GTA Cash Reserves Halve to GH¢640,000 Despite Improved Liquidity Ratio

The Ghana Tourism Authority’s (GTA) cash position weakened significantly in 2025, with its cash and cash equivalents falling by more than half despite an improvement in its current ratio.

According to the 2025 State Ownership Report, GTA’s cash and cash equivalents dropped from GH¢1.30 million in 2024 to GH¢640,000 in 2025, representing a 50.77% decline.

The Authority’s operating cash flow also deteriorated during the year, moving from a positive GH¢3.84 million in 2024 to negative GH¢60,000 in 2025.

The figures point to increasing short-term liquidity pressure despite an apparently stronger current ratio.

The GTA’s current ratio improved from 1.18:1 in 2024 to 1.50:1 in 2025.

While the increase suggests an improved capacity to meet short-term obligations, the report noted that the picture is less favorable when cash holdings and operating cash flow are considered.

Net cash generated from operating activities fell from GH¢3.84 million to negative GH¢0.06 million.

Net cash flow from investing activities stood at negative GH¢0.56 million, compared with negative GH¢1.82 million in 2024.

Financing activities also recorded a negative cash flow of approximately GH¢0.03 million.

The Authority’s overall asset position also weakened.

Total assets declined by 10.84%, from GH¢15.78 million in 2024 to GH¢14.07 million in 2025.

Non-current assets fell from GH¢10.45 million to GH¢8.33 million, while total equity declined from GH¢10.19 million to GH¢9.19 million.

The report said the reduction in accumulated funds points to an erosion of the Authority’s financial strength.

Despite the pressure on its cash and assets, the GTA remains relatively lightly leveraged.

Its debt-to-asset ratio improved marginally from 0.36 times to 0.35 times, while total liabilities declined from GH¢5.60 million to GH¢4.87 million.

Trade payables stood at approximately GH¢3.82 million.

The report, however, warned that the Authority’s longer-term stability is being weakened by continuous deficits, declining accumulated funds, a shrinking asset base and the absence of internally generated revenue.