TABLE OF CONTENTS
DECLARATION
APPROVAL ii
DEDICATION iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF ACRONYMS viii
LIST OF FIGURES ix
LIST OF TABLES x
ABSTRACT xi
CHAPTER ONE
INTRODUCTION OF THE STUDY
1.0 Introduction I
1.1 Background of the study
1.2 Statement of the Problem 2
1.3 Purpose of the study 3
1.4 Objectives of the Study 3
1.4.1 General Objective 3
1.4.2 Specific objectives 3
1.5 Research questions 3
1.6 Scope of the study 4
1.6.1 Geographical scope 4
1.6.2 Time scope 4
1.6.3 Content scope 4
1.7 Significance of the Study 4
1.8 Conceptual framework 5
CHAPTER TWO 6
LITERATURE REVIEW 6
2.Olntroduction 6
2.1 Review of the key concepts 6
2.1.1 Financial ratio 6
2.1.2 Financial Performance 6
2.2 Forms of ratio used by organizations 6
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2.2.1 Cash flow ratios .6
2.2.2 Leverage (debit) Financial Ratios 7
2.2.3 Liquidity (solvency) Financial Ratios 7
2.2.4 Financial Operation Ratios (Asset Efficiency) ratios 7
2.2.5 Profitability Financial Ratios 8
2.2.6 Valuation ratios (market value ratios) 8
2.3 Role of accounting ratio analysis in measuring financial performance of organizations 8
2.4 Limitations of ratio analysis in measuring performance of organizations 10
2.5 Conclusion 12
CHAPTER THREE 13
METHODOLOGY 13
3.1 Introduction 13
3.2Research design 13
3.3Study population 13
3.4Sample size 13
3.5Sampling Techniques and Procedures 14
3.5.1 Simple Random Sampling 14
3.5.2Purposive Sampling 14
3.6 Data collection methods 14
3.6.1 Primary data 15
3.6.2Secondary Data 15
3.7Data collection instruments 15
3.7.1 Self-Administered Questionnaires 15
3.8Validity and Reliability 15
3.8.1 Validity 15
3.8.2 Reliability 15
3.9 Data Collection Procedures 16
3.loDataAnalysis 16
3.11 Ethical Considerations 16
CHAPTER FOUR 17
PRESENTATION OF RESULTS! FINIMNGS 17
4.1 Introduction 17
4.2 General Findings 17
4.3 Questionnaires Distributed and Returned 17
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4.4 Presentation of the findings according to the objectives 20
4.5 To find out the role of accounting ratio analysis in measuring financial performance of
Mukwano Group of Companies 23
4.6 To find out whether there are limitations of ratio analysis in measuring Performance of
Mukwano Group of Companies Limited 24
CHAPTER FIVE 25
CONCLUSIONS AND RECOMMENDATIONS 25
5.1 Introduction 25
5.2 Conclusion 25
5.3 Recommendations 26
5.3.1 Forms of ratio used by Mukwano to measure performance 26
5.3.2 Role of accounting ratio analysis in measuring financial performance 26
5.3.3 Limitations of ratio analysis in measuring performance 26
5.4 Areas for further research 27
REFERENCES 28
APPEN]MXI 31
QUESTIONNAIRE SCHEDULE 31
APPENDIX II 34
Sample Size for the Given Population Sizes 34
ABSTRACT The purpose of this study was to investigate the role of Accounting Ratio analysis in measuring financial performance of Mukwano Group of Companies. The study was guided by three research objectives specifically to identify the different forms of ratio used by Mukwano group of companies, determine the role of accounting ratio analysis in measuring financial performance and identi1~’ the limitations of ratio analysis in measuring performance. The study was covered using a cross sectional and a case study research designs which seemed applicable for the research based on Accounting Ratio Analysis. The study was based on a Self-Administered Questionnaire (SAQs) which were used because they are the most suitable in a survey that involves a large number of respondents. A total of 108 employees were randomly selected, although at last only 74 were retrieved. Data was analyzed using frequency tables and percentages and the study concluded that despite the achievements, gaps between this accounting ratio and performance still exist for example false accounting, comparison is not possible if different firms adopt different accounting policies, Ratio analysis becomes less effective due to price level changes and Lack of proper standards affects the appropriateness of ratio analysis. The study recommends the organization to provide a good proper working condition for accomplishment of the assigned tasks which should be backed by eenhancement of employee involvement programs and provision of employee training and refresher programs.
JOHNSON, A (2022). The Role of Accounting Ratio Analysis in Measuring Financial Performance of a Firm a Case of Mukwano Group of Companies. Afribary. Retrieved from https://afribary.com/works/the-role-of-accounting-ratio-analysis-in-measuring-financial-performance-of-a-firm-a-case-of-mukwano-group-of-companies
JOHNSON, ALIGANYIRA "The Role of Accounting Ratio Analysis in Measuring Financial Performance of a Firm a Case of Mukwano Group of Companies" Afribary. Afribary, 09 Aug. 2022, https://afribary.com/works/the-role-of-accounting-ratio-analysis-in-measuring-financial-performance-of-a-firm-a-case-of-mukwano-group-of-companies. Accessed 28 Apr. 2024.
JOHNSON, ALIGANYIRA . "The Role of Accounting Ratio Analysis in Measuring Financial Performance of a Firm a Case of Mukwano Group of Companies". Afribary, Afribary, 09 Aug. 2022. Web. 28 Apr. 2024. < https://afribary.com/works/the-role-of-accounting-ratio-analysis-in-measuring-financial-performance-of-a-firm-a-case-of-mukwano-group-of-companies >.
JOHNSON, ALIGANYIRA . "The Role of Accounting Ratio Analysis in Measuring Financial Performance of a Firm a Case of Mukwano Group of Companies" Afribary (2022). Accessed April 28, 2024. https://afribary.com/works/the-role-of-accounting-ratio-analysis-in-measuring-financial-performance-of-a-firm-a-case-of-mukwano-group-of-companies