27
2.3.3 Ratio Analysis
Ratio analysis is among the most
popular tools in the financial statement analysis.
Analysis of ratio can reveal important relations between components that make up the
ratio.
According
to
the
management
of
the
pension
fund
ratios
analysis
that
normally
used in analyzing Pension Fund financial statement, include:
1. Return on Investment (ROI) is the ratio of money gained or lost on an investment
relative
to
the amount of
money
invested
from
the pension
fund. ROI computed
as
ROI = Total income from investment /Average of Total Investment
Total
income
from investment
figures
found
in the
income statement or
from the
changes
of
net
assets
report.
Average
of
total
investment
calculated
from the
balance of total
investment at the beginning of
the
year plus the balance of
total
investment at the end of the year and divided by two.
2. ROA is the ratio that shows the performance of the pension fund asset in
generating income. ROA computed as:
ROA = Total income from investment / Average of Net asset
Total income from investment came from the income statement or the changes in
net assets report. Average of net assets calculated from the balance of net asset at
 |