TABLE OF CONTENT
Title Page
Certification i
Dedication ii
Acknowledgement iii
Table of Content v
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 4
1.3 OBJECTIVE OF THE STUDY 5
1.4 RESEARCH QUESTION 6
1.5 SIGNIFICANCE OF THE STUDY 7
1.6 SCOPE OF THE STUDY 8
1.7 LIMITATION OF THE STUDY 9
1.8 DEFINITION OF TERMS 9
CHAPTER TWO
LITERATURE REVIEW
2.1 PREVIEW 12
2.2 CONCEPTUAL FRAMEWORK OF RATIO ANALYSIS 12
2.3 APPROACHES TO USE OF RATIOS 14
2.4 CLASSIFICATION OR TYPES OF RATIOS 15
2.5 PLACE OF RATIO ANALYSIS IN AN ORGANIZATION
OR FINANCIAL INSTITUTION 22
2.6 EXPECTED ROLE OF MANAGERS IN RATION TO
RATIO ANALYSIS 23
2.7 CONTRIBUTIONS OF INVESTORS TO
ADMINISTRATIVE PERFORMANCE IN TERMS
OF FINANCIAL RATIO ANALYSIS 24
2.8 CONTRIBUTION OF RATIO ANALYSIS IN
DECISION MAKING IN AN ORGANIZATION 25
CHAPTER THREE
3.0 RESEARH METHODLOGY 30
3.1 PREAMBLE 30
3.2 POPULATION SIZE 30
3.2 SOURCE OF DATA 31
3.3.1 PRIMARY SOURCE 31
3.3.2 SECONDARY SOURCE 31
3.4 RESEARCH INSTRUMENT 33
3.5 DATA ANALYSIS PROCEDURE 35
CHAPTER FOUR
4.0 DATA PRESENTATION ANALYSIS AND INTERPRETATION 36
4.1 INTRODUTION 36
4.2 DATA PRESENTATION AND ANALYSIS 37
4.3 COMPUTATION OF SOME SELECTED RATIO USING
THE ZENITH BANK STATEMENT OF ACCOUNT AS
BELOW BALANCE SHEET AS AT DISMEMBERS 31st
2011 43
4.4 SUMMARY OF FINDINGS 49
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 SUMMARY 51
5.2 CONCLUSION 52
5.3 RECOMMENDATION 52
CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
In every organizing irrespective of its size, ownership, structure, impact of ration analysis on management decision making occupy a crucial position.
However, given this centrality, it can be said that behind every successful organization, the process in which the management arrive at decision making is very important as far as financial management is concerned in the private sector of the economy and especially in a banking institution like ZENITH BANK.
In a nutshell, the impact of ration analysis on management decision making which is the most preoccupation of this research work is referred to the manner through which the management of organization takes decision suitable for profit as possible, future planning, controlling current performance and future development through liquidity analysis, leverage analysis and activity analysis.
Significance change has taken place in recent years in the size and complexity of both private organization and public organization because of this management is faced with evaluation in technical, social political and economic forces. As a result, the methods of arriving at the decision as become more difficult to management especially in accounting activity of the organization.
This research is devoted to examination of some major impact of ratio analysis in financial institution (ZENITH BANK OF AFRICAN).
Zenith Bank was established in May, 1990. It became a Public Limited Company in July, 2004, and had an initial public offering on the Nigerian Stock Exchange (NSE) on October, 21 of that year. Also in 2004, credit rating agency fetch ratings identified its credit as AA on their long-term scale. The Bank has been in a series of controversies regarding its labour practices. The bank developed a penchant for mass terminations of staff employment without regard to due process. A series of court cases instigated against the bank by ex-employees adds credence to this view. In 2010, the Bank was defrauded of about N7.5Billion by a staff and was made to make provisions for it by Nigeria’s Reserve Bank.
