IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 9 2024
DOI: 10.56201/jafm.v10.no9.2024.pg27.41

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A Comparative Study on the Liquidity and Profitability of Selected Telecommunication Companies in Rwanda During and Before Covid 19

Author: Hakizimana Phanuel, Chester Owen B. Diokno

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Abstract

As it was the same to other countries, the businesses in Rwanda have suffered from COVID 19 pandemic. Due to lockdowns, many businesses closed their doors, while some of others, such us telecommunication companies continued to deliver their services. It is the light of that this study was conducted just as a comparative study on the liquidity and profitability of selected telecommunication companies in Rwanda before and during Covid-19. Two companies X and Y, being the only telecommunication companies operating in Rwanda, were considered in this study. Using the information from their 5 years published financial statements, liquidity ratios (current ratio, quick ratio, cash ratio) and profitability ratios (net profit margin, Return on Assets, Return on Equity) were analyzed. This study used the paired t-tests to measure and compare both the liquidity and profitability of before and during Covid 19 for company X vis a vis company Z. Based on the findings, within the highlighted companies, a significant difference was found only on the liquidity before and during Covid 19 of company X; on the profitability of company Y before and during covid 19. On the other hand, between these companies, a significant difference was only found in liquidity of X and Y before and during covid 19. Other comparisons showed no significant differences. Thus, for better financial performance, the research recommends Rwandese telecommunication companies to scan the future and manage their capital more effectively and consistently.

keywords:

Profitability Ratios, Liquidity Ratios, Telecommunication

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