VUT_Report 2018_Finale

VAAL UNIVERSITY OF TECHNOLOGY
ANNUAL REPORT 2018
VUT would be able to cover its liabilities in the short-term.
3) Determines if the University’s cash & cash equivalent will be able to cover liabilities in short-term
Cash Ratio = Cash and cash equivalent Cash and cash equivalent
Current liabilities
Current liabilities
= 432 567 564 510 931 409
560 477 888 365 277 086
= 0,77 1,39
The University’s cash and cash equivalent covers only 77% of the short-term liabilities of the University.
Solvency Ratio
2018 2017
1) Determines if the University’s total equity will be able to cover total liabilities
Total equity: Total liabilities = Total liabilities Total liabilities
Total equity
Total equity
= 1 177 247 638 997 753 605
1 088 528 062 1 095 185 677
= 1,08 0,91
The University’s equity does not fully cover the total liabilities of the University. This ratio is in a declining trend which is a warning sign
for long-term sustainability especially when considering that it is unrestricted funds that are being depleted.
2) Determines if the University’s total assets will be able to cover total liabilities
Total liabilities: Total assets = Total assets Total assets
Total liabilities
Total liabilities
= 2 265 775 700 2 092 939 282
1 177 247 638 997 753 605
= 1,92 2,09
The University’s assets fully cover the total liabilities of the University.
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