Analysis of Financial Statement on The Growth and Efficient Management of Business OrganizationsAhason Investment

Abstract

Analysis of financial statement is an essential tool for making wise decisions in business.  Making wise decisions guarantees the existence, prosperity, and expansion of a firm.  Therefore, an organization is prone to make decisions that might mean its demise if financial statement analysis is not done.  Determining how (Ahason Investment Limited, Onitsha, Anambra State) could use financial statement analysis to support managerial decision-making concerning liquidity, profitability, debt management, inventory management, asset utilization, and debit financing was, therefore, the primary goal of this project.  The study's methodology was guided by the formulation of research questions, which in turn assisted in determining the issue facing Ahason Investment in Onitsha, Anambra State.  Both primary and secondary sources provided the data used in this study. A survey of related literature that emphasized the opinions of many writers in the area was used to get the main data from the company that was the subject of the research.  Fifty-one (51) of the 80 completed and returned the questionnaires, which were then evaluated using the Pearson Product Moment Correlation coefficient approach.  The results showed that sound decision-making is aided by financial statement analysis.  The study also came to the conclusion that the business should focus heavily on using financial statement analysis in order to adequately arm itself with the in valuable to in its decisions making