 %, the ratio of non- performing loan 8% or less). An indicator of financial soundness, such as the ratio of non-performing loan, BIS the ratio of owner's equity, delinquency is much better compared to other savings banks as showed in doubts below.
3. Solomon’s Financial Products
Solomon Bank deposit and loan products are as follows:
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The NPL ratio of Woori bank has greatly increased from 4Q in 2008 to 4Q in 2010,
because of PF loan (nomal→ non-performing) 1.1 trillion won.
The NPL ratio of Woori(3.34) was greater than the NPL ratio of bank average(1.89) at 4Q in 2010.
It was bad, compared to the NPL ratio of bank average.
What Does NPL Coverage Ratio Mean?Financial ratio measuring a bank's ability to absorb potent
non-cyclical PDs in IRB requirements through the application of a scalar that converts the outputs of a bank’s underlying PD models into through-the-cycle estimates.
b. Forward looking provisioning
23. The Committee is promoting stronger provisioning practices through three related initiatives. First, it is advocating a change in the accounting standards towards an expected loss (EL) a
loans, deducting 3,394,212,490 thousand won from the company's cash.
In conclusion, the CFS of SK Telecom reveals how much cash it generates and, particularly, how much of that cash stems from core operations, which could be inferred from neither balance sheet nor income statements. In 2009, SKT went through decrease in cash and cash equivalents by 1,41,469,167 thousand won, which made total ca
non-euro zone countries
2.1 Causes of eurozone crisis and structural problems
2.1.1 Progress of the euro zone financial crisis and its causes
In the conditions of the global financial and economic crisis, a majority of European countries launched large programs to reanimate the economic situation and save jobs. As the massive fiscal spending is inevitable in the process of addressing the econo
rational use and maintain profitability so that the company might rely on higher land values instead of actively doing operational activities for increasing profits. Also, it creates unearned return. In other aspects, however, revaluation of fixed asset can be helpful if the company decides to invest in another business because revalued price can tell the exact price that Naver can be paid when i
performances, on a consolidated basis, with revenue of KRW 41.79 trillion, operational profit of KRW 46.96 trillion, a 29.5% increase over 2007. EBITDA, an index of cash-generating capability, was KRW 9.55 trillion, significantly greater than the KRW 7.04 trillion in 2007.
Question C. Evaluate the liquidity
1) current ratio
The current ratio is a financial ratio that measures whether or
performance of SK energy
To evaluate the performance of SK energy, we analyzed the activity they have done with sales revenue, gross profit, operating profit, and net income for 3years by using income statement. Before we check, we need to know the numbers about their performance. The important thing is to see the meaning behind the numbers. Because seemingly, it looks good, but the problem
ratio
it is a means to measure the adequacy of available cash. Without cash, even a profitable business will fail.
It is computed as below :
※General
High Cash ratio means that the company has enough liquidity, but does not have good effects sometimes as cash is a non-risky asset. It is also uneconomical - opportunity cost. So cash ratio is managed adequately.
※Caution