scholarly journals Financial Ratios as Indicators of Financial Sustainability at a South African University

2019 ◽  
Vol 16 (2) ◽  
pp. 68-93
Author(s):  
JI McLaren ◽  
◽  
FW Struwig ◽  
Keyword(s):  
South African ◽  
Financial Ratios ◽  
Financial Sustainability

Valutazioni di convenienza e di sostenibilitŕ per le imprese del comparto del Prosciutto di Parma Dop: un'analisi attraverso l'applicazione di indici economici e finanziari

2012 ◽  
pp. 61-98
Author(s):  
Giuseppe Bonazzi ◽  
Mattia Iotti ◽  
Fabio Paduano
Keyword(s):  
Economic Analysis ◽  
Financial Analysis ◽  
Capital Requirements ◽  
Financial Ratios ◽  
Financial Sustainability ◽  
Working Capital ◽  
Significant Difference ◽  
Fixed Assets ◽  
Firm Management ◽  
High Absorption

Parma Pdo Ham sector is characterized by the great presence of small and medium sized enterprises (SMEs) and by high absorption of capital to finance investments in fixed assets and working capital. The aging of pork leg causes in fact a high capital requirements for a period of at least 12 months and even 18/24 months. In that case, economic analysis and financial analysis may show different results, since situations of non-financial sustainability even in case of positive profitability. The paper covers the methodology for the analysis of the profitability and sustainability of firm management and suggests specific indices to analyze the firms of the sector. The analysis show that there is a statistically significant difference between economic and financial results in the sector and the application of financial ratios proposed in the paper can better assess the sustainability of management. These ratios can find applications even in other sectors characterized by high capital absorption, particularly net working capital.

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 An assessment of the impact of climate change on the financial performance of South African companies

2015 ◽  
Vol 4 (2) ◽  
pp. 49-62 ◽  
Author(s):  
Mandla Moyo ◽  
Hermina Christina Wingard
Keyword(s):  
Climate Change ◽  
Financial Performance ◽  
South African ◽  
Stock Exchange ◽  
Secondary Analysis ◽  
Climate Change Impacts ◽  
Financial Sustainability ◽  
Johannesburg Stock Exchange ◽  
Historic Data ◽  
The Impact

South African companies face uncertainty about whether they should commit resources to mitigate vulnerabilities and exploit opportunities arising from climate change. There is ambiguity over whether responding to climate change materially affects the financial sustainability of South African companies. The study sought to establish the extent to which responding to climate change impacts financial performance. Secondary analysis of historic data was used to compare the climate-change performance of 70 Johannesburg Stock Exchange listed companies to indicators of their financial performance. The research concluded that there is a positive and statistically significant correlation between climate-change performance and financial performance

scholarly journals THE STRATEGIC COMPETITIVENESS OF THE SOUTH AFRICAN MINING INDUSTRY IN THE AGE OF THE FOURTH INDUSTRIAL REVOLUTION

2021 ◽  
Vol 32 (2) ◽  
pp. 185-200
Author(s):  
Steven Zulu ◽  
Tinus Pretorius ◽  
Elma van der Lingen
Keyword(s):  
South African ◽  
Industrial Revolution ◽  
Negative Impact ◽  
Mining Industry ◽  
Operating Costs ◽  
Financial Sustainability ◽  
The South ◽  
Fourth Industrial Revolution ◽  
History Of ◽  
Innovation Strategies

The South African mining industry has a history of a range of major challenges, including high operating costs that have had a negative impact on mines’ profitability and financial sustainability. The advent of Fourth Industrial Revolution technologies has opened up new opportunities for the mining industry, among other things, to improve its cost-effectiveness and future competitiveness. Most South African mining companies have begun to adopt Fourth Industrial Revolution technologies; however, quite a large number of their projects have not been successful. The main objective of the paper is to conduct an integrative literature review to determine why some of the companies in the minerals, mining, and processing industry have not been successful in implementing Fourth Industrial Revolution technologies. The findings of the study outline areas of organisational and technological capability on which the industry could focus when developing future innovation strategies.

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 Bank Efficiency And Financial Ratios: Rating The Performance Of The Four Largest South African Banks

2013 ◽  
Vol 30 (1) ◽  
pp. 93 ◽  
Author(s):  
Gerhardus Van der Westhuizen
Keyword(s):  
South African ◽  
Financial Statements ◽  
Performance Measure ◽  
Financial Ratios ◽  
Data Envelopment ◽  
Return On Assets ◽  
Bank Efficiency ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Two Sides

Data Envelopment Analysis (DEA) in conjunction with financial ratios is used to estimate and compare the performance of the four largest South African banks over the period 2001 to 2011. DEA is used to estimate the relative technical, allocative, cost and scale efficiencies and compare these estimates to certain financial ratios published by the banks in their financial statements. These ratios include return on equity (ROE), return on assets (ROA), net interest margin (NIM), impairment losses, etc. The results obtained from the efficiency estimates and the financial ratios are used to rate the banks according to these performances. The rating differs depending on which performance measure is applied. A combination of these measures was necessary to determine the best and the worst performing bank. From the results obtained it appears that profitability and efficiency are two sides of the same coin.

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