AN ANALYSIS OF THE TECHNIQUES OF DETERMINING SOLVENCY IN THE NIGERIAN MANUFACTURING INDUSTRY

In the contemporary and ever dynamic business world, there has been an increasing shift in management concepts a shift in emphasis from production management to marketing management and now to management of resources at the firms disposal. Management now strive to achieve sound and stable financial standing by concentrating efforts on financial planning and control. The firm has to allocate its limited resources among alternative uses. If resources were unlimited, there would be no need for decisions, because all possible activities could be achieved. Scarce resources necessitate a choice, and the selection of one alternation implies the exclusion of others. On this background therefore, the author intends to undertake a performance analysis of the Nigeria breweries Plc through the investigation of the success of the brewing industry. This would require the determination of solvency. The major sources of data for this study will be the financial statement of the Nigeria Breweries Plc. This will be supplemented with questionnaire distributed to the senior and Junior staffs of the company. The secondary source of data will be from different financial texts on solvency and liquidity related matters. Financial ratios (both short and long term) will constitute part of the analysis. Further illustrations will be projected using tables, graphs and charts. It is hoped that things the result of the finding will among other things serve the purpose of useful information source for the management of the Nigeria Breweries Plc indecision making. For students in your research work, and also for any other person undertaking a work on the techniques of determing solvency both as problem solving tool as well as an academic exercise.