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Ranking Ratios Based On Weighted Scores

The document presents a Python script that analyzes and ranks banks based on various financial ratios using pandas and matplotlib. It normalizes the data, calculates a weighted score for each bank, and then ranks them accordingly. Finally, it visualizes the rankings in a horizontal bar chart.

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10 views2 pages

Ranking Ratios Based On Weighted Scores

The document presents a Python script that analyzes and ranks banks based on various financial ratios using pandas and matplotlib. It normalizes the data, calculates a weighted score for each bank, and then ranks them accordingly. Finally, it visualizes the rankings in a horizontal bar chart.

Uploaded by

nermine.limem.tbs
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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import pandas as pd

import matplotlib.pyplot as plt

# Sample data (replace with your actual data)


data = {
'Bank': ['BNA','UBCI','Attijari bank','ATB','BH Bank'],
'Cost-to-Income Ratio':
[0.3891,0.642075,6.76945,0.5365,0.502983875],
'Loan-to-Deposit Ratio': [1.29280,0.87980,0.6185,0.8632,1.25932],
'Net Interest Margin':
[0.0255725,0.039525,0.0261925,0.0178,0.024829225],
'Return on Assets': [0.00853,0.01185,0.038675,-0.0019,0.00899],
'Return on Equity': [0.0840025,0.10115,0.161125,-0.0263,0.09675],
'Capital Adequacy Ratio': [0.102785,0.117,2.91925,0.0733,0.092101]
}

df = pd.DataFrame(data)

# Define weights for each ratio (adjust as needed)


weights = {
'Cost-to-Income Ratio': -1, # Lower is better
'Loan-to-Deposit Ratio': 1, # Higher is better
'Net Interest Margin': 1, # Higher is better
'Return on Assets': 1, # Higher is better
'Return on Equity': 1, # Higher is better
'Capital Adequacy Ratio': 1 # Higher is better
}

# Normalize the data (optional, but can be useful for comparing ratios
with different scales)
df_normalized = (df.iloc[:, 1:] - df.iloc[:, 1:].min()) / (df.iloc[:,
1:].max() - df.iloc[:, 1:].min())

# Calculate the weighted score for each bank


df['Weighted Score'] = (df_normalized * weights).sum(axis=1)

# Rank the banks based on their weighted scores


df_ranked = df.sort_values(by='Weighted Score', ascending=False)

print(df_ranked)

Bank Cost-to-Income Ratio Loan-to-Deposit Ratio \


2 Attijari bank 6.769450 0.61850
1 UBCI 0.642075 0.87980
0 BNA 0.389100 1.29280
4 BH Bank 0.502984 1.25932
3 ATB 0.536500 0.86320

Net Interest Margin Return on Assets Return on Equity \


2 0.026193 0.038675 0.161125
1 0.039525 0.011850 0.101150
0 0.025573 0.008530 0.084002
4 0.024829 0.008990 0.096750
3 0.017800 -0.001900 -0.026300

Capital Adequacy Ratio Weighted Score


2 2.919250 2.386306
1 0.117000 2.382103
0 0.102785 2.213698
4 0.092101 2.187581
3 0.073300 0.339793

plt.figure(figsize=(10, 6))
plt.barh(df_ranked['Bank'], df_ranked['Weighted Score'])
plt.xlabel('Weighted Score')
plt.ylabel('Bank')
plt.title('Bank Ranking')
plt.show()

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