PERCEIVED INFLUENCE OF FINANCIAL RATIOS ON THE PERFORMANCE OF AGRO-ALLIED INDUSTRIES IN AKWA IBOM STATE, NIGERIA
DOI:
https://doi.org/10.53555/nnbma.v8i1.1168Keywords:
Financial ratios, Liquidity, Leverage, Profitability, Performance, Agro-allied industries, Agriculture, Financial statementAbstract
This research work investigated the perceived influence of financial ratios on the performance of agro-allied industries in Akwa Ibom State. Three research questions were developed and answered by the study; three hypotheses were also formulated and tested at 0.05 level of significance. The study adopted survey research design. The population for the study was 196, comprising 111 managers and 85 accountants in listed agro-allied industries in Akwa Ibom State. No sampling was carried out because of the small and manageable size of the population. A 19-item questionnaire was used as the instrument for data collection for the study. Cronbach Alpha reliability method was used to determine the internal consistency of the questionnaire items. The overall reliability coefficient of the instrument was 0.92 indicating that it was highly reliable. The data for the study were collected with the help of research assistants and were analysed using mean and standard deviation for answering the research questions, while t-test statistic was used to test all the null hypotheses at 0.05 level of significance. The findings obtained included that liquidity ratios, leverage ratios and profitability ratios influence the performance of agro-allied industries in Akwa Ibom State. Based on the findings, it was recommended among others that accountants in agro-allied industries should always analyse the firm’s financial ratios at the end of every financial year, to enable them to know the firm’s profitability, its ability to generate cash to pay off creditors, and the relationship between various sources of funds available to the firm making it possible for management to make informed decisions towards the improvement of the firm’s performance.
References
Adesiyan, O. F. (2015). The performance of the quoted agro-allied industries in Nigeria. Research Journal of Finance and Accounting, 6(9), 200–216.
Aziz, A., & Rahman, A. A. (2017). The relationship between solvency ratios and profitability ratios: Analytical study in food industrial companies listed in Amman Bursa. International Journal of Economics and Financial Issues, 7(2), 86–93.
Bem, A., Predkiewicz, K., Predkiewicz, P., & Ucieklak-jez, P. (2014). Determinants of hospital’s financial liquidity. Procedia Economics and Finance, 12, 27–36. https://doi.org/10.1016/S2212-5671(14)00317-7
Carlos, A., Doyle, B., Andrew, W., Chakib, J., & Sergio, M. (2009). Agro-industries for development. Rome: The Food and Agriculture Organisation of the United Nations and the United Nations Industrial Development Organisation.
Corporate Finance Institute [CFI] (2020). Financial ratios. Retrieved 21st January 2020 from https://corporatefinanceinstitute.com/resources/knowledge/financial-ratios/
D’Angelo, M. (2020). Accounting ratios and formulas: The basics you need to know. Retrieved 22nd January 2020 from https://www.businessnewsdaily.com/2665-accounting-formulas.html
Feng, C., & Wang, R. (2000). Performance evaluation for airlines including the consideration of financial ratios. Journal of Air Transport Management, 6, 133–142.
Mendonca, A. E. (2021). Plant quality detection using deep learning. International Journal of Research in Engineering, Science and Management, 4(7), 166–168. http://journals.resaim.com/ijresm/article/view/1018
Ocholi, A., & Evelyn, O. (2018). Analysis of the impact of agro-allied industries on the standard of living of rural dwellers in Benue State, Nigeria. Academy of Agriculture Journal, 3(6), 461–468.
Okereke, C. O., & Onyeabor, E. N. (2011). Assessing capacity utilization of agro-allied industry in Nigeria. Continental J. Social. Sciences, 4(2), 14–22.
Olufemi, O. (2019). Nigeria’s agro-allied industry: 38 years of neglect and decline. https://www.dataphyte.com/agriculture/38-years-of-neglect-and-decline/
Otekunrin, A. O., Nwanji, T. I., Olowookere, J. K., Egbide, B.-C., Fakile, S. A., Lawal, A. I., Ajayi, S. A., Falaye, A. J., & Eluyela, D. F. (2018). Financial ratio analysis and market price of share of selected quoted agriculture and agro-allied firms in Nigeria after adoption of international financial reporting standard. The Journal of Social Sciences Research, 4(12), 736–744.
Peters, K. (2021). Industry. Retrieved 14th May 2021 from https://www.investopedia.com/terms/i/industry.asp
Salawu, M. B., Salman, K. K., Ibrahim, A. G., Rufai, A. M., Sodeeq, A. E., & Lamidi, L. O. (2017). Growth and variability of selected agricultural raw materials: panacea for growth in Nigeria agro-allied industries. The 18th Annual National Conference of the Nigerian Association of Agricultural Economists Held at Federal University of Agriculture, Abeokuta, Nigeria 16th - 19th October, 2017., 815–821.
Solomon, L., Tomii, V. P., & Dick, A. A. (2019). Importance of fungi in the petroleum, agro-allied, agriculture and pharmaceutical industries. New York Science Journal, 12(May), 8–15. https://doi.org/10.7537/marsnys120519.02
Spiceland, J., Sepe, J., & Nelson, M. (2013). Intermediate accounting (7th Edition). New York: McGraw-Hill Companies Inc.
Williams, J., Haka, S., Bettner, M., & Carcello, J. (2015). Financial and managerial accounting: The basis for business decision (17th Edition). New York: McGraw Hill Education
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Journal of Advance Research in Business Management and Accounting
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Terms & Condition
Submission -
Author can submit the manuscript through our online submission process or email us at the designated email id in contact details.
The other mode of submission not accepted than online and email.
Before submission please read the submission guidelines.
NN Publication accepts only article submitted in pdf/doc/docx/rtf file format. Another format except given file formats will no be considered .
Author will be responsible for the error mistakes in the submission files. The minor changes can be done without any cost after publication. But for major changes NN Publication may charges you the editing charges.
Publication (Online) -
The online publication is scheduled on last date of every month, but it can be delayed by 24 to 48 hours due to editorial process if huge number of articles comes to publish in single issue.
Automatic notificatation email will be sent to the all users on publication of an issue, so its author’s duty to check their email inbox or SPAM folder to get this notification.
After publication of article author can not withdraw their article.
If editor’s found any issue after publication of article then the NN Publication have the authority to remove the article from online website.
No refund will be provided after online publication of article.
Publication (Print) -
The print copy publication are sent as per the author’s request after 2 weeks of online publication of that issue.
NN Publication will ship the article by India Post and provide the consignment number on dispatch of print copy.
NN Publication follows all the guidelines of delivery provided by IndiaPost and hence not responsible for delay in delivery due to any kind of reasons.
Refund of hard copy will not be provided after dispatch or print of the journal.
NN Publication will be responsible for raise a complain if there is any issue occurs in delivery, but still will not be responsible for providing the refund.
NN Publication will be responsible to resend the print copy only and only if the print copy is lost or print copy is damaged in delivery / or there is delay more than 6 months.
According to India Post the delivery should be completed with in 1-3 weeks after dispatch of articles.
Privacy Policy-
NN Publicationl uses the email ids of authors and editors and readers for sending editorial or publication notification only, we do not reveal or sell the email ids to any other website or company.
