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CHAPTER - TWO
RESULTS AND ANALYSIS
In this chapter the researcher analyses & interprets the relevant and available data of JBNL to
presentation and the analysis of the main items that are to be included in the financial
statement. The ratios are designed and calculated to highlight the relationship between
financial items and figures. It is a kind of mathematical relationship and procedure dividing
one item by another. All these calculations are based on financial statements of concerned
bank.

2.1 Short-term Solvency Position

Short-term Solvency Position presents liquidity position of a firm. Liquidity position is
calculated taking relation to the different portfolio of the firm. It may vary based on nature of
business. In this study, following ratios are mentioned of the concerned

financial institutions.

2.1.1 Current Ratio

Current Ratio measures short term

liabili
measurement tool to analyze liquidity position of a financial institution. It indicates Bank's
ability to discharge current obligations. The ratio is obtained by dividing current assets by
current liabilities.

Table No.2.1: Current Ratio (Rs. in Million)

JBNL
Fiscal Year
Current Assets Current Liabilities Ratios (Times)
2013/14 4182.99 359.56 11.63
2014/15 4951.45 376.56 13.15
2015/16 3595.67 328.65 10.94
2016/17 8798.19 765.19 11.50
2017/18 10505.08 918.45 11.44
Mean 11.73
S.D. 0.75
C.V. 6.36
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Source: Annual Report of Nepal Janata Bank Nepal Ltd andAnnex-I and II