Performance evaluation on leverage and activity ratio analysis for consumer product and services industry / Syarina Nabila Mohd Salleh

The purpose of this study is to investigate the impact of ratio analysis on organisational performance utilising the selected quoted organisations as case studies. The financial ratio analysis gives information on performance and aids in the forecast of a company's future. analysis is critical for intelligent decision and execution. Secondary data was acquired for this study from six retailers in the consumer products and services industry via annual reports on Bursa Malaysia (www.bursamalaysia.com) from 20 16 to 2020.
To determine the findings of the investigation, the data was analysed using pooled ordinary least regression (OLS). According to the study's findings, the R -squared (R2 ) indicates that the regression line captures more than 5 8.9% of the fluctuations in the dependent variable that are explained by the independent variable. The study finds that ratio analysis is necessary for management control decisions, investment decisions, and credit control.
As a result, the study proposes that management and policymakers evaluate and effectively use the real significant performance evaluation indicators, as well as pay more attention to additional probable variables that may contribute to performance evaluation using ratio analysis in future empirical work. Companies in this highly regulated market must regularly check their pricing and expenses, as well as their inventory levels and asset efficiency.