Determinants of Eskom’s key financial ratios

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dc.contributor.authorNdlovu, Senzesihle Philani
dc.date.accessioned2020-12-04T14:49:06Z
dc.date.available2020-12-04T14:49:06Z
dc.date.issued2020
dc.descriptionA research submitted in fulfilment of the requirements for the degree of Masters of Management in Finance and Investment (MMFI) to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2020en_ZA
dc.description.abstractThis research estimates an empirical model to determine the key drivers of Eskom’s profitability measures. These measures are return on assets (ROA) and net profit margin (NPM). The explanatory variables used were the real GDP growth rate, relative coal price, relative electricity price, USDZAR exchange rate, SA government bond yield, and Eskom’s default risk premium. The paper applies Ordinary Least Squares (OLS) estimation to timeseries data collected from the period 2000 to 2018 using multivariate regression analysis. The study finds that the key drivers of Eskom’s ROA are the growth rate of real GDP and the growth rate of relative coal prices. The growth rate of real GDP has a significant and positive impact on ROA. The second part of the investigation focused on the drivers of Eskom’s NPM. Of the six independent variables tested, only one variable was found to be statistically significant, and that variable was real GDP growth. The growth rate of real GDP has a significant and positive impact on NPM.en_ZA
dc.description.librarianTL (2020)en_ZA
dc.facultyFaculty of Commerce, Law and Managementen_ZA
dc.identifier.urihttps://hdl.handle.net/10539/30280
dc.language.isoenen_ZA
dc.rights.holderUniversity of the Witswatersrand, Johannesburg
dc.schoolWits Business Schoolen_ZA
dc.subjectEskom
dc.subjectOLS estimation
dc.subjectMultivariate regression analysis
dc.subjectROA
dc.subjectNPM
dc.subjectReal GDP growth rate
dc.subjectEskom default risk premium
dc.subjectRelative coal prices
dc.subjectRelative electricity prices
dc.subjectUSDZAR exchange rate
dc.subjectSA government bond yield
dc.subject.otherSDG-8: Decent work and economic growth
dc.titleDeterminants of Eskom’s key financial ratiosen_ZA
dc.typeDissertationen_ZA
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