You graduated with Masters in Corporate Governance and the best graduating student for that matter. As a General Manager of your firm did request for the financials of your reputable firm to advise current management on the Key Performing Indicators (KPIs) a Venture Capitalist would look out for before investing in your business in the possible future. The table below is an extract from the financials of NABCO Finance Ltd for the years ended 2020 and 2021 respectively. Details 2020 (GH₵) 2021 (GH₵) Operating Income 351,800 414,000 Financial expense 100,000 94,000 Net impairment loss, gross loan portfolio 45,000 68,000 Operating expense 97,500 171,000 Gross loan portfolio 290,000 283,000 Delinquency + 1 month 15,000 31,000 Net subsidy 50,000 30,000 Interest rate on loans 18% 22% Despite the covid-19 pandemic, the interest rate on loans keeps increasing. Required: Compute and explain your answers for both years using the following tools as Subsidy dependence Operational self-sufficiency Portfolio at risk
You graduated with Masters in Corporate Governance and the best graduating student for that matter. As a General Manager of your firm did request for the financials of your reputable firm to advise current management on the Key Performing Indicators (KPIs) a Venture Capitalist would look out for before investing in your business in the possible future.
The table below is an extract from the financials of NABCO Finance Ltd for the years ended 2020 and 2021 respectively.
|
Details |
2020 (GH₵) |
2021 (GH₵) |
|
Operating Income |
351,800 |
414,000 |
|
Financial expense |
100,000 |
94,000 |
|
Net impairment loss, gross loan portfolio |
45,000 |
68,000 |
|
Operating expense |
97,500 |
171,000 |
|
Gross loan portfolio |
290,000 |
283,000 |
|
Delinquency + 1 month |
15,000 |
31,000 |
|
Net subsidy |
50,000 |
30,000 |
|
Interest rate on loans |
18% |
22% |
Despite the covid-19 pandemic, the interest rate on loans keeps increasing.
Required:
- Compute and explain your answers for both years using the following tools as
- Subsidy dependence
- Operational self-sufficiency
- Portfolio at risk
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