Analysing financial performance of listed cement industries in Nigeria: Financial Ratio Approach

https://doi.org/10.35912/amor.v3i4.1394
Publiée : Mar 10, 2023

Résumé:

Purpose: The grounds for this study are to reflect a quantitative connection allying the financial statements of different firms at different periods and how the financial performance (FP) of firms can be measured using financial ratios.

Research methodology: This research employs descriptive research with a quantitative approach focusing on calculations. Data were analysed through the Financial Ratio Analysis (FRA).

Results: The comparative FRA unlocks the overall FP of the three firms. The result refill that, on average, Dangote Cement plc maintain the lead, CCNN/BUA Cement second, while Lafarge Africa plc is the least in all the FP indicator used.

Limitations: The analysis is restricted to ten years FSs published by the three giant firms in the cement industries in Nigeria plc between the years 2012 to 2021.

Contribution: This analysis expatriates and, in greater detail, the benefits that can be derived from applying FR analysis as a tool for financial performance (FP) measurement. It also helps in determining how the financial performance of firms can be measured through financial ratios.

Auteurs:
1 . Aminu Abdulrahim Olayinka
Mai Idris Alooma Polytechnic, Geidam, Yobe State, Nigeria
2 . Shettima Mustapha
Mai Idris Alooma Polytechnic, Geidam, Yobe State, Nigeria
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Comment citer
Olayinka, A. A., & Mustapha, S. (2023). Analysing financial performance of listed cement industries in Nigeria: Financial Ratio Approach. Annals of Management and Organization Research, 3(4), 231–244. https://doi.org/10.35912/amor.v3i4.1394
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Numéro & Rubrique
Vol. 3 No 4 (2022): May
Articles
Creative Commons License

Ce travail est disponible sous licence Creative Commons Attribution - Partage dans les Mêmes Conditions 4.0 International.

Références

    Abu, S. E., & Bamidele, O. M. (2022). Effect of Board Characteristics on Financial Performance of Listed Healthcare Firms in Nigeria. Annals of Management and Organization Research, 3(3), 193-206.

    Alexander, D., & Nobes, C. (2007). Financial accounting: an international introduction: Pearson Education.

    Aryadi, F., Ahadiat, A., & Ribhan, R. (2020). Financial performance of Bandar Lampung City Government (Comparing the accountability of two mayor periods: 2006–2010 vs 2011–2015). International Journal of Financial, Accounting, and Management, 2(3), 213-225.

    Ehiedu, V. C., Onuorah, A., & Mbagwu, O. N. (2022). Financial leverage and performance of listed oil and gas firms in Nigeria. International Journal of Management (IJM), 14, 422-440.

    El Idrissi, I., & Alami, Y. (2021). The financial impacts of board mechanisms on performance: The case of listed Moroccan banks. International Journal of Financial, Accounting, and Management, 3(2), 93-113.

    Elliott, B., & Elliott, J. (2007). Financial accounting and reporting: Pearson Education.

    Endri, E. (2012). Pengaruh Mekanisme Corporate Governance Terhadap Kinerja Profitabilitas Perbankan Syariah di Indonesia. Jurnal Keuangan dan Perbankan, 16(2).

    Ershad, S., Uddin, M. M., & Faruk, M. O. (2021). Analysis on the Financial Performance of Selected Cement Industries of Bangladesh. International Journal of Finance Research, 2(1), 46-57.

    Etale, L. M. (2020). Dangote Cement PLC Capital Structure and Financial Performance Link in Nigeria: Empirical Analysis. American International Journal of Business Management, 3(8), 01-10.

    Farasi, W. M. (2022). Profitability Analysis to Measure Financial Performance at PT Astra Agro Lestari Tbk.

    Kaur, P., Stoltzfus, J., & Yellapu, V. (2018). Descriptive statistics. International Journal of Academic Medicine, 4(1), 60.

    Keerthi, K., & Eswari, S. (2020). A Study on Financial Performance Using Ratio Analysis of Kumbakonam Central Co-operative Bank. ICTACT Journal on Management Studies.

    Mappadang, A., Wijaya, A. M., & Mappadang, L. J. (2021). Financial performance, company size on the timeliness of financial reporting. Annals of Management and Organization Research, 2(4), 225-235.

    Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies’ performance. International Journal of Financial, Accounting, and Management, 4(1), 49-66.

    Oranefo, P., & Egbunike, C. (2022). Debt Financing and Firm Valuation of Quoted Non-Financial Firms in Nigeria Stock Exchange. International Journal of Financial, Accounting, and Management, 4(2), 199-218.

    Oshoke, A. S., & Sumaina, J. (2015). Performance evaluation through ratio analysis. Journal of Accounting and Financial Management, 1(8), 1-10.

    Pandey, I. (2004). Financial Management; New Delhi–110014: Vikas publishing house Pvt. Ltd.

    Quesada, H. J. (2019). Analysis of financial statements using ratios.

    Robins, M. W. (2000). Fundamental Analysis: A closer look at Gross Margins. AAII Journal.

    S, G. R., & M, M. H. (2017). Financial Performance Analysis. International Journal of Science & Engineering Development Research, 2(6), 93-98.

    Saigeetha, S., & Surulivel, S. (2017). A study on financial performance using ratio analysis of BheL, Trichy. International Journal of Innovative Research in Management Studies, 2(3), 31-39.

    Shabrina, W., & Hadian, N. (2021). The influence of current ratio, debt to equity ratio, and return on assets on dividend payout ratio. International Journal of Financial, Accounting, and Management, 3(3), 193-204.

    Suryahadi, A. (2020). Sektor industri dasar dan barang konsumsi jadi penopang IHSG pekan ini. Kontan. Retrieved from https://investasi.kontan.co.id/news/sektor-industri-dasar-dan-barang-konsumsi-jadi-penopang-ihsg-pekan-ini

    Tayeh, M., Al-Jarrah, I. M., & Tarhini, A. (2015). Accounting vs. market-based measures of firm performance related to information technology investments. International Review of Social Sciences and Humanities, 9(1), 129-145.

    Tho, N., Dung, L., & Huyen, N. (2021). Firm Financial Performance: A Review on Accounting & Market-Based Approach. Int. J. Bus. Manag. Invent, 431, 8-11.

  1. Abu, S. E., & Bamidele, O. M. (2022). Effect of Board Characteristics on Financial Performance of Listed Healthcare Firms in Nigeria. Annals of Management and Organization Research, 3(3), 193-206.
  2. Alexander, D., & Nobes, C. (2007). Financial accounting: an international introduction: Pearson Education.
  3. Aryadi, F., Ahadiat, A., & Ribhan, R. (2020). Financial performance of Bandar Lampung City Government (Comparing the accountability of two mayor periods: 2006–2010 vs 2011–2015). International Journal of Financial, Accounting, and Management, 2(3), 213-225.
  4. Ehiedu, V. C., Onuorah, A., & Mbagwu, O. N. (2022). Financial leverage and performance of listed oil and gas firms in Nigeria. International Journal of Management (IJM), 14, 422-440.
  5. El Idrissi, I., & Alami, Y. (2021). The financial impacts of board mechanisms on performance: The case of listed Moroccan banks. International Journal of Financial, Accounting, and Management, 3(2), 93-113.
  6. Elliott, B., & Elliott, J. (2007). Financial accounting and reporting: Pearson Education.
  7. Endri, E. (2012). Pengaruh Mekanisme Corporate Governance Terhadap Kinerja Profitabilitas Perbankan Syariah di Indonesia. Jurnal Keuangan dan Perbankan, 16(2).
  8. Ershad, S., Uddin, M. M., & Faruk, M. O. (2021). Analysis on the Financial Performance of Selected Cement Industries of Bangladesh. International Journal of Finance Research, 2(1), 46-57.
  9. Etale, L. M. (2020). Dangote Cement PLC Capital Structure and Financial Performance Link in Nigeria: Empirical Analysis. American International Journal of Business Management, 3(8), 01-10.
  10. Farasi, W. M. (2022). Profitability Analysis to Measure Financial Performance at PT Astra Agro Lestari Tbk.
  11. Kaur, P., Stoltzfus, J., & Yellapu, V. (2018). Descriptive statistics. International Journal of Academic Medicine, 4(1), 60.
  12. Keerthi, K., & Eswari, S. (2020). A Study on Financial Performance Using Ratio Analysis of Kumbakonam Central Co-operative Bank. ICTACT Journal on Management Studies.
  13. Mappadang, A., Wijaya, A. M., & Mappadang, L. J. (2021). Financial performance, company size on the timeliness of financial reporting. Annals of Management and Organization Research, 2(4), 225-235.
  14. Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies’ performance. International Journal of Financial, Accounting, and Management, 4(1), 49-66.
  15. Oranefo, P., & Egbunike, C. (2022). Debt Financing and Firm Valuation of Quoted Non-Financial Firms in Nigeria Stock Exchange. International Journal of Financial, Accounting, and Management, 4(2), 199-218.
  16. Oshoke, A. S., & Sumaina, J. (2015). Performance evaluation through ratio analysis. Journal of Accounting and Financial Management, 1(8), 1-10.
  17. Pandey, I. (2004). Financial Management; New Delhi–110014: Vikas publishing house Pvt. Ltd.
  18. Quesada, H. J. (2019). Analysis of financial statements using ratios.
  19. Robins, M. W. (2000). Fundamental Analysis: A closer look at Gross Margins. AAII Journal.
  20. S, G. R., & M, M. H. (2017). Financial Performance Analysis. International Journal of Science & Engineering Development Research, 2(6), 93-98.
  21. Saigeetha, S., & Surulivel, S. (2017). A study on financial performance using ratio analysis of BheL, Trichy. International Journal of Innovative Research in Management Studies, 2(3), 31-39.
  22. Shabrina, W., & Hadian, N. (2021). The influence of current ratio, debt to equity ratio, and return on assets on dividend payout ratio. International Journal of Financial, Accounting, and Management, 3(3), 193-204.
  23. Suryahadi, A. (2020). Sektor industri dasar dan barang konsumsi jadi penopang IHSG pekan ini. Kontan. Retrieved from https://investasi.kontan.co.id/news/sektor-industri-dasar-dan-barang-konsumsi-jadi-penopang-ihsg-pekan-ini
  24. Tayeh, M., Al-Jarrah, I. M., & Tarhini, A. (2015). Accounting vs. market-based measures of firm performance related to information technology investments. International Review of Social Sciences and Humanities, 9(1), 129-145.
  25. Tho, N., Dung, L., & Huyen, N. (2021). Firm Financial Performance: A Review on Accounting & Market-Based Approach. Int. J. Bus. Manag. Invent, 431, 8-11.