FINANCIAL RATIOS AS PREDICTORS OF CORPORATE PERFORMANCE: A CASE STUDY OF ZAMFARA TEXTILES INDUSTRIES (NIG.) LTD.
FINANCIAL RATIOS AS PREDICTORS OF CORPORATE PERFORMANCE: A CASE STUDY OF ZAMFARA TEXTILES INDUSTRIES (NIG.) LTD.
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Date
1989-12
Authors
BANDI, IBRAHIM
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Abstract
This project has evaluated the performance
of zamfara Textiles Industries using financial
ratio analysis. In total fourteen ratios have
been considered under four broad heading (i.e.
liquidity activity,debt and profitability ratios).
There were a number of problems that were not
resolved while undertaking this study which included
lack of industrial averages in Nigeria, general
limitations of financial ratios, time and financial
constraints as well as the financial statements,
inability to contain all the necessary information
for accurate ratio compution and analysis. However,
the performance of Zamfara Textiles has been brought
to light, indicating that its current assets were
under utilised both in comparison to Area Textiles
and in terms of generally minimum expected cut-off
points of 1.2 and 1.1 for current and acid test
ratios respectively, and that its total operating
assets were as well operating below capacity, it
also indicated low returns on total assets due
largely to low profitability in the period (1979 -
1983) studied.
To that effect the writer had forwarded and
recommended some possible solutions for excessive
fixed assets, over-stocking of inventories and
others which have been the cause of the firms
financial problems.
Description
A project submited to the post graduate
School, Ahmadu Bello University, Zaria in
partial fulfillment of the requirements for
the degree of Master of Business Administration
(MBA)
DECEMBER, 1989
Keywords
FINANCIAL,, RATIOS,, CORPORATE PERFORMANCE