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Ratio Analysis As A Tools For Performance Appraisal In Nigeria Financial Market
[A case study of First Bank of Nigeria Plc, Ilorin Branch]
CHAPTER ONE -- [Total Page(s) 3]
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1.4 OBJECTIVE OF THE STUDY
The study into financial ratio analysis as a tool for appraising performance is to assist the use of financial information make decision predict the future and monitor possible irregularities in managerial behaviours in business. Thus the main objective of study are:-
1. To determine the strength, weakness and opportunities based on the firms financial statement or performance and the threats to the continued existence of the organization.
2. To assess the extent to which ratio analysis serves as techniques aid in decision making by management. To find out the extent, which the management. To find out the extent, which the management of the company has been able to run and control effectively and efficiently, the assets and owners equity between the period under review.
3. To find out the extent to which the trends indicated ratio are useful for prediction of the future last to make recommendation to the company.
1.5 RESEARCH HYPOTHESIS
Hypothesis is assumptions upon which the research base his finding for a data collected. The hypothesis basically formatted to be tested.
Ho – Ratio analysis cannot serve as a tool for measuring managerial performance.
Hi – Ratio analysis can server as a tool for measuring managerial performance.
Ho – Ratio analysis can not serve as tool for measuring managerial performance.
Hi – Ratio analysis can serve as a tool for measuring profitability and efficient of a firm.
While chi-square is used to test validity of the hypothesis.
1.6 SCOPE OF THE STUDY
This study has been limited five years financial summarize of First Bank of Nigeria PLC. Profit and loss account the value added statement using ratio and adequate interpretation was analyzed.
The study is carried out base on the fact that account represents a true and fair view of the company’s affair and not misleading.
Moreover, financial ratio will be compared with that of previous years using common size of statement, treads analysis i.e reaction of the economic unit overtime of the firm horizontal analysis.
The period was choosing because of its available financial statement representing its operation within the period 2002 to 2006.
1.7 PLAN OF THE STUDY
The research is written to examine financial ratio analysis as a tool for performance appraisal.
The study begins with chapter one that deals with background of the study statement of problem justification of the study and definition of terms. Chapter two deal. With the literature review of the work of other author related to this research. Chapter three emphasizes on research methodology: type of data population and sample size, method of data collection, method of data analysis and brief history of First Bank of Nigeria Plc, Ilorin Chapter. Chapter Four embraces the data presentation and analysis testing of hypothesis result and analysis of liquidity ratio. Chapter five deal with summary, conclusion and recommendation.
1.8 LIMITATION OF THE STUDY
In the cause of carrying out the research the following limitation are encumbered. The limitation of the study is majority the limited available and strick access to some data’s demanded by the research from the appropriate body in the organization as a result of high work schedule but however due to continuous patronage the data was later discharge.
Another problem that limited against the smooth conduct of this research work was the high cost of transportation and also strick assess to other schools library but with the help of financial support both from our parent and school authority, the stress or limitation was over come.
CHAPTER ONE -- [Total Page(s) 3]
Page 2 of 3
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