Effect Of Accounting Ratios On Organizational Performance In Nigeria (A Study Of Union Bank Plc, 2013 - 2016)

ABSTRACT

This study examines the effect of accounting ratios on organization performance in Nigeria. For the purpose of the work, Union Bank of Nigeria Plc was used as a case study. Secondary method of data collection was used. The data was collected from Union Bank of Nigeria yearly reports between 2013 and 2016. The financial ratios used for the evaluation includes: Net Interest Margin (NIM), Cost to Income Ratio (CIR), Return on Equity (ROE), Return on Assets (ROA), Net Asset Value per share (NA VS) and Earnings per share (EPS). The t-statistics was used to test f the ratios did significantly affect Union Bank's performance. The calculated values were all greater than the tabulated value showing that the variables were greatly significant. This shows that financial ratios are good indicators in determining the financial health of any organization. Based on the findings, the researcher recommends that Union Bank should utilize its assets efficiently in generating more income, expand its business in order to make more sales and profits.