Appraise the Effectiveness of Financial Ratios as a Tool for Measuring Financial Performance

Description

– Appraise the Effectiveness of Financial Ratios as a Tool for Measuring Financial Performance –

Download Appraise the Effectiveness of Financial Ratios as a Tool for Measuring Financial Performance. Students who are writing their projects can get this material to aid their research work.

Introduction

1.1 Background of the Study

An important feature of a typical business organization is the separation of ownership from management, for instance, a limited liability company, it is therefore expedient for management to render stewardship accounts to the owners of the business organization for evaluating the performance of the organization as whole.

The  Whole Organization

The stewardship accounting, which is usually, called the financial reports: contain information that would aid users of such reports in their judgments or decisions about economic and financial matters, especially of the organization concerned. The information is expressed monetary terms.

When the absolute naira amount of most data items reported in the financial statements are considered individually, they are generally of limited usefulness. Significant relationship may not be apparent from a view point of absolute naira amount because no indication is given of whether a particular item is good or bad for the firm.

In order to appreciate the users of the report frequently convert significant charges and relationship, the naira amount reported in the financial statement into percentages and ratios by the users of the report.

Therefore, a ratio is a measure used to describe the relationship between two figures which can be expressed as a percentage or a rate in quotient. Taken in isolation, a ratio is meaningless unless it is compared with other ratios and only 2 then can draw some meaningful relationship arising from the picture presented by the rates.

Ratio analysis is therefore, described as the relationship between two or more financial data in the financial statement to aid the determination of the financial condition and performance of a firm.

It is the interpretation of the balance sheet and income statement of a business organization. It involves comparing of series of selected items with another series and relating the resultant figures (termed ratios) against standards.

Lucey (2008) defined ratio analysis as the systematic production of ratios from both internal and external financial report to summarize core relationship and outcomes for evaluating financial performance.

A number of ratios are computed to provide useful information to various interest groups having a stake in the organization. Baker (2006) observed that financial ratios assist in conducting spot check on the financial health of an organization.

How to Download this Project Material

First, note that we are one of the best and most reliable online platforms because we don’t retain any of your personal information or data as regards making payments online.

PRICE: ₦3,500 ₦3,000  (Three Thousand Naira Only)

Make a bank deposit or mobile transfer of ₦2,000 only to the account given below;

---

Bank Name: UBA Account Number: 1022564031 Account Name: TMLT PRO SERVICES

---

After making the payment, CLICK HERE to send the following on WhatsApp;

• Depositor’s Name or Screenshot of Payment
• Name of the Past Question
• Active Email Address

---

or Call Us On +2348082284439 Once your details have been received and your payment confirmed by us, you will receive the past question in your email or WhatsApp within 5 Minutes.

Guarantee of Getting the Material 

We understand that due to the high rate of fraud, many people are afraid of making purchases online but be rest assured that PastExamQuestions will deliver your material after payment.

Once your details have been received and your payment confirmed by us, you will receive the past question in your email or WhatsApp.

Give us Feedback

Have we been able to satisfy you? How well do you think the material will be helpful after having gone through it? Does the price worth the material?

Let’s hear from you! We recommend that our customers give feedback at the end of every transaction to enable us to serve better. You can do this by clicking the review button on this page.

Where is the review button? >> Just scroll up to where you see reviews