Description
ABSTRACT
This research work “The study of the use of financial ratios for the assessment of the performance and profitability of a firm” touched all vital aspects of ratio analysis. In addition, it identified the various kinds of ratios, their uses, those that benefits from such analysis, as well as the limitations associated with the concept of financial ratio analysis.
However, this research work showed the relevance of the financial ratio analysis mostly to the publics of an organization, that is, the equity holder, short-term creditors, long-term creditors, the management, the customers/client and the tax authority. Also, a lending banker can also be able to assess the viability of a borrowing firm with the help of ratio analysis in order to decide on whether to or not to extend credits.
To examine this research work, the researcher embarked on secondary source of data as recommended. This entails the review of related literature by renowned and prominent authors of textbooks, journals, magazines and newspapers, as well as other publications.
This research work is essential for both students and those in the agricultural sector. It constitutes a good reading for practioners in the field of agriculture.
PROJECT PROPOSAL
The researcher intends to write on the topic “A study of the use of financial ratios for assessments of the performance and profitability of a firm”.
Presently, most lending bankers are faced with the problem of loan default as a result of in appropriate study or appraisal of the financial statements of the borrowing firm with the help of financial ratio analysis. Therefore, the proposed objective of the study is to identify the various ratios, roles and problems with the use of financial ratios in assessing the performance and profitability of a borrowing firm.
However, the researcher also intends to source her data through the secondary means of data collection, which implies the review of related textbooks, journals, magazines, etc.
Furthermore, the researcher intends to emphasis or limit her topic on the aspect of bank lending in relation to the use of financial ratio analysis to assess the performance and profitability of a borrowing firm.
Conclusively, in respect to the plan for the review of relevant literature, the researcher intends to elaborate more on the concept of financial ratios, various kinds of financial ratios, their uses and importance, as well as limitations on their uses or application.
TABLE OF CONTENTS
ii TITLE PAGE
iii APPROVAL PAGE
iv DEDICATION
v ACKNOWLEDGEMENT
vi ABSTRACT
viii TABLE OF CONTENTS
CHAPTER ONE:
1.0 INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objective of the Study
1.4 Significance of the Study
1.5 Limitation of the Study
1.6 Definition of Terms
CHAPTER TWO:
2.0 REVIEW OF RELATED LITERATURE
2.1 The Concept of Financial Ratio Analysis
2.2 General Uses of Financial Ratio Analysis
2.3 Standards of Comparison and Basic Financial Statements
2.4 Type of Financial Ratios
2.5 Limitations of Financial Ratio Analysis
2.6 Ratio Analysis and the Lending Banker
CHAPTER THREE:
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Source of Data
3.2 Location of Data
3.3 Methods of Data Collection
CHAPTER FOUR
4.0 FINDINGS
CHAPTER FIVE:
5.0 Recommendations and Conclusion
5.1 Recommendation
5.2 Conclusion
Bibliography