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Analysis And Interpretation Of Financial Statement As A Managerial Tool For Decision Making
[A CASE STUDY OF NWOKEJI URBAN PLANNING AND ARCHITECTURAL STUDIO [NUPAS]]
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1.3 Objectives of the Study
On
noting that most investments made by firms end in failure, it is the
overall objective of this study to determine how firms can use financial
statement analysis and interpretation to aid management decisions.
Specifically, the study is designed to:
i) Find out how the use of financial statement analysis assists organizations in identifying investment opportunities.
ii) Find out how increasing investment returns can be achieved using financial statement analysis.
iii)
Find out the extent to which a company’s overall profitability can be
hampered if it does not analyse another company’s financial statement
before investing in it.
iv) Find out how business failures can be curbed or minimized and corporate objective achieved through successful investment.
v) Identify alternative ways of minimizing investment risk.
1.4 Research Questions
The following questions are put forward for the purpose of the study.
1) Is financial statement analysis important/necessary in every organization?
2) Who are the users of financial statement?
3) How can a financial statement of an organization be interpreted?
4) How can its interpretation be used in making effective management decisions?
1.5 Hypotheses of the Study
To id the achievement of the desired objectives, the following hypothesis are formulated:
HO: Represents Null hypothesis
HI: Represents Alternative hypothesis
Research hypothesis No 1
HO:
There is no significant difference between the returns of a financial
statement analysis and interpretation based on management decisions.
H1:
There is a significant difference between the returns of a financial
statement analysis and interpretation based on management decisions.
Research hypothesis No 2
HO:
There is no significant relationship between a firms profitability an
financial statement analysis and interpretation based management
decisions.
HI: There is a significant relationship between a firms
profitability and financial statement analysis and integration based
management decision.
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ABSRACT - [ Total Page(s): 1 ]AbstractFinancial Statement Analysis and Interpretation is a very vital instrument of good management decision-making in business enterprise. Good decisions ensure business survival, profitability and growth. Without financial statement analysis in investment decisions, an enterprise is likely to make decisions, which could spell its doom. Poor or lack of qualitative financial statement analysis could lead to investment returns, low profitability and even inability to identify viable investment ... Continue reading---
