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ABSTRACT
The study is aimed at finding out the effects of financial analysis on investment decision. Using Dangote group of companies (Dangote cement factory) as a case study. The area chosen for the study was Dangote cement company at Gboko Benue state in Nigeria. Three research questions guided the study. The objective of this study is to investigate the effect of ratio analysis on expansion of existing business, to analyze the effect of ratio analysis on establishment of a new business, assess the effect of ratio analysis on reducing cost of replacement and modernization. The hypothesis to be tested is the null hypothesis (H0); H01Ratio analysis has no significant effect on expansion of existing business, H02-Ratio analysis has no significant effect on establishment of a new business, Ho3Ratio analysis has no significant effect on reducing cost of replacement and modernization in an organization. An ex- post facto research design was adopted for the study. The instrument for data collection was gotten from secondary data, after careful analysis using [E-Views Computation], it was found out that ratio analysis contribute immensely to the business expansion, establishment of new business and cost replacement and modernization. From the findings, it was concluded that financial analysis performs a crucial role on investment decisions making and organization performance which has been shown to be major force in investment decision making. It was recommended, that every organization and manufacturing companies should ensure that all material facts as regard the assets and equality of the organization should be reflected in their yearly financial statement and experienced professionals and workers such as accountants and auditors should be involved in financial analysis.

Description

TABLE OF CONTENTS
Title page
Approval page           –   –           –           –           –           –           i
Dedication               –           –           –           –           –           –           ii
Acknowledgement             –           –           –           –           –           -iii
Abstract                                –           –           –           –           –           -iv
CHAPTER ONE: INTRODUCTION                                                      1
1.1 Background of the Study                  –           –           –           –           1
1.2 Statement of the Problem     –           –           –           –           –           3
1.3 Objective of Study                 –           –           –           –           –             4
1.4 Significance of the Study     –           –           –           –           –             5
1.5 Research questions                –           –           –           –           –              5
1.6 Statement of hypotheses                   –           –           –           –           –  5
1.7 Scope of the study                  –           –           –           –           –           –   6
1.8 Limitation of the study                     –           –           –           –           –           6
 
CHAPTER TWO: REVIEW OF RELATED LITERATURE                     8
2.1 Conceptual framework                      –           –           –           –           –           8
2.1.1 Financial statement analysis        –           –           –           –           –          9
2.1.2 Vertical analysis                  –           –           –           –           –           –         9
2.1.3Horizontal analysis –           –           –           –           –          –        –            9
2.1.4 Trend analysis         –           –           –           –           –         –          –          10
2.1.5 Ratio analysis                         –        –           –           –           –           –        10
2.1.6Limitation      –           –           –           –           –          –        –        –       –    10
2.1.7 Investment decision            –           –           –           –           –          –        11
2.2 Theoretical framework          –           –           –           –           –           –        11
2.3 Empirical review of literature         –           –           –           –           –        12
CHAPTER THREE: RESEARCH METHOD                                     18
3.1 Introduction-    –           –           –           –          –                                 18
3.2 Research Design                     –           –           –           –           –           18
3.3Nature and sources of data                –           –           –           –           –             18
3.4 Instrument of data collection                       –           –           –           –             18
3.5 population and sample size              –           –           –           –           –            19
3.6 model specification                –           –           –           –           –           –           19
3.7 variable inclusion       –           –           –           –              –          –          –         20
3.8 validity and reliability of instrument –   –       –          –          –       –           21
3.9 data analysis –     –     –     –     –     –     –     –     –     –     –     –     –     –     –       21
CHAPTER FOUR: ANALYSIS OF DATA AND PRESENTATION OF RESULTS  22
4.1The empirical result –  –           –           –           –           –           –           –                       22
4.1.1 Regression result for first model-           –           –           –           –                      22
4.1.2 Regression result for second model-      –           –           –           –          –           24
4.1.3 Regression result for third model –         –           –           –           –          –            26
4.1.4 Evaluation of research hypotheses         –           –           –           –           –             28
4.2 Summary of findings             –           –           –           –           –           –         –             31

CHAPTER FIVE: DISCUSSION OF RESULT                                             32
5.1 Summary          –           –           –           –           –           –           –           –                  32
5.2 Conclusion.                  –           –           –           –           –           –           –                  32
5.3 Recommendation                               –           –           –           –           –           –       33
5.4 Area for Further Research,   –           –           –           –           –           –                  34
Appendix-   –           –           –           –          –          –               –          –          –             35
Reference     –         –          –          –          –          –         –          –          –           –      36

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
Financial Statement Analysis is a method of reviewing and analyzing a company’s accounting reports (financial statements) in order to gauge its past, present or projected future performance. This process of reviewing the financial statements allows for better economic decision making.

Globally, publicly listed companies are required by law to file their financial statements with the relevant authorities. For example, publicly listed firms in America are required to submit their financial statements to the Securities and Exchange Commission (SEC). Firms are also obligated to provide their financial statements in the annual report that they share with their stakeholders.

As financial statements are prepared in order to meet requirements, the second step in the process is to analyze them effectively so that future profitability and cash flows can be forecasted. Therefore, the main purpose of financial statement analysis is to utilize information about the past performance of the company in order to predict how it will fare in the future. Another important purpose of the analysis of financial statements is to identify potential problem areas and troubleshoot those problems.

There are different users of financial statement analysis. These can be classified into internal and external users. Internal users refer to the management of the company who analyzes financial statements in order to make decisions related to the operations of the company. On the other hand, external users do not necessarily belong to the company but still hold some sort of financial interest.

These include owners, investors, creditors, government, employees, customers, and the general public. The managers of the company use their financial statement analysis to make intelligent decisions about their performance. For instance, they may determine cost per distribution channel, or how much cash they have left, from their accounting reports and make decisions from these analysis results….

2.0 REVIEW OF LITERATURE
This section deals with the con conceptual framework, theoretical framework and review of empirical review.
Review of related literature serves as the base for any researcher to understand his or her research problem clearly and to design the methodology by which the study is to be conducted….

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