Lowest guaranteed price across the globe. Get upto 50% off ! Book Now

Ratio Analysis

University: The London Institute of Banking & Finance

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 3 / Words 857
  • Paper Type: Dissertation
  • Course Code: GSB014
  • Downloads: 17800
Question :

This sample will let you know about

  • What is the Background Study of Business Decision Making Process?
  • What is the Research Aim of Business Decision Making Process?
  • What is Research methodology? 
Answer :
Organization Selected : Porter and Norton

Effectiveness of Ratio Analysis in Business Decision Making Process

Background of study

An organization uses different tactics in collection of wide range of information about financial position through a variety of accounting statements. In this context, ratio analysis is considered as a most important tool which is used to evaluate business position of an organization (Altman, 2012). The present investigation will be carried out to assess effectiveness of Ratio Analysis in business decision making process by considering the business operations of WM Morrison. By using present investigation, organization will be able to evaluate importance of ratios in evaluation of business performance while taking different business decisions according to current market trends. This research will assist management of WM Morrison in application of ratio ratio analysis while taking different business such as business expansion by conducting systematic evaluation of profitability, assessment of liquidity etc.

View Samples on coursework, essay, and dissertation

Free Samples

Literature review

The study of Porter and Norton (2009) has addressed that ratio analysis helps management in evaluation of a range of accounting statements with in a simplified manner. It provides information associated with liquidity, profitability and position of business. By comparing the ratios with the ratios of previous years and other firms, business entity is able to assess growth in financial performance as well as position of company towards other organizations. Outcomes of ratio analysis have played vital role in business decision of organization. Drake and Fabozzi (2012) have examined that an organization has to consider several elements while taking different business decisions. It includes market position of firm, industry trends, competition, financial position and profitability. All these elements are creating huge impact on business decisions associated with business expansion, new product development, merger and acquisitions, financing etc. The research of Burstein, Brézillon and Zaslavsky (2010) has determined that top managers in an organization apply ratio analysis to assess information associated with liquidity, profitability, capital and proficiency from different accounting statements such as income statements, balance sheet etc. that provides assistance in a range of business decisions and strategic planning.

Research Aim

The aim of present study is to assess the Effectiveness of Ratio Analysis in business decision making process: Study on WM Morrison.

Research Objectives

Research goals that will be followed by researcher is mentioned below:

  • To assess the importance ratio analysis in simplification of financial data
  • To evaluate different aspects of business decision making process in WM Morrison
  • To examine the application of ratio analysis in decision marking process of WM Morrison
  • To suggest important tactics to increase effectiveness of ratio analysis

Research Questions

Researcher questions will provide assistance to researcher in handling of different research activities along with collection a range of data with an appropriate manner with reference aim and objectives of investigation. The research questions for present study are explained below:

  • Does ratio analysis play important role in simplification of financial data?
  • What are different elements of required to consider in business decision making process in WM Morrison?
  • How ratio analysis is useful in decision marking process with in an organization?

Research methodology

By focusing aim and objectives of investigation, researcher will apply quantitative method of investigation in which researcher will be able to analysis a variety of information and statistics and facts (Creswell, 2013). In this process, investigator will consider both sources of data collection primary and secondary. Primary data will be acquired by taking views of different managers of WM Morrison about ratio analysis through questionnaire. Therefore, random sampling approach will select to take appropriate sample. In addition to that research will also acquire a range of data from secondary sources such as books, journals, online blogs as well as annual reports of WM Morrison (Daniel and Sam, 2011). Statistical analysis will be used by investigator to evaluate views of managers along with application ratio analysis in evaluation financial performance. By using statistical analysis, researcher will be able to present the views of managers about role and importance of ratio analysis while taking different strategic decisions through different tables and graphs. It will assist researcher in calculation of different ratios of  WM Morrison and evaluate their applicability in various business decision.

REFERENCE

  • Altman, E., 2012. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of Finance.
  • Drake, P. P. and Fabozzi, J. F., 2012. Analysis of Financial Statements.
  • John Wiley & Sons.
  • Porter, G. A. and Norton, C. L., 2009. Financial Accounting: The Impact on Decision Makers. 6th ed. Cengage Learning
  • Burstein, F., Brézillon, P. and Zaslavsky, A., 2010. Supporting Real Time Decision-Making: The Role of Context in Decision Support on the Move. Springer Science & Business Media.
  • Creswell, J. W., 2013. Qualitative, Quantitative, and Mixed Methods Approaches. 4th ed. SAGE Publications, Inc.
  • Daniel, S. P. and Sam, G. A., 2011. Research Methodology. Gyan Publishing House.
Download Full Sample
Students have a lot of academic burdens these days that make them seek online assignment help from experts. Therefore, we have created an exclusive list of sample for almost every subject. Our highly qualified experts curated it for your assignment, essay, and dissertation help. So what are you waiting for? Explore the content written by our professionals and go ahead and seek essay writing services UK from our experts. The best part is they are available 24*7 to provide excellent assistance. So, what are you waiting for? Ask our experts, "Can you do my assignment for me, please?" You will see the magic happening in an instant.
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price

USD6.27

    FOR FIRST ORDER GET EXTRA 25% OFF

    Seasonal seasonal-mobile

    Our unique Features

    24/7 Customer Support

    100% Customer Satisfaction

    No Privacy Infringement

    Quick Services

    Subject Experts

    Innovative Documents

    100+ Qualified Writers

    For Best (Accounting) Assignment Help

    Mia Steve
    721 - Completed Orders
    Lara Paes
    310 - Completed Orders
    William Tailor
    150 - Completed Orders
    William TailorView Profile Hire Me
    Eleanor Edwards
    2010 - Completed Orders
    Eleanor EdwardsView Profile Hire Me
    View All Writers
     
    IAH whatsapp

    Limited Time Offer

    Exclusive Library Membership + FREE Wallet Balance