Question

In: Finance

compare these to companies ratios


compare these to companies ratios

RATIO

AFFIN BANK

CITIBANK BERHAD

2019

RM’000

2019

RM’000

Fund Management Efficiency Ratio

504.39%

728.40%

Solutions

Expert Solution

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.


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