In: Finance
compare these to companies ratios
RATIO | AFFIN BANK | CITIBANK BERHAD |
2019 RM’000 | 2019 RM’000 | |
Fund Management Efficiency Ratio | 504.39% | 728.40% |
Funds Management Efficiency Ratio=Total Assets/Total Equity
Higher the ratio higher is the leverage. Companies that have a high debt burden could be financially risky.
From the given data, Citibank has higher leverage or higher Debt to Equity ratio or higher proportion of assets being financed with debt and hence is more risky and has higher debt service costs.