Impact of Ratio Analysis on Business Decision Making in Commercial Banks (a Case Study of Selected Commercial Banks in Kwara State)

The research work focused on impact of ratio analysis and business decision making (a case
study of selected bank in Kwara State). The objectives of this study include to analyze the
contribution of liquidity ratio analysis in effective decision making in UBA; to determine the
effect of efficiency ratio analysis on the effective decision making in UBA and also to
measure the extent to which asset quality ratio analysis affects decision making in UBA. The
study adopted both the primary and secondary sources of data. A total of 40 staffs of selected
four branches of United Bank of Africa plc were used as the sample size of which the
questionnaires were administered to. Descriptive statistics such as simple percentage and
frequency distribution were used in the analysis of data. Data presentation was done by use
of tables for ease of understanding and interpretation. The hypotheses formulated were tested
using one way sample t-test method. From the findings, the study concluded that financial
ratios unravel the mass of truth hidden in them, and to enhance decision making. Ratio
analysis helps to reveal, compare and interpret salient features of financial statements. The
study recommends that users of financial statements need to have at least, a fair knowledge of
accounting so as to enable then understand and appreciate accounting information and also
prospective investors should properly analyze the financial statements of companies before
deciding to invest in the companies.