– Ratio Analysis: Tools for Performance Evaluation in Companies – 

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TABLE OF CONTENT

TITLE PAGE         i

CERTIFICATION       ii

DEDICATION   iii

ACKNOWLEDGEMENT      iv

ABSTRACT         v

CHAPTER ONE INTRODUCTION      

1.1          BACKGROUND OF THE STUDY         1

1.2          STATEMENT OF THE STUDY       2

1.3          OBJECTIVE OF THE STUDY     3

1.4          RESEARCH QUESTIONS      3

1.5          HYPOTHESIS OF THE STUDY          4

1.6          SIGNIFICANCE OF THE STUDY            5

1.7          SCOPE OF THE STUDY          5

1.8          HISTORICAL BACKGROUND OF THE STUDY                6

1.9          DEFINITION OF TERMS     6

CHAPTER TWO  LITERATURE REVIEW 

2.0          INTRODUCTION    7

2.1          CONCEPTUAL FRAMEWORK    7

2.1.2      DEFINITION OF RATIO ANALYSIS   7

2.1.3      SIGNIFICANT OF FINANCIAL RATIOS      8

2.1.4    TYPES AND CLASSIFICATION OF FINANCIAL RATIOS   10

2.1.5      PROFITABILITY RATIOS          11

2.2    THEORETICAL FRAMEWORK                    16

2.2.2      LIMITATIONS OF RATIO ANALYSIS       18

2.2.3      ADVANTAGES AND DISADVANTAGE OF RATION ANALYSIS

2.2.4      FINANCIAL STATEMENT         20

CHAPTER THREE                              

3.0          RESEARCH METHODOLOGY             28

3.1          POPULATION SIZE   28

3.2          METHOD OF DATA COLLECTION         29

3.3          SAMPLING AND SAMPLING PROCEDURE      30

3.4          DATA COLLECTIONS INSTRUMENT         31

3.5          PROCEDURE FOR DATA ANALYSIS          31

CHAPTER FOUR               

4.0          DATA ANALYSIS AND PRESENTATION OF RESULT   32

4.1          INTRODUCTION                       32

4.2          PRESENTATION OF DATA   32

4.3          ANALYSIS OF RESPONSE         33

4.4          HYPOTHESIS TESTING           36

CHAPTER FIVE

5.0          SUMMARY, CONCLUSION AND RECOMMENDATION

5.1          SUMMARY        42

5.2          CONCLUSION           42

5.3          RECOMMENDATION    44

REFERENCES           46

QUESTIONNAIRE             47

INTRODUCTION

has become paramount importance in today’s changing business environment. The world has witnessed a dramatic evolution from the archaic trade by barter to the modern complex structure of business and companies.

Every organization, whether public or private prepares . The information contained in these statements is used to form judgment about the operating performance and financial position of the firm.

The -concern will be interested in knowing how well the company’s management team has utilized the company’s assets.

To obtain answers to this and many more questions, users of financial statements must properly analyze the information provided by these statements in order to have better insight into the strength and weakness of the firm for the purpose of making effective business decision.

For , the information presented in the financial statements must be devoid of errors or material mis-statements.

Since the early 90’s, the accounting profession has exporting. Accounting standards were criticized because they were prepared without reference to an acceptable theoretical framework.

REFERENCES

Abdul Gafoor, A .L. M “Islamic Banking.” BNL Quarterly Review,  221,(2007).

Aburime, T.U. “Company-Level Determinants of Bank Profitability in Nigeria.”   Lagos Journal of Banking, Finance & Economic Issues, (2008), 2(1). Adeniji A. A. (2004); An Insight into Management Accounting, Lagos, Value Chain Analysis Consult.

Afolabi, J.A. and Oluyemi, S.A. “An Assessment of the Impact of Inflation on Financial Intermediation in the Nigerian Banking Sector”. NDIC Quarterly, (1995).

Akintoye, I R (2004): Financial Management: Concepts, Analysis and Management, Lagos, Value Chain Analysis A1-Hashimi, A. “Determinants of Bank Spreads    in Sub-Saharan Africa,’ draft, (2007).

Altman, E.I (1968), Financial Ratios Discriminant. Analysis and the prediction o  Corporate Bankruptcy Journal of Finance.

American    Economic Review, 4(21), (1998). Rose, J.T. And Rose, P.S.”The Burden of Federal Reserve System Membership, Journal of Banking and Finance 16, (1979).Tsiko, S. “Africa: Two Zim Commercial Banks Ranked among Africa’s Top 100,” (2006).

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