The topic and its context
The Business and financial performance of a company – the topic is an imperative exercise, in which end users of financial statement must embark on in order to effectively gratify the need of those statements. One of the tools of analyzing financial situation is the application of ratio analysis side by side with other information significant to the company’s immediate sector (market conditions) and the economic environment in which the company operates. Many business stakeholders have rather commented and are long demanding for corporate business organizations’ financial report in a way that would help make better decisions on investment, lending or continuing supplier’s relationship that would ensure early settlement by the firm. Whereas potential employees want his or her productive age spent in a secured and career driven environment. Reasons for choosing the topic
In an ever changing business world where globalization is imperative, there is the need for users of financial statement to understand the dynamics of what is responsible for an organisation’s success or failure. Most users believe that when a business is profitable and shows strong financial ratios, then that organisation is successful, but in contrast other factors also determine the true success of an organisation, which include but not limited to an organisation understanding its external environment and internal capabilities, identifying and assessing attractive opportunities. As an accounting student, it has mostly been emphasized that financial performance analysis is a tool that answers most questions relating to the financial success or otherwise of an organisation. Business performance on the other hand looks at all other non-financial indicators that indicate an organization is able to use all resources available to it efficiently. Brief history of Nigeria carton and packaging company
The organization is one of the longest surviving manufacturing firms in Nigeria. The organization has been in existence for over three decades. The company is a private organization and is not quoted on the Nigerian Stock exchange. The principal activity of NICAPACO is to manufacture corrugated cartons and paper packaging products. The Vision of the Company is ‘To remain true to our name by manufacturing high quality products possible’. (Nigeria carton and packaging company Nig. Ltd., 2009-2011)
Aims and objectives of the report
This research although serving the academic purpose of completing the degree requirement of the Oxford Brookes University is also intended to give an insight into the business and financial performance of Nigeria Carton and Packaging Company. Main aims and objectives include:
•Critically examine the concepts of business and financial performance from a simplistic and technical point of view. •To use financial analytical tools such as ratios to support and reach conclusions on the subject matter (NICAPACO) as to profitability and efficiency, liquidity, leverage and investors assurance; and to compare these with that of its competitor, Multipak Nigeria Ltd. •To analyse the strengths, weaknesses, opportunities and threats and their impact on the company. •To present conclusions on the analysis carried out to aid a potential investor to make well informed decision regarding investment in Nigeria carton and packaging company. •Relate as far as the academic research findings could permit, the case study to ascertain the extent to which theory agrees with practice.
In other to properly analyse NICAPACO, both qualitative and quantitative factors would be considered. The qualitative factor tends to evaluate the overall business activities of NICAPACO and its strategic plans over a period of three years (2009- 2011). In other to achieve this, an applicable business model would be used to analyse the company. The quantitative factors tend to analyse the...