A financial performance analysis of bundura nickel ltd by mr lenon watambwa (2019) abstract
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- Z-Score = 1.2( 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔) + 1.4( 𝑹𝒆𝒕𝒂𝒊𝒏𝒆𝒅 𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔)
- Common-size analysis: common size financial statement displays all items as percentages of a common base figure rather than as absolute numerical figures.
| Failure Prediction of a company: The Altman Z-Score developed and named after Edward Altman is a statistical tool used to measure the likelihood that a company will go bankrupt. Though Altman devised the Z-Score in the s trying to predict which companies would fail Altman added a statistical technique called multivariate analysis to the mix of traditional ratio-analysis techniques, and this allowed him to consider not only the effects of several ratios on the pridictivenes of his bankruptcy model, but to consider how those ratios affected each other's usefulness in the model.Z scores are used to predict corporate defaults and an easy way to measure financial distress status of companies. We used the Z score model in an effort to predict the possibility of failing in the next 2 years. The analysis is as shown below. Electronic copy available at https://ssrn.com/abstract=3521211 11 Z-Score = 1.2( 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔 ) + 1.4( 𝑹𝒆𝒕𝒂𝒊𝒏𝒆𝒅 𝑬𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔 ) + 3.3( 𝐄𝐁𝐈𝐓 𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔 ) + 0.6( 𝐌𝐚𝐫𝐤𝐞𝐭 𝐯𝐚𝐥𝐮𝐞 𝐨𝐟 𝐄𝐪𝐮𝐢𝐭𝐲 𝑩𝒐𝒐𝒌 𝒗𝒂𝒖𝒆 𝒐𝒇 𝒕𝒐𝒕𝒂𝒍 𝒍𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔 ) + 1.0( 𝐒𝐚𝐥𝐞𝐬 𝑻𝒐𝒕𝒂𝒍 𝒂𝒔𝒔𝒆𝒕𝒔 ) Common-size analysis: common size financial statement displays all items as percentages of a common base figure rather than as absolute numerical figures. Brand structure analysis Timothy et al, (1990) added that the meaning imbued in brands can be quite profound, allowing us to think of the relationship between a brand and the consumer as a type of bond or pact. Consumers offer their trust and loyalty with the implicit understanding that the brand will behave in certain ways and provide them utility through consistent product performance and appropriate pricing, promotion, and distribution programs and actions. To the extent that consumers realize advantages and benefits from purchasing the brand, and as long as they derive satisfaction from product consumption, they are likely to continue to buy it. On the local scene, BNC seems to be enjoying a monopoly power as there are currently no competitors thus they have taken aback seat in terms of enhancing their brand but a lot still need to be done on the international market so that they can be able to claim abetter share on the globe. According to Anker (1991), 80% of consumers use the internet to shop and search for the information they need thus, it is vital for any business to have an online presence to stay competitive within the industry. The availability of a well-designed website helps to tell customers who and where a company is located, reach all corners of the world, instant communication with the customers, attract new customers as well as cost casing. This is however not the case with BNC as they do not have a clear website of their own but instead they are housed under ASA group which may not be clear from a layman`s point of view who may not have any knowledge about the parent company. BNC is also found on African Financials which is an online retail investor that helps African listed companies but this is not enough as it may lake validity and reliability considering that this is a third party with other obligations from other companies as well.BNC also engages on corporate social responsibility and record indicates community support in the form onsite primary school education and an early childhood development centre as of December 2015. Whilst there is no set standard or limit in terms of how much a company can giveback, however, fora company like BNC whose Electronic copy available at https://ssrn.com/abstract=3521211 12 main competitors are international companies, they need to do more in order to attract attention of key stakeholders and reinvigorate the brand image. Download 1.23 Mb. Share with your friends:
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