Assessing Financial Performance of Mobile Banking Services Organization in Bangladesh

Abstract

Mobile banking service organization are operating business activities in Bangladesh for an era. The study aims to evaluate the financial performance of mobile banking services organization in Bangladesh experiencing the bKash limited. Financial ratio analysis and DuPont analysis have used to assess the financial performance of the organization on the basis of secondary data. Financial ratio analysis covers liquidity, solvency, activity and profitability ratio. DuPont analysis comprises of return on equity (ROE) and return on assets (ROA). The study also compares the financial performance of bKash limited between first four years and last four years. F statistics is used to test the hypothesis. The findings in liquidity and solvency ratio reveal that the organization is in decent position to settle the debt. The activity and profitability ratio finds that assets turnover and net profit margin was dissatisfactory. DuPont analysis shows that the organization was inefficient in operating activities and asset utilization. The study finds that there is no significant difference of financial performance between first and last four years. The study concludes that the management of bKash limited should focus on improving the efficiency in operational activities and asset utilization for enhancing the profit and maintaining healthy financial position.