Financial Performance Evaluation of Lanka Bangla Finance Limited: A Case Study

Abstract

The study attempts at evaluating the financial performance of Lanka Bangla Finance Limited for the period 2006 to 2013. The financial performance of this firm was extremely rich due to continuous profit. Analysis of the current ratio reveals that the firm has shortage of working capital because of excessive current liability over current assets. Profitability position of the firm is mostly positive, so they have ability to pay their short term or long term loans from their assets. Due to efficient financial management, the positive return on asset and return on equity over total assets utilization implies that there is something left for the owners. Therefore, necessary steps should be taken to balance the financial position of the firm, which in turn, would improve the risky position of the firm.