| Title: | Evaluation Of Financial Statements Of An Agro-based Firm: A Case Study Of Okomu Oil Palm Company Plc (2017 – 2021) |
| Author(s): | Okidim I.A., Worlu A.A. & Chinda P.I. |
| Abstract: | This study examined the “Evaluation of Financial Performance of an Agro-based Firm: A Case Study of Okomu Oil Palm Company PLC” The main objective was to compare and examine the financial statements of the company from the years 2017 to 2021 and determine its levels of profitability, solvency and liquidity Secondary data sourced from the company’s official website was used to analyze the financial performance of the company using ratios (10 in total) such as Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin (NPM), Debt-to-Equity Ratio(DER), Debt-to-Assets Ratio (DAR). This study found that results of profitability measures place the company on a good standing. Results indicated that the company was consistently improving and made good return on assets, satisfying shareholders and managing their operating expenses in 2017 and 2018. In the years 2019 and 2020 however, profitability declined but went back up in 2021. An overall analysis of liquidity and solvency measures showed that the company was less liquid, efficient in asset utilization, income generation, and managing its expenses and less risky in the years under consideration. However, the results also showed the company has great prospects in improving over time. The study recommends that management decisions should be reconsidered and the company should increase its revenue by increasing sales of goods while simultaneously reducing expenses as well as reassess loan repayment and procurement strategies. |
| Keywords: | Palm Oil Company, Agro-Based Firm, Financial Statement |
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