FINANCIAL STATEMENT ANALYSIS AS A TOOL OF ASSESSING COMPAN’S FINANCIAL PERFORMANCES (A STUDY OF GREE AND BLUE COMMUNICATION NIGERIA LTD DAMATURU YOBE STATE)

Financial statement analysis and interpretation is a very viral instrument of good management decision making in business enterprise. Good decision ensure business survival, profitability and growth. Without financial statement analysis in investment decision, an enterprise is likely to make decisions which could spell its doom. Poor or lack of qualitative financial statement analysis could lead to investment return, low profitability and even inability to identify viable investment opportunities. The main objective of this project is therefore was to determine how firm could use financial statement analysis and interpretation to aid management decisions and to event the problems highlighted above. Primary and secondary dada are employed to broaden the scope of this study. Primary data are sourced from questionnaire responses. This provide date for the validation of the hypotheses tested with the use of (X2 ). The test revealed as follows: 1) significant different between the return of the financial statement in analysis and interpretation based on management decision. 2) organizational profitability has relationship with financial statement analysis and interpretation based management decision but not significantly. The project concludes that companies should pay great attention to the used of financial statement analysis so as to properly equip themselves with this invaluable tool. The researcher recommends the following: (a) accountants or financial analysis should not be rushed in collection, preparation, analysis and interpretation of financial statement. (b). financial statement should made to reflect current cost accounting to eliminate or reduce the effect to historical cost principle and inflation risk element. (c). a combination of different ration should be used in analyzing a company’s financial and or operating performance. Proper use of financial statement analysis should be made not only in investment but also in other area of decision making.