1. CLASS : 2 GROUP: 7 PRESENTATION
FINANCIAL MANAGEMENT
Prof. Thomas Bradley
CAO SON
DOAN HUU DONG 332931
TRANG CHAN PHONG 332972
2. 1. Introduction
2. Financial Statements of HSBC Bank
3. Financial Statements of the competitor – ANZ Bank
4. Changes in industry
5. Financial Ratios between HSBC and ANZ
6. Financial Ratios of industry
7. Financial Ratios changes
8. Cash Conversion Cycle
9. Conclusion
CONTENTS
3. HSBC BANK INTRODUCTION
Founded in 1865 to finance trade between Asia and the West, today HSBC is one of the world’s
largest banking and financial services organizations serving some 51 million customers. Our aim is
to be acknowledged as the world’s leading international bank.
«HSBC is well-positioned in the faster-growing markets and across international trade flows
to benefit from these engines of global growth»
Stuart Gulliver,
HSBC Group Chief Executive
Headquartered was located in London, HSBC operates through long-established businesses and
an international network of more than 6,100 offices in 73 countries and territories
4. HSBC has a history rich in variety and achievement. Discover the major events in our past.
6. BALANCE SHEET
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Total Assets 924,231 751,928 773,003 2,671,318 2,634,139 64.9%
IN MILLION US DOLLAR
924231
751928 773003
2671318 2634139
2008 2009 2010 2013 2014
Total Assets
7. INCOME STATEMENT
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net Operating income 12,479 12,198 13,125 58,796 57,397 78.2%
IN MILLION US DOLLAR
12479 12198 13125
58796 57397
0
10000
20000
30000
40000
50000
60000
70000
2008 2009 2010 2013 2014
Net Operating Income
Net Operating Income
8. IN MILLION US DOLLAR
STATEMENT IN CASH FLOW
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net cash (used
in)/generated from
operating activities
25,927 -11,759 54,742 44,890 -21,370 -221%
25927
-11759
54742
44890
-21370
-30000
-20000
-10000
0
10000
20000
30000
40000
50000
60000
2008 2009 2010 2013 2014
Net cash (used in)/generated from operating activities
Net cash from operating activities
10. BALANCE SHEETS
IN MILLION US DOLLAR
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Total Assets 382,591 427,975 455,954 618,997 707,544 45.9%
382591
427975
455954
618997
707544
0
100000
200000
300000
400000
500000
600000
700000
800000
2008 2009 2010 2013 2014
Total Assets
Total Assets
11. INCOME STATEMENT
IN MILLION US DOLLAR
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net operating income 2,080 2,308 15,692 9,270 10,527 80.2%
2080 2308
15692
9270
10527
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2009 2010 2013 2014
Net operating Income
Net Income
12. STATEMENT OF CASH FLOW
IN MILLION US DOLLAR
YEARS 2008 2009 2010 2013 2014 Change from 2008-2014
Net cash (used in)/generated from
operating activities
3,372 1,308 -514 2,593 5 -67,340%
3372
1308
-514
2593
5
-1000
-500
0
500
1000
1500
2000
2500
3000
3500
4000
2008 2009 2010 2013 2014
Net cash from operating activities…
13. THE MOST SIGNIFICANT CHANGE
IN THE INDUSTRY
Times interest earned
2010 2013 2014
HSBC Bank
4.32 5 4.59
world bank Industry 2.26 1.86 2.28
Cột2
4.32
5
4.59
2.26
1.86
2.28
0
1
2
3
4
5
6
26. FINANCIAL RATIOS
RATIO ANALYSIS
2008 2009 2010 2013 2014
HSBC ANZ HSBC ANZ HSBC ANZ HSBC ANZ HSBC ANZ
Liquidity
Current ratio NA NA NA NA NA NA NA NA NA NA
Quick ratio NA NA NA NA NA NA NA NA NA NA
Cash ratio NA NA NA NA NA NA NA NA NA NA
Financial leverage ratios
Debt ratio 0.977 0.938 0.962 0.91 1,000 0.929 0.928 0.936 0.924 0.941
Times interest earned (2.42) 0 (5.7) 0 4.32 0 5 0 4.59 0
Cash coverage (2.37) 0 -5,56 0 4.32 0 5 0 4.59 0
Asset management
Inventory turnover NA NA NA NA NA NA NA NA NA NA
Day's sales in inventory NA NA NA NA NA NA NA NA NA NA
Receivables turnover 3.1 1.96 2.63 3.68 6.68 1.99 1 3.69 0.98 5.18
Day's sales in receivables 117.7 186.2 138.78 101.3 53.2 183.4 365 98.92 372.5 70.4
Total asset turnover 0.034 0.029 0.035 0.031 0.1 0.034 0.029 0.028 0.028 0.027
Profitability ratios
Profit margin 0.167 0.1 0.311 0.08 0.096 0.084 0.45 0.073 0.465 0.216
Return on total assets 0.0063 0.0033 0.01 0.0028 0,001 0.0028 0.013 0.0021 0.013 0.0058
Return on equity 0.27 0.05 0.28 0.04 0.238 0.041 0.186 0.033 0.17 0.1
27. CASH CONVERSION RATIONS
FY2008 (As of March 31,
2008)
FY2009 (As of March
31, 2009)
FY2010 (As of March 31,
2010)
FY2013 (As of March 31,
2013)
FY2014 (As of March
31, 2014)
Average inventory
NA NA NA NA NA
Days Inventory Outstanding (DIO)
NA NA NA NA NA
Average accounts receivable
40,444 10,912 44,404 76,009 76,824
Days Sales Outstanding (DSO)
457 153.4 202.5 354 375.9
Average accounts payable
0 0 14,684 35,397 59,896
Days Payable Outstanding (DPO)
NA NA NA NA NA
Cash Conversion Cycle
457 153.4 202.5 354 375.9
28. o COLLECTION CYCLE
Days Sales Outstanding
(DSO)
457 153.4 202.5 354 375.9
FY2008 (As of
March 31,
2008)
FY2009 (As
of March 31,
2009)
FY2010 (As
of March 31,
2010)
FY2013 (As of
March 31,
2013)
FY2014 (As
of March 31,
2014)
457
153.4
202.5
354
375.9
2008 2009 2010 2013 2014
Collection Cycle
29. o CASH CONVERSION CYCLE
Cash Conversion
Cycle
457 153.4 202.5 354 375.9
FY2008 (As
of March 31,
2008)
FY2009 (As
of March
31, 2009)
FY2010 (As
of March
31, 2010)
FY2013 (As
of March 31,
2013)
FY2014 (As
of March
31, 2014)
457
153.4
202.5
354
375.9
2008 2009 2010 2013 2014
Cash Conversion Cycle
30. 1. Based on the Income Statement (net income) from 2008-2014,
HSBC bank was more profitable than ANZ bank.
2. According to Financial Ratios of both companies:
• Asset Management Ratios : overall, HSBC bank is capable to
manage assets and revenue greater than ANZ bank
CONCLUSION
31. According to the analysis, there was twice higher as HSBC bank and ANZ bank (
0.465 versus 0,216)
In term of return on assets, HSBC bank is also dominated than than competitor ANZ
bank with (0.013 versus 0.0058)
The proportion of return on equity in HSBC bank was 0.17 in 2014 while ANZ bank
just took 0.1. Hence, HSBC bank was higher than their competitors in profitabilities
ratio.
• Profitabilities Ratios:
CONCLUSION