Interestingly, accounting provides information that facilitates these functions.īasically, accounting measures and communicates economic information needed for decision –making. Also, the strengths and weakness of the business need to be identified and necessary corrective measures applied. However, the achievement of these objectives requires efficient management of resources of the business through planning, budgeting, forecasting, control, and decision – making. Profitability is the ability of a business to make profit, while solvency is the ability of a business to pay debts as they come due. The two primary objectives of every business are profitability and solvency. Finally, it was established that ratios analysis evils business decision. After ratios analysis conducted on the chapter four, mode at 95 level of confidence (5% level of significance). The data Collected via the primary data sources were analyzed using simple averages and percentages. However, for the former, questionnaires were administered, whereas for the later, relevant were received. The researcher made use of both primary and secondary sources of data collection. Therefore, in order to establish the role of ratio analysis in business decisions, this research is carried out, using Ibom Power Company as the Case study. To be of optimal benefit and as well enable the users make well – informed decisions, financial statements need to be analyzed by means of ratios. Viewed on the surface, the truths about the results and the financial position of a business hidden in them remain veiled. Finally, it was established that ratios analysis evils business decision.Īccounting information provided by means of financial statements- The income statement and the Balance Sheet are often in summarized form.

(Nig.) LTD., Aba Abia State as the Case study. Therefore, in order to establish the role of ratio analysis in business decisions, this research is carried out, using O. Accounting information provided by means of financial statements- The income statement and the Balance Sheet are often in summarized form.

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