949.4 Panama Water Authority Part A: Basic Concepts for Financial Analysis in Public Enterprises
During the mid-1970s, the Panama Water Authority engaged in an aggressive expansion program to get more potable water to rural areas. Unfortunately, operating losses rose dramatically and the organization's liquidity and solvency were in serious jeopardy. Students use elementary financial analysis to find problems, look at possible causes and make recommendations about future financial strategy. Two background notes on financial management in public enterprises may help students with the analysis.