organization’s financial performance. The
relationship identified, will help the managers and the decision makers
to predict the future performance of the company through the financial ratios of the organization. This will enable them to take corrective actions to rectify and bring back the organization to the correct path, if it is not performing in line with the goals and objectives.
For this study, current ratio, earnings per share
ratio, gearing ratio, firm size and market to book value ratio were used as the financial ratios. To assess the company’s
financial performance, net profit margin was used, as it was recommended and used by many other researchers such as Erdogan (2015)[5] and Green (1978)[6]. Depending on these variables and the available literature, hypotheses were built for this study which will be mentioned in the methodology section.
This paper consists of six sections. In the introduction section, the background and the aim of the study will be explained. The available literature will be
discussed in the literature review section. Methodology section will explain the research approach, sample, hypotheses, and the variables. Data analysis section will discuss the data analysis method and the results section will be dedicated
to
present the findings of the study. Discussion section will be used to compare and contrast the findings of the study with the available literature and conclusion section will summarize
the
findings
and will include the concluding remarks.
