A Tool for measuring organization performance using Ratio Analysis

Authors

  • Elijah Adeyinka Adedeji Adeyinka Adedeji

DOI:

https://doi.org/10.14738/assrj.18.572

Keywords:

Ratio analysis, Performance, Organization, financial Ratios, Management.

Abstract

Ratio analysis has served as a veritable means of monitoring, measuring and improving performance in an organization. Hence, the study examines a tool for measuring organization performance using ratio analysis. It also ascertains the relevance of internal and external financial reports during ratio analysis for the purpose of establishing key relationships and results in order to appraise financial performance. The study confirmed that there is significant relationship between ratio analysis and organizational performances as well as financial ratios highlight the importance of effective management of an organization. Based on the findings of this study, it was recommended that financial ratios should be computed periodically to reveal areas of strengths and weaknesses, as well as, ratio analysis should be used to measure performance in terms of profitability.

 

References

Asika, N. (1999), Research Methodology in Behavioural Science, Longman Plc, Lagos

Garbutt, D. (1972), Carter’s Advanced Accounts, Sir ISAAC Pitman and Sons Ltd, London

Lucey, T. (1988), Management Accounting DP Publications Ltd London.

SAS 2 (1987), Nigerian Accounting Standard Board, PAT Publications LTD, Lagos.

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Published

2014-12-30

How to Cite

Adedeji, E. A. A. A. (2014). A Tool for measuring organization performance using Ratio Analysis. Advances in Social Sciences Research Journal, 1(8), 95–103. https://doi.org/10.14738/assrj.18.572

Issue

Vol. 1 No. 8 (2014): Advances in Social Sciences Research Journal

Section

Articles

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