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Ratio Analysis As A Measure Of Corporate Performance

Download final year complete project materials for Ratio Analysis As A Measure Of Corporate Performance from chapter 1 to 5 with rerference

The word “CORPORATE” implies an assembly of simultaneous units of members of one body. This body “corporate’ was incorporated under the statute. Plans in respect of its present and future business. It may be inform of strategic, tactical or operational planning.

To make rational discussion of keeping with the firm’s objectives, the financial manager must have certain analytical tools i.e yardstick. The. Yardstick frequency used in ratio or index relating two pieces of financial data to each other or one.

 

TABLE OF CONTENT

Title page

Certification

Dedication

Acknowledgment

Abstract

Table of contents


CHAPTER ONE

1.0 Introduction

1.1 Statements of problems

1.2 Objectives of the study

1.3 Significance of the study

1.4 Research methodology

1.5 Scope of the study

1.6 Limitation of the study

1.7 Plan of the study

CHAPTER TWO

2.1 Literature review

2.2 conceptual framework

2.2.1Long term solvency and stability

2.2.2Fixed interest cover

2.2.3Fixed dividend cover

2.2.4Total debt to shareholder’s fund.

2.2.5 Stock turnover

2.2.6 Current ratio

CHAPTER THREE

3.1 Case study and research methodology

3.2 Sources of data

3.3 Method of data analysis

CHAPTER FOUR

4.1 Presentation and data analysis

4.2 History of PZ

4.3 Data of ratio  analysis

CHAPTER FIVE

5.1 Summary of finding

5.2 Conclusion

5.3 Recommendation

Bibliography


CHAPTER ONE

1.0 INTRODUCTION
Financial Ratio analysis therefore is said to be mathematical relationship of comparison between different items in the financial statement i.e profit and loss account, balance sheet and the statement of changes in the financial position. This involves selection analysis and interpretation of the financial statement.

The  company (corporate body) itself and the creditors plus investors where  all undertake financial analysis set the firm’s is not only internal control but also better understanding of what capital suppliers seek in financial condition and performance from it. Thus, the accountant or financial manager or analyst must first understand what he wants to know about the firm and formulate an approach that will yield the information he is seeking.

Sources of information on past and present performance of such a firm includes:

  • Statistical services.
  • Reports from credit agencies.
  • Meeting with the customers or management.
  • Annual accounts e.t.c.

Our focus is to be analysis and interpret  the qualities of financial data of past accounting information of the firm’s in order to give qualitative judgment of predictor (likely) or its present and future financial performance.

1.1 STATEMENT OF PROBLEM

Many businesses over the world have met with untimely crisis due to improper selection and assessment of the financial statement or items in determing their ratio. This section of this write up tries to examine some of the problems in the ratio analysis and interpretation in evaluating corporate performances.

These problems include;

  • Some companies, which combine operations e.g a company having different subsidiary that operates business in various industries like banking, insurances, agriculture etc.
  • Details knowledge of a company’s market is seldomly obtainable from the published accounts yet such knowledge is particularly important for assessing future profitability.
  • There is a danger that ration analysis can lead to conclusions which are over simplified e.g net profit may look impressive but the firm’s performance can said to good or bad only when net profit figure is related to the firm’s investment.
  • Little or no attention is paid to determing optional value for ratios, yet in practice some kinds of balancing between various ratios must be done.
  • The ratios calculated at a point in time less in formative and detective as they suffering from short term changes.
  • The price level changes make interpretation of ratio invalid.
  • Finally, the different means of an organization recognizing revenue and other for of experience like depreciation possess a problem.

However, a basis solutions is to place a  square peg not in round holes, but where he or she belongs. This implies that, only an experience skilled analyst should be able to nuture both the company’s goal and the external capital suppliers’ aim in utilizing the ration analysis to interpret the firm’s strength and weakness with the above mentioned problems in view.

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