EFFECT OF FINANCIAL RATIO ANALYSIS ON ORGANIZATIONAL PERFORMANCE (A CASE STUDY OF CADBURY NIGERIA PLC)

Ratio analysis is a fundamental analysis which involves a number of different industries standard ratios and comparing them to various bench marks on the basis of which the performance of such an industry can be measured, also provide a ground on which the industry can be evaluated. This study examines the financial strength and weakness of Cadbury Nigeria Plc over the last five years. This study compares the performance of Cadbury Nigeria Plc and Unilever Nigeria Plc over the last two years. Using the industry standard ratios as the appropriate basis of comparison. The method of data analysis used for the study are Z-score and Chi – square method the Altman Z – score method was used to predict the companies probability of failure using 5 variables from the company 2017-2021 financial statement. The Chi-square method was used to analysis the company’s financial position (strength). The outcome of the analysis shows that the financial position of Cadbury Nigeria Plc is poor over the years. Appropriate recommendations were given to improve their financial position.