Ratio Analysis as an Important Tool for Evaluation Performance in the Banking Sector (A Case Study of Union Bank of Nigeria Plc).

TABLE OF CONTENT

Title page                                                                                                                   i

Certification                                                                                                              ii

Dedication                                                                                                                   iii

Acknowledge                                                                                                             iv

Table of content                                                                                                        v

Chapter one

1.1 Background of the study                                                                                      1

1.2 Statement of the problem                                                                                     3

1.3   Aims and objective of the study                                                                          4

1.4  Significance of the study                                                                                      5

1.5  Scope of the study                                                                                                5

1.6   Limitation of the study                                                                                        6

1.7  Definition of terms

1.8  Organization of the study

CHAPTER TWO

2.1  Introduction                                                                                                    7

2.2  Conceptual issue                                                                                             7

2.3  Nature of finance ratio                                                                                   8

2.4  Theoretical frame work                                                                                  9

2.5  Empirical review                                                                                            21

CHAPTER THREE

3.0   Introductions                                                                                     22

3.1  Historical background of union bank of Nigeria PLC                        22

3.2  Estimation techniques                                                                        24

3.3  Sources of data                                                                                   24

3.4  Method of data collection                                                                   24

3.5  Method of data analysis

CHAPTER FOUR

4.0  Introduction                                                                                        25

4.1  Presentation and Data Analysis                                                          25

4.2  Analysis and Interpretation of Data                                                   29

4.3  Discuss of Findings                                                                            34

CHAPTER FIVE

5.0  summary of findings, conclusion and recommendations                  37

5.1  summary                                                                                            37

5.2  conclusion                                                                                          37

5.3  recommendations                                                                              38

REFERENCES                                                                                    41

APPENDIX                                                                                          42

CHAPTER ONE

1.1       BACKGROUND OF THE STUDY

Financial information which serves as the basis for financial and decision making is needed for product evaluation and comparison of a firm (Pandy, 1999). Financial statements are means of carrying or conveying to management and to interested outside a concise picture of the profitability and financial position of business. They constitute a report of management performance affecting to managerial success or failure and flashing warning signal of impending difficulties. The financial statement shows the financial position of the business as the time of report and also the operating result by which the company arrived at its time of report and also the operating result by which the company arrived at its position. They only give some information about financial event. Before users of financial statement can read meaning to the array of data or information contained in it, a thorough analysis and interpretation of the data has be done using certain analysis tools. The objective of business enterprise in publishing financial statement is to assist decision makers or users in evaluating the financial strength profitability liquidity and future prospect of the business entity. This objective cannot be justified or accomplished if users do not read meaning or understood the financial statement published (Meig and Meigs, 1994) Financial statement of a firm includes income statement balance sheet, director’s reports auditor’s report, note to the account value-added statement, cash flow statement and five years financial summary (Frank Wood 1996).