TABLE
OF CONTENT
Title Page
i
Certification ii
Dedication
iii
Acknowledgment iv
Table of Content
v
Proposal vii
CHAPTER ONE
1.0 Introduction to the study. 1
1.1 Statement of Problems. 2
1.2 Research question 3
1.3 Objectives of the Study 3
1.4 Research Hypothesis (Ho, Hi) 4
1.5 Significance/ Justification of
the study 4
1.6 Scope and limitation of the study 4
1.7 Definitions of key Terms 5
1.8 Plan & organization of the
study 6
CHAPTER TWO
2.0 Literature Review 7
2.1 Historical background of the
study 8
2.2 Nature of the Financial Statement
Analysis 10
2.3 The principle Tools of Analysis 11
2.4 Nature and purpose of financial
Ratio 12
2.5 Users of financial Statement
Analysis 13
2.6 Shareholders investment Ratios 20
2.7 Debt and Gearing Ratios 22
2.8 Strengths of financial Ratio 23
2.9 Weakness of Ratio Analysis 24
CHAPTER THREE
3.0
Research methodology 27
3.1 Research Design 28
3.2 Data Collection Method 28
3.3 Validity of Ratio Analysis 29
3.4 Reliability of a Data 29
3.5 Method of Data Analysis 30
CHAPTER FOUR
4.0
Data analysis Presentation 31
4.1 Data Presentation 31
4.2 Data Analysis 32
4.3 Findings 34
CHAPTER FIVE
5.0 Summary Conclusion and
Recommendations 36
5.1. Summary 36
5.2. Conclusion 37
5.3. Recommendations 38
References 39
PROPOSAL
SECTION ONE
INTRODUCTION TO THE STUDY
The strengthen of any organization can be properly assessed only from it financial position as reflected in the accounting data.
The important of corporate financial
reporting view of development in the money market and changing capital market
cannot be emphasized.
Accounting information gives to the situation of a business enterprises as well as its profitability. They also review the provides of there insurance have been effectively utilized. The use of information provides virtually of modern society.
- Statement Of Problem
- Ratio of the case study does not have
meaning exempt is compared with same standard.
- The interpretation of ratio rendered
invalided as a result of orange in the value of money.
- Research
Question
- OBJECTIVE
OF THE STUDY
- Respect
hypothesis (ITOH.)
- Significance
/ Justification Of The Study
- Scope
And Limitations Of The Study
- Definition
Of Key Terns
KEY TERMS
Stability: it
means that tonality or state of being steady and not changing or in disturbed.
Conflict: this
is a situation in within people group or countries are involved in a serious
disagreement or argument.
SECTION TWO
LITERATURE PREVIEW
The accouter on the sector is and organization is rotten placed primary on the preparation of general purpose financial statement of external uses reburial in the company act much less emphasis in place on providing information for management to help in decision making process but financial accounted often take precedence over management account.
Basically financial ratios are use for two purposes.
- For assessing the performance of a
particular company over a period of tine.
- For comparing the performance of a
particular company over a period of time.
SECTION THREE
RESEARCH METHODOLOGY
Financial statement analysis: A tool
for performance execution used secondary date for the analysis of financial
statement. This is due to the facet that the resources of date is the bank
financial statement published and posted to bank. The population of the study
comprises all commercial bank in Nigeria (21 as at January, 2013).
Research methodology therefore refers
to design of necessary instrument by the researcher in order to gather the
relevant information required for accomplished the research work.
SECTION FOUR
DATA ANALYSIS AND PRESENTATION.
The main ain of this chapter is to
analyze interprets the present date convection from financial statement I.e.
Annual report and account of the case study (porst bank Nigeria plc) in a more
understandable form, for the researchers. I this report the chapter is divided
in to three namely;
- Data
presentation
- Data
analysis
- Data
interpretation
SECTION FIVE
SUMMARY
The
research work has attempted to highlight the importance of financial statement
analysis, using financial ratio to asses management efficiency and performance
as a whole, not forgetting its important to outsider of share holder e.t.c. the
basic type of financial ratio have been used to analysis and interpret the
financial of first bank of Nigeria plc for the purpose of this research study.
CONCLUSION
In conclusion the study is able to
come up with some reasonable as well as educative price. The combination of the
techniques for financial statement analysis brought about the hidden features
of financial statement by mere looking at financial statement does not give an
investors or enough information.
RECOMMENDATION
Recommendation
as refer the management efficiency and performance are presented as suggested
by the analysis carried out from the analysis done, the company first bank of
Nigeria plc, lacked adequate marketing capital.
CHAPTER ONE
1.0 INTRODUCTION TO THE STUDY
The strength of any organization can
be properly assessed only from it financial position as reflected in the
accounting data.
The important of corporate financial
reporting view of development in the money market and charging capital market
cannot be emphazed.
Accounting information gives to the
summary of the economic performance and the situation of a business enterprises
as well as its profitability. They also review the provides of there resources
have been effectively utilized. The use of the information provide virtually of
modern society.
Decision taken on the basis of such information affect the live of million of people all over the world with ever increasing number of user whose interest are becoming more and moe diverse, the need for proper understanding of such financial statement can not be over emphasis. In order to arrive at a right conclusion, it is imperative that he account regard a time and fear review.
Corporate reporting service as an
effective main of communicating financial and other data by companies
shareholders prospective investor, government authority and general public.
Annual report and accounts are therefore analyze the information contained in
the financial statement. The income statement and the balance sheet can be of
great benefit to the some of the users when properly analyzed.
One of the most important functions
of financial accounting is to report information to external parties, the set
of people who do no take part in the day to day management of the business such
as eh creditor, shareholders, investors, banker are individual and organization
that. Finance the firms operation.
Each of these parties had an interest
in analyzing and interpreting one or more broad areas of business, especially
its financial soundness and stability the efficiency of its management as well
as future prospect for an investors.
1.1 STATEMENT OF PROBLEM
1. Ratio of the case study does not
have meaning except is compared with same standard.
2. The interpretation of ratio
rendered in valid as a result of change in the value of money.
3. The difference in definition of terms
in the balance sheet and income statement make the interpretation of ratio
different
4. The ratio calculate at a point in
time are less informative and effective as they suffer short term changes.
5. The wide range of the bank
operation have made it difficult to develop a meaningful set of industry
average for comparism.
1.2 RESEARCH QUESTION
i. Does ratio analysis have an effect
on the performance of banks?
ii. What are the significant roles of
financial statement and balance sheet of the case study?
iii. How does the bank control the
risk of illiquidity?
1.3 OBJECTIVE OF THE STUDY
Financial statement analysis provides
a method fore assessing the financial strength and weakness of an enterprises
using information found in its financial statement.
The annual report and account, the objective of this analysis is to gain and understand the firm’s current financial condition as well as its nature prospects which in tern can serve as the basis for decision making in the same height of the above objective of financial statement analysis of the objective research work with second folds is:
1. To determine the efficiency of the
management of first bank plc.
2. To accomplish this objective
financial ratio that measure efficiency of an enterprises such as gross profit
margin, net profit margin, return on total asset and net asset and other
necessary ratio would be identified calculate for period of one year.
3. To analyze the role of first banks
of Nigeria
of the proffered sector of the economy such as industry and agriculture
4. To appraise first bank
contribution to the economic development
5. To analyze some of the problems
confronting the first bank of Nigeria
in the case of carrying out their services.
6. To make recommendation based on
the finding of the study.
1.4 RESEARCH HYPOTHESIS (HO, HI)
Ho: Does financial statement analysis
have a negative impact on performance efficiently in banking industry.
Hi: Financial statement analysis has
an impact on performance efficiency in the banking industry.
1.5 SIGNIFICANCE/JUSTIFICATION OF THE STUDY
The significance of the study is to
show the clear understanding of financial statement analysis, because of
recount studies have emphasized the need to widen the area of responsibility of
financial statement to take into cognizance the numerous users group and their
drivers interest.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
1. Time constraint; there has been a
restriction concerning time allowed for the research work.
2. Lack of finance: There has been a
weak financial capability faced by the researcher while conducting the research
work.
3. Insufficient data: The researcher
could not afford to obtained some essential material in the course of research
work.
4. Incoperative attitude and in
accurate information given by the respondent is another challenges faced by the
researcher.
1.7 DEFINITION OF KEY TERMS
Efficiency: The quality of doing well with no waste of time or money.
Sector: These a part of area of
activity especially of a country economy.
Emphasized: To give extra force to a
word or phrases when you are speaking especially to show that it is important.
Investor: This can refer to as a
person or an organization that invest money in business.
Performance: This is the act of
performing a play convert of some other form of entertainment or the act or
process of performing a task and action.
STABILITY: It means that quality or
state ob being steady and not changing or being disturbed in any way
CONFLICT: This is a situation in
which people groups or countries are involved in a serious disagreement or
argument.
INFORMATION: This can be defined as a
fact or detail written on documents that are sent from one person to another,
that form a special language.
ANALYSIS: This can be defined as a
detail study in order to understand more about it.
COGNIZANCE: This a knowledge or understanding the important of the case study.
1.8 PLAN AND ORGANIZATION OF THE STUDY
The research work has been divided into five chapters for case of presentation of the fact and figure gather. Chapter one contain the introduction, statement of problem, research question, objective of the study, research hypothesis (Ho, Hi) significance/justification of the study scope and limitation of the study, definition of the key term and plan and organization of the study chapter two treat literature review which include various definition and historical background of the First Bank of Nigeria Plc. Nature of the financial statement analysis the principle tool of financial ratio, nature and purpose of financial ratios, users of financial statement analysis, classification of financial ratios and profit before taxation.
Chapter three present research
methodology, research design. Data collection method, validity of ratio
analysis, viability of a data and method of data analysis.
Chapter four discuss data analysis and presentation, data interpretation and test hypothesis financially.
Chapter five throw light on summary of finding, conclusion, recommendation and reference.
FINANCIAL STATEMENT ANALYSIS AS A MEASURE OF PERFORMANCE AND EFFICIENCY IN BANKING SECTOR (A CASE STUDY OF FIRST BANK PLC)
