AN APPRAISAL OF ACCOUNTING RATIO IN MEASURING CORPORATE PERFORMANCE ( A CASE STUDY OF TEXACO NIG., ILORIN BRANCH)

TABLE OF CONTENTS

Title Page

Certification

Dedication

Acknowledgement

Abstract

Proposal

Table of content

CHAPTER ONE  

1. Introduction
   1. Statement of Problem
   1. Purpose of the Study      
   1. Research Methodology
   1. Significant of Study
   1. Definition of Terms
   1. Limitation, and Scope of Study
   1. Plan of the Study

CHAPTER TWO

• Literature Review
  • Uses of Financial Ratio
  • Basis of Comparison
  • Advantage of Using Ratio
  • Classification of Ratio
  • The Usefulness of Financial Ratio in Prediction
  • Interpretation of Ratio

CHAPTER THREE

3.0   Research Methodology

3.1   History of Texaco Nigeria Plc.

3.2   Re-Statement of Research Question

3.3   Formation of Hypothesis

3.4   Study Population

3.5   Data Collection Method

3.6   Description of Research Instrument

3.7   Analytical Procedure  

3.8   Statistical Formulations

3.9   Limitation of the Methodology

CHAPTER FOUR

• Analysis of Data and Presentation of Finding

4.1   Introduction

4.2   Computation and Presentation of Ratio

4.3   Capital Structures

4.4   Market Value Ratio

CHAPTER FIVE

• Summary, conclusion and recommendation
  • Summary
  • Conclusion
  • Recommendation
  • Suggestion for further Studies

BIBLIOGRAPHY

CHAPTER ONE

1. INTRODUCTION     

Accounting essential to all advance civilization which has moved beyond barter or counter trade is a means of each exchanging and has devised some sort of monetary system of payment.  Geofficy white led (1994p.89) individuals, corporate bodies and government (Local, State ad Federal) adopt one system of accounting r other which ranges from proper recording of income and expenditure to easy determination of profit or less from their business activities.

According to Geofficy white head (1741p1) accounting is the controlling a business by keeping account book – keeping records measuring on interpreting “accounting ratio” and communicating these result to management and other interested parties.

To American institution of certified public accountant is an art of recording classifying and summarizing significance manner and in term of money transaction event which are input at lead of financial character and interpreting, the result there of from the above definition, it is evident that statistic called “accounting ration” are prepared from the financial statement.  Balance sheet and trading profit and loss account.

Financial statement shows the financial position of the firm at a particular time, it show the performance of resources invested and communicates economic measurement to the user of financial information to enable them predict, compared and evaluate the firms earning power its potential.  Enable this item to be regarded in their proper perspective vickery B.G.

Accounting ratios are only of the value if they are uses for comprise which reveals conditions and trends and trends that cannot be detracted by inspection of the individual components of ratio and it they are properly interpreted they can also point the way to area where further investigation are reajuired.  The use of accounting ratio differs from the view bint of the users.

1. Management:- Ratio are used to evaluate the overall performance of the business, since management concern is to ensure that the while business achieves a satisfactory level of profit in relation to the capital employed.
2.  Shareholder: It enables the shareholder or potential investors to determine the return, then they will obtain their investment and decide whether it worth investing in such business.
3. Creditors: It enable both the long and short term creditors assess the ability of the firm to pay interest and repay the capital sum on due date.
4. Government:- Since the government is interested in business profit to asses the tax liabilities and other information such as statistics on employment and wages level.  Accountancy into provides information on the health of the business entity which enable the government to take necessary
5. Employees:- Accounting ratio are used by the employee to determine long term stability of the firm to meet their wages demand.
6. Competitors:- It also enables the competitor to compare and interpret significant features in financial statement.    

1.1   PURPOSE OF THE STUDY

        The purpose of this study are as follows:

1. To identify different enterprise of accounting ratio and many different ratio within the categories.
2. To determine how ratio analysis can used to present a detailed insight about firm performance such as:-
   1. Measure the firm ability to meet current obligation
   1. Show the proportion of debt and equity in financing the firms asset.
   1. Reflect the firm’s efficiency is utilizing its asset
   1. Measure the overall performance and effectiveness of the firm.
   1. To interpret the result of financial ratios to various users of accounting information.

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