Project Topics, List of Project Topics, Research Project Topics

FINANCIAL RATIOS AS AN AID TO MANAGEMENT DECISION MAKING


2,428 marked this research material reliable.
Call or whatsapp: +2347063298784 or email: info@allprojectmaterials.com
Department: accounting project topics | Type: Project Topics | Project Topics and Materials | List of Project Topics | Research Project Materials | Journals | Thesis | Articles | Online Project Materials | Business Plan | Final year project topic | Format: Ms Word and PDF | Attribute: Documentation Only | Pages: 79 Pages | Chapters: Complete Research work from Chapter 1 to 5; All chapters | Inclusive: Abstract, Preliminary Pages, Table of Contents and Appendices | Cost: ₦ 5,000.00


FINANCIAL RATIOS AS AN AID TO MANAGEMENT DECISION MAKING

PROJECT TOPICS AND MATERIALS ON FINANCIAL RATIOS AS AN AID TO MANAGEMENT DECISION MAKING


ABSTRACT

Title page

Approval page

Dedication

Acknowledgement

Table of content

CHAPTER ONE

Introduction

1.1            Financial statement analysis

1.2            Ratio analysis

1.3            Accounting information in decision making

1.4            Summary

CHAPTER TWO

Review of related literature

2.1            Effect of decision

2.2            Basic types of financial ratios

2.3            Profitability ratios

2.4            Activity ratios

2.5            Liquidity ratios

2.6            Leverage ratios

2.7            Summary

CHAPTER THREE

3.1            Summary of finding

3.2            Recommendation

3.3            Conclusions

CHAPTER ONE

INTRODUCTION

Planning is one of the most important aspects in the management o a firm. It involves an appraisal of the past performance of the firm and a projection into the future. It is also related to existing strengths and weaknesses of the firm.

The strength must be understood if they are to be used for proper advantage and the weaknesses must be recognized if corrective action is to be taken. It is necessary for instance, to find whether inventories are adequate to support the projected level of sales or whether the existing level of investment in account receivable is an indication that the firm has lax collection policy.

Ratios analysis employs basic financial data taken from the analysis of financial statement (balance sheet and income statement which is the primary financial) reporting mechanism of an entity, both internally, and externally. An analysis of the financial information communicated by the statement should include the computation and interpretation of financial ratios.

Although emphasis is focused on outside users, such as credit and owners, management is aware, that their performance will be reviewed by those external partial and for other reason. For instance, the basic fianical statement are used to access the effectiveness of management in planning and controlling operations as well as for decision making.

Management also recognizes that the evaluation of past operation, as revealed by the analysis of the basic statement, represent a good starting pointing planning future operations and serves as important means of assessing past performance and in forecasting and planning future performance.

In other words, the aim of this term paper is to evaluate financial ratios as an aid to management decision – making, to find out if any, how financial ratios helps management in decision – making, to determine if accounting si actually of any use to management, to find the importance of financial ratios, to examine the extent to which management uses financial ratios information supplied to identify the problems inherent in the use of management information.

1.1            FINANICAL STATEMENT ANALYSIS

Financial statement analysis consists of applying analyst tools and techniques to financial statement and other relevant data to obtain to useful information. This information is shown as significant relationship between data and trends in those data assessing the company’s past performance and current position. The information shows the results or consequence of prior management decision. In addition, the information is used to make prediction that may have a direct effect on decision made by many users of financial statement.

Business entities may have objects and goals. However, the two primary objectives of every business are solvency and profitability, solvency is the ability to pay debts as the become due, profit ability is the ability to generate income unless a business can produce satisfactory income and pay its debts is they become due, other objective a business may have will never be realized simply because the business will not survive.

1.1            FINANICAL STATEMENT ANALYSIS

Financial statement analysis consists of applying analyst tools and techniques to financial statement and other relevant data to obtain to useful information. This information is shown as significant relationship between data and trends in those data assessing the company’s past performance and current position. The information shows the results or consequence of prior management decision. In addition, the information is used to make prediction that may have a direct effect on decision made by many users of financial statement.

Business entities may have objects and goals. However, the two primary objectives of every business are solvency and profitability, solvency is the ability to pay debts as the become due, profit ability is the ability to generate income unless a business can produce satisfactory income and pay its debts is they become due, other objective a business may have will never be realized simply because the business will not survive.

The financial statement that reflects a company solvency is the balance sheet the financial statement reflecting the company’s profitability is the income statement. The balance sheet, sometimes called the statement of financial position lists the company assets and liabilities and stockholders equity as of a specific moment in time. It captures the financial position of a company at a particular point in time.

The income statement, sometimes called an earning statement, reports the profitability of a business organization for a statement period of time profitability is measured for period of time, by comparing the revenues generated with the expenses incurred to produce these revenues.

Present company investors and potential company to earn profits its profitability. These investors wish to predict future dividends and changes in the market price of the company common stock.

Since both dividends and price changes are likely to be influenced by earnings, investors may seek to predict earning. The company’s past earning record is the logical starting point in predicting future earning.

Sometime, outside parties are interest in predicting a company’s solvency rather than its profitability short – term solvency is affected. By the liquidity of the company. Liquidity is the state of possessing liquid assets such as cash and other assets that will soon be converted into cash.

Several types of analysis can be performed on a company financial statement.

All these analyses rely on comparison or relation hips of data because comparison enhance the utility, or practical value of accounting information for instance knowing that a company’s net income last year was #100,000 is not very useful information. Some usefulness is added when it is known that the prior year’s net income was #25,000. And even more useful information is gained if the amounts of sales and assets of the company are known. Such comparison or relationship may be expressed as:

  • Absolute increases and decreases for an item from one period to the other
  • Percentage increase and decreases for an item one period to the other
  • Trend percentages
  • Percentage or single items to an aggregate total
  • Ratios

 

 

 

1.2            RATIO ANALYSIS

A ratio is the relationship between two amount that result from dividng one by the other. The ratio of 1, 00 to 500 would be 1,000 / 500 = 2, sometimes expressed as 2:1. This means that the first number is twice as large as the second.

Financial ratios become relevant fro decision – making only when compared with some standard. Each analyst must decide upon to gauge the performance of the company being analyzed. Some common bases for establishing standard are considered below:

 

Company history

Horizontal analysis has been defined as comparing financial statement and trend analysis were presented as application of horizontal analysis. Each of the financial ratios may be computed for a number of years and then compared to form an opinion about whether the company’s performance is getting better or worse. If management inefficiency seems to be the only plausible explanation, the analyst may expect continued problem that could lead to a decision or reject a credit application or not to invest in stock of the corporation.

 

External standard

Ratios information about other companies is often used as a yardstick against which to examine data on industry, norms, average ratios, and credit rating from credit agencies such as dun and Bradstreet or by consulting statistics available investment service publication such as annual statement studies published by Robert Murnks association.

          Care must be taken in deciding whether ratios are to e used as standard of comparison. Many companies are so diversified that 4 is difficult to identify one particular industry in which they operate. A current ratio or inventory turnover ratio for such conglomerate would be meaningless for comparing with those statistics of another firm operating in only one industry.

The difference in accounting methods employed in generating financial information may also influence the comparability of ratios and other statistic among the different principles that firms may employ are different inventory techniques, depreciation methods;

  • estimates of useful lives
  • Method of accounting for income, taxes
  • Revenue recognition procedures

 

In other words logical relationship exist between certain accounts or items in a company financial statement these accounts may appear on the same statement or they may appear on two different statement. The dollar amount of the related accounts or item at set up in fractions form and called ratios. The se ratios can be broadly classified as:

 

  • Liquidity ratios
  • Equity, or long – term solvency, ratios
  • Profitably tests
  • Market test

 

 

 

 

Liquidity ratios

These are used to indicate a company’s short term debt – paying ability. Thus, these ratios are designed to show interested parties the company’s capacity to meet maturing current liabilities. They are sub divided into current ratio and acid test or quick ratio.

DOWNLOAD COMPLETE WORK FOR FINANCIAL RATIOS AS AN AID TO MANAGEMENT DECISION MAKING


Additional Information

  • The Project Material is available for download.
  • The Research material is delivered within 15-30 Minutes.
  • The Material is complete from Preliminary Pages to References.
  • Well Researched and Approved for supervision.
  • Click the download button below to get the complete project material.

Frequently Asked Questions

In-order to give you the best service available online, we have compiled frequently asked questions (FAQ) from our clients so as to answer them and make your visit much more interesting.

We are proudly Nigerians, and we are well aware of fraudulent activities that has been ongoing in the internet. To make it well known to our customers, we are geniune and duely registered with the Corporate Affairs Commission of the republic of Nigeria. Remember, Fraudulent sites can NEVER post bank accounts or contact address which contains personal information. Free chapter One is always given on the site to prove to you that we have the material. If you are unable to view the free chapter 1 send an email to info@researchcub.info with the subject head "FREE CHAPTER 1' plus the topic. You will get a free chapter 1 within an hour. You can also check out what our happy clients have to say.


Students are always advised to use our materials as guide. However, if you have a different case study, you may need to consult one of our professional writers to help you with that. Depending on similarity of the organization/industry you may modify if you wish.


We have professional writers in various disciplines. If you have a fresh topic, just click Hire a Writer or click here to fill the form and one of our writers will contact you shortly.


Yes it is a complete research project. We ensure that our client receives complete project materials which includes chapters 1-5, full references, questionnaires/secondary data, etc.


Depending on how fast your request is acknowledged by us, you will get the complete project material withing 15-30 minutes. However, on a very good day you can still get it within 5 minutes!

What Clients Say

Our Researchers are happy, see what they are saying. Share your own experience with the world.
Be polite and honest, as we seek to expand our business and reach more people. Thank you.

A Research proposal for financial ratios as an aid to management decision making:
Reviews: A Review on financial ratios as an aid to management decision making, financial, ratios, management project topics, researchcub.info, project topic, list of project topics, research project topics, journals, books, Academic writer.
The strength must be understood if they are to be used for proper advantage and the weaknesses must be recognized if corrective action is to be taken. It is necessary for instance, to find whether inventories are adequate to support the projected level of sales or whether the existing level of investment in account receivable is an indication that the firm has lax collection policy... accounting project topics

FINANCIAL RATIOS AS AN AID TO MANAGEMENT DECISION MAKING

Project Information

Share Links

Download Post (MsWord)
Download Post (PDF)

Search for Project Topics

Project topics in Departments

How much does it cost to hire a writer in Nigeria?

Looking for Professional Approach and Quality Research Services ?

Estimating the cost of research writing in Nigeria: Freelance writers in Nigeria may charge anywhere from ₦5,000 to ₦50,000 or more per project, depending on the factors mentioned earlier. SEO-focused content may be on the higher end of this range due to the additional skills and research involved. For a more accurate estimate, it's recommended to reach out with us, discuss your specific requirements, and request a quote based on the scope of your project. Prices can vary, so getting personalized quotes will help you determine the cost more precisely.

Undergraduate Project Topics, economics project topics, marketing project topics, business administration project topics, engineering project topics, computer science project topics, banking & finance project topics, education project topics, law project topics, sciences project topics, public administration project topics, political science project topics, mathematics project topics, medical science project topics, mass communication project topics, research projects, geology project topics, marketing project topics, agriculture project topics, Browse Thousands of Final Year Project Topics, hire a writer, Research Works and Materials, Project topics and materials in Nigeria, Undergraduate Project Topics, Research Works and Materials, research topics, research project materials, complete project materials, computer science project material, free project topics, complete projects, accounting topics, small business topics, entrepreneurship topics, project materials, Nigerian undergraduate projects, business administration projects, computer science topics and projects, MBA Nigerian project topics, human resources, small businesses, entrepreneurship projects, economics projects, impacts projects, effect projects, university projects, polytechnic projects, investigate projects, political science projects, mass communication projects, project topics, human resource projects, education projects, French topics, project analysis, French projects, project tips, project abstract, project proposals, project bibliography, project reference, project seminar, forex, TSA, treasury single account, currency, naira, devaluation, undergraduate projects, final project research, marketing project topics, statistics project topics, mathematics project topics, statistics, mathematics, research projects, project thesis, labour force theses, NCE, OND, HND, BTECH, BSC, MBA, MSC, English projects, linguistic project topics, Free Project topics and materials in Nigeria, research topics, reseach project materials, computer science project material, free, complete, accounting topics, small business topics, materials, nigeria projects, business administration projects, computer science topics and projects, MBA nigeria project topics, human resources, small business, entrepreneurship projects, economics projects, impact projects, effects projects, training, budgets, ghana, university, polytechnic, browse Free project materials and topics in Nigeria, accounting and finance project materials, business administration project materials and topics, human resources, entrepreneurship, computer science and engineering project materials and topics, Accounting project topics, Accounting project topics and materials, Agricultural Economics Project Topics and Materials, Agricultural Science Projects topics and materials, All Project topics and materials, Architecture Project topics and materials, Aviation project topics and materials, Banking & Finance Projects topics and materials, Biology project and materials, Building project topics and materials, Business Administration & Management Projects topics and materials, Chemical Engineering Project Topics and materials, Civil Engineering Projects topics and materials, Communication & mass communication art project topics and materials, Computer Engineering Project Topics and materials, Computer Science Projects topics and materials, Criminology project topics and materials, Economics Research Projects topics and materials, Education Project Topics and Materials, Electrical Engineering Projects and materials, English Education & English Language Project topics and materials, Food Science project topics and materials, Geology Project Topics and materials, Guidance Counseling Project Topics and materials, History project topics and materials, Home Economics Project Topics and Materials, Human Resource Projects topics and Materials, Industrial Chemistry Projects topics and materials, Insurance Projects topics and materials, Law project topics and materials, Library and information science project topics and materials, Marine and Transport management project topics and materials, Marketing Projects topics and materials, Mathematics project topics and materials, Medical Sciences Project Topics and materials, Microbiology project topics and materials, Nursing and Midwifery project topics, Nursing and Midwifery project topics and materials, Optometry or nursing project topics and materials, Petroleum Engineering project topics and materials, Pharmacy project topics and materials, Philosophy project topics and materials, Photography project topics and materials, Physical and Health Education project topics and materials, Physiology project topics and materials, Political science project topics and materials, Project topics and materials, Psychology project topics and materials, Random project, Religious and Cultural Studies Project Topics and Materials, Sociology and Anthropology Project topics and materials, Sociology Project Topics and materials, Tourism project topics and materials, Vocational education project topics and materials. Project Topics: List of Project Topics | financial ratios as an aid to management decision making | financial | ratios | management Project Topics | researchcub.info