Year 2012 2013 2014 2015 2016

Current Ratio (tk.) 1.09 1.50 1.10 0.98 1.46

Growth rate - 37.61% -26.67% -10.91% 48.98%

Current Ratio:
The current ratio is a financial ratio that shows the proportion of current assets to current
liabilities. The current ratio, one of the most commonly cited financial ratios, measures the firms
ability to meet its short term obligations. The higher the current ratio, the better the liquidity
position of the firm. Current assets normally consist of marketable securities, Accounts
receivables and inventories. Current liabilities consist of accounts payable, Short-term notes
payable, current maturities of long-term debt, accrued Taxes, and other accrued expenses
(principally wages).

Formula: Current ratio is calculated using the following formula:

Current Assets
Current Ratio =
Current Liabilities

Table: Current Ratio

Source: Annual Report of RBL (2012, 2013, 2014, 2015, 2016)

Graphical Presentation:
 Current Ratio
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016

Growth Rate
0.6
0.5
0.4
0.3
0.2
0.1
0
-0.12012 2013 2014 2015 2016
-0.2
-0.3
-0.4

Figure: Current Ratio & its Growth Rate

Interpretation:

Debt Equity Ratio:

Definition: Debt equity ratio assesses the firms capital structure. It provides a measure of risk to
creditors by considering the funds invested by creditors (debt) and investors (equity). The higher
percentage of debt is greater the degree of risk to any creditor.

Formula: Debt equity ratio is calculated using the following formula:

Total Liabilities
Debt Equity Ratio =
Shareholder Equity

Year 2012 2013 2014 2015 2016

Debt Equity Ratio 13.48 17.29 17.14 22.65 27.66

Growth Rate - 28.26% -0.87% 32.15% 22.12%
Table: Current Ratio

Source: Annual Report of RBL (2012, 2013, 2014, 2015, 2016)

Graphical Presentation:

Debt Equity Ratio Growth Rate

30 0.35

25 0.3
0.25
20
Debt Equity Ratio 0.2 Growth Rate
15
0.15
10 0.1

5 0.05
0
0
2012 2013 2014 2015 2016
2012 2013 2014 2015 2016 -0.05
 Figure: Debt Equity Ratio & its Growth Rate

Interpretation:
100%

90%

80%

70%

60%
Series 3
50%
Series 2
40% Series 1

30%

20%

10%

0%
Category 1 Category 2 Category 3 Category 4

Current Ratio Series 1

5
1.4 4.5
1.2 4
3.5
1 3
2.5
0.8 Current Ratio 2 Series 1
1.5
0.6 1
0.4 0.5
0
0.2
y1

y2

y3

y4
or

or

or

or

0
teg

teg

teg

teg
Ca

Ca
Ca

Ca

20112012201320142015