Use of Financial Ratios in Predicting the Financial Performance of Listed Banks in Nigeria

Accounting — 2025, Undergraduate

This study examined the use of financial ratios in predicting the financial performance of listed banks in Nigeria. Secondary data drawn from the annual reports of selected banks were analysed together with questionnaire responses from analysts and accountants. Data were analysed using ratio analysis and regression techniques. The findings revealed that liquidity, profitability, and efficiency ratios were reliable predictors of bank performance and early warning signals of distress. The study found that the predictive utility of ratios was limited by window dressing and inconsistent accounting choices. It recommends rigorous ratio-based monitoring and transparent financial reporting.

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