Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scale Business (A Study Of Selected Small And Medium Scale Company In Abia State)
ABSTRACT
This research work examined the
relevance of financial ratio analysis in the appraisal of small and medium
scale business with particular reference to Aba textile mills in Abia state.
The study examined the establishing of the extent to which accounting ratio can
be used to interpret accounting records of small and medium scale business,
finding and analyzing the meaning of financial ratio analysis to the researcher
knowledge and understanding of financial statement of the company, to establish
the effect of ratio analysis on the users of financial statement and to
highlight available ratios for measuring the true state of performance of
company. The data were collected from both primary and secondaiy sources, while
primary data was collected by the use of questionnaires; the secondary data
were based on readings from textbooks and internet. Data from the response to
questionnaire was presented using the multiple regression analysis. From the
analysis, the findings showed that ratio analysis is an important tool for an
organization in measuring their progress towards reaching their goal; ratio
analysis have an effect on the users of financial statement and also that lack
of competent management affect small and medium scale business. It was however
recommended that the retained earnings of the small scale business should be
properly invested in order to have more capital for business and also financial
ratio analysis should be properly appraised in the small and medium scale
businesses in order for the management to identify the strength and weakness
inherent in the system.
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UDEH, K (2021). Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scale Business (A Study Of Selected Small And Medium Scale Company In Abia State). Repository.mouau.edu.ng: Retrieved Nov 25, 2024, from https://repository.mouau.edu.ng/work/view/relevance-of-financial-ratio-analysis-in-the-appraisal-of-small-and-medium-scale-business-a-study-of-selected-small-and-medium-scale-company-in-abia-state-7-2
KALU, UDEH. "Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scale Business (A Study Of Selected Small And Medium Scale Company In Abia State)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 31 Aug. 2021, https://repository.mouau.edu.ng/work/view/relevance-of-financial-ratio-analysis-in-the-appraisal-of-small-and-medium-scale-business-a-study-of-selected-small-and-medium-scale-company-in-abia-state-7-2. Accessed 25 Nov. 2024.
KALU, UDEH. "Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scale Business (A Study Of Selected Small And Medium Scale Company In Abia State)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 31 Aug. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/relevance-of-financial-ratio-analysis-in-the-appraisal-of-small-and-medium-scale-business-a-study-of-selected-small-and-medium-scale-company-in-abia-state-7-2 >.
KALU, UDEH. "Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scale Business (A Study Of Selected Small And Medium Scale Company In Abia State)" Repository.mouau.edu.ng (2021). Accessed 25 Nov. 2024. https://repository.mouau.edu.ng/work/view/relevance-of-financial-ratio-analysis-in-the-appraisal-of-small-and-medium-scale-business-a-study-of-selected-small-and-medium-scale-company-in-abia-state-7-2