Analysis Of The Usefulness Of Accounting Ratio In Evaluating Management Efficiency. A Case Study Of Nigeria Breweries Plc Aba.

ABSTRACT

The study examined the usefulness of accounting ratio in evaluating management efficiency. Specifically, the study to ascertain the effect of accounting ratio on management efficiency of the company, to determine the effect of accounting ratios on the strength and weakness of an organization and to determine the relationship between accounting ratios and liquidity position of the company. The research design that was adopted for this study was descriptive survey design. The sample size of the study was 150 respondents. Empirical result revealed that accounting ratio has positive and significant effect on management efficiency in the company. Accounting ratio has positive and significant effect on strength and weakness of an organization in the company, that there is relationship between accounting ratios and liquidity position of the company. The study recommended that management of the study company should see liquidity ratio, activity/operating efficiency ratio, profitability ratio and leverage ratio as the major accounting ratio influencing firm.