The Role Of Ratio Analysis In Business Decisions (a Case Study Of Jaco Bros. Enterprises Nigeria Ltd)

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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 Page i
Dedication ii
Certification iii
Acknowledgements iv
Table of Contents v
Abstract vi
 
CHAPTER ONE
INTRODUCTION
1.1 Background Information
1.2 Statement of Problem 2
1.3 Objectives of the Study 5
1.4 Research Question 6
1.5 Significance of the Study 6
1.6 Scope of the Study 7
1.7 Limitation of Study 8
1.8 Definition of Terms used in the Study 9
1.9 Brief Historical Background 11
Reference 13

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Introduction 15
2.2 Financial Statement Analysis 15
2.3 Parties Interested in Financial Statement Analysis 16
2.4 Objectives of Financial Statement analysis 17
2.5 Sources of Information for financial 
Statement Analysis 18
2.6 Tools and Techniques of Financial 
Statement Analysis 19
2.7 Uses and Objectives of Ratio Analysis 28
2.8 Types of Ratio Analysis 29
2.8.1 Univariate Ratio Analysis 29
2.8.2 Multivariate Ratio Analysis 62
2.9 Limitations of Ratio Analysis 67
Reference 71

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction 72
3.2 Research Design 72
3.3 Data Collection Technique 72
3.4 Population 73
3.5 Sample Size and Sampling Technique 74
3.6 Instrument for Data Collection 75
3.7 Questionnaires Administration 75
Reference 76

CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1 Introduction 77
4.2 Data presentation and Analysis 77

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction 86
5.2 Summary and Discussion of Findings 86
5.3 Recommendations 88
5.4 Conclusion 89
Reference 91
BIBLIOGRAPHY 91 
APPENDICES
Appendix 1
Research Questionnaire
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(2016, 01). The Role Of Ratio Analysis In Business Decisions (a Case Study Of Jaco Bros. Enterprises Nigeria Ltd).. ProjectStoc.com. Retrieved 01, 2016, from https://projectstoc.com/read/7008/the-role-of-ratio-analysis-in-business-decisions-a-case-study-of-jaco-bros-enterprises-nigeria-ltd-7269
"The Role Of Ratio Analysis In Business Decisions (a Case Study Of Jaco Bros. Enterprises Nigeria Ltd)." ProjectStoc.com. 01 2016. 2016. 01 2016 <https://projectstoc.com/read/7008/the-role-of-ratio-analysis-in-business-decisions-a-case-study-of-jaco-bros-enterprises-nigeria-ltd-7269>.
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"The Role Of Ratio Analysis In Business Decisions (a Case Study Of Jaco Bros. Enterprises Nigeria Ltd).." ProjectStoc.com. 01, 2016. Accessed 01, 2016. https://projectstoc.com/read/7008/the-role-of-ratio-analysis-in-business-decisions-a-case-study-of-jaco-bros-enterprises-nigeria-ltd-7269.

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