Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scalebusiness (A Study Of Selected Small And Medium Scale Business 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
secondary 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 Scalebusiness (A Study Of Selected Small And Medium Scale Business 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-scalebusiness-a-study-of-selected-small-and-medium-scale-business-in-abia-state-7-2
KALU, UDEH. "Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scalebusiness (A Study Of Selected Small And Medium Scale Business In Abia State)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 09 Jun. 2021, https://repository.mouau.edu.ng/work/view/relevance-of-financial-ratio-analysis-in-the-appraisal-of-small-and-medium-scalebusiness-a-study-of-selected-small-and-medium-scale-business-in-abia-state-7-2. Accessed 25 Nov. 2024.
KALU, UDEH. "Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scalebusiness (A Study Of Selected Small And Medium Scale Business In Abia State)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 09 Jun. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/relevance-of-financial-ratio-analysis-in-the-appraisal-of-small-and-medium-scalebusiness-a-study-of-selected-small-and-medium-scale-business-in-abia-state-7-2 >.
KALU, UDEH. "Relevance Of Financial Ratio Analysis In The Appraisal Of Small And Medium Scalebusiness (A Study Of Selected Small And Medium Scale Business 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-scalebusiness-a-study-of-selected-small-and-medium-scale-business-in-abia-state-7-2