An Evaluation of the application of financial analysis in assessing the performance of a company. Case study Delta Corporation Limited · Electronic Theses and Dissertations

Author

Mavunga, Rosden

Title

An Evaluation of the application of financial analysis in assessing the performance of a company. Case study Delta Corporation Limited

Abstract

Financial analysis is a very important tool in an organization as it results in better decisions being made. Good decisions enhance the growth, survival and profitability of an organization. The main purpose of this research project was to evaluate the application of financial analysis in assessing the performance of a company which is in this case Delta Corporation Limited. The research have the following objectives: does financial statements play an important role in determining the profitability of an organization, to analyse the usefulness of financial statements in assessing Delta Corporation Limited’s performance and lastly to determine the level of financial performance in Delta Corporation Limited. The sample size was 100 people. A questionnaire was used in order to obtain data from the targeted population. The data was then tested to ensure its reliability and validity. In analysing data, the researcher used SPSS 21.0 version. The researcher used frequencies, regression and correlation analysis to present and interpret the data found on the financial statement analysis and performance of Delta Corporation Limited. In this research study, the researcher found out that there is a strong positive relationship between financial statement analysis and organizational performance. Delta Corporation Limited should make use of the financial statements analysis techniques in order to improve its performance. Basing on the findings from the research study, the researcher came up with the following recommendations: Delta Corporation Limited should keep proper records of financial statements as they enhance the profitability of an organization, make appropriate use of financial statement analysis techniques as they arouse an organizational performance and lastly the organization must be aware of the indicators of financial performance as they play an important role in investment decision making.

Date

June 2022

Publisher

BUSE

Keywords

Financial analysis

Company perfomance

Supervisor

Mr. Kosmas Njanike