Home Business BTC Named Best Performing Parastatal

BTC Named Best Performing Parastatal

3361
0

Botswana Telecommunications Corporation (BTC) has been singled out as the best performing Government parastatal in terms of financial analysis ratios in the past five financial years.

From the 2009/10 up to 2013/14, parliament has been told, BTC achieved a high profit margin of 18.3% in 2009/10, 20.9% in 2010/11, 19.9% in 2011/12, 19.9 in 2012/13 and 0.009% in 2013/14.

Finance and Development Planning Minister, Kenneth Matambo, told parliament on Thursday that the profit margin measured as a percentage indicates a high margin of safety for BTC.

He said the corporation also maintained a moderate Return on Assets of 9.9% in 2009/10. 11.7% in 2010/11, 9.9% in 2011/12, 10.5% in 2012/13 and 0.006% in 2013/14. “This shows that BTC was using its assets effectively to generate profits,” he said.

Furthermore, the Minister said, BTC had a low debt to equity ratio ranging from 0.4 in 2009/10 to 0.3 in 2013/14, suggesting that it had lower risk involved for creditors and was financially stable.

“BTC was considered among four revenue generating parastatals which have been profitable over the past five consecutive years and the results of its financial analysis were outstanding when compared to other parastatals,” Matambo said.