Research Purpose: With the increasing complexity of financial markets, this study evaluates the impact of financial analysis on investment decision-making in the manufacturing industry, focusing on Dangote Cement PLC from 2010 to 2022. This investigation aims to provide insights into how financial metrics influence returns and guide investment decisions.
Methodology: The study utilises secondary data from the annual financial statements of Dangote Cement PLC for the period 2010-2022. Descriptive statistics and E-view 9 software were employed to analyse the effects of accounts receivable, cash and cash equivalents, and current assets on return on assets (ROA).
Findings: The analysis reveals that cash and cash equivalents significantly impact the return on assets of Dangote Cement PLC. This underscores the crucial role of liquidity management in enhancing the firm's financial performance.
Conclusion: The study concludes that financial analysis is indispensable for optimal decision-making in manufacturing firms. It emphasises the necessity of rigorous financial scrutiny to improve returns and guide strategic investments.
Recommendations: It is recommended that manufacturing firms, including Dangote Cement PLC, should conduct annual audit reviews of their financial statements. This practice ensures accuracy and reliability in financial reporting, thereby supporting informed investment decisions and enhancing overall financial health.
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