ASSESSING THE FINANCIAL PERFORMANCE OF A COMPANY

Abstract

The need to assess the financial performance of any company cannot be overemphasized as this assessment is of great benefit to the diverse range of stakeholders in every company. The study focused on the financial performance of Ecobank Ghana Limited for the four (4) year period ending December, 2009. The research was conducted from the use of secondary data that is the summarized financial statements of the bank for the various respective years. Analysis were made from the results of financial ratios calculated from the financial statements in pursuance of the research objectives, the financial performance was going to be assessed by a number of accounting ratios. Based on the findings the financial performance was stellar. Profitability was robust with consistent increase over the years. With a bank which is in a growth stage and expected to reap the benefits of expansion in the medium term, a consistent growth in profitability underscores the bank’s commitment to enhance shareholder value. Other indicators were the level of gearing, liquidity, efficiency and investors ratios.