It is aimed at assessing how effectively a company is managing its working capital.
It is the responsibility of the management of a business enterprise to make sure that the activities being carried out by their enterprises are properly and documented. The recording of the business operation should be prepared in monetary term in a manner that the various interested party to the company's financial statement will have the opportunities to determine whether the business is performing well in its functions or otherwise.
The management is totally responsible for the" planning, organizing, coordinating as well as controlling and making corrective decision that seeks to the progress and advancement of the business organization. Decision making is a managerial function. It requires the assessment or analytical study of past, present operation future prospects and the probable outcome of decision which could be made.
One important instrument which has helped business over the years in this area is the financial ratio analysis. Financial statement in order Financial ratio analysis of metalrax plc gain insight into the financial position and performance of a business enterprise.
It is the relationship between financial data in the financial statement to aid in the evaluation of the business strength and weaknesses. It also provide us with information that is useful for investment decisions such as "should we acquire ABC corporation or otherwise?
It encompasses a variety of accounting ratios that reflect on a particular events, results or existing conditions.
The financial statement is an accounting statement showing the profit and loss account of a business firm for a particular year, also the balance sheet, showing the financial position of the company.
Various users include specific interest and needs. The users include the following bodies such as; the management, shareholders, creditors, government employees, customers, financial analysts and advisers as well as This research work therefore, intends to find out the impact of financial ratio analysis on investment decision in a multinational organization, using GUINNESS NIGERIA PIc located in Ikeja as a case study.
It is a very important decision for the growth and survival of most organization in Nigeria. The problem of this research study shall centers on the reason why business fail to prosper in the function.
Inadequate fact data or information about the project being under taken. The wrongly analysis of the technique use for company's evaluation and performance. Insufficient availability of investment analyst and expert that can give "advice on what, where and how to invest one's resources.
Difficult to decide on a proper basis for comparison because organization ratio have meaning only when they are compared with some standards. There is inherent assumption that the historical data used for ratio analysis are inviolate fixed and applicable under all situations, however the dynamic of political and economic factors may prove such data as out of date".
Financial Analysis and Valuation for Strategic Decision Making will help you evaluate the financial consequences of business decisions and how to value companies, businesses, and projects. Please note that this program requires a basic understanding of the following. METALRAX GROUP PLC Share Chat and Share Discussion Board featuring the latest investing views, opinion and debate from our Forum users and external contributors on LON:MRX^J Group Financial Controller at Metalrax Group Plc, Group Financial Controller at Metalrax Group Plc, Senior Audit Manager at Education The University of .
To examine the commitment of resources with the expectation of realizing future benefit over a reasonable long period in the future. To determine how matters relating to dividend policy affect the organization stability.
To examine how Investment decision affect the future profitability either by way of increase in revenue or cause an increase in efficiency and reduction in cost.
To examine" the factors that determines the growth and survival of the organization over-time 5. To make recommendation to the management, shareholders and investors on how to execute their investment plans.
The questions will include: How will the commitment of present resources be able to realize the future benefit in a reasonable long period? How will matters relating to divided policy in your organization affect its stability? It is from this statement drawn their conclusion the company's performance, its managerial ability and competence as well as the future prospect of the business under consideration.
Investment decision is the allocation of a firms capital finds to investment proposal to yield future benefit that will meet up the expectation of all investors in a company 3. How will Investment decision affect the future profitability by way of increase in revenue or increase in efficiency and cost reduction?
How will the factors that determine the growth and survival of your organization over a time can be examined?FINANCIAL PERFORMANCE EVALUATION Significance of Financial Analysis 20 Types of Analysis 22 Limitations of Using Financial Ratios 35 Review of Empirical Studies 37 CHAPTER III ORGANIZATIONAL PROFILE 40 Industry Overview 40 The Birth and Development of Banking.
Financial Ratios, Discriminant Analysis and the Prediction of Corporate BankruptcyANKRUPTCY – ARTICLE SUMMARY.
The article Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy was written in by Edward I.
Altman. The purpose of the article is to address the quality of ratio analysis as an analytical technique. A Financial Ratio Analysis of Weatherford International plc Stock Let's get down and dirty with the numbers on Weatherford International.
Tyler Crowe. Financial ratio analysis is a useful tool for users of financial statement. It has following advantages: Advantages. It simplifies the financial statements.
Home > Financial Accounting > Ratio Analysis > Cash Conversion Cycle Cash Conversion Cycle Cash conversion cycle is an efficiency ratio which measures the number of days for which a company’s cash is tied up in inventories and accounts receivable.
Ratio Analysis 1 | P a g e Introduction A sustainable business and mission requires effective planning and financial management. Ratio analysis is a useful management tool that will improve your understanding of financial results and trends over time, and provide key indicators of organizational performance.