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of Contents Introduction ..................................................................................................... 4 Problem statement ....................................................................................... 4 Research objectives .................................................................................... 4 Literature review ............................................................................................. 5 Research methodologies. 17 Data analysis and presentation ..................................................................... 19 Recommendations findings and conclusions Reference list …………………………………………………………….…....34
Electronic copy available at https://ssrn.com/abstract=3521211
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INTRODUCTION AND BACKGROUND OF THE STUDY Introduction Bindura Nickel Corporation (BNC) Limited is a mining company engaged in nickel production found in Zimbabwe, incorporated in June 1979, the company is based in Mashonaland Central. Trojan Nickel Mine Ltd and Shangani Nickel Mine Ltd are
operating subsidiaries of BNC, having hoisting and treatment capacity of Mt and Mt a year respectively. BNC also owns and operates the Bindura Smelter and Refinery Complex which produces nickel cathodes,
copper sulphide, and cobalt hydroxide.
Problem statement Financial analysis is a useful tool to track changes in business overtime and helps to evaluate or analyse the financial performance
of the firm in terms of Risk, Profitability,
Solvency, and Efficiency (Nteziryayo, 2013). Information contained in financial statements is essential for users and investors because it allows them to estimate return from their investment portfolios and additionally, it also enables them to monitor the use of capital once committed to a particular venture (Beyer et al. 2010). Users of financial information rely on these trends for decision making and ratios stand as one of the most essential components of business information and as the principal method of communicating financial information about the entity to both internal and external parties. While ratios help to compare the trends of two or more
company over a period of time, ratio analysis metrics do not necessarily represent future company performance because of inflationary effects and the fact that financial statements are released periodically and, therefore, there are time differences between each release. In an effort to better understand the role of financial ratios this study seeks to examine the financial statements of Bindura Nickel Corporation (BNC) limited a Zimbabwean mining company engaged in nickel production and provide an analysis of its activities for and Ratio analysis and other statistical models will be used in this paper to evaluate and breakdown
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