Investment Assignment (Final Version)

ratios 2018 2019 2020 2021
current ratio 1.23 1.13 1.02 1.08
Total assets turnover 9.37% 9.45% 8.49% 7.56%
Net profit margin 6.95% 7.62% 0.77% 10.04%
return on assets (ROA) 0.60% 0.73% 0.07% 0.81%
return on equity (ROE) 5.04% 6.06% 0.61% 7%
Price to Earnings ratio (P/E) 8.93% 12.18% 143.57% 6.69%
payout Ratio 0.30% 0.27% 5.35% 0.05%
book value per share 33.26$ 35.94$ 35.08$ 42.33$
price to book value ratio 0.98 1.34 1.06 0.7
debt equity ratio 0.76 0.69 0.68 0.87
Current ratio: the liquidity of the bank was decreasing till 2020 because of corona pandemic.
And it restored back its recovery to increase again in 2021 achieving higher liquidity.
Total assets turnover: it increased by 0.08 % from 2018 to 2019 indicating that CIB was using its
assets efficiently, and it decreased by 1.89% from 2019 to 2021 indicating lower efficiency of
using assets to generate sales
Return on assets (ROA): it was increasing normally in 2018 and 2019 and it decreased in 2020
due to corona and it began to be stable again in 2021.
Return on equity (ROE): it was increasing normally in 2018 and 2019 and it decreased in 2020
due to corona and it began to be stable again in 2021.
Price to Earnings ratio (P/E): it was increasing during 2018/2019 as the price of the stock was
increasing and Investors would like to find stocks with rising P/E ratios. In 2020 the P/E was
relatively very high may be a signal that the stock is becoming overvalued and ready to fall and
this happened in 2021 when the stock price decreased as well as P/E.
payout Ratio: in 2020 it reached the highest value because the bank’s earning was falling
because of corona pandemic and caused rise in dividend payout ratio.
book value per share: in 2018 the stock was being sold at a price that was higher its book value
and that was optimum position while it was in 2019/2020, it was being sold at a price lower
than its book value and indicated a problem in the bank’s total assets and liabilities (the stock
was overpriced). In 2021, it returned to the optimum position (the stock price was lower than
its book value.
price to book value ratio: in 2018, the stock was at faired price as its price-to-book-value ratio
was less than one while it was in 2019/2020, the stock was overpriced as its price-to-bookvalue
ratio was more than one. In 2021, it returned stable again to be less than one.
debt equity ratio: Lower or declining ratio indicates lower risk exposure, and it happened till
2020. While it started to increase in 2021 when the Egyptian economy recovered partially. It
increased indicating a rise in funds provide by lenders and the bank could operate these funds.
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