The relevance of accounting ratios in the analysis and interpretation of corporate performance – case study of Unilever Nigeria Plc Lagos

Description

This research project focuses on the relevance of accounting ratio in the analysis and interpretation of corporate performance, using Unilever Nigeria Plc, Lagos as a case study. Data were collected using questionnaires and oral interview. All data collected were analyzed, tabulated and presented using Yaro Yamane formula. The result showed that there is an application of accounting ratios in the analysis and interpretation of corporate performance. The researcher therefore recommends that companies, etc. should adopt accounting ratios in the analysis and interpretation of corporate performance. The researcher also use the following relevant finding, the accounting ratio can be as arithmetic between two figures in a set of financial position, it can serve as yardstick in measuring management efficiency, it helps in interpretations of financial statement, review trends in a company’s earning, guides in comparing related companies performance and also the best useful tool which can give an in-depth measuring to a financial statement. Based on the research work, the researcher also recommends that there should be adequate improvement by accountants in their understanding of the use of accounting ratio, account specialist should ensure that evaluation and comparisons of items is valid especially when comparing with other companies, judgments should be concluded unless other factors affecting ratio analysis has been considered and finally more concern should be given to account ratios.