CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

In every research study, the method of presentation and analysis of data is

paramount to the extent that it determines the validity of such data been tested.

Therefore, in this chapter, the researcher has been able to present and analyze

data using questionnaire and financial statements as specified in chapter three

above.

4.1 Data Presentation

The data analyzed by the questionnaire was presented using tables and pie

charts. This was carried out with the actual number of respondent that returned

their questionnaire. Meanwhile, as shown in the table below, 12 out of 15 copies

of questionnaire administered were returned by the respondents, while the

remaining 3 were not returned.

Table 1: Questionnaire Distributional and Collection

Staff position Administered Returned Not returned

Mgt, Staff 4 13.3% 4 13.3% 0 O%
Non-Mgt. staff 11 36.7% 8 26.7% 3 10%
Total 15 50% 12 40% 3 10%
Source: Field Survey, June 2016
 As shown in the table above, 12 (90%) of the total number of questionnaire

distributed were returned, while 3 (10%) were not returned

Figure 1

42%

58%

Table 2: Gender of the Employees

Response Mgt Staff Non Mgt Staff Total

Female 1 8.3% 6 50% 7 58.3%

Male 3 25% 2 16.7% 5 42.7%

Total 4 33.3% 8 66.7% 12 100%

Source: Field Survey, June 2016

From the above data analyzed as regards to employees gender, 1(8.3%) of the

management staff are female meanwhile 3 are men constituting 25%. The non-

management staff have 6(50%) of females and 2 males giving 16.7%.

Conclusively, there are 7 females giving a percentage of 47 and 5 males who

constitute 33% of the total staff.

Figure 2

13%
12%
44%

31%

Table 3: Positions Occupied by the Staff of NFC Bank

Mgt- Staff Non-Mgt staff Total

4 33.3% 8 66.7% 12 100%
Source: Field Survey, June 2016.

From the above table, it can be seen that, 4(27%) of the staff are management

staff meanwhile 12(53%) of the staff are non-management staff.

Figure 3
 42%

58%

Table 4: Highest Educational Level Obtained by Staff

Level Mgt. Staff Non mgt. staff Total

Msc 3 25% 1 8.3% 4 33.3%

Bsc 1 8.3% 7 58.4% 8 66.7%

Hnd 0 0% 0 0% 0 0%

A- level 0 0% 0 0% 0 0%

Total 0 0% 0 0% 0 0%

Total 4 33.3% 8 66.7% 12 100%

Source: Field Survey, June 2016

From the table 4 above showing the highest level of education obtained by all

the staff, it shows that 3 (25%) out of 4 (33.3%) of the management staff are

Msc holders, 1 (8.3%) out of 4 (33.3%) of the management staff is a Bsc holder.
As regard the Non-management staff, 1(8.4%) out of 8 (66.7%) is a holder of

Msc, while the remaining 7(58.4%) are Bsc. holders.

Table 5: The Duration of Work of the Staff of NFC Bank

1-5 Years 5-10 Years 1O-15 Year Total

Mgt Staff 1 8.3% 2 16.7% 1 8.3 4 33.3%

%
Non-Mgt 5 41.8% 2 16.6% 1 8.3 8 66.7%

%
Source: Field Survey, June 2016

From the above table, it can clearly be seen that 50.1% of the staff have been

working for 1-5years, 33.3% have been working for 5-10years and 16.6% has

been working for 10-15years.

Figure 4

14%

50%

36%
4.2 The Identification of Types of Ratios Analyzed in NFC bank.

Table 6: Does your firm analyze profitability ratios?

RESPONSE Mgt-Staff Non-Mgt staff Total

Yes 4 33.3% 8 66.7% 12 100%
No O 0% 0 0% 0 0%

It can be seen from the table above that, 33.3% Of the management staff agree

to the fact that profitability ratios are been analyzed in the firm while 66.7% of

the non-management staff also hold the same view. Hence it can be concluded

that profitability ratios are analyzed in the National Financial Credit bank.

Figure 5

42%

58%

QUESTION 6
Table 7: Does your firm analyze liquidity ratios?

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%
Source: Field Survey, June 2016

From the above table, 100% of the staff agrees to the fact that they analyze

liquidity ratios which actually tells us that the firm analyzes liquidity ratios.

QUESTION 7

Table 8: Does your firm analyze leverage ratios?

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%
Source: Field Survey, June 2016

It can be concluded from the above table that, leverage ratios are analyzed in the

firm as all the respondent chose YES on the questionnaire.

Other types of ratios apart from the afore mentioned ratios analyzed in the

National Financial Credit Bank are;

Non-financial ratios such as; the Balance Score Card and the Building Block

Model

Dividend Valuation ratios

Growth ratios
Retention ratios

Loan/Deposit ratio

QUESTION 9

Table 9: Are all the ratios above sufficient to evaluate the growth of your

firm?

RESPONSE MGT STAFF NON MGT TOTAL

YES 1 8.3% 3 25% 4 33.3%
NO 3 25% 5 41.7% 8 67.7%
Source: Field Survey, June 2016

From the table above, 33.3% of the staff agree to the fact that analyses of

profitability, liquidity and leverage ratios are sufficient enough to evaluate the

growth of the company, meanwhile 67.7% do not agree that the above ratios are

enough for decision making. Hence, NFC bank needs to get more ratios into

analyses in other to better evaluate their growth.

Figure 6
 42%

58%

QUESTION 10

Table 10: Do you agree that ratio financial statement analysis facilitates

proper understanding of information contained in the financial statement?

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%
Source: Field Survey, June 2016

From the table above, the respondent accept to the fact that financial statement

analysis facilitates proper understanding of information contained in the

financial statement as all of them choose YES as their response.

Figure 7
 42%

58%

QUESTION 11

Table 11: Do you think that financial statement analysis is useful in

evaluating and predicting the performance of a business as well as

underscoring areas that need improvement?

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%
Source: Field Survey, June 2016

From the above table, the analyses show that financial statement analysis are

fundamental to the evaluation and prediction of the performance of the

company as well as to underscore areas that need improvement as 100% of the

employees agree to that fact.

Figure 8
 42%

58%

QUESTION 12

Table 12: Do financial statement analysis help to reveal the mass of truth

hidden in the financial statement?

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%
SOURCE: Researcher, 2016.

It can be concluded from the above table analyzed that, actually ratio analyses

helps to reveal the mass of truth hidden in the financial statements.

Figure 9
 42%

58%

QUESTION 13

Table 13: Are there obstacles to the proper use of financial statement

analysis in your business enterprise?

RESPONSE MGT STAFF NON MGT TOTAL

YES 2 16.7% 5 41.6% 7 58.3%
NO 2 16.7% 3 25% 5 41.7%
SOURCE: Researcher, 2016.

The table above analyses that, 58.3% of the staff is not faced with difficulties in

the analyses of ratios while 41.7% have difficulties.

Figure 10
 42%

58%

QUESTION 14

Table 14: Is financial statement analysis used by your firm as a

decisionmaking

SOURCE: Researcher, 2016.

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%

From the above analysis, it is clear that ratio analysis is a decision making tool

Figure 11
 42%

58%

QUESTION 15

Table 15: Do you believe that financial statement; income statements and

balance sheet are effective ways of communicating financial information?

RESPONSE MGT STAFF NON MGT TOTAL

YES 4 33.3% 8 66.7% 12 100%
NO 0 0% 0 0% 0 0%

Source: Researcher, 2016

From the above table, 4(33.3%) of management staff and 8(66.7%) of the non-

management staff agree to the fact that financial statements are effective ways

of communicating financial information.

Figure 12
 42%

58%

4.2 Test of Hypothesis

Table 4.1.14 Test for Dependence of Decision making on financial

statement analysis

Chi-Square Tests
Value df P-Value
Pearson Chi-Square 5.092 3 . 0.028
Likelihood Ratio 4.669 3 0.197
Linear-by-Linear 3.961 1 .046
Association
N of Valid Cases 12

In the table presented above the person chi square value is 5.092, with an
associated probability value of .028 (this is presented in the column labelled P-
value. To be significant the Sig. value needs to be .05 or smaller. In this case the
value of .028 is smaller than the alpha value of .05, so we can conclude that our
result is statistically significant at 5%. This means that business decision
making significantly depends on the level of financial statement analysis.
Table 4.1.14 Test for Dependence of Company growth on financial
statement analysis

Chi-Square Tests
Value df Asymp. Sig.(2-sided)
Pearson Chi-Square 8.573 a 3 . 035
Likelihood Ratio 2.970 3 . 396
Linear-by-Linear 1.151 1 . 283
Association
N of Valid Cases 12

In the table presented above the person chi square value is 8.573, with an
associated probability value of .035 (this is presented in the column labelled P-
value). To be significant the Sig. value needs to be .05 or smaller. In this case
the value of .011 is smaller than the alpha value of .05, so we can conclude that
our result is statistically significant at 5%. This means that with 95 per cent
confidence, we can conclude that Company growth on financial statement
analysis

Table 4.1.15 Test for Dependence of investment opportunities on financial

statement analysis

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 7.967a 3 .046
Likelihood Ratio 3.466 3 .325
Linear-by-Linear 2.624 1 .105
Association
N of Valid Cases 12

In the table presented above the person chi square value is 7.967, with an
associated probability value of .046 (this is presented in the column labelled P-
value). To be significant the Sig. value needs to be .05 or smaller. In this case
the value of .033 is smaller than the alpha value of .05, so we can conclude that
our result is statistically significant at 5%. This means that with 95 per cent
confidence, we can conclude that investment opportunities significantly depend
on the financial statement analysis.

H0: Financial statement analysis does not have any significant effect on decision

making

The analysis of financial statements has to do with figures; hence the estimate

of the true value of the ratios analyzed may not be accurate and cannot be used

to adequately measure the decision making of NFC due to many problems that

might have occurred in the computation of these statistical figures. In effect, we

can say that the analysis of financial statements do not significantly affect the

decision making of NFC bank.

Though there exist a general thresh-hold values for the computation of ratios in

firms, NFC bank do have its own thresh-hold values. The bank also has some

specific in house ratios which are analyzed in other to meet some specific
objectives. This greatly hinders the comparison of NFC banks to other banks in

the industry since as their thresh-hold values are different. Hence decision

making cannot be conveniently predicted or determined. Therefore making

financial statements not to significantly affect the decision making of NFC

BANK S.A

H1: Financial statement analysis significantly affects the decision making of

NFC BANK S.A. Profitability ratios also known as profit margin ratios,

compares components of income with sales. This gives us an idea of what

makes up NFC’s income and are usually expressed as a portion of each franc of

sales. The Gross Profit margin looks at profitability of NFC from a management

point of view. Gross profit is the ratio of gross income or profit to sales. This

ratio indicates how much of every franc of sales is left after cost of goods sold.

The analysis of gross profit margin is important as it helps us to be able to

picture as well as predict the gross profit of the firm over time hence; making it

very significant as far as the decision making of NFC is concerned.

The financial ratios analyzed above using the financial statements of the

National Financial Credit bank can be compared with similar ratios of other

organization (banks) of the same industry and such comparison may be

meaningful as the various organizations in the same industry might be facing

similar kinds of financial problems. Hence NFC can be also be able to measure
its growth relative to its competitors. This tells us that the ratios analyzed above

significantly affect the decision making and growth of NFC bank.