ABSTRACT
This chapter deals with a cross-sectional reference to the financial performance of public enterprises in different regions over the last four decades. In general the financial performance of public enterprises has been unsatisfactory in most countries, developed and developing, in all regions. Annual returns have been low, there are large accumulated losses, and capital write-offs have been frequent. Deficits accumulated over a series of years are another serious aspect of the financial performance of several public enterprises in almost every country. The term ‘self-financing’ or ‘reserves’ is uncontroversial when the profits or net resources are retained after all costs, on the basis of economic costing, are met in the first place. Earlier analyses raise doubts on whether the reserves satisfy this definition. The analysis suggests that understanding of the financial performance of a public enterprise improves from the computation of the probable consequences of the factors A to D, as far as possible.
