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Mangosuthu University of Technology Annual Report

58

Current assets

Current assets decreased from R364.402 million in 2014

to R326.275 million in 2015. There were no infrastructure

funds received in 2015.

Non-current liabilities

Non- current liabilities increased from R272.612 million in

2014 to R288.796 in 2015. The increase is as a result of a

loan of R50 million for the construction of residences.

Post-employment obligations decreased by R29.476

million. The buy-out of the post-retirement medical

liability contributed in reducing the liability.

Current liabilities

Current liabilities increased from R311.139 million in 2014

to R342.170 million in 2015. The increase can be attributed

to construction invoices outstanding at year end.

Financial Indicators / Ratios

Table 10.3: 5 Years Trend of Financial Indicators/Ratios

The current ratio and cash ratio are worsening. This might

be an indication of cash flow challenges in the near future.

Conclusion

Council and management are continuously working on

strategies to ensure the financial sustainability of the

institution. Student debt remains a major concern for

Council.

I would like to thank members of the Committee, members

of Council and Management for their support during the

year.

This report is signed by:

2010

2011

2012

2013

2014

2015

Excess of expenditure over total income

3% 1% 5% 0% 3% 1%

Personnel cost to unrestricted Income

62% 62% 63% 62% 64% 65%

Personnel cost as a % of total expend.

53% 54% 56% 45% 46% 45%

Subsidy as a % of income

53% 53% 50% 45% 43% 42%

Tuition and residence as % of income

41% 40% 44% 45% 47% 49%

Earmarked grants as a % of income

0% 2% 2% 7% 8% 6%

Other Income as a % of income

6% 5% 5% 4% 3% 2%

Current ratio

4.20

1.90

1.34

1.25

1.17

0.95

Cash ratio

3.64

1.56

1.15

0.90

0.99

0.79

Total debt as a % of Fees

57% 51% 43% 46% 46% 49%

Provision for bad debt as a % of debt

76% 76% 72% 64% 61% 63%

Increase in debt (R000)

9 238 -2 601

2 603 24 634 12 621 18 086