“Financial Accounting Ratios As Tools For The Evaluation Of Management Performance In Nigeria(A Study Of Nestle Food Nigerian PLC):- Egwuatu Precious C

ABSTRACT

 The study seeks to examine financial accounting ratio as a tool for the evaluation of management performance in Nigeria. Data was gotten from the financial statement of Nestle PLC as published on the Nigerian stock exchange market. The study employed the use ofmultiple ordinary least square regression technique to analyze and test the three stated hypotheses. Findings from the study revealed that; profitability ratio has a positive significant effect on gross profit margin as a management performance evaluation tool. Furtherfindings revealed thatliquidity ratio has a positive insignificant effect on gross profit margin as a management performance evaluation tool. Finalfindings revealedleverage ratio has a negative insignificant effect on gross profit margin as a management performance evaluation tool. Thus it is recommended that firm managers in Nigeria should maintain a high profitability ratio as these will give roomfor them to have enough returns left to meetfirm diverse obligation as well satisfy the owners ofinterest of the firms. Also, firm managers should also endeavor to have good liquidity and leverage ratio to enable them facilitates easy and readily loan transactions and other bu