ABSTRACT

This study dwells on The Effect of Ratio Analysis in Investment Decision in First Bank Nigeria Plc. The study begins with Chapter One to Chapter Five. Data were collected through questionnaire distributed to the workers. Percentage analysis and chi-square (X²) statistics test were also employed in data analysis. The study reveals that the effectiveness of ratio analysis in business decision making determines the level of liquidity and profitability of business, also improves management decision on investment and that there is a relationship between investments and that there is a relationship between investment decision making and ratio analysis.

However, it is recommended that since it is not possible for a company not to invest in capital project, it is advisable that in using any particular method of investment appraisal technique, the method should possess the following characteristics.

v It should maximize the shareholder’s wealth and help to choose among mutually exclusive projects.

v It should be a criterion which is applicable to any conceivable investment project independent of others.

v It should be a measure of the projects profitability by considering all cash-flows.

v It should provide a means of distinguishing between acceptable and unacceptable projects.

It is my hope that by the time the various investment appraisal techniques enumerated above shall be examined, I shall have succeeded in highlighting the importance and relevance of good appraisal technique to the success of any business organization especially profit oriented company.