RATIO ANALYSIS AS A TOOL FOR PERFORMANCE EVALUATION (CASE STUDY OF GLAXOSMITHKLINE)

Solomon Kings 128 PAGES (14515 WORDS) Finance Project
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INTRODUCTION
Ratio  has been most important tools for the effective  development of manufacturing companies and industries, the major uses of ratio is to  access the profitability, gearing, liquidity and asset turnover of the company. The introduction of ratio analysis in manufacturing company has brought about a turn around in many industry and companies.

The important of  ratio analysis in the running of any manufacturing cannot be over emphasizes, it is this significant role that led to the believe. That ratio is the life blood of  every manufacturing companies and industries.

TABLE OF CONTENT
INTRODUCTION
1.0INTRODUCTION
1.1BACKGROUND TO THE STUDY 
1.2STATEMENT OF THE PROBLEM
1.3OBJECTIVE OF THE STUDY
1.4RESEARCH HYPOTHESIS
1.5SIGNIFICANCE OF THE STUDY
1.6SCOPE OF THE STUDY
1.7HISTORICAL  BACKGROUND OF THE CASE STUDY
1.8DEFINITION OF KEY TERMS     

CHAPTER TWO
LITERATURE REVIEW
2.1HISTORICAL DEVELOPMENT OF RATIO ANALYSIS 
2.2INTERPRETATION OF ACCOUNTING RATIOS
2.3THE CONCEPT OF FINANCIAL RATIO ANALYSIS
2.4THE FINANCIAL STATEMENT
2.4.1THE INCOME  STATEMENT
2.4.2THE BALANCE  SHEET  
2.5ANALYSIS OF FINANCAL STATEMENT 
2.5.1TYPES OF FINANCIAL STATEMENT
2.5.2PROCEDURE IN FINANCIAL ANALYSIS  
2.6THE ROLE OF COMPARISON IN  FINANCIAL ANALYSIS
2.6.1STANDARD FOR COMPARISON
2.7PARTIES INTERESTED IN THE  FINANCIAL RATIOS
2.8USES OF FINANCIAL RATIOS
2.9CLASSIFICATION OF RATIO 
2.9.1LIQUIDITY AND SOLVENCY
2.9.2ACID TEST (OR QIUCK) RATIO 
2.9.3PROFITABILITY
2.9.4GEARING/LEVERAGE 
2.9.4.1GEARING RATIO
2.9.5EFFICIENCY
2.9.5.1ASSET TURNOVER
2.9.5.2 STOCK TURNOVER
2.9.6INVESTMENT 
2.9.6.1 DIVIDEND PER SHARE 
2.9.6.2DIVIDEND PAYOUT RATIO 
2.9.6.3DIVIDEND YIELD RATIO 
2.9.6.4EARNING PER SHARES
2.9.6.5OPERATING  CASH FLOW PER SHARE
2.9.6.6PRICE EARNING RATIO (PIE RATIO)
2.10LIMITATION OF RATIO ANALYSIS

CHAPTER THREE
RESEARCH METHODOLOGY
3.0INTRODUCTION 
3.1RESEARCH METHOD
3.2POPULATION OF THE STUDY 
3.3SAMPLE TECHNIQUE 
3.4METHOD OF DATA COLLECTION 
3.4.1 OBSERVATION 
3.4.2 PERSONAL INTERVIEWS 
3.5METHOD OF  DATA ANALYSIS

CHAPTER FOUR
ANALYSIS AND INTERPRETATION OF DATA
4.0INTRODUCTION 
4.1PRESENTATIONS AND ANALYSIS OF DATA
4.2LIQUIDITY
4.2.1CURRENT RATIO 
4.2.2ACID TEST RATIO 
4.3PROFITABILITY
4.3.1NET PROFIT MARGIN
4.3.2GROSS PROFIT MARGIN 
4.3.3RETURN ON OWNER’S EQUITY 
4.3.4RETURN ON CAPITAL EMPLOYED (ROCE) 
4.4GEARING/LEVERAGE 
4.4.1GEARING  RATIO 
4.4.2INTEREST COVER RATIO 
4.5EFFICIENCY 
4.5.1AVERAGE STOCK TURNOVER PERIOD
4.5.2STOCK TURNOVER 
4.5.3ASSET TURNOVER RATIO
4.5.4SALES  PER EMPLOYER 
4.6INVESTMENT 
4.6.1DIVIDEND PER SHARE 
4.6.2DIVIDEND PAYOUT RATIO
4.6.3DIVIDEND YIELD RATIO   
4.6.5OPERATING CASH FLOW PER  SHARE 
4.6.4EARNINGS PER SHARE 
4.6.6PRICE EARNING RATIO 
4.2INTERPRETATION OF RESULTS

CHAPTER FIVE
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATIONS. 
5.0INTRODUCTION
5.1SUMMARY 
5.2CONCLUSION 
5.3RECOMMENDATION 
5.3.1  LIQUIDITY
5.3.2 PROFITABILITY 
5.3.3 GEARING/LEVERAGE
5.3.4GENERAL RECOMMENDATION
5.4LIMITATION OF STUDY 
REFERENCE
APPENDIX I
APPENDIX

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APA

Kings, S. (2018). RATIO ANALYSIS AS A TOOL FOR PERFORMANCE EVALUATION (CASE STUDY OF GLAXOSMITHKLINE). Afribary. Retrieved from https://afribary.com/works/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424

MLA 8th

Kings, Solomon "RATIO ANALYSIS AS A TOOL FOR PERFORMANCE EVALUATION (CASE STUDY OF GLAXOSMITHKLINE)" Afribary. Afribary, 29 Jan. 2018, https://afribary.com/works/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424. Accessed 22 Feb. 2024.

MLA7

Kings, Solomon . "RATIO ANALYSIS AS A TOOL FOR PERFORMANCE EVALUATION (CASE STUDY OF GLAXOSMITHKLINE)". Afribary, Afribary, 29 Jan. 2018. Web. 22 Feb. 2024. < https://afribary.com/works/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424 >.

Chicago

Kings, Solomon . "RATIO ANALYSIS AS A TOOL FOR PERFORMANCE EVALUATION (CASE STUDY OF GLAXOSMITHKLINE)" Afribary (2018). Accessed February 22, 2024. https://afribary.com/works/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424