ACCOUNTING RATIO AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRM IN NIGERIA (A STUDY OF DANGOTE CEMENT PLC,LAGOS STATE)

This study investigated the efectiveness of accounting ratio in predicting the financial performance of manufacturing firms in Nigeria, specifically focusing on Dangote Cement Plc.The primary objective is to evaluate how the current ratio, debt ratio, turnover ratio, and price-earnings ratio correlate with Return on Assets (ROA). Utilizing a descriptive survey design, data were collected from 220 respondents through structured questionnaires and interviews, achieving a response rate of 67%. Statistical analysis, employing the Chi-Square technique, revealed significant findings: 73.3% of respondents affirmed the current ratio's predictive capability for ROA, while 63.3%, 66.7%,and 60% identified the debt ratio, turnover ratio, and price-earnings ratio, respectively, as effective predictors. These results suggested that while liquidity is important, it is not sufficient alone to determine profitability,emphasizing the need for a comprehensive approach to financial performance evaluation. The study concluded that effective debt management, operational efficiency, and strategic enhancement of earnings per share are crucial for improving financial outcomes. It was recommended that manufacturing firms, investors, and policymakers should bfoster financial literacy, optimize performance metrics, and create a supportive regulatory environment,thereby contributing to the growth of Nigeria's manufacturing sector.