ABSTRACT

 This research work is expected to provide the importance of accounting ratio in business management decision and its relevance to financial performance to every organization with respect to Saclux Paints Manufacturing Company Limited. The study among other things considers the relevant concepts adopted in ratio analysis and various works by some authors, it examines the extent of utilization and effect of financial ratios on the divisional earning view of five years. Primary data of mine were through questionnaires which were used to obtain facts from both the top and middle managers of the selected division in the group. Generalization was made through data collected and the data were subjected to analysis which showed the relevance and impact of financial ratio in business management decision and information system to the organization. However, this research work showed the relevance of the financial ratio analysis mostly to both private and publics of an organization, that is, the equity holder, short-term creditors, long-term creditors, the management, the customers/client and the tax authority. Also, a lending banker can also be able to asses the liability of a borrowing firm with the help of ratio analysis in order to decide on whether to or not to extent credits. To examine this research work, the researcher embarked on secondary sources of data as recommended. This entails the review of related literature by renowned and prominent authors of text books, journals, magazines and newspapers, as well as other publications. This research work is essential for both students and those in the agricultural sector. It constitutes a good reading for practitioners in the field of agriculture.