The Distribution Properties of the Financial Ratios of Listed South African Industrial Companies: 1980–1989

De Ratione ◽  
1992 ◽  
Vol 6 (2) ◽  
pp. 20-30 ◽  
Author(s):  
W R Muil ◽  
W D Hamman ◽  
E vd M Smit
Keyword(s):  
South African ◽  
Financial Ratios ◽  
Industrial Companies

scholarly journals An investigation into the normality of the distributions of financial ratios of listed South African industrial companies

1994 ◽  
Vol 25 (2) ◽  
pp. 65-71
Author(s):  
A. C. Jordaan ◽  
E. V.D.M. Smit ◽  
W. D. Hamman
Keyword(s):  
South African ◽  
Simple Procedure ◽  
Financial Ratios ◽  
Outlier Rejection ◽  
Industry Analysis ◽  
Cross Sectional ◽  
Normality Assumption ◽  
Industrial Companies ◽  
Distributional Properties

In this article we examine some of the inter-temporal and cross-sectional distributional properties of a selected number of financial ratios of South African industrial companies and we evaluate the effect of a simple procedure of outlier rejection. The normality assumption is rejected consistently in the case of the industry analysis and frequently in the sectoral and yearly analyses.

scholarly journals Evaluating the Stability of the Financial Ratios of Jordanian Industrial Companies

2015 ◽  
Vol 1 (1) ◽  
pp. 315
Author(s):  
Ghaleb Abu Rumman ◽  
Imad Kutum
Keyword(s):  
Multivariate Analysis ◽  
Analysis Of Variance ◽  
Cash Flow ◽  
Significant Interaction ◽  
Financial Information ◽  
Financial Ratios ◽  
Multivariate Analysis Of Variance ◽  
Industrial Companies ◽  
The Stability ◽  
Over Time

The purpose of the study was to identify if the financial ratios of Jordanian industrial companies remained stable across sector and over time. The study used six financial ratios from fifty-six companies across six sectors with financial information from 2010 to 2014. A two way multivariate analysis of variance was performed to identify the stability of the ratios across the sectors and over the time. The results of the study showed that the financial ratios which showed some difference across sector were EBITTA (Earnings before Interest and Tax), CAT (Current Assets Turnover) and CFTA (Cash Flow to Total Assets). There were no differences observed between the financial ratios over time. The interaction of Time and Sector revealed no significant interaction effects. This suggests that as a whole, the financial ratios remained stable over time and sectors over the sectors and period chosen for the study.

scholarly journals The marketing orientation of South African industrial companies

1984 ◽  
Vol 15 (2) ◽  
pp. 116-120
Author(s):  
R. Abratt
Keyword(s):  
South Africa ◽  
Public Relations ◽  
South African ◽  
Marketing Department ◽  
Industrial Companies ◽  
Marketing Function ◽  
Marketing Orientation ◽  
Bachelors Degree ◽  
The Board Of Directors ◽  
Large Production

The main objective of this article is to establish whether the top industrial companies in South Africa have become marketing orientated during the last ten years or so. A study was undertaken amongst 44 of the top hundred companies in South Africa during 1983. The study found that South African industrial companies certainly have become more marketing orientated. The 'average' Industrial company has a marketing department. It's marketing executive sits on the board of directors. He/she has a bachelors degree and over ten years experience. He/she has a limited financial role in the organization but has a large production planning role. He/she normally has the sales executive reporting to him. The most important tasks of the marketing function are advertising, public relations, pricing and selling.

scholarly journals The influence of efficiency estimates on the financial ratios of South African listed banks

2009 ◽  
Vol 3 (2) ◽  
pp. 133-152
Author(s):  
Merwe Oberholzer ◽  
Gert Van der Westhuizen
Keyword(s):  
South African ◽  
Practical Implication ◽  
Financial Statement ◽  
Financial Ratios ◽  
Data Envelopment ◽  
Bank Efficiency ◽  
Investment Activity ◽  
Significant Relationships ◽  
Dea Models ◽  
Dea Efficiency

The purpose of this study is to determine the relationship between bank efficiency estimates, measured by Data Envelopment Analysis (DEA), and bank performance, measured by the financial ratios included in the Du Pont analysis. Annual financial statement reports were used to calculate the performance of listed banks on the JSE Limited over a ten-year period. This study is the first to use two unique DEA models: one focuses on the efficiency of the finance and investment activity, and the other on the efficiency of the operating activity of banks. The study found that the majority of significant relationships between efficiency estimates and financial ratios are negatively correlated. Further research is needed to explain this phenomenon. The practical implication of this study is that it indicates that an improvement in the DEA efficiency estimates will not necessarily result in better financial ratios. Therefore, both measurements should be used to evaluate different aspects of performance in order to stay competitive.

scholarly journals Capital budgeting under uncertainty: An empirical study

1990 ◽  
Vol 21 (3) ◽  
pp. 52-58 ◽  
Author(s):  
H. M.A. Parry ◽  
C. Firer
Keyword(s):  
Risk Analysis ◽  
South African ◽  
Investment Decisions ◽  
Capital Budgeting ◽  
Decision Makers ◽  
Analysis Techniques ◽  
Industrial Companies ◽  
Aid Decision ◽  
Capital Intensive ◽  
Selection Of

The practices of and attitudes towards risk analysis in South African industrial companies is studied. Major findings are that few companies use the sophisticated methods of risk analysis recommended in the financial literature; there is a wider use of quantitative techniques by the more capital intensive companies; there is general dissatisfaction with the application of these techniques in industry; companies perceive a need for more use of quantitative risk-analysis techniques to aid decision-making. It is hoped that a greater understanding of the current practices of risk-analysis techniques and the attitudes of decision-makers will assist in the selection of appropriate capital budgeting methodologies to improve investment decisions made under uncertainty.Die praktyk van, en die houding teenoor risiko-analise in Suid-Afrikaanse nywerheidsmaatskappye word bestudeer. Die belangrikste bevindinge is dat min maatskappye gebruik maak van die verfynde metodes van risikoanalise soos in finansiele literatuur bespreek; dat daar 'n groter toepassing is van kwantitatiewe tegnieke deur die meer kapitaalintensiewe ondernemings; dat daar algemene ontevredenheid oor die toepassing van die tegnieke heers; maatskappye besef die behoefte om in 'n groter mate gebruik te maak van die kwantatiewe risikometodes vir besluitneming. Daar word vertrou dat groter begrip van die lopende praktyk van risikoanalise en die houding van besluitnemers sal bydrae tot beter keuses van geskikte kapitaalbegrotingsmetodes om beleggingsbesluite te neem in onsekere omstandighede.

scholarly journals The relationship between corporate turnover and degree of diversification in South African listed industrial companies

1982 ◽  
Vol 13 (3) ◽  
pp. 118-120
Author(s):  
Rob Mackintosh
Keyword(s):  
South African ◽  
Market Share ◽  
Listed Companies ◽  
Financial Resources ◽  
Diversification Strategy ◽  
Business Policy ◽  
Industrial Companies ◽  
Small Market ◽  
Diversification Strategies ◽  
The Relationship

The view is widely held in the literature on business policy that not only does structure follow strategy, but that size (measured in terms of turnover) and diversification strategy are closely correlated. This paper examines the relationship between degree of diversification and sales turnover of several South African listed companies which undertook diversification strategies between 1970 and 1976. The results show that there is no significant correlation between turnover and degree of diversification among these companies. Both small and large firms are seen to have similar degrees of diversification. The findings suggest that firms should avoid diversifying into several different markets while having a relatively small market share in each, as both managerial and financial resources then become too thinly spread. Such companies are likely takeover candidates in recessionary periods.Daar is 'n algemene siening in die literatuur oor bestuursbeleid ('business policy'), naamlik dat struktuur nie slegs op strategie volg nie, maar dat grootte (gemeet in terme van omset) en diversifiseringstrategie sterk korreleer. Hierdie artikel ondersoek die verhouding tussen graad van diversifisering en verkoopomset van verskeie Suid-Afrikaanse gelyste maatskappye wat tussen 1970 en 1976 diversifiseringstrategiee beoefen het. Die resultate dui aan dat daar geen betekenisvolle korrelasie tussen omset en graad van diversifisering in hierdie maatskappye was nie. Klein sowel as goot maatskappye toon volgens die navorsing soortgelyke vlakke van diversifisering. Die bevindings dui aan dat maatskappye diversifisering in verskeie markte behoort te vermy as hulle slegs 'n klein markaandeel in elk sou he, omdat bestuurs- sowel as finansiele hulpbronne dan te yl versprei word. Sulke maatskappye is waarskynlike kandidate vir oornames in tye van regressie.

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