Impact of Capital Market on Financial Performance of Camelot Ghana Limited
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Date
2008-09-13
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Abstract
The thesis financial to an assesses the financial performance of camelot Ghana Limited on how well the company performed after enlistment on the GSE. The analysis of this study is conducted in two sections with a case study on capital markers and financial ratio analysis.
The goal is achieved through implementation of different financial analysis tools evaluated. Furthermore, comparisons are made on the company’s financial statement. Five years prior to listing on the GSE were analyzed and compared with five years after listing on the GSE. The growth rates of these ratios were also analyzed. The Ratio analysis trend showed that, the studied company had problems with absolute liquidity. However, other calculated financial ratios were at acceptable levels. Profitability ratios trend for the studied company was impressive for the business, it was connected with high returns on assets and adequate profit margins. Activity ratios on the other hand showed that the companies’ market strategies had more good figures.
In order for the capital markets in Ghana to be attractive to the private sector, various classes of stocks with adjusted voting rights which are currently not being practice in the country with have to be introduced to enable individual corporate owners who fear losing control of their companies to their shares on the capital market.
Unstable macroeconomic variables in Ghana also hinder the development of the capital market. Ghana has no adopt policies that lead to low inflation and interest rate, stable foreign exchange rates and balance her budget. The attainment of these goals is essential to ensure the public’s confidence to increase their financial assets holdings.
Description
A thesis presented to the School of Business In partial fulfilment of the requirement for the award of a Master of Business Administration (MBA Banking and Finance), 2008