Evaluating The Financial Performance Of Queensland International School

Subscribe to access this work and thousands more

ABSTRACT This study find out the financial performance of Queensland International School using some selected financial ratios. The specific objectives was to evaluate the financial stability, operational and solvency ratios. The quantitative approach and the descriptive research design were adopted for the study. The census sampling techniques was used to select the sample for the study while the descriptive approach was used to describe the results. It was found that, the current assets of Queensland International School, has a very high financial leverage and this means that the company has a higher level of risk and at the time of liquidation, their creditors will suffer. The return on equity ratio of Queensland International School is far below risk free rate, so dividend payment is unstable hence the business will not attract investors. This because from the results it is clear that creditor’s contribution to financing the total assets of Queensland International School is quite substantial and very significant. The study recommends that, management should avoid the use of excessive debt to finance the activities of the company and this should be done by inviting interested investors to help raise equity capital in the financing of the company, therefore increasing the equity level of the company, to avoid future takeover of the company by creditors. It is also recommended that, management should improve on operating activities so that they can generate more funds to meet their short term obligations 

Subscribe to access this work and thousands more