Abstract
The study evaluates the performance of TransNamib using ratios analysis, to determine how the company performs by breaking further the information in the financial statements for the financial year 2012 and 2013.
The study used descriptive to interpret secondary data which were obtained from TransNamib. Performance was measured using different financial ratios such as Liquidity, which indicated that the company position to pay its short term debts was very bad. Profitability ratios show that the company didn’t make profit due to high operating expenses and a decrease in revenue. However the assets management ratio reveals some improvement in terms of managing company’s current assets like, a significant decrease in account receivable of the company due to a reduction in collection period, while the account payable ratio was low due to availability of cash.
The study reveals that TransNamib depends on debts to fund its assets, which means the company was at high risk of bankruptcy. Based on findings of the study the following were recommended: to increase credit sale by using new methods of promoting products at a reasonable price, Putting strong internal control to oversee the authorization of company’s expenditures and lastly shareholder (government) must replace its old fixed assets for the company to provide excellent and reliable rail services at lower operating cost.
