FINANCIAL ACCOUNTING RATIOS AS TOOLS FOR THE EVALUATION OF MANAGEMENT PERFORMANCE: STUDY OF LISTED DEPOSIT MONEY BANKS NIGERIA.

Abstract

 The paper examined the importance of ratio analysis to corporate entities especially deposit money banks by showing its contributions in the evaluation of management performance. The effectiveness of ratio analysis was also examined. A content review method was employed in the study and a critical analysis and summary of existing research on the topic was carried out. From the reviewed carried out, it was concluded that ratio analysis as a valuable tool for making comparisons. It proves beneficial for strategic planning by examining historical ratio estimates. The research also indicates that a diverse range of individuals, including investors, management, shareholders, creditors, employees, firm owners, society, and researchers, can benefit from ratio information. Finally, ratio analysis emerges as an essential instrument for evaluating corporate performance, and it is recommended for consideration by anyone using accounting information to make informed decisions.