Financial Ratio Analysis And Corporate Performance

ABSTRACT

The study focused on financial ratio analysis and corporate performance. in the study, an extensive, literature review was carried out to investigate different opinions of the various authors on the study. Thereafter, questionnaire was used as a way of obtaining data. The results were validated through the use of the chi-square test (X2) in testing the hypothesis and judgment were made based on 95/c confidence level. The results of the study revealed that ratios provide a way to compare quickly the financial strength and profitability of different companies and a statement of cash flow is used to test the solvency of the firm. Based on the results of the data presentations and analysis, recommendations were provided on how to improve the use of ratios and.cash flow statement in the organisations or firms.