ABSTRACT
Accounting information provided by means of financial statements- The income statement and the Balance Sheet are often in summarized form. Viewed on the surface, the truths about the results and the financial position of a business hidden in them remain veiled. To be of optimal benefit and as well enable the users make well – informed decisions, financial statements need to be analyzed by means of ratios. Therefore, in order to establish the role of ratio analysis in business decisions, this research is carried out, using O. Jaco Bros. Ent. (Nig.) LTD., Aba Abia State as the Case study. The researcher made use of both primary and secondary sources of data collection. However, for the former, questionnaires were administered, whereas for the later, relevant were received. The data Collected via the primary data sources were analyzed using simple averages and percentages. After ratios analysis conducted on the chapter four, mode at 95 level of confidence (5% level of significance). Finally, it was established that ratios analysis evils business decision.
TABLE OF CONTENTS
Title Pagei
Dedicationii
Certificationiii
Acknowledgementsiv
Table of Contentsv
Abstractvi
CHAPTER ONE
INTRODUCTION
1.1Background Information1
1.2Statement of Problem2
1.3Objectives of the Study5
1.4Research Question6
1.5Significance of the Study6
1.6Scope of the Study7
1.7Limitation of Study8
1.8Definition of Terms used in the Study9
1.9Brief Historical Background11
Reference13
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1Introduction15
2.2Financial Statement Analysis15
2.3Parties Interested in Financial Statement Analysis16
2.4Objectives of Financial Statement analysis17
2.5Sources of Information for financial
Statement Analysis18
2.6Tools and Techniques of Financial
Statement Analysis19
2.7Uses and Objectives of Ratio Analysis28
2.8Types of Ratio Analysis29
2.8.1Univariate Ratio Analysis29
2.8.2Multivariate Ratio Analysis62
2.9Limitations of Ratio Analysis67
Reference71
CHAPTER THREE
RESEARCH METHODOLOGY
3.1Introduction72
3.2Research Design72
3.3Data Collection Technique72
3.4Population73
3.5Sample Size and Sampling Technique74
3.6Instrument for Data Collection 75
3.7Questionnaires Administration 75
Reference76
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1Introduction77
4.2Data presentation and Analysis77
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1Introduction86
5.2Summary and Discussion of Findings86
5.3Recommendations88
5.4Conclusion89
Reference91
BIBLIOGRAPHY 91
APPENDICES
Appendix 1
Research Questionnaire