Ratio Analysis As A Tool For Performance Evaluation (case Study Of Glaxosmithkline)

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INTRODUCTION
Ratio  has been most important tools for the effective  development of manufacturing companies and industries, the major uses of ratio is to  access the profitability, gearing, liquidity and asset turnover of the company. The introduction of ratio analysis in manufacturing company has brought about a turn around in many industry and companies.

The important of  ratio analysis in the running of any manufacturing cannot be over emphasizes, it is this significant role that led to the believe. That ratio is the life blood of  every manufacturing companies and industries.

TABLE OF CONTENT
INTRODUCTION
1.0 INTRODUCTION
1.1 BACKGROUND TO THE STUDY 
1.2 STATEMENT OF THE PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH HYPOTHESIS
1.5 SIGNIFICANCE OF THE STUDY
1.6 SCOPE OF THE STUDY
1.7 HISTORICAL  BACKGROUND OF THE CASE STUDY
1.8 DEFINITION OF KEY TERMS     

CHAPTER TWO
LITERATURE REVIEW
2.1 HISTORICAL DEVELOPMENT OF RATIO ANALYSIS 
2.2 INTERPRETATION OF ACCOUNTING RATIOS
2.3 THE CONCEPT OF FINANCIAL RATIO ANALYSIS
2.4 THE FINANCIAL STATEMENT
2.4.1 THE INCOME  STATEMENT
2.4.2 THE BALANCE  SHEET  
2.5 ANALYSIS OF FINANCAL STATEMENT 
2.5.1 TYPES OF FINANCIAL STATEMENT
2.5.2 PROCEDURE IN FINANCIAL ANALYSIS  
2.6 THE ROLE OF COMPARISON IN  FINANCIAL ANALYSIS
2.6.1 STANDARD FOR COMPARISON
2.7 PARTIES INTERESTED IN THE  FINANCIAL RATIOS
2.8 USES OF FINANCIAL RATIOS
2.9 CLASSIFICATION OF RATIO 
2.9.1 LIQUIDITY AND SOLVENCY
2.9.2 ACID TEST (OR QIUCK) RATIO 
2.9.3 PROFITABILITY
2.9.4 GEARING/LEVERAGE 
2.9.4.1 GEARING RATIO
2.9.5 EFFICIENCY
2.9.5.1 ASSET TURNOVER
2.9.5.2 STOCK TURNOVER
2.9.6 INVESTMENT 
2.9.6.1 DIVIDEND PER SHARE 
2.9.6.2 DIVIDEND PAYOUT RATIO 
2.9.6.3 DIVIDEND YIELD RATIO 
2.9.6.4 EARNING PER SHARES
2.9.6.5 OPERATING  CASH FLOW PER SHARE
2.9.6.6 PRICE EARNING RATIO (PIE RATIO)
2.10 LIMITATION OF RATIO ANALYSIS

CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION 
3.1 RESEARCH METHOD
3.2 POPULATION OF THE STUDY 
3.3 SAMPLE TECHNIQUE 
3.4 METHOD OF DATA COLLECTION 
3.4.1 OBSERVATION 
3.4.2 PERSONAL INTERVIEWS 
3.5 METHOD OF  DATA ANALYSIS

CHAPTER FOUR
ANALYSIS AND INTERPRETATION OF DATA
4.0 INTRODUCTION 
4.1 PRESENTATIONS AND ANALYSIS OF DATA
4.2 LIQUIDITY
4.2.1 CURRENT RATIO 
4.2.2 ACID TEST RATIO 
4.3 PROFITABILITY
4.3.1 NET PROFIT MARGIN
4.3.2 GROSS PROFIT MARGIN 
4.3.3 RETURN ON OWNER’S EQUITY 
4.3.4 RETURN ON CAPITAL EMPLOYED (ROCE) 
4.4 GEARING/LEVERAGE 
4.4.1 GEARING  RATIO 
4.4.2 INTEREST COVER RATIO 
4.5 EFFICIENCY 
4.5.1 AVERAGE STOCK TURNOVER PERIOD
4.5.2 STOCK TURNOVER 
4.5.3 ASSET TURNOVER RATIO
4.5.4 SALES  PER EMPLOYER 
4.6 INVESTMENT 
4.6.1 DIVIDEND PER SHARE 
4.6.2 DIVIDEND PAYOUT RATIO
4.6.3 DIVIDEND YIELD RATIO   
4.6.5 OPERATING CASH FLOW PER  SHARE 
4.6.4 EARNINGS PER SHARE 
4.6.6 PRICE EARNING RATIO 
4.2 INTERPRETATION OF RESULTS

CHAPTER FIVE
SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATIONS. 
5.0 INTRODUCTION
5.1 SUMMARY 
5.2 CONCLUSION 
5.3 RECOMMENDATION 
5.3.1   LIQUIDITY
5.3.2 PROFITABILITY 
5.3.3 GEARING/LEVERAGE
5.3.4 GENERAL RECOMMENDATION
5.4 LIMITATION OF STUDY 
REFERENCE
APPENDIX I
APPENDIX

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(2014, 08). Ratio Analysis As A Tool For Performance Evaluation (case Study Of Glaxosmithkline).. ProjectStoc.com. Retrieved 08, 2014, from https://projectstoc.com/read/2600/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424
"Ratio Analysis As A Tool For Performance Evaluation (case Study Of Glaxosmithkline)." ProjectStoc.com. 08 2014. 2014. 08 2014 <https://projectstoc.com/read/2600/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424>.
"Ratio Analysis As A Tool For Performance Evaluation (case Study Of Glaxosmithkline).." ProjectStoc.com. ProjectStoc.com, 08 2014. Web. 08 2014. <https://projectstoc.com/read/2600/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424>.
"Ratio Analysis As A Tool For Performance Evaluation (case Study Of Glaxosmithkline).." ProjectStoc.com. 08, 2014. Accessed 08, 2014. https://projectstoc.com/read/2600/ratio-analysis-as-a-tool-for-performance-evaluation-case-study-of-glaxosmithkline-2424.

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