ABSTRACT
The study is to investigate the
impact of financial ratios as a tool for evaluating the performance of
companies for investment decision. The problems encountered in this research
were financial statements shows the financial position of a company at the end
of a financial period but they don't present accurate performance on the level
of performance or efficiency of operations of a firm at the end of financial
period. The main objective of this project is to assess the impact of financial
ratios as a tool for evaluating the performance of companies for investment
decision and the specific objectives are to ascertain the reliability of
financial ratios as a tool for evaluating the performance of companies, to find
out if managers employ financial ratios in the performance and evaluation of
investment. To achieve this objective, expose facto design was adopted. The
researcher adopted secondary data in getting the required 1nf0rrn2tion. Data
in. Guaranty Trust Bank plc and First Bank plc was used with the aid of
multiple regression analysis. The findings revealed that there is a significant
relationship between return on asset and investment decision, return on equity
and the performance of companies. The researcher concluded that financial
ratios are tools used to analyze financial conditions and performance of every
business organization and it exposes the position of the firm in terms of
performance and efficiency of operations. It also recommended that financial
ratio analysis should be properly appraised in companies and financial
statements should be more detailed in the presentation of facts for the
management.
MICHAEL, U (2021). Impact Of Financial Ratios As A Tool For Evaluating The Performance Of Companies For Investment Decision (A Study Of Selected Firms). Mouau.afribary.org: Retrieved Nov 27, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-financial-ratios-as-a-tool-for-evaluating-the-performance-of-companies-for-investment-decision-a-study-of-selected-firms-7-2
UNIVERSITY, MICHAEL. "Impact Of Financial Ratios As A Tool For Evaluating The Performance Of Companies For Investment Decision (A Study Of Selected Firms)" Mouau.afribary.org. Mouau.afribary.org, 19 Jul. 2021, https://repository.mouau.edu.ng/work/view/impact-of-financial-ratios-as-a-tool-for-evaluating-the-performance-of-companies-for-investment-decision-a-study-of-selected-firms-7-2. Accessed 27 Nov. 2024.
UNIVERSITY, MICHAEL. "Impact Of Financial Ratios As A Tool For Evaluating The Performance Of Companies For Investment Decision (A Study Of Selected Firms)". Mouau.afribary.org, Mouau.afribary.org, 19 Jul. 2021. Web. 27 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-financial-ratios-as-a-tool-for-evaluating-the-performance-of-companies-for-investment-decision-a-study-of-selected-firms-7-2 >.
UNIVERSITY, MICHAEL. "Impact Of Financial Ratios As A Tool For Evaluating The Performance Of Companies For Investment Decision (A Study Of Selected Firms)" Mouau.afribary.org (2021). Accessed 27 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-financial-ratios-as-a-tool-for-evaluating-the-performance-of-companies-for-investment-decision-a-study-of-selected-firms-7-2