The Financial Analysis of the Education Support Fund: Recent Results from Slovakia
The Financial Analysis of the Education Support Fund: Recent Results from Slovakia

Author(s): Mária Barteková, Ľudomír Šlahor
Subject(s): State/Government and Education, Socio-Economic Research
Published by: Masarykova univerzita nakladatelství
Keywords: student loans; financial ratios; Education Support Fund;
Summary/Abstract: The analysis of institutions providing financial services has always been particularly challenging because of the manner how the financial institutions operate and generate profit. The purpose of this study is to analyse the financial performance of the Education Support Fund – the institution providing state subsidised student loans in Slovakia. Tertiary students are eligible for the loan application from the Education Support Fund. All European countries realize that tertiary education is one of the driving forces of economic growth. The empirical part of the paper consists of the financial statement analysis focused on the performing ratios. Ratio analysis is one of the most widely used fundamental analysis technique. The most significant opportunity that emerged from our analysis is to reach the positive net profit as the evidence of financial sustainability and stability. We have identified the net interest margin, the loan-to-assets ratio, and the return-on-assets (ROA) ratio as the most reliable ratios for the financial performance comparison. In recent years, the slightly increasing values of the performing ratios have shown the financial stability of the Education Support Fund.

• Details
• Contents