FINANCIAL ANALYSIS AND FINANCIAL PERFORMANCE OF UNILEVER NIGERIA PLC

Abstract

There is a constant need for financial information to aid informed financial decision making in firms. This information emanates from the annual financial accounts of the firms. It has been a subject of concern, the use of available financial information by internal parties to the firm for decision making and future financial performance. With the declining earnings of firms, it became necessary to undertake the study. Two research questions and two null hypotheses were tested for the study. The study adopted the ex-post facto design and secondary data was collected from audited accounts of Unilever Nigeria Plc. Using ordinary least squares, regression analysis was used to analyse the data for relationship between the variables. It was found that there is a very weak positive and statistically significant relationship between current ratio and net profit margin of Unilever Nigeria plc; there is a very weak positive relationship between quick ratio and net profit margin of Unilever Nigeria plc. It was recommended among others that firms should utilise financial analysis for the purpose of planning and projecting future operations.