Beruflich Dokumente
Kultur Dokumente
ID/No ACC/WEE/144/06
ADVISOR NETSANET.B
MAY, 2017
Firstly I would like to thank almighty god and create of the universe for helping me in all
activities. Secondly I would like to express my deepest, sincerity and respectful gratitude to my
advisors NETSANET. B (MSc) for his valuable and fruit advice in giving clue, hint and showing
best direction in what manner that I could prepare this senior asset. Finally I am also extremely
grateful for my family and my brothers TAKELE for their moral and financial support until the
completion of my research paper.
i
ABSTRACT
The general objective of this study was assessment of financial statement analysis in the case of
Dashen Bank Wolaita Soddo branch. The study used descriptive research design. To collect the
required information for this study purposes, the researcher used census technique because it is
helpful to include all of the respondents in the study in order to get the required information. In
this study, the research used both primary and secondary data in order together relevant
information. Primary data were collected semi-structured interview and researcher designed
questionnaires for this study purposes. Secondary data were collected from published and
unpublished research materials, books, magazines, banks manual, and annual reports. In this
study, the researcher used questionnaires to collect primary data by using close-ended questions
and distributed to Dashen Bank, Wolaita Sodo Branch accountant, auditors, manager and vice
manager of the branch. To analyze the collected data, descriptive statistical analysis techniques
were used like frequency and percentage. The analyzed data were presented by using tables in
the analysis part.
Key Words:
ii
Contents
ACKNOWLEDGMENT................................................................................................................................ i
ABSTRACT.................................................................................................................................................... ii
List of Table .................................................................................................................................................. v
CHAPTER ONE ........................................................................................................................................... 1
1. INTRODUCTION ................................................................................................................................ 1
1.1. Background of the study ................................................................................................................... 1
1.2. Statement of the problem .................................................................................................................. 1
1.3. Objectives of the study...................................................................................................................... 3
1.3.1. General objectives ......................................................................................................................... 3
1.3.2. Specific objectives ........................................................................................................................ 3
1.4. Signification of the study .................................................................................................................. 3
1.5. Scope of the study ............................................................................................................................. 4
1.6. Limitation of the study ...................................................................................................................... 4
1.7. Organization of the study .................................................................................................................. 4
CHAPTER TWO .......................................................................................................................................... 5
2. REVIEW OF RELATED LITRATURE............................................................................................... 5
2.1. Definitions of financial statements ................................................................................................... 5
2.1.1. Balance sheet ................................................................................................................................ 5
2.1.2. Assets ............................................................................................................................................ 6
2.1.3. Investment ..................................................................................................................................... 7
2.1.4. Liability ......................................................................................................................................... 7
2.1.5. Owners equity ............................................................................................................................... 7
2.2. Income statements ............................................................................................................................. 8
2.2.1. Revenue......................................................................................................................................... 9
2.2.2. Cost ............................................................................................................................................... 9
2.2.3. Expense ......................................................................................................................................... 9
2.3. Cash flow statements ........................................................................................................................ 9
2.4.1. Ratio Analysis ............................................................................................................................. 10
2.4.1.1. Standard comparison ............................................................................................................... 10
2.4.1.2. Types of ratios......................................................................................................................... 11
iii
2.4.2. Liquidity ratio:- ........................................................................................................................... 11
2.4.3. Asset management ratio .............................................................................................................. 12
2.4.4. Profitability ratios ....................................................................................................................... 12
2.4.5. Market value ratio ....................................................................................................................... 14
CHAPTER THREE .................................................................................................................................... 15
3. Research methodology and design ...................................................................................................... 15
3.1. Research design .............................................................................................................................. 15
3.2. Target population ............................................................................................................................ 15
3.3. Sample size ..................................................................................................................................... 15
3.4. Sampling techniques ....................................................................................................................... 15
3.5. Sources and types of data ................................................................................................................ 15
3.6. Methods of data collection .............................................................................................................. 16
3.7. Methods of data analysis ................................................................................................................. 16
CHAPTER FOUR....................................................................................................................................... 17
4. Data Analysis and interpretation ......................................................................................................... 17
5. Summary, Conclusion and Recommendation ..................................................................................... 24
5.1. Summary ......................................................................................................................................... 24
5.2. Conclusion ...................................................................................................................................... 24
5.3. Recommendation ............................................................................................................................ 25
References
APPENDIX
iv
List of Table
Table 4.9 appropriateness of financial statement analysis Dashen bank recent years?
Table 4.12:- The existence of correctives of financial statement analysis (free from the error and
fronds)
v
CHAPTER ONE
1. INTRODUCTION
Performance of financial institutions is relevant from the policy point of view because as finance
growth literature suggests, if banks become better-functioning entities, it is expected to be
1
reflected in strengthening capital buffer, safety and soundness of the financial systems (M.
Joseph, 2007).
The development of the banking industry (which is part of the financial institution) is at a slower
pace when considering the years of the banking industry. Most of the industries in developing
countries are characterized by weak administration, weak resources mobilization capacity and
are also faced with other social and economic problems.
Assessment of financial performance is highly useful to identify the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of balance
sheet and profit and loss account (Drake, 2010).
The financial statements are prepared with a view to depict the financial position of the concern.
They are based on the recorded facts and are usually expressed in monetary terms. The financial
statement are prepared periodically that is generally for the accounting period. The term financial
statement has been widely used to represent two statements prepared by accountants at the end of
specific period. They are: Profit and loss account or income statement and Balance sheet or
statement of financial position.
The objective of financial statements is to provide information about the financial position,
performance and changes in financial position of an enterprise that is useful to a wide range of
users in making economic decisions.
Financial analysis which measure financial performance is then performed on these statements to
provide management with a more detailed understanding of the figures.
Regarding to assessing and identifying the problems of financial statement analysis in the
Dashen Bank, Wolaita Sodo Branch, it is the subsequent period of the company according to
properly stated statement by not having adequate financial statement analysis and recognition of
the company loss substensional achieve intended objectives. Despite there is financial statement
analysis analyzed in the Dashen Bank, Wolaita Sodo Branch, the improper financial statement
was occurred, in adequateness of response and lack of respondent confident to provide all
information in branch level.
2
1.3. Objectives of the study
Research questions
This study was find on the statement analysis in Wolaita Soddo Dashen Bank in generally this
research paper would tried to answer the following research question
3
1.5. Scope of the study
This study would emphasize on how financial statements was analyze, recognized and how
properly recorded or presented in financial statement which is applicable in Dashen Bank,
Wolaita Sodo branch.
The limitation of the study lies in collecting complete data from Dashen Bank, Wolaita Sodo
branch. When the research was conducted the researcher faced some challenges. That is, there
was lack of research studies and availability of sufficient current literature on the topic. The
major limitation of the paper is that it is only based on primary data. This had the effect to
narrow the analysis to some extent. However, the researcher tried to navigate from different
sources related to this topic.
4
CHAPTER TWO
According to the (Panday, 2001), financial statement is a method that a firm communicates
financial information with users through financial statement and reports. Types and firms of
financial statement depend up on the business nature and form of organization wails used
statement are balance sheet, income statement and cash flow statements
Balance sheet is important statement that proved evaluable information about companies
position. If presents financial position of a business entity on specific date never the less by
studding a balance sheet on understanding so many points about a given business such as:-
General balance sheet provides a historical summary of assets, liability and equity. It is historical
report b/c it shows the communicative effect of past transaction and events the basic accounting
equation is represented by balance sheets following.
According to Mosich (2004), the classification and the numbers of its items on balance sheet still
vary considerably depending upon the size of enterprise distribution of users.
5
2.1.2. Assets
Assets are probably futures economic benefits obtained or controlled by an entity as a result of
past transaction or events. They are the list of value clowned by firm for purpose of presentation.
However there are two sets of assets classification most widely used
- Current asset
- Fixed asset
Current Asset: Is part of assets that could be converted in to cash within one or less year
deducting current liability. They also are referees working capital of business entity of nature of
current asset is such that calculate from one from to the near to cash through the normal course
of business operations. Assets that are most commonly classified as current asset includes
- Cash
- Short term investment
- Account receivable
- Inventories /stock
- Pre payment
Fixed Asset: - As opposed to current assets. Fixed assets used to relatively for longer time,
usually greater than one year - the represent a bundle of future use in operators common
characteristics of plant assets are:-
According to Mosich (2004), the cost of fixed asset is allocated to the accounting periods
receiving the benefits from their users.
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2.1.3. Investment
According to the (Kanh MYPK Jahan, 2007), an asset or item that is purchased with the hope
that it will general income or will appreciate them financial investment refer to putting aside
a fixed amount of money and expecting some kind of gain out of it
2.1.4. Liability
Liability is probable future scarifies of economic benefits a rising for present obligation of
particular entity to transfer assets or provide services to other entities in the future. As result
of past transactional that of assets, liabilities are classified in to two major groups current and
long term.
Current liabilities:- are obligations whose liquidation is expected to require the use of
exercising current assets or the creation of the other liability that is these include liabilities or
obligation that should be settled within one year from the date of balance sheet. Hence,
current liabilities include:-
- Bonds
- Mortgage
- Bank term loan
According to the (Belverd Needles, 2000), equity is the residual interest of the owners in the
assets of entity that remains of after deducting a liability more specifically this means. It
represents ownership interest in an entity this section of balance sheet constitutes mainly
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capital and ret aired earning capital represents, contribution of the owners of business entity.
It may two components stated capital and paid up capital.
NB: - Retained earning account with negative balance called deficit. To sum up the balance
sheet is financial statement that presents all the company holders and their sources of
financing in monetary terms at one point in time. Since it shows the properties of the
company it is prim important statement for the purses of financial analysis.
Most of the time view stated on historical or original cost basis this may be particularly
troubles some in the case of plant asset and equipment and for inventories which may now be
worth two or three times the original cost. The balance sheet of the company is not properly
stated as according to (JAAP principle. It shows the problem on the company financial
statements.
8
The major elements of income statements are as follows:-
- Revenue
- Cost
- Expense
2.2.1. Revenue
According to the (Panday, 2001), revenue is values of goods and services which a company or
business enterprise transfer to its cost owners. It is the main factor for increment in net asset of
entity other the investment by the owners in general.
Revenue equals the inflow of cash and receivables from sales made during that period. It equals
the value of assets received from customers.
2.2.2. Cost
According to the (Eugene F.Brigham and Joel F.Housten (1999), cost is four value of assets,
services received or capital is realized of the time at transaction has taken place.
2.2.3. Expense
Expense are costs of good or service used to obtain or generate revenues in general terms the
primary purpose of income statement is to determine and presents he profit or list of the business
entity during the given period. This is accomplished by matching revenues of the period with
expense of same period on ratites attested by the method followed among this the cost and
matching principles affects highly the process of valuation. In sprit of the above it provides
valuable information about a business operation performance of given (Richard Brealy, 1984).
Credits usually are requested payments anticipated from profit. In effect profit are not the same
cash most of the time profit and liquidity may not go hand on hand in the short terms of at least,
it is the availability fund that repay creditors than profit which might be committed in the higher
stock level etc. Therefore these suggest that small profit or loss not necessarily results in week
cash flow. Cash flow statement infects help to understand better the accounts of the company as
9
it is presented by the management. It is shows how operation had been financial during that
period likewise it shows financial resource are employees to generated revenue and ultimately
profits. As general remark, cash flow statements showing the changes in the financial position of
the company within the fiscal year.
According to Stepan, H. Penman, (2004), the objective of these statements is to summarize the
financing and investment activities of the firm.
2.4. To disclose the financial position change during the period Financial Analysis
According to (Stepan H- Penman, 2004), it is explained in the precious parts of the producing
financial statements is to provide information on the users the statements are meaningless unless
and other wise correction of figures on the statement are made. In doing so analysis make users
various instruments ratio analysis is the first in the priority list. Trade analysis cross section
analysis and common site statements are also wacky used methods; the following section this to
provide high light on ratio analysis.
According to Pandey (2001), ratio analysis is a power full tool of financial analysis. In ratio
analysis used as index or yardstick for deviating the financial position and performance or firm
the absolute accounting figure reported in financial statements do not provide a meaning full
understanding of performance and financial position of firm, financial ratios given the analysis
away making creaming comparison of firms. It represents an attempt to standardized financial
information to facilities emending full comparisons.
According to Pandey (2001), the ratio analysis involves comparison useful interpretation of the
financial statement. A single ratio in its self does not indicate favorable or unfavorable condition.
It should be compared with some standard. The easiest to evaluate the performance of firm is to
compare its present ratios with the rest ratio some items future ratios are used as the standard of
comparison. It can be developing from the predicted over performed financial statement. The
10
comparison to part ratios with the future ratio shows the firms relative strength and weakness in
past and present future.
According to Pandey (2001), several ratios can be calculated from the accounting data contained
in the financial statements. These ratios can be grouped in to various classes accounting to
financial activities or function to be evaluated. The parties which warily under talk financial
analysis are short term creditors owners and management, in the view of the requirement of
various users of ratios we may classify than in the following five categories.
- Liquidity ratio
- Dept management ratio
- Asset management ratio
- Profit ability ratio
- Market ratios
According to Pandey (2001), the ratio used to judge firm ability to meet short term obligation
from liquidity ratio insight can be obtained in to the present each solvency firm and its ability to
remain solvent in the event of unfavorable condition. There are current commonly used liquid
ratios those are current, quick and absolute liquidity ratio.
A) Current ratio:- is calculated by dividing current liabilities. Indicate the extent to which
those asset expected to convert cash in near future, prepared expensed also in current
asset currently expensed also in current assets currently abilities
Current ratio = current + assets
Current liabilities
B) Quick ratio :- it is calculated by deducting inventories from current assets and then
dividing the remainder by current liability measures the firms ability to pay short term
obligation with ot relying on the sales inventories
Quick ratio = current assets - inventories
Current liabilities
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C) Absolute liquidity ratio:- this ratio is sometimes refer to as cash ratio. It eliminated as any
unknowns surrounding receivable. In only tests short term liquidity in terms of cash.
According to Pandey (2001), an assets management ratio measures how affectively the times
managing its asset those ratios are called turnover ratio because they indicate the speed with
which assets are being converted and turnover in sales. These ratios thus involve relationship
between sales and various assets and pressure that here exist an appropriate balance between sale
and the various assets. These kinds of assets of management ratio are:-
C) Total asset turn over:- this ratio reflects how well the company assets are
being used to enervate sales high total assets urn over ratio is suggest indicating
successful management.
Profitability ratios reflect the overall performance or the business profit must be compared with
other information to evaluate the firms profitability. There are two types of profitability of ratio.
12
1) Profit margin ratio:- which indicate the relationship between profit and sales the
important profit margin ratio are gross profit margin ratio and net profit margin ratio (pandy
1982)
2) Rate of return ratio: - which examine the relationship between profit and investment the
important rate of return ratio is return on total asset, earning, power and return on equity.
A) Gross profit margin ratio: - This ratio computes the margin eared by firm after incurring
manufacturing of purchasing costs.
Gross profit margin = Gross profit x100%
Net sale
B) Net profit margin ratio: - gives earnings available for share holder as a percentage of net
sales.
Net profit margin ratio = Net profit x100%
Net sale
According to Pandey (2001), the net profit margin ratio measures the over al efficiency of the
firm in relations, production, administration, selling financing, pricing and tax management.
Return on total assets (ROA):- Also referred tool return on total investment (ROI) this ratio
measures the overall effectiveness of management in generating, the time used assets.
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2.4.5. Market value ratio
According to Pandey (2001), market value ratios are the most significant measure of a firms
performance. Since, they measure the performance at the time common stock in the capital
market. The following are the important venation ratio
A) Price earnings ratio:- is an indicator of the firm growth prospects, risk characteristic share
holders corporate regulation and the firms level liquidity.
P/E ratio = market price per share
Earnings per share
B) Market value to book value Ratio:- the market value to book value ratio is measures of
the firms contribution to wealth creation in the society, it is calculated
Market value to book value = market value per share
Book value per share
C) To bias ratio:- this ratio was proposed by same to bin and its calculated
Tobias ratio = total market value
Total asset value
It I similar to the market value to book value ratio except that the nominators consists of
denominators shows as assets at replacement cost rather than book value.
14
CHAPTER THREE
The methodology was a part of any study of the scientific research in the study area of the
organization.
The study used descriptive research design because descriptive research design was helpful to
describe the phenomenon as it exists at present.
To conduct this study, the target population of the study was 3 employees who work as financial
analysts on Dashen Bank, Wolaita Sodo Branch.
From the employees of Dashen Bank, Wolaita Sodo Branch, 3 of them are taken as a sample by
using census because of the number of population taken for this study purposes was small, then
this method is the best one to include all of the population.
To collect the required information for this study purposes, the researcher used census technique
because it is helpful to include all of the respondents in the study in order to get the required
information.
In this study, the research used both primary and secondary data in order together relevant
information. Primary data were collected semi-structured interview and researcher designed
questionnaires for this study purposes. Secondary data were collected from published and
unpublished research materials, books, magazines, banks manual, and annual reports.
15
3.6. Methods of data collection
In this study, the researcher used questionnaires to collect primary data by using close-ended
questions and distributed to Dashen Bank, Wolaita Sodo Branch accountant, auditors and
manager of the branch.
To analyze the collected data, descriptive statistical analysis techniques were used like frequency
and percentage. After it would be collected data has to be processed and analyses in according to
the proposed plan this would processed implies editing, coding, classification and tabulation of
collected data so that they are manageable for analysis. The term analysis refers to the
competition of certain measures along with searching for patterns of relationship that exist
among data group (Kothari, 2004). The analyzed data were presented by using tables in the
analysis part.
16
CHAPTER FOUR
This chapter deals about the major data analysis, interpretation, and finding of the study.
Relevant information was gathered from the financial analysts of Dashen Bank, Wolaita Sodo
Branch through the close-ended questionnaire.
Item Respondent
1 Sex In number In percentage
Male 3 100
Female - -
Total 3 100%
2 Age
18-27
28-37 2 66.6%
38-47 1 33.4%
Above -
Total 3 100%
3 Educational level
Certificate - -
Diploma -
Degree 2 66.6%
MSc 1 33.4%
Above -
Total 3 100
4 Year of experience -
0-2 -
3-5 -
5-7 2 66.6%
17
Above 7 1 33.4%
Total 3 100%
Source: Questionnaire, 2017.
On above table 4.1 on the level of qualification 2(66%) of respondents were Degree holders. But
1 (33.4%) of respondents were MSc holders and there were no Diploma and above of MSc. Then
it is important analyze the financial statements. On proper manner and also as stated on the
above table their year of experience were between 5-7 respondents were degree holder and above
of 7 years of experience is MSc holder employees on Dashen Bank, Wolaita Sodo Branch.
Table 4.2: Trends of profitability on Dashen Bank, Wolaita Sodo Branch recent year
Item Respondents
Does Dashen Bank, Wolaita Sodo Branch In number In percentage
determine the trend of profitability in recent
years?
Yes 3 100%
No -
Total 3 100%
Source: Questionnaire, 2017.
On above Table 4.2 all respondents 3 (100%) responds, there was the determination of the
profitability trends on the bank while there were no responds said there absence of determined
trends of profitability in recent years. It is important to bank the existence or the determination of
trends of profitability to expand the bank service as stated.
Table 4.3: The strength of financial statement analysis of Dashen Bank, Wolaita Sodo
Branch
18
Strongly disagree - -
Agree 1 33.33
Disagree - -
Neutral - -
Total 3 100%
Source: Questionnaire, 2017.
Table 4.3 Shows 2(66.6%) of respondents responds that there is strong financial statement
analysis of the Dashen Bank, Wolaita Sodo Branch and1 (33.3%) of respondents also said there
is the existence of weak financial statement analysis. As implied above respondents response in
the Dashen Bank, Wolaita Sodo Branch there is strength of financial statement analysis
Item Respondents
In Dashen Bank, Wolaita Sodo Branch they In numbers In percentage
weak financial statement analysis
Strongly agree - -
Agree - -
Disagree - -
Strongly Disagree 3 100%
Neutral - -
Total 3 100%
Source: Questionnaire, 2017.
As shows on Table 4.4 3(100%) of all respondents said there is no weak financial statement
analysis on the bank then. It show the bank have strong and financial statement analysis experts
and experienced personnel on a recording of financial statements.
19
Table 4.5: Evaluation of financial statement through only debt ratio
Item Respondents
Does Dashen Bank, Wolaita Sodo Branch In number In percentage
evaluate financial statement analysis by only
Debt ratio
Yes - -
No 3 100%
I dont know - -
Total 3 100%
Source: Questionnaire, 2017.
Table 4.5 shows all respondents said the evolution of financial analysis is not only analyzed by
Debt ratio then on the Dashen Bank, Wolaita Sodo Branch they have another ratio analysis to
analyze the financial statements.
Table 4.6: Types of ratios analysis used by Dashen Bank, Wolaita Sodo Branch
Item Respondents
What type of ratio analysis used by In number In percentage
Dashen Bank, Wolaita Sodo Branch?
Liquid it ratio -
Debt ratio -
Profitability analysis ratio -
Market analysis ratio -
All of the above 3 100%
Total 3 100%
Source: Questionnaire, 2017.
Table 4.6 shows 3 (100%) of respondents said that Dashen Bank, Wolaita Sodo Branch used the
all identified an above ratio analysis to analyze financial statements analysis. Then all ratios are
used on the Dashen Bank, Wolaita Sodo Branch and show its own effect, under companys
financial statements.
20
Table 4.7: The evaluation result of financial statement analysis
Item Respondents
The Dashen Bank, Wolaita Sodo Branch In numbers In percentage
evaluates the financial statement analysis by
using ratio analysis?
Strongly agree 3 100%
Agree - -
Disagree - -
Strongly Disagree - -
Neutral - -
Total 3 100%
Source: Questionnaire, 2017.
As shows on Table 4.7 3(100%) of all respondents said that there ratio analysis methods for
evaluates financial statement analysis on the bank then. It show the bank have strong financial
statement analysis experts and experienced personnel on evaluating the financial statements.
Item Respondents
When Dashen Bank, Wolaita Sodo Branch In number In percentage
analyze their financial statements analysis
Annually - -
Semi annually - -
Quarterly 3 100%
Monthly - -
Total 3 100%
Source: Questionnaire, 2017.
Form above table 4.8. 3(100%) of all respondents said the financial statement analysis analyzed
quarterly. It shows the effectiveness and efficacy of the companys performance.
21
Table 4.9: Appropriateness of financial statement analysis Dashen Bank, Wolaita Sodo
Branch recent years?
Item Respondents
Does the Dashen Bank, Wolaita Sodo In number In percentage
Branch analyze appropriate financial
statements on recent year
Yes 3 100%
No - -
Total 3 100%
Source: Questionnaire, 2017.
Above table indicates the existence of appropriate financial statement analysis occurred on recent
year. It shows the ratios are appropriate to show the reliability of the companys performance or
operation.
Item Respondents
The Dashen Bank, Wolaita Sodo Branch In numbers In percentage
determines accurate financial statement
analysis?
Strongly agree 3 100%
Agree - -
Disagree - -
Strongly Disagree - -
Neutral - -
Total 3 100%
Source: Questionnaire, 2017.
As shows on Table 4.7 3(100%) of all respondents said that there ratio analysis methods for
evaluates financial statement analysis on the bank then. It show the bank have strong financial
statement analysis experts and experienced personnel on evaluating the financial statements.
22
Table 4.11: The analysis all the relevant ratio?
Item Respondents
Is the Dashen Bank, Wolaita In number In percentage
Sodo Branch is analysis all the
relevant ratio?
Yes 3 100%
No - -
Total 3 100%
Source: Questionnaire, 2017.
Table 4.10 Indicates 3(100%) of the respondents responds there the analysis of financial
statement as stated on the objectives of the company. There it shows the corrections of the
financial statements.
Table 4.12: The existence of correctives of financial statement analysis (free from the error
and fronds)
Item Respondents
Does the financial statements analyze by Dashen In number In percentage
Bank, Wolaita Sodo Branch is free from the error
and fronds?
Yes 3 100%
No - -
Total 3 100%
Source: Questionnaire, 2017.
Table 4.10 Indicates 3(100%) of the respondents responds there the analysis of financial
statement as stated on the objectives of the company. There it shows the corrections of the
financial statements and free from error and fronds.
23
CHAPTER FIVE
5.1. Summary
5.2. Conclusion
Depending upon the finding of the study, the following conclusions were made.
Financial statement analysis is one of the most important functions in the organization for under
taking different purpose such as analyzing and evaluating of financial statement. In any area of
organization activities must needs financial statement analysis consistently. For this research data
gathered by questionnaires from the respondent agree for the existence of enough financial
statement analysis in Dashen Bank, Wolaita Sodo Branch.
Financial analyst of Dashen Bank, Wolaita Sodo Branch enough level of practical experience
and working paper documentation to record the test cared out.
Finally, when the research studied conceder the analysis part, there is some problem in reliability
of the financial statement analysis. The effect of this problem was reduced the accuracy of
financial statement analysis
24
5.3. Recommendation
In the view of conclusions the following recommendation were made. In the hope that they
minimize the problem identify in the study area
Dashen Bank, Wolaita Sodo Branch determine the trends of profitability as one can be
understand from the analysis is yes that means the existing financial statement analysis are
reliable. As the researcher recommendation the bank uses their documents available for the user
who want to use their document.
According to the finding of this study, the financial statement recording system is not good. For
this reason, the bank should update the recording system of the bank in order to make it more
updated.
25
References
John N. Meyer (2008). Accounting for Non-Accountants. New York, USA: Pengium Group
Incorporated.
Kothari (2004). Research Methodology and Techniques, 2nd edition. New Age International
Publishing Ltd, New Delhi, Bangalore Kokat and Mumbai.
M.Panday. (2001). Financial Management Exercise and Solutions. Vikas Publishing House Pvt
Ltd. New Delhi.
Richard Brealey (1984). Principle of Corporate Finance, 2nd edition, New York MC Graw Hill.
Stephen H. Penman (2004). Financial Statement Analysis and Security Valuation, 2nd edition.
Bostom MC Graw Hill.
26
APPENDIX
Dear respondents these questionnaires are for academic purpose. So we need your usual
collaborations the paper entitled financial statement analysis in case of Dashen Bank, Wolaita
Sodo Branch.
Instruction
- Please put x mark on the box provided for closed ended question.
Direction
11. When the Dashen bank analyze their financial statement ratio analysis?
A) Annually B) Semi Annually C) Quarterly
D) Monthly
12. Does the Dashen bank analysis appropriate financial statement in recent year
A) Yes B) No C) I dont know
13. The Dashen bank determines accurate financial statement analysis?
A) Strongly agree B) agree C)
strongly disagree D) disagree E) Neutral
14. Is the Dashen bank analysis All the relevant ratio?
A) Yes B) No C) I dont know
15. The financial statements analyzed the dashen bank in recent years free from errors.
A) Yes B) No C) I dont know