Oyito Baptist's Habihoi Ben Research 2022

USE OF FINANCIAL RATIO ANALYSIS AND A MEASURE OF ORGANIZATION PERFORMANCE.
A CASE STUDY OF TORIT URBAN WATER SUPPLY AND SANITATION CO. LTD
BY OYITO BAPTIST H BEN SOFRONIO
INDEX NO: JAN/2021/PGD/
POSTGRADUATE DIPLOMA IN FINANCIAL MANAGEMENT FOR NGOs
A PROPOSAL SUBMITTED TO AFRICAN CENTER FOR PROJECT MANAGEMENT IN PAR-

TIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD DEGREE POSTGRADU-
ATE DIPLOMA IN FINANCIAL MANAGEMENT FOR NGOs
December 2022
DECLARATION
DEDICATION
I would like to dedicate this work to my wife Miss. Margret Iliya Oduho and my son Oleyo Kelvin Baptist,
my daughter Iromo Charity Baptist, my mother Edwina Iler Ben, my grandfather Mr. Sofronio Okilony
Atair Muara for their outstanding support and guidance throughout my education carrier.
My brothers Oduho George Ben, Ojori James Ben, and my sister Hilongoni Susan who have supported me
in one way or another, without their extraneous effort this study would not have been possible.
I also want to recognize the extreme effort that Management of Torit Urban Water Supply and Sanitations
Company Limited for their financial support offered to me more especially Mr. Frances Loliha, Mr. Cletos
Oboi Mrs. Cizirina Ayuru, without their aid this Postgraduate Diploma in Financial Management study
would have been unachievable.
Much thanks also go to the Staff of TUWSS Co Ltd especially Mr. Ohia Francis, Mr. Okwahi Robert Al-
fred. Taban David Paito and others for their enviable support in providing the answers to the question-
naires.
ACKNOWLEDGEMENTS
I would like to acknowledge and pay tributes to the following people and sincerely express my especial
thanks for their valuable contribution to this success.
Dr. Mark Rabudi, my supervisor with whom I struggled, for more than four Months for the success of
this dissertation and have been obliging in all times.
My thanks go to all my Lecturers for the academic knowledge, they passed on to me.
Special thanks go out to Torit Urban Water Supply and Sanitation Company limited (TUWSS Co
Ltd) in South Sudan staff for their cooperation and assistance with information, arrangement of meetings
with their clients, access to their records and very educative guidance about “Use of Financial ratio analy -
sis and a measure of organization performance. All the interviewees who were very generous with their
time, they shared their experience and insights on the impact of Use of Financial ratio analysis and a mea -
sure of organization performance in the Water Utility.
The list of acknowledgements would be incomplete if I don’t mention my best friends, Mr. Simon Peter
the Secretary, Mr. Oliver and my Academic best friend Mr. Bernad Ohuru thanks for your continuous
support.
Thank you all, for the support accorded to me during the course and research process and May God bless
you all.
LIST OF FIGURES
Figure 2:2.5 Conceptual framework...................................................................................2-24
LIST OF TABLES
Figure 1:2.5 Conceptual framework...................................................................................................2-26

Figure 2. 1 Conceptual Framework........................................................................................................2-27
Table 3.1: Population Sampling frame...................................................................................................3-30
Table 4.1: FRA has helped in forecasting, planning and performing trend analysis.......................4-36
Table 4.2: FRA has estimated fiscal budgets for firm by analyzing previous trend..........................4-36
Table 4.3: Financial ratio analysis has determined how efficiently a firm is operating....................4-37
Table 4.4: FRA has provided significant information to users............................................................4-37
Table 4.5: FRA has aid in comparisons of two or more firms.............................................................4-38
Table 4.6: Determined both liquidity and long solvency of the firm...................................................4-38
Table 4.7 Financial statements has been seen to be complicated in understanding ..........................4-39
Table 4.8: Ambiguousness factors in compares two or more processing firms..................................4-39
The table has shown results on: Firm carries out its ambiguousness factors in comparisons of two or
more utilities processing different environmental positions where 69.2% of the respondents
strongly agreed while 34.8% agreed. It was concluded that the financial ratio ambiguousness
factors in the Firm were well defined and these unable the organization performance............4-39
Table 4. 9: Views and hypothesis have been influenced by financial data and criteria.....................4-40
Table 4.10: Detailed prior data while users are more concerned about current and future data....4-40
For how between Financial Ratio Analysis and a measure to Organization / Firm / Company Perfor-
mance., respondents who participated in the current study stated the following: Financial ratio
analysis has helped in forecasting and planning by performing trend analysis and measure of or-
ganization performance. (X=4.8036, sd=0.40089); Financial ratio analysis has estimated fiscal
budgets for firm by analyzing previous trend X=4.6786, sd=0.47125); Financial ratio analysis
has determined how efficiently a firm is operating (X=4.6964, sd=0.46396); and financial ratio
analysis has provided significant information to users of accounting information that accorded
the organization performance. (X=4.6786, sd=0.47125). Financial ratio analysis has aid in com-
parisons of two or more firms / companies of similar goods productions and supplies (X=4.5536,
sd=0.50162); Financial ratio analysis has determined both liquidity and long solvency of the
firm. (X=4.6250, sd=0.48850); Financial ratio analysis statements have been seen to complicated
in understanding that led to poor organization performance. (X=4.6429, sd=0.48349); Financial
Ratio analysis have ambiguousness factors (Markets structures, regulations, etc) in comparisons
of two or more firm processing different environmental positions. (X=4.6964, sd=0.46396); Fi-
nancial Ratio analysis have ambiguousness factors (Markets structures, regulations, etc) in com-
parisons of two or more firm processing different environmental positions...............................4-41
Table 4. 11: Model summary results for impacts on FRA and MOP in TUWSS Co. Ltd................4-42
In accelerating revenue mobilization, favorable fees and levies are needed to improve on the level of
revenue mobilized. In relation with this, the study sought to find out from the respondents if the
fees and charges levied by the commission are most favorable of tax mobilization and the find-
ings are presented in table 5.2..........................................................................................................5-46
Table 5. 3: Business operations in the Water Utility are well improved through SWOT analysis...5-47
Table 5. 4: A SWOT analysis led / enforced to discoveries of new opportunities..............................5-47
Understanding business risks through SWOT analysis and reduces business loses in Water Utility.
The study also sought to understand the future business risks of the Water Utility by respon-
dents on SWOT analysis and the findings are presented in table 5.5..........................................5-48
Table 5.5: Future business risks understandings are with the help of SWOT analysis.....................5-48
The study also sought to find out from the respondents if financial ratio should be done through ap-
plications of unique technologies and adequate skilled staff and the findings are presented in ta-
ble 5.7..................................................................................................................................................5-50
The effectively and efficiently allocations of resources resulted to Water utility in revenue growth
and profitability the Water Company (WC) , Eastern Equatoria State and in South Sudan at
large. The study sought from the respondents whether the effectively and efficiently allocations
of resources should be used in SWOT analysis when measuring organization performance and
the findings are presented in table 5.10...........................................................................................5-52
Table 5.12: Model summary results for SWOT analysis to be adopted in MOP...............................5-54
Table 6.1: Investors used a growing Earnings Per Share to worth more shares...............................6-56
The study also sought to find out key indicators from the respondents on Projected Earnings Growth
(PEG) cannot be use to compensates for investors by anticipating the one-year earnings growth
rate of the stock and the findings are presented in table 6.3.........................................................6-57
The study also sought to find out if tax strategies lead to a flow of resources to other sector that may
have lower productivity and the findings are presented in table 6.9...........................................6-62
The application of tax strategies in most developing countries remains a challenge to the tax authori-
ties and the findings on this issue are presented in table 6.10.......................................................6-62
Table 6.12: Model Summary results Companies’ investment indictors and a MOP.........................6-64
1.Table 3.2: What is your age range?.....................................................................................................8-82
2. Table 3.3: What is your age range?....................................................................................................8-82
3. Table 3.4: What is your marital status?.............................................................................................8-82
6. Table 3.6: Your highest education level attained..............................................................................8-83
7. Table 3.7: What is your position?.......................................................................................................8-83
Appendix IV..............................................................................................................................................8-92
ABBREVIATIONS AND ACRONYMS
ACPM - Africa Center for Project Management

BoDs – Board of Directors
D/ E - Debt-To-Equity Ratio
DPR - Dividends Payout Ratio
DYR - Dividend Yield Ratio
EES – Eastern Equatoria State
EPS - Earnings Per Share
FCF - Free Cash Flow
FRA - Financial Ratio Analysis
GIZ – Germany Cooperation (Deutche Gesellchaft fur Internale Zusammenarbeit)
MOP - Measurement of Organization Perfromance
P/ E - Price To Earnings
P/B - Price to Book Ratio
P/S - Price to Sales Ratio
PEG - Projected Earnings Growth
ROE - Return on Equity
RSS - Republic of South Sudan
SPSS - Statistical Package for Social Sciences
SWOT – Strength Weakness Opportunities and Threats
TMC - Torit Municipal Council
TUWSS Co. Ltd -Torit urban water Supply and Sanitation company limited
WC – Water Company/ ies
WRUA - Water Resource Users Associations
WU – Water Utilities
DEFINITION OF TERMS / OPERATIONAL TERMS
Finance analysis: The process of identifying the financial strength and weakness of the firm by properly
establishing relationship between the items of the balance sheet and profit and loss account.
Ratio: the indicated quotient of two mathematical expressions and as the relationship between two or more
things. In Financial Analysis, a ratio is used as benchmark for evaluating the financial position and per-
formance of a firm.
Asset: Economic resources owned by a business, which are expected to benefit future operation. It is di-
vided into two.
a. Fixed asset e.g., building, Equipment etc.
b. Current assets e.g., cash at hand, bank stock debated.
Liabilities: These are debts or obligations of a business organization. The claims of creditors against the
asset of a business e.g., Creditors, bank overdraft.
Dividend: A distribution of cash by a company or corporation to its stockholders after allowable deduction
have been made and appropriate to reserves. This benefit derived from the shareholders because of their in-
terest in the company.
Balance sheet: It is a financial statement, which shows, the financial position of a business entity of a busi-
ness (balance sheet and income statement). It comprises of balance sheet, profit and loss account, note to
the account, value added statement sources and application of funds.
Profit and Loss account: This is the record of business transaction of a company for a given period of
time usually one year.
Level of leverage: This is the ratio of debt finance (i.e., fixed interest borrowing) to the equity finance in a
company’s capital outlay.
Working Capital: This can be defined as the difference between the current assets and current liability
i.e., current asses less current liabilities.

Current liabilities: These are debts or claim which are payable within one-year e.g. trade creditors over-
draft.
Current assets: They are cash plus assets that are expected to be collected in cash or sold or consumed
within the next year or as a part of the company’s normal operating cycle e.g. Cash stock prepaid expenses.
Ratio analysis: This involves the companies of one figure against another to produce a ratio and assessing
whether the financial ratios indicate weakness or strength in the company’s affairs.
Hypothesis: This is proposition assumed to be true for purpose of argument. It requires testing before it
can be accepted.
Securities: These are financial asset of a company, which are sold do investors, which could attract returns
or benefit on investment. Example are stocks, bonus etc.
Liquidity: This is state of posing liquid asset such as cash and other assets that will soon be converted into
cash.
Comparative financial statement: Present the same company’s financial statements for two or more suc-
cessive period in side-by-side column.
Horizontal analysis: Analysis of a company’s financial statements for two or more successive period
showing percentage and or absolute changes from previous year. The type of analysis helps detect changes
in a company’s performance and highlight trend.
Vertical analysis: This type of analysis is the study of a single financial statement in which each item is
expressed as a percentage of significant total for example of sale calculation.
Non-operating assets: Assets owned but used in producing revenue.
Periodicity: An assumption that an entity’s life can be subdivided into time periods such as months or
years.
Profitability: Ability to generate income the income statement reflects a company’s profitability.
Solvency: Ability to pay debts as they become due.

Transaction: Record able happening or event that affect assets, liabilities stock holder’s equity revenue or
expenses of an entity.
ABSTRACT
The study set out to examine Use of Financial ratio analysis and a measure of Organization performance in
the Water Utility / Company in Torit Municipality, Eastern Equatoria –South Sudan as a case study. The
objectives of the study were: a). To examine the impact of financial ratios on investment decision. b). To
elucidate the applications of SWOT analysis on firm improvements. c). To find out the indictors for in-
vestment in companies for their earning performances, liquidity, positive economic soundness in the Water
Utility.
The study employed a cross sectional survey research design involving both qualitative and quantitative
methods of data collection. The study involved a population of 160 and study sample of 114 respondents
which comprised of 3 executive directors (BoDs), 1 Managing directors, 7 Utility staff, 1 receptionist, 2
accountants and 34 government officials, 59 debtors (customers) and 7 support staff who were supplied
with questionnaires containing a series of questions and interviewed with the aim of attaining a balanced
perspective where 104 respondents brought back the supplied questionnaires but 10 respondents never
brought them back. The study found out that tax structure improves revenue mobilization in the commis-
sion.
The Use of Financial ratio analysis and a measure of Organization performance in the Water Utility / Com-
pany were identified as the impacts of financial ration. Maintenance of the forecasting and planning, esti -
mation of budget, firm efficiency, Signiant information, comparison of two or more companies, liquidity
and long-term solvency of the firm, complication understanding of financial statement, important factors
for financial ratio, influences of financial data by views and hypothesis, users concern on current and fu-
ture data of the Utility in the Water Act of 2016.
The tax strategies that will contribute to revenue collection in the commission were found harder to enact
because enactment would affect the integrity and ethical conduct of both the taxpayers and tax collectors.
The SWOT analysis allows managers to develop four types of strategies: SO (Strengths – Opportunities),
ST (Strengths – Threats), WO (Weaknesses – Opportunities) and WT (Weaknesses – Threats). In this
way, it provides a framework for identifying and formulating strategies.
The study recommends that the management should carryout research on: -
a) The software Trainings and organization performance in the Water Utility/ firm / organization since
the current study reveal lack of skilled and qualified staff in the Water Utility
b) More emphasizes should be put both to Staff and shareholders on key financial performance indica-
tors and efficient and effective tools of tracking.
The Water Utility / Form/ Organization should implement sections of the Water Act 2016, Act 2014 article
(V) Management which empowers it to water tariffs and also create sales that can improve on sale returns
in the firm. By selling large businesses, the Water Utility will improve on its sales return’s / revenue mobi-
lization forth water Utility.
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
This study is set out to examine the relationship between Financial Ratio Analysis and a measure to Organ-
ization / Firm / Company Performance. It focuses on the Torit Urban Supply and Sanitation Water Utility
in Torit, Eastern Equatoria State, South Sudan.
The Water Utility and others are Supported by GIZ Cooperation’s in establishing the company to stand on
its own by producing and supplying safe clean water to the Municipality and taking in account “making
profit” through financial ratio analysis verse vice the effective measuring of firm performance which is not
reached at all by time measure of five years project.
Financial ration analysis information, is an essential ingredient for decision making within and outside the
organization / firm. Hence every company (profit and non-profit) that source and utilize funds must of a
necessity prepare a statement of account showing detail analysis of movement of funds within the organiz-
ation during a particular period of time.
This information is usually contained in the firm’s financial statements (profit/loss account and balance
sheet) shows the true position of the firm as at a particular date and this will assist all relevant stakeholders
to gain insight into the operation and performance of the firm.
One important goal of the accountant is to report financial information to the user in a form useful for de-
cision making. Most of the language of financial management is rooted in the financial statements.
The financial statements of a firm consist of three main accounts; the balance sheet, the profit and loss ac -
count, and the cash flow statements. The balance sheet shows the financial position and accounting value
of a firm at a particular date. As a snapshot of the firm, it is a convenient means of organization and sum -
marizing what a firm owns (its assets), what a firm owes (its liabilities), and the difference between the two
(the firm’s equity) at a given point in time. The profit and loss account shows the results of operation of
this firm over a particular accounting period.

The cash flow statement provides information about cash inflows and outflows during an accounting
period and separate cash flows into operating activities, investing activities and financing activities. This
statement is usually included in a financial statement just to provide additional information that will helps
stakeholders in gaining insight into the financial statements. The main components of financial that consti-
tute our analysis and interpretation of financial information of any business organization are the balance
sheet and profit and loss account.
Financial analysis is the process of identifying the financial strengths and weaknesses of the firm by prop-
erly establishing relationships between the items of the balance sheet and the profit and loss account. Fin-
ancial analysis can be undertaken by management of the firm, or by parties outside the firm, owners, cred-
itors, investors and others (Foster, 1986). One important tool for financial analysis is ratio.
Financial ratio is the relationship between two or more financial data usually expressed as a percentage or
in relation to another figure or group of figures in the same financial statement. These ratios are ways of
comparing and investigating the relationships between different pieces of financial information. It is also
used as a benchmark for evaluating the financial position and performance of a firm.
The absolute accounting figures reported in the financial statements do not provide meaningful understand-
ing of the performance and financial position of a firm, such information only conveys meaning when it is
quantitatively compared and related to some other relevant information through ration analysis.
The methods are based on tried-and-true accounting ratios, which have been around for even longer. The
theory of financial ratio analysis was first popularized by Benjamin Graham who is considered by many to
be the father of fundamental analysis. Benjamin Graham, who from 1928 was Professor at Columbia Busi-
ness school as well as a very successful investor in his own right, was mentor and teacher to Warren Buf -
fett.
Fundamental analysis, of which financial ratio analysis is but one subset, looks at a company’s financial
statements, management, health and position in the competitive landscape to determine a share price valu -
ation. It is different from the other commonly used methods of investment analysis – quantitative analysis
and technical analysis – in that it looks from the bottom-up rather than from the top down, or – in the case
of technical analysis – from what the charts say:
Performance evaluation of a company is usually related to how well a company can use its assets, share-
holder equity and liability, revenue and expenses. Financial ratio analysis is one of the best tools of per -
formance evaluation of any company. In order to determine the financial position of a firm, fundamental
analysis and financial ratio analysis must form the basis of all investment decisions, because without
knowing the true financial position of a company you are purely speculating.
Here are two ways, you can use financial ratio analysis to calculate business trends and to compare one
company against others in its industry and in my research context, its used to calculate business trends over
the year by planning and future forecasting of the Firm
1.2 Statement of the Problem
Although financial accounting statements shows the financial positions of a business at the end of a finan-
cial period, but they do not present accurate performance on the level of performance or efficiency of oper-
ations of a business at the end of financial period.
It is usually observed that the operating profit figure of a company might be higher in the current year than
the previous year but his higher profit figure cannot be used to say the company has performed better in the
current year than in the previous because the cost of the asset is being considered in all the beginning of
that first year which may reduce the profit for that period. If this is judge based on this, it will have adverse
or negative impact on the investment or investors.
Many investors in South Sudan are uneducated or illiterate and as a result of ignorance or inexperience,
they cannot use or employ financial ratios in evaluating the performance of the companies / firms. Also,
existing shareholders use the cash dividends and interest paid to them in evaluating the performance of the
companies for investment decision.

These parameters do not give accurate information about the performance and efficiency of operation of
the companies. Some managers do not employ financial ratios in performance appraisal and in the evalu-
ation of investment decision because of technicalities involved in financial ratio analysis, fear of assess-
ment and in experience.
Therefore, they make use of other alternatives inside of using financial ratios. Because of all these prob-
lems, the research work will examine the importance or usefulness of financial ratios in evaluating of com-
pany’s performance for investment decision. Every benefit derived from financial ratio will be examined
for proper investment decisions.
1.3 Purpose of the Study
The purpose of the study was to examine how the use of financial ratio analysis contribute to the measure-
ment of organization performance, taking the Water Utility as the case study.
1.4 Objectives of the Study
The objectives of this study are assessing the firm’s profitability, efficiency and performance as;
a). To examine the impact of financial ratios on investment decision.
b). To elucidate the applications of SWOT analysis on firm improvements
c). To find out the indictors for investment in companies for their earning performances, liquidity, posit-
ive economic soundness.
1.5 Statement of Hypothesis
The hypothesis below would be subjected to testing Null Hypothesis
H0: The use of financial ratios has negative impacts on investment decision
H1: The use of financial ratios has positive impacts on investment decision.
1.6 Significance of Study
This study will be very important to the following: -
1. Prospective investors in companies: It will enable them determine risks of investment in companies i.e.,
financial position of the companies thereby making them to invest in a company that will be profitably to
them.
2. Management of companies: It provided tool for assessing or evaluating the companies’ performance and
also taking decision on where to invest.
3. Government: It helps the tax board to know the amount that will be taxed on companies’ profit.
4. Existing investors in companies: after analysing the performance of the company, it will help the exist -
ing investors to know whether to continue their investment or withdraw their interest
1.7 Scope of the Study
1.7.1 Content scope
The scope of the study focused on use of financial ratio analysis and a measure of organisation / firm’s per-
formance with specific focus on impact of financial ratios on investment decisions; examine the relation-
ship between financial ration and SWOT analysis and finding the indicators for investment in companies in
their earning performances, liquidity, positive economic soundness.
1.7.2 Geographical scope
The study focused on the TUWSS Co. Ltd in Torit. Torit is the capital city of Eastern Equatoria State
where the Government is operationally with all aspects of government administration. The State is one of
the ten states in South Sudan that boarded three countries such as Uganda, Kenya and Ethiopia. The East -
ern Equatoria State has got eight Counties (Districts) which were Torit, Magwi, Ikwoto, Lopa-Lafon,
Kapoeta East, Kapoeta South, Kapoeta North and Budi County.
1.7.3 Time scope
The study covered a period of three (3) years that is (2018- 2021) and by the time when this thesis is incor-
porated in the state Government and Water Utilities in the nation, it will change the unprofitable and un-
performing firms to better position of the state i.e. come 2022/23 with full suite of changes through this re -
search (study).
1.8 Setting of the study
Torit is a capital town in the Eastern Equatoria State of South Sudan (coordinates: 00 00 10 30E, 31 54
36E Latitude: 0.1750; Longitude: 31.9100). It is the commercial, administrative and political headquarters
of Eastern Equatoria State. The town is situated along the Juba-Kapoeta Road. Its location is approxi -
mately 168 kilometers (84 miles), East of Juba. This location is approximately 200 kilometers (100 miles),
by road, East of Kapoeta, the nearest large metropolitan area (Eastern Equatoria State Planning Unit, 2012)
1.9 Terms institutionally used
Finance analysis: The process of identifying the financial strength and weakness of the firm by properly es-
tablishing relationship between the items of the balance sheet and profit and loss account.
Ratio: the indicated quotient of two mathematical expressions and as the relationship between two or more
things. In Financial Analysis, a ratio is used as benchmark for evaluating the financial position and per-
formance of a firm.
asset: Economic resources owned by a business, which are expected to benefit future operation. It is di -
vided into two.
a. Fixed asset e.g., building, Equipment etc.
b. Current assets e.g., cash at hand, bank stock debated.
Liabilities: These are debts or obligations of a business organization. The claims of creditors against the as-
set of a business e.g., Creditors, bank overdraft.
Dividend: A distribution of cash by a company or corporation to its stockholders after allowable deduction
have been made and appropriate to reserves. This benefit derived from the shareholders because of their in-
terest in the company.
Balance sheet: It is a financial statement, which shows, the financial position of a business entity of a busi-
ness (balance sheet and income statement). It comprises of balance sheet, profit and loss account, note to
the account, value added statement sources and application of funds.
Profit and Loss account: This is the record of business transaction of a company for a given period of time
usually one year.
Level of leverage: This is the ratio of debt finance (i.e., fixed interest borrowing) to the equity finance in a
company’s capital outlay.
Working Capital: This can be defined as the difference between the current assets and current liability i.e.,
current asses less current liabilities.
Current liabilities: These are debts or claim which are payable within one-year e.g. trade creditors over-
draft.
Current assets: They are cash plus assets that are expected to be collected in cash or sold or consumed
within the next year or as a part of the company’s normal operating cycle e.g. Cash stock prepaid expenses.
Ratio analysis: This involves the companies of one figure against another to produce a ratio and assessing
whether the financial ratios indicate weakness or strength in the company’s affairs.
Hypothesis: This is proposition assumed to be true for purpose of argument. It requires testing before it can
be accepted.
Securities: These are financial asset of a company, which are sold do investors, which could attract returns
or benefit on investment. Example are stocks, bonus etc.
Liquidity: This is state of posing liquid asset such as cash and other assets that will soon be converted into
cash.
Comparative financial statement: Present the same company’s financial statements for two or more suc-
cessive period in side-by-side column.
Horizontal analysis: Analysis of a company’s financial statements for two or more successive period show-
ing percentage and or absolute changes from previous year. The type of analysis helps detect changes in a
company’s performance and highlight trend.
Vertical analysis: This type of analysis is the study of a single financial statement in which each item is ex-
pressed as a percentage of significant total for example of sale calculation.

Non-operating assets: Assets owned but used in producing revenue.
Periodicity: An assumption that an entity’s life can be subdivided into time periods such as months or
years.
Profitability: Ability to generate income the income statement reflects a company’s profitability.
Solvency: Ability to pay debts as they become due.
Transaction: Record able happening or event that affect assets, liabilities stock holder’s equity revenue or
expenses of an entity.
1.10 Structure of the research proposal
This research proposal work is organized in three chapters, for easy understanding, as follows. Chapter
one is concern with the introduction, which consist of the (background of the study), statement of the prob-
lem, objectives of the study, research questions, research hypotheses, significance of the study, scope of
the study etc.
Chapter two being the review of the related literature presents the theoretical framework, conceptual
framework and other areas concerning the subject matter.
Chapter three is a research methodology covers deals on the research design and methods adopted in the
study.
1.11 Conclusions
Chapter one consisted of background of the study, problem statement, purpose, objectives, research ques-
tions, hypothesis, scope of the study significance, organization of the study and conclusion hence there was
need for the chapter two.

2 CHAPTER TWO
2.1 INTRODUCTION
This chapter is divided into two sections, in the view of the survey to the relevant literature study in the
field of use of financial ratio analysis and a measure of organization / firm / company performance with the
established gap left and how the present study closed the gap of which no South Sudanese student has done
a related thesis to this topic nationally by the year 2021/22.
Section two has the review of model and theories that have been put in place for the importance of finan-
cial ratio analysis and a measure of organization / firm / company performance more especially on the Wa -
ter Utility in the State Government (SG) of Eastern Equatoria State (EES) –South Sudan.
2.2 Literature survey
The objective of this literature survey was to show what others have covered of the related problems,
gap left if any and how the current study would fill the gaps despite the importance of financial ratio
analysis today in any Company / Firm / Organization for dynamic running of its operations as Water
Utility.
More so, the Water and Sanitation company’s environment in Eastern Equatoria State is actually char-
acterized with low profit making through sales of water though the Company (She) is vibrant for sales
collection compared to any other four (4) Water Utilities in the nation (South Sudan).
Although none of the South Sudanese students conducted any related research on “the use of financial
ratio analysis and a measure of organization / firm / company performance” by the year 2021/22 na -
tionally, the following have conducted related research internationally relating to the use of financial
ratio analysis and a measure of organization / firm / company performance;

2.3 Literature Review (Review of theories and models)
Gibson, 2013, income statement (profit and loss) and balance sheet can be prepared directly from the ad-
justed accounts. The balance sheet is static like snapshot, reflects conditions on specific date of its prepara -
tion, records the categories and amount of assets employed by the business and offsetting the liabilities in-
curred to lenders and owners. Also is called statement of financial conditions, it must always balance but
research did not cover the indicators of organization / firms or company performance vice verses the use of
financial ration analysis.
Bhunia et al., 2011;Kofi-Akrofi, 2013;Buse et al., 2010, In the field of accounting, PCA has been adopted
to examine and analyze the financial performance of the companies. The model adopted for various studies
was multiple regression for analyzing the financial strength and weakness of the firm, profitability analysis
and financial-economic analysis. Multiple regression was the second model used in several investigations
and application of topsis method for financial performance evaluation: a study of selected scheduled banks
in bangladesh but still did not take into account other use of financial ratio analysis like efficiency and
trend ratio.
Al-tamimi and Hussain (2012) discussed the problem of changing the value of monetary unit and its effects
on the financial statements, because the accountants preparing these statements under the monetary unit
stability assumption without taking into consideration the changing of market value ration and its inflation-
ary phenomena.
Kılıç, (2012) investigated the influence of firm characteristics on voluntary disclosure of financial ratios in
the annual reports of Turkish listed companies. The sample consists of industrial firms listed in the Istanbul
Stock Exchange. The study was nearing to research but the forgotten the variable of profitability of the
firm as the main objective of the business firm.
Bhunia, Mukhuti and Roy (2011), 'Financial performance analysis is the process of determining the operat-
ing and financial characteristics of a firm from accounting and financial statements. The goal of such anal-
ysis is to determine the efficiency and performance of firm's management, as reflected in the financial
records and reports. Many efforts have been made to assess the financial performance of these banks but
the gab remains by not considering the SWOT analysis and investment decision making as parameters.
Gepp and Kumar (2008) incorporated the time “bias”factor into the classic business failure prediction
model. Using Altman (1968) and Ohlson’s (1980) models to a matched sample of failed and non-failed
firms from 1980’s, they found that the predictive accuracy of Altman’s model declined when applied
against the 1980’s data. The findings explained the importance of incorporating the time factor in the tradi-
tional failure prediction models. The time (trend) ratio could have been accorded but the thesis did not ac -
cord the Business and Financial ratios.
Al-Aameri and Alrikabi (2007) was focusing on one of the important techniques in financial analysis,
namely, the financial ratios, for the purpose evaluating the performance of petroleum projects company,
and to find out the main strength and weakness points, so as to suggest the remedial actions for treatment
of negative points and enhance the positive one. The research left the gab on liquidity ratios of current,
quick, and cash ratio.
Laitinen, 2002, Profitability and financial performance could be defined as a measurement of the results of
a firm’s polices and operations in monetary terms. Another major aspect of a financial analysis is compar-
ing the performance of the company with its competitors. This one could have been the facts of the re-
search but not recalling the other rational as “use of various ratios to measure a company’s financial
health”. Ratios provide us with a guide for drawing conclusions from the analysis they perform.
2.4 Theories and Models
The following points of financial ratio analysis highlight the top four theories of liquidity management and
which are the Anticipated Income Theory, the Liabilities Management Theory and the Real Bills Doctrine,
the Shift-Ability Theory.
The Anticipated Income Theory:
The anticipated income theory was developed by H.V. Prochanow in 1944 on the basis of the practice of
extending term loans by the US commercial banks. According to this theory, regardless of the nature and
character of a borrower’s business, the bank plans the liquidation of the term-loan from the anticipated in -
come of the borrower. A term-loan is for a period exceeding one year and extending to less than five years.
This theory is superior to the real bills’ doctrine and the shift ability theory because it fulfils the three ob -
jectives of liquidity, safety and profitability. Liquidity is assured to the bank when the borrower saves and
repays the loan regularly in instalments.
It satisfies the safety principle because the bank grants a loan not only on the basis of a good security but
also on the ability of the borrower to repay the loan. The bank can utilise its excess reserves in granting
term-loan and is assured of a regular income. Lastly, the term-loan is highly beneficial for the business
community which gets funds for medium-terms.
The Liabilities Management Theory:
This theory was developed in the 1960s. According to this theory, there is no need for banks to grant self-
liquidating loans and keep liquid assets because they can borrow reserve money in the money market in
case of need. A bank can acquire reserves by creating additional liabilities against itself from different
sources. These sources include the issuing of time certificates of deposit, borrowing from other commercial
banks, borrowing from the central banks, raising of capital funds by issuing shares, and by ploughing back
of profits.
The Real Bills Doctrine:
The real bills doctrine or the commercial loan theory states that a commercial bank should advance only
short-term self-liquidating productive loans to business firms. Self-liquidating loans are those which are
meant to finance the production, and movement of goods through the successive stages of production, stor-
age, transportation, and distribution. It has merits as:-
a. They possess liquidity that is why they liquidate themselves automatically.
b. They mature in the short run and are for productive purposes, there is no risk of their running to bad
debts.
c. There being productive such loans earn income for the banks.
Assumptions of the theory
I. if a bank refuses to grant a fresh loan till the old loan is repaid, the disappointed borrower will have
to reduce production which will adversely affect business activity.
II. the doctrine assumes that loans are self-liquidating under normal economic conditions.
III. this doctrine neglects the fact that the liquidity of a bank depends on the sale ability of its liquid as -
sets and not on real trade bills
IV. the basic defect of the theory is that no loan is in itself automatically self-liquidating.
V. this theory is based on the “needs of trade” which is no longer accepted as an adequate criterion for
regulating this type of bank credit.
The Shift-Ability Theory:
The shift-ability theory of bank liquidity was propounded by H.G. Moulton who asserted views, an asset to
be perfectly shift able must be immediately transferable without capital loss when the need for liquidity
arises. This theory has certain elements of truth where banks now accept sound assets which can be shifted
on to other banks. Shares and debentures of large companies are accepted as liquid assets along with treas -
ury bills and bills of exchange. This has encouraged term lending by banks.
2.5 Conceptual framework
Figure 1:2.5 Conceptual framework

Independent Variable Dependent Variable
Use of Financial ratio analysis Measure of organization

 Profitability ratio per
 Liquidity ratio Investment decisions
 Efficiency ratio Profitability growth
 Market Value ratio SWOT Analysis
 Business and Financial Debt repayments
ratio Firm stability
 Trend ratio Economic growth
Intervening/Moderating Variables
 Sales translation to
profits
 Current and quick ratio
measurement
 Receivable turnover
 Financial leverages
 Etc
Source: Researcher (2022)
Figure 2. 1 Conceptual Framework
The conceptual framework shows the relationship of the independent variable which has profitability, liq-
uidity, efficiency, market value, business and financial and trend ratio of Use of financial ration analysis
as its component and dependent variable compound of investment decisions, SWOT analysis, profitability
growth, economic growth and debt repayments of Measure of firm / organization or company performance
through the intervening variable reflected by as sales translations to profits, current and quick ratio mea-
surement, receivable turnover and financial leverages of this thesis.
Conclusion
Chapter two analyzed the literature survey, literature review and conceptual framework; the latter will be
casted into methods to be used that will led to chapter three of research methodology.
3 CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter presents the methodology of the study. The researcher used the research instruments collected
and processed data for the study basing on the research design, target population, sample size, and sam-
pling techniques, research instruments, reliability and validity of the instruments and adhered to the ethical
consideration as well as considering the methodological limitations involved.
3.1 Research design
The research design composed of the research classification, strategy approach and duration.
3.2 Research Classification
The study is classified as a mixed method research whereby the study focused on quantitative and qualitat-
ive approaches. It provided a practical grounding in some of the philosophical ideas behind this research.
3.3 Research Strategy
The study involved a cross-sectional survey research design which will be used as the strategy that focused
on how the use of financial ratio analysis and a measure of organization / firm’s performance in Eastern
Equatoria State in South Sudan with a detailed explanatory, analytical, quantitative as well as qualitative
research approaches. This helped in explaining the problem in detail with regard to how use of financial ra-
tio analysis in South Sudan especially in Torit Urban Water Supply and Sanitation company has affected
organization / firm’s performance.
3.4 Research approach
This study also employed both the qualitative and quantitative research approaches. The qualitative ap-
proach was used to describe variables that were not measurable in quantitative terms while the quantitative
approach was used in testing the hypotheses using inferential statistical measures.
The present study adopted a mixed methods research approach, which was aligned with the objectives that
it aimed to attain. The qualitative approach has several advantages. First, it is highly structured, which al -
lowed for the cost efficient and less tedious data analysis (Schutt, 2006). Typically, close ended questions
were posed in the survey questionnaire which is the tool through which the qualitative approach was car-
ried out. Such questions are direct and offer concrete options which the respondent may choose from to
represent his/her view on the subject (Creswell, 1994). In addition, the quantitative approach allowed for
the computation of statistics, from whose interpretation were derived the conclusions of the study.
3.5 Study population
The study will be carried out in the Torit Urban Water Supply and Sanitation company in Eastern Equato-
ria, South Sudan with targeted study population of 160 from which sample size of 114 will be computed. It
comprised of 3 executives (BoDs), 1 managing director (MD), 10 utility staff, 1 receptionist, 2 accounts as-
sistants, 46 government official, 85 debtors (Esteemed customers and 10 supporting staff (Kiosk Opera-
tors)
3.6 Area of study
The study will be carried out in Torit Urban Water Supply and Sanitation Company and Torit is a capital
town in Eastern Equatoria State-South Sudan. The state will identified because South Sudan has many
states, Eastern Equatoria is among the 10 Water Utilities in South Sudan with gazette below: Central Equa-
toria bordering Uganda at Kaya boarder, Western Equatoria bordering Central Africa Republic and DRC
with many borders, Warap State bordered central Africa Republic with few entrances, Jongole State also
border Ethiopia, Upper Nile State bordering Ethiopia and Port Sudan in Sudan, Unity State bordered Su-
dan only, Northern Bar-el gazal State also bordered Sudan and Central Africa Republic, lake state in the
center of the country and Western Bara-el-gazal State bordered Sudan and Central Africa Republic.
Eastern Equatoria State has an equatorial type of climate and equatorial forest in South Sudan with three
national parks called Kidepo, Lafon and Nimule which borders the White Nile. Many of the tax evaders
smuggle their goods through these areas showing the weakness in the tax administration.
3.7 Sample size
Sample size means the number of elements to be chosen from the target population so as to constitute the
required sample. The total size of the sample was 114 individuals including the Debtors (Customers) who
will be supplied with questionnaires containing a series of questions aimed at attaining a balanced perspec-
tive while collecting data.
The formula for the technique is by Yamane 1978:
N
n= 2
1+ ( e )
Where: n= Sample Size
N= Population Size
e= (0.05) level of precision (significant)
160
n= 2
1+(0.05)
160
n=
1+0.0025
160
n=
1.0025
n= 114
Table 3.1: Population Sampling frame

Category of respondents Population Sample size % Sampling method
Executive (BoDs) 3 3 2 Purposive
Managing Director 1 1 1 Purposive
Utility staff 10 7 6 Random
Receptionist 1 1 1 Random
Accounts assistants 2 2 2 Purposive

Government Officials 48 34 29 Random
Debtors (Customers) 85 59 52 Random
Supporting staff 10 7 6 Random
Total 160 114 100
Source: Researcher conceptualization 2022.
Discussion of findings relating to the background information of respondents
The background information will consider relevant as the respondents will require to have adequate knowl-
edge on what financial ratio analysis and a measure of organization performance meant.
Response Rate
A total of 114 questionnaires will be distributed as planned and 104 Questionnaires will be returned as
planned which will be giving an overall response rate of 91%, which will internationally be acceptable
since it’s above 50% (Mugenda and Mugenda, 2003).
3.8 Sampling Techniques
This refers to the technique or procedure adopted in selecting the sample from which inferences about the
population are to be drawn.
The sampling method that was used is the Census and purposive, and random sampling in nature for Exec-
utive, revenue collectors and taxpayers because the researcher felt that this would avail the information
needed from the respondents selected while random sampling was carried out for Directors, accounts assis-
tants and receptionists because this provided the available respondents equal chance of being selected.
Censuses
A census is the procedure of systematically acquiring and recording information about the members of a
given population (Jivraj, 2012). In this study a census referred to the total population within the State Rev-
enue Commission. The reasons for adopting censuses technique for executive, Government and Esteemed
Customers (Debtors) will be as well followed:
a. They provided benchmark data used for planning, social and economic development.
b. The target population will be very small such that a sample will not as costly as a complete inquiry.
c. Complete inquiry will not suffer from sampling errors.
d. They will also prefer in situation where cost and time consideration and secondary factors.
3.9 Purposive sampling techniques
According to Amin (2005), this refers to a non-random selection of participants on purpose. The variables
to which the sample to be drawn up will link to the research question. The reasons for adopting purposive
sampling technique for executive (BoDs), Government officials and Esteemed customers (Debtors) will
follow:
a. Technique was used in cases that had required information with respect to the objectives of this
study.
b. The technique to specify the criteria for choosing the particular case of study i.e. a certain range of
age range, religious sector or education level.
c. Purposive sampling will be applied to get the location or district in which the units of observation
will have to require characteristic.
3.10 Random sampling technique
Amin (2005) also defines random sampling as a random selection of participants with all having an equal
chance of participating.
The reasons for adopting random sampling technique for managing director, accounts assistants and recep-
tionists were as follows:
a. Its sample results will objective and inferences based on them will be valid.
b. The sampling error to involve in the estimation of the population characteristics will be estimated
and also controlled
c. When biased estimation procedures will be used, the extent of bias will be estimated.
d. Sampling was objective and unbiased; it was defensible before the superior or before the court.
e. The sample results will be assessed in terms of reliability and sample will be accepted or rejected
on the consideration of the extent to which it will be considered representative.
3.11 Research Instruments
The researcher will collect data using more than one data collection method which will include interviews
and questionnaires and secondary data. The instruments will non-standardized.
3.12 Data Collection instruments
Interview Guide
The interview will be a face-to-face session with the respondent where questions will be put to the respon-
dents who will be free to answer according to the way they perceive the questions. The researcher will use
interviews through individual discussions with the members to be selected to represent the organization /
Company / firm because the interview will be allowed for probing to get more detailed information from
the respondents as usual mode of collecting data.
Once the themes, categories and pattern will be identified, the researcher will analyze and interpret infor -
mation to determine the adequacy of the information and the credibility, usefulness, consistency and vali-
dation (or non-validation) of hypotheses.
Questionnaire
A questionnaire will be a form containing a set of printed questions submitted to people to gain statistical
information. In this study the researcher will formulate and print questionnaires. A structured and validated
questionnaire will be used for data collection as a tool.

3.13 Data gathering procedure
The researcher will first get a letter introducing him to the organization from the university which will
present him to the organization / Company / firm for approval and once this will be done, the researcher
will arrange with the persons related to the study and printed out the questionnaire which will be distrib -
uted to the respondents to fill and also will carry out the interviews and recorded the responses.
After the administration of the instruments the researcher will collect the answers questionnaires, clean the
data, code and analyze it with the use of statistical package for social sciences (SPSS) which will then be
used for generation of the regression, correlation coefficients, means and tabulations in percentages and
frequencies that will form the basis for conclusions drawn.
3.14 Data Quality Control Reliability
Reliability will be the requirement that will be applicable for a valid measuring instrument to different in-
dividuals and groups under different sets of circumstances will result in the same conclusions (Mouton &
Marais, 1990: pg 50). The reliability of the instrument will be ascertained using the test-retest procedure.
A reliability coefficient will be subjected for working calculatedly. Pearson Product Moment Correlation
Coefficient was used in the data analysis. The researcher also examined the content of the interview ques -
tions to find out the reliability of the instrument. The researcher excluded irrelevant questions and changed
words that were deemed difficult by the respondents, into much simpler terms.
Validity of the Data
In the literature review validity will be promoted by;
a) Formulating a central hypothesis which describes the goal of the research
b) Providing conceptual descriptions of all relevant concepts and constructs that are to be used in the
research, as they are to be seen theoretically and used empirically in the research
c) Using theories as the basic starting point
d) Making the literature collection and review as comprehensive as possible, by using computer
searches
For validation purposes, the researcher will initially submit a sample set of survey questionnaires and after
approval; the survey will be conducted to five respondents. After the questions will be answered, the re-
searcher will ask the respondents for any suggestions or any necessary corrections to ensure further im-
provement and validity of the instrument.
The formula that was used for determining the validity of the data is:
p−qp(1−p)/N+q(1−q)/M
Where p is the proportion from group 1, which has N observations and q is the proportion from group 2
with M observations. If this number is large in absolute value (bigger than1.96 is a typical norm, giving a
significance level of 5%), then you can reject the claim that the two groups have the same proportion of
events and in this regard, the method will be applicable for the scenario.
3.15 Data Analysis
The data which the researcher will obtain in the field from the respondents with the use questionnaires and
interviews will be analyzed and properly edited for complete results using the Statistical Package for So-
cial Sciences (SPSS). The distribution of the frequencies and percentages of the respondents will carry out
for their profile while means for the variables will be computed for the variables. In testing the hypothesis,
a one-way ANOVA, correlation to establish the relationship between the variables will be tested.
4 CHAPTER FOUR
IMPACTS ON FRA AND MEASURE OF ORGANIZATION PERFORMANCE IN TUWSS CO.
LTD
This chapter was aimed at examining the impact of financial ratio analysis (FRA) in investment decision
unto measure of Organization performance.
The researcher focused on the following; forecasting and planning, estimation of budget, firm efficiency,
Signiant information, comparison of two or more companies, liquidity and long-term solvency of the firm,
complication understanding of financial statement, important factors for financial ratio, influences of finan-
cial data by views and hypothesis, users concern on current and future data were to answer this objective
4.1 FRA helped in forecasting, planning and performing trend analysis
Table 4.1: FRA has helped in forecasting, planning and performing trend analysis
Frequency Percent Valid Percent Cumulative Percent
Valid Agree 20 19.6 19.6 19.6
strongly agree 84 80.4 80.4 100.0
Total 104 100.0 100.0
Source: Field data, 2022
This was found out whether financial ratio analysis has helped in forecasting, planning and performing
trend analysis or not, in which 80.4% of the respondents strongly agreed while only 19.6% agreed. These
statistics confirm that the financial ratio analysis has helped in forecasting, planning and performing trend
analysis.
4.2 FRA has estimated fiscal budgets for firm by analyzing previous trend
Table 4.2: FRA has estimated fiscal budgets for firm by analyzing previous trend
Valid Agree 43 41.3 41.3 41.3
strongly agree 61 58.7 58.7 100.0
Total 104 100.0 100.0
The respondents were also asked to indicate whether the financial ratio analysis has estimated fiscal bud -
gets for firm by analyzing previous trend or not, in which 58.7% of the respondents strongly agreed while
41.3% agreed. This again confirms that the financial ratio analysis has estimated fiscal budgets for firm by
analyzing previous trend that led better organization performance.
4.3 Financial ratio analysis has determined how efficiently a firm is operating
Table 4.3: Financial ratio analysis has determined how efficiently a firm is operating
Valid Agree 42 39.4 39.4 39.4
Strongly Agree 62 59.6 59.6 100.0
Total 104 100.0 100.0
This was to find out whether the financial ratio analysis determined how efficiently a firm is operating or
not, but 59.6% of the respondents strongly agreed while 39.4% agreed. It thus a cardinal requirement that,
in any firm operating in a state, that efficiency be availed. The findings indicated thus that the financial ra-
tio analysis determined how efficiently a firm is operating which is resulting to measurements of organiza-
tion performance.
4.4 FRA has provided significant information to users

Table 4.4: FRA has provided significant information to users
Valid Agree 43 41.3 41.3 41.3
Strongly Agree 61 58.7 58.7 100.0
Total 104 100.0 100.0
The table showed whether the financial ratio analysis had provided significant information to users of ac -
counting information that accorded the organization performance or not, in which 58.7% of the respon-
dents strongly agreed while 41.3% agreed. This again confirms that the financial ratio analysis had pro-
vided significant information to users of accounting information that accorded the organization perfor-
mance.
4.5 FRA has aid in comparisons of two or more firms
Table 4.5: FRA has aid in comparisons of two or more firms

Valid Agree 46 44.6 44.6 44.6
Strongly Agree 58 55.4 55.4 100.0
Total 104 100.0 100.0
Table 4.5 indicates that 55.4% of the respondents strongly agreed that the financial ratio analysis has aid in
comparisons of two or more firms / companies of similar goods productions and supplies while 44.6%
agreed. This implies that the financial ratio analysis has aid in comparisons of two or more Utilities re -
sulted to organization performance.
4.6 FRA has determined both liquidity and long solvency of the firm.
Table 4.6: Determined both liquidity and long solvency of the firm.
Valid Agree 39 37.5 37.5 37.5
Strongly Agree 65 62.5 62.5 100.0
Total 104 100.0 100.0
In Table 4.6 above, 62.5% of the respondents who participated in the current study strongly agreed with
the statement that the financial ratio analysis has determined both liquidity and long solvency of the firm
and organization performance while 37.5% agreed. It was concluded that the financial ratio analysis has
determined both liquidity and long solvency of the firm.
4.7 FRA statements have been seen to be complicated in understanding
Table 4.7 Financial statements has been seen to be complicated in understanding .

Valid Disagree 37 35.7 35.7 35.7
strongly agree 67 64.3 64.3 100.0
Total 104 100.0 100.0
The table showed results on whether financial ratio analysis statements has been seen to complicated in un-
derstanding that led to poor organization performance where 64.3% of the respondents strongly agreed
while 35.7% disagreed. It was concluded that financial statements have been seen to complicated in under-
standing.
4.8 Ambiguousness factors compares two or more processing firms.

Table 4.8: Ambiguousness factors in compares two or more processing firms.
Valid Agree 32 34.8 34.8 34.8
Strongly Agree 72 69.2 69.2 100.0
Total 104 100.0 100.0
The table has shown results on: Firm carries out its ambiguousness factors in comparisons of two or more
utilities processing different environmental positions where 69.2% of the respondents strongly agreed
while 34.8% agreed. It was concluded that the financial ratio ambiguousness factors in the Firm were well
defined and these unable the organization performance.
4.9 Views and hypothesis have been influenced by financial data and criteria
Table 4. 9: Views and hypothesis have been influenced by financial data and criteria
Valid Agree 53 32.1 32.1 32.1
Strongly Agree 51 67.9 67.9 100.0
Total 104 100.0 100.0
Finding out whether the Views and hypothesis have been influenced by financial data and criteria (Meth -
ods) reduced comparability of organization performance 67.9% of the respondents strongly agreed while
32.1% agreed. This again confirms that financial ratio analysis views and hypothesis have been influenced
by financial data and criteria (Methods) reduced comparability of organization performance.
4.10 Detailed prior data while users are more concerned about current and future data
Table 4.10: Detailed prior data while users are more concerned about current and future data
Valid Per-
Frequency Percent cent Cumulative Percent
strongly agree 67 64.3 64.3 100.0
Total 104 100.0 100.0
The results have shown whether financial ratio analysis have detailed prior data while users are more con-
cerned about current and future data for improvements of organization performance or not, but 64.3% of
the respondents strongly agreed while 35.7% disagreed. It was concluded that users are more concerned
about current and future data for the improvements of organization performance. However, the disagree-
ment may be that the firm data are of the past /prior and might not work now days.
Descriptive Statistics on impacts on FRA and a MOP

N Mini- Maxi- Mean Std. Devi-
mum mum ation
FRA has helped in forecasting, planning and 10 4.00 5.00 4.803 .40089
performing trend analysis 4 6
FRA has estimated fiscal budgets for firm by 104 4.00 5.00 4.678 .47125
analyzing previous trend 6
Financial ratio analysis has determined how ef- 104 4.00 5.00 4.696 .46396
ficiently a firm is operating 4
FRA has provided significant information to 104 4.00 5.00 4.678 .47125
users 6
FRA has aid in comparisons of two or more 104 4.00 5.00 4.553 .50162
firms 6
FRA has determined both liquidity and long 104 4.00 5.00 4.625 .48850
solvency of the firm 0
FRA statements have been seen to be compli- 104 4.00 5.00 4.642 .48349
cated in understanding 9
organization performance.
Ambiguousness factors compares two or more 104 4.00 5.00 4.696 .46396
processing firms 4
Views and hypothesis have been influenced by 104 4.00 5.00 4.678 .47125
financial data and criteria 6
Detailed prior data while users are more con- 104 4.00 5.00 4.642 .48349
cerned about current and future data 9
Valid N (listwise) 104
Source: SPSS data
For how between Financial Ratio Analysis and a measure to Organization / Firm / Company Performance.,
respondents who participated in the current study stated the following: Financial ratio analysis has helped
in forecasting and planning by performing trend analysis and measure of organization performance.
(X=4.8036, sd=0.40089); Financial ratio analysis has estimated fiscal budgets for firm by analyzing previ-
ous trend X=4.6786, sd=0.47125); Financial ratio analysis has determined how efficiently a firm is operat-
ing (X=4.6964, sd=0.46396); and financial ratio analysis has provided significant information to users of
accounting information that accorded the organization performance. (X=4.6786, sd=0.47125). Financial ra-
tio analysis has aid in comparisons of two or more firms / companies of similar goods productions and sup-
plies (X=4.5536, sd=0.50162); Financial ratio analysis has determined both liquidity and long solvency of
the firm. (X=4.6250, sd=0.48850); Financial ratio analysis statements have been seen to complicated in un-
derstanding that led to poor organization performance. (X=4.6429, sd=0.48349); Financial Ratio analysis
have ambiguousness factors (Markets structures, regulations, etc) in comparisons of two or more firm pro-
cessing different environmental positions. (X=4.6964, sd=0.46396); Financial Ratio analysis have ambigu-
ousness factors (Markets structures, regulations, etc) in comparisons of two or more firm processing differ-
ent environmental positions.
( X =4.6786, sd=(0.47125); and Financial ratio analysis has detailed prior data while users are more con-
cerned about current and future data for improvements of organization performance (X=4.6429,
sd=0.48349).
Generally speaking, most respondents agreed that determination of impacts (positive and negative) on fi-
nancial ratio analysis and measure of Organization performance in TUWSS Co. Ltd
The basic idea of financial ratio analysis was to provide impact of financial ratio analysis as the objectives
to a measure of organization performance efficiently and effectively. A significant majority of respondents
argued that impact of financial ratio improves organization performance in the Water Utility.
Model Summary
Table 4. 11: Model summary results for impacts on FRA and MOP in TUWSS Co. Ltd
Model R R Square Adjusted R Square Std. Error of the Estimate
Dimension0 1 .449a .201 .139 .55567
a. Predictors: (Constant), forecasting & planning, estimate, effic, sign’t, compar, liquidi,
stat’ment, factors, influence, cur’t & future data
The Adj. R2 of .139 from the model summary of the regression indicated that impact of financial ratio anal-
ysis contributed 13.9% (.139 * 100%) to a measure of organization performance in Water Utility / Firm,
South Sudan. It means that the 86.1% is contributed by other factors which influence a measure of organi-
zation performance. Furthermore, there was a linear relationship between impact of financial ratio analysis
and a measure of organization performance implying that focus on impact of financial ratio analysis will
improve and a measure of organization performance [F (1, 104) = 3.216, p < 0.01].
ANOVAb
Model Sum of Squares Df Mean Square F Sig.
1 Regression 3.972 4 .993 3.216 .020a
Residual 15.747 99 .309
Total 19.719 103
a. Predictors: (Constant), forecasting & planning, estimate, effic, sign’t, compar, liquidi,
stat’ment, factors, influence, cur’t & future data
b. Dependent Variable: A measure of organization performance.
Summary
The findings from this study indicate that overall, Impact on financial ratio analysis ans a measure of orga-
nization performance in the water utility because the forecasting & planning, estimate, effic, sign’t, com-
par, of Firm in Eastern Equatoria state in South Sudan depended on the efficiency and effectiveness of
Firm forecasting and fiscal planning as enabled the financial ration analysis to contribute a measure of or-
ganization performance.
The firm was able to used estimation of financial budget for the trend of three years and attained the sur -
pass budgets which turn was used procure objectives of a measure of organization performance. However,
the ambiguousness factors in comparisons of two or more organizations had a problem that the firm cannot
use financial ration analysis in better comparison of various different enterprises each possessing different
environmental positions such market structure, regulations etc.
Effectiveness and efficiency of the firm / organization relied on the financial ratio analysis that had re-
sulted to the measurement of firm/ organization performances of impact of financial ration analysis is also
deemed necessary if there are determinations that contributed favorably to measurement of organization /
firm performances.
5 CHAPTER FIVE
A SWOT ANALYSIS APPLICATION, ELUCIDATES THE FIRM IMPROVEMENTS AND

MOP
This chapter presents the results on the Strength Weakness Opportunity and Threats (SWOT)Analysis
where applications elucidate the firm improvements and a measure of organization performance in the Wa-
ter Utility: Here the researcher focused on business adoptability, better use of resources, improves opera-
tions, discovery of new opportunities, business risks, a competitive advantages, unique technologies and
adequate skilled staff, perceptions of strength and limitations in market trend, future roadblocks and long
term growth, effective and efficient allocation of resources for revenue growth and profitability and use of
the Water Resource Users Associations (WRUA) of 2016 during use of Financial ratio analysis.
The Strengths-Weaknesses-Opportunities and Threats Analysis (SWOT) analysis is a tool for analyzing a
company from an internal and external perspective, in order to generate strategies for the firm. It was pop -
ularized by Andrews [11], based on the ideas of Drucker [12], Selznick [13] and Chandler [14].
The SWOT matrix, derived from the SWOT analysis, presents a mechanism to facilitate the link between
the strengths and weaknesses (internal factors) and the threats and opportunities of the market (external
factors).
way, it provides a framework for identifying and formulating strategies. The findings are presented in the
tables below:
5.1 A SWOT Analysis improves your business adoptability to market trend

The study sought to find out from the respondents whether property rates should be legally collected by lo -
cal government systems of administration in Eastern Equatoria state South Sudan as strategies to accelerate
revenue mobilization and the findings are presented in table 5.1
Table 5.1: A SWOT analysis improves your business adoptability to market trend
Valid Strongly Agree 41 39.3 39.3 39.3
Agree 63 60.7 60.7 100.0
Total 104 100.0 100.0
Table 5.1 indicates that 60.7% of the respondents agreed that SWOT analysis improves business adoptabil-
ity to market trends that should be regarded as an important analysis in the Water Company, Eastern Equa-
toria state and South Sudan at large while 39.3% strongly agreed with the statement. It was concluded that
adoptability to market trend should be regarded as an important analysis in the Water Company adminis -
trations in Eastern Equatoria state and South Sudan.
5.2 A SWOT Analysis leads to better use of resources
In accelerating revenue mobilization, favorable fees and levies are needed to improve on the level of rev-
enue mobilized. In relation with this, the study sought to find out from the respondents if the fees and
charges levied by the commission are most favorable of tax mobilization and the findings are presented in
table 5.2
Table 5. 2: A SWOT Analysis leads to better use of resources
Agree 72 69.6 69.6 100.0
Total 104 100.0 100.0
This was as to whether the SWOT Analysis leads to better use of resources in water Utility are most im-
portance of use of financial ratio analysis importance or not, of which 69.6% of the respondents agreed
with the statement while 30.4% strongly agreed. It was concluded that the SWOT Analysis leads to better
use of resources by the administration of the Utility where most importance of financial ratio analysis.
5.3 Business operations in the water Utility are well improved through SWOT analysis
The study sought to find out from the respondents if the fees, licenses and property rates were inelastic and
could not be subject to change easily by the tax laws and the findings are presented in table 5.3
Table 5. 3: Business operations in the Water Utility are well improved through SWOT analysis
Cumulative
Frequency Percent Valid Percent Percent
Agree 63 60.7 60.7 100.0
Total 104 100.0 100.0
Table 5.3 indicates that 60.7% of the respondents agreed with the statement that business operations in the
water Utility are well improved through SWOT analysis while 39.3% strongly agreed. In an interview with
some of the interviewees, there was a general agreement that Water Utility through the SWOT analysis
had designed these financial ratios with an intention based on the estimated population so changing them
would be very hard ………”
5.4 A SWOT analysis led / enforced to discoveries of new opportunities
Enforcement of SWOT analysis has discovered new opportunities for the water utility or firm / company.
In relation to this, the study sought to elucidate the applications of SWOT analysis and the findings are
presented in table 5.4
Table 5. 4: A SWOT analysis led / enforced to discoveries of new opportunities.

Cumulative
Agree 72 69.6 69.6 100.0
Total 104 100.0 100.0
The respondents were also asked to indicate their opinion as to whether the SWOT analysis should enforce
discoveries of new opportunities to the Water company or not and 69.6% agreed while 30.4% strongly
agreed. It was concluded that the SWOT analysis should enforce financial ratio analysis for firm perfor-
mance.
An interviewee further reinforced this by saying “…… enforcing financial ratio through SWOT analysis
will promote discoveries of new opportunities which in the end will result to a measure of organization
performance….”
5.5 Future business risks understandings are with the help of SWOT analysis
Understanding business risks through SWOT analysis and reduces business loses in Water Utility. The
study also sought to understand the future business risks of the Water Utility by respondents on SWOT
analysis and the findings are presented in table 5.5
Table 5.5: Future business risks understandings are with the help of SWOT analysis
Cumulative
Strongly agree 61 58.7 58.7 100.0
Total 104 100.0 100.0

Table 5.5 indicates that 58.7% of the respondents strongly agreed with the statement that future business
risks should be done through the use of SWOT analysis while 41.3% disagreed. One of the benefits of us-
ing SWOT analysis was that understanding the future business risks, could reach measurement of organi-
zation performances.
5.6 A SWOT Analysis gives business competitive advantages
Table 5.6: A SWOT Analysis gives business competitive advantages
Cumulative
Valid Uncertain 2 1.8 1.8 1.8
Agree 33 32.1 32.1 33.9
Strongly agree 69 66.1 66.1 100.0
Total 104 100.0 100.0
This was as to whether SWOT analysis should be done through competitive advantages or not, of which
66.1% of the respondents strongly agreed while 32.1% agreed. Only 2(1.8%) of the respondents were Un-
certain. This pointed out that the respondents supported SWOT analysis in Water utility administration
probably due to its numerous competitive advantages.
5.7 A SWOT Analysis applies unique technologies and adequate skilled staff
The study also sought to find out from the respondents if financial ratio should be done through applica-
tions of unique technologies and adequate skilled staff and the findings are presented in table 5.7.
Table 5.7: A SWOT Analysis applies unique technologies and adequate skilled staff
Cumulative
Strongly Agree 58 55.4 55.4 57.1
Agree 44 42.9 42.9 100.0
Total 104 100.0 100.0
The respondents were also asked whether financial ratio analysis should be done through applications of
unique technologies and adequate skilled staff and 42.9% of the respondents agreed while 55.4% strongly
agreed with only 1.8% being uncertain. It was concluded that for financial ratio analysis to be effective,
there was need for organization performance to be done through applications of unique technologies and
adequate skilled staff. This probably ensured that the organization performance could be easily tracked; se-
cure as well being recorded easily.
5.8 SWOTS analysis strength and limits in penetrating into market and meet targets
Table 5. 8: SWOTS analysis has strength and limits penetration into market and meet targets
Agree 63 60.7 60.7 100.0
Total 104 100.0 100.0
Table 5.8 indicates that 60.7% of the respondents agreed that financial ratio should also be done through
perceptions of strength and limitations in penetrating market and meet targets while 39.3% strongly agreed
with the statement. In order to ensure that application of SWOT analysis improves measurements of orga -
nization performance, financial ratio should also be done through SWOT analysis because strength and
limitations in penetrating market and meet Water utility targets from businesses could easily be realized.
5.9 A SWOT analysis mitigates future roadblocks and ensure long term growth
SWOT analysis also provides an avenue where future roadblocks and ensure long-term growth in Water
utility can be enhanced. The study sought to mitigates the future of the Utility by the respondents if mea-
surement of organization performance should be carried out using SWOT analysis and the findings are pre-
sented in table 5.9.
Table 5. 9: A SWOT analysis mitigate future roadblocks and ensure long term growth
Agree 72 69.6 69.6 100.0
Total 104 100.0 100.0
This was as to whether measurement of organization performance should be carried out using SWOT anal-
ysis or not, 69.6% of the respondents agreed with the statement while 30.4% strongly agreed. It was con -
cluded that organization performance should be carried out using SWOT analysis.
5.10 A SWOT analysis allocates resources for revenue growth and profitability
The effectively and efficiently allocations of resources resulted to Water utility in revenue growth and
profitability the Water Company (WC) , Eastern Equatoria State and in South Sudan at large. The study
sought from the respondents whether the effectively and efficiently allocations of resources should be used
in SWOT analysis when measuring organization performance and the findings are presented in table 5.10
Table 5.10: A SWOT analysis allocates resources for revenue growth and profitability
Cumulative
Agree 70 67.9 67.9 100.0
Total 104 100.0 100.0
Table 5.10 above indicates that 67.9% of the respondents strongly agreed with the statement that alloca-
tions of resources effectively and efficiently for revenue growth and profitability should be used in SWOT
analysis when performing measurement for organization performance while 32.1% agreed. This probably
is intended to show that although there was acceptance in SWOT analysis, there was a need for revenue
growth and profitability as regards the use of SWOT analysis because financial ratio would be used for
measurement of organization performance.
Table 5.11: Descriptive Statistics on A SWOT Analysis and a MOP
N Mini- Maxi- Mean Std. Devia-
mum mum tion
A SWOT Analysis improves your business adopt- 104 4.00 5.00 4.6071 .49281
ability to market trend
A SWOT Analysis leads to better use of resources 104 4.00 5.00 4.6964 .46396
Business operations in the water Utility are well im- 104 4.00 5.00 4.6071 .49281
proved through SWOT analysis
A SWOT analysis led / enforced to discoveries of 104 4.00 5.00 4.6964 .46396
new opportunities
Future business risks understandings are with the 104 4.00 5.00 4.6786 .47125
help of SWOT analysis
A SWOT Analysis gives business competitive ad- 104 3.00 5.00 4.6429 .51974
vantages
A SWOT Analysis applies unique technologies and 104 3.00 5.00 4.4107 .53178
adequate skilled staff
SWOTS analysis strength and limitations market and 104 4.00 5.00 4.6964 .46396
meet targets
A SWOT analysis mitigates future roadblocks and 104 4.00 5.00 4.6071 .49281
ensure long term growth
A SWOT analysis allocates resources for revenue 104 4.00 5.00 4.6786 .47125
growth and profitability
Source: SPPS data
For A SWOT Analysis application, elucidates the firm improvements and a measure of organization per-
formance, respondents who participated in the current study stated the following:
A SWOT Analysis improves your business adoptability to market trend (X=4.6071, sd=0.49281); A
SWOT Analysis leads to better use of resources (X=4.6964, sd=0.46396); Business operations in the water
Utility are well improved through SWOT analysis (X=4.6071, sd=0.49281); A SWOT analysis led / en-
forced to discoveries of new opportunities (X=4.6964, sd=0.46396); Future business risks understandings
are with the help of SWOT analysis (X=4.6786, sd=0.47125); A SWOT Analysis gives business competi-
tive advantages (X=4.6429, sd=0.51974); A SWOT Analysis applies unique technologies and adequate
skilled staff (X=4.4107, sd=0.53178); PA SWOT analysis has strength and limitations in penetrating mar-
ket and meet targets (X=4.6964, sd=0.46396); A SWOT analysis mitigates future roadblocks and ensure
long term growth ( X =4.6071, sd=0.49281); and A SWOT analysis allocates resources effectively and effi-
ciently for revenue growth and profitability (X=4.6786, sd=0.47125).

Generally speaking, the means and standard deviations in Table 5.8 clearly show that the respondents who
participated in the current study on average agreed that SWOT analysis can be adopted for a measure of or-
ganization performance.
Model Summary
Table 5.12: Model summary results for SWOT analysis to be adopted in MOP
Model R Adjusted R
R Square Square Std. Error of the Estimate
1. .706a .498 .358 .47993
Predictors: (Constant), market trend, resources, operations, new opportunities, risks and maxi-
mized profit, completive advantage, unique technology and adequate skilled staff, strength and
limitations in penetrating market and meet targets, future roadblocks and ensure long term
growth, effectively and efficiently for revenue growth and profitability.
The Adj. R2 of .358 from the model summary of the regression indicated that SWOT analysis contributed
about 36.0% to measure of organization performance in Water Utility. It means that the 64.0% is contrib-
uted by other factors which measure of organization performance in Water Utility. Furthermore, there was
a linear relationship between use of financial ratio analysis and a measure of organization performance [F
(1, 104) = 3.551, p <0.01].
ANOVAb
Model Sum of
Squares Df Mean Square F Sig.
1 Regression 9.815 12 .818 3.551 .001a
Residual 9.904 91 .230
Total 19.719 103
a. Predictors: (Constant), market trend, resources, operations, new opportunities, risks and
maximized profit, completive advantage, unique technology and adequate skilled staff,
strength and limitations in penetrating market and meet targets, future roadblocks and ensure
long term growth, effectively and efficiently for revenue growth and profitability
b. Dependent Variable: a measure of organization performance.
Summary
The survey results presented in this chapter indicate the SWOT analysis that can be adopted in use of fi-
nancial ratio analysis to accelerate in measuring organization performance. These were identified as the
SWOT analysis importance for financial ratio. Importance of the SWOT analysis by the Water utility en-
forcement the use of financial ratio analysis, a measure of organization through using market trend, re-
sources, operations, new opportunities, risks and maximized profit, completive advantage, unique technol-
ogy and adequate skilled staff, strength and limitations in penetrating market and meet targets, future road-
blocks and ensure long term growth, effectively and efficiently for revenue growth and profitability when
measuring organization performance. According to the study findings the use of these would go a long way
in improving organization performance in the Water Utility, Eastern Equatoria State and South Sudan at
large.
6 CHAPTER SIX
COMPANIES’ INVESTMENT INDICTORS AND A MOP

This chapter presents the results on the Indictors for investment in companies, for their earning perfor-
mances, liquidity, positive economic soundness and a measure of organization performance. The study fo-
cused on the following indicators for investment in companies as earning performance: A growing earn-
ings per share; price to earnings ratio; projected earnings growth; free cash flow; price to book ratio; return
on equity; dividends payout ratio; price to sales ratio; dividend yield ratio and debt-to-equity ratio. The re-
sults are provided in the tables that follow:
6.1 Investors used a growing Earnings Per Share to worth more shares.
The portion of a company’s profit that is assigned to each share of its stock. It’s essentially the bottom-line
net income, just on a per-share basis. The findings on whether a growing Earnings Per Share (EPS) is used
by investors to means that their shares are likely to be worth more are presented in table 6.1.
Table 6.1: Investors used a growing Earnings Per Share to worth more shares.
Strongly 58 55.4 55.4 57.2
Agree
Agree 44 42.8 42.8 100.0
Total 104 100.0 100.0
A growing Earnings Per Share (EPS) is used by investors to means that their shares are likely to be worth
more. This was indicated by 42.8% of the respondents who agreed while 55.4% strongly agreed with only
2(1.8%) being uncertain. This survey indicated that a growing Earnings Per Share (EPS) is used by in-
vestors to means that their shares are likely to be worth more and a measure of organization performance
remains a case in the Water Utility. This was further justified by a respondent who said that calculation of
the earnings per share of a company by dividing its total profit by the number of outstanding shares “…..
We need training on shareholders to improve on financial health...” Interviewee, TUWSS Co. Ltd, 2022.
6.2 Price To Earnings Ratio helps investors to undervalued or overvalued stocks
The bases of Price to Earnings Ratio (P/E) helps investors determine if a stock is undervalued or overval-
ued relative to others in the same sector in the Water Utilities and South Sudan at larges and the findings
are presented in table 6.2.
Table 6.2: Price to Earnings Ratio helps investors to undervalued or overvalued stocks.
Frequency Per- Valid Per- Cumulative Per-
cent cent cent
Agree 44 42.4 42.4 100.0
Total 104 100.0 100.0
The respondents were asked to indicate whether Price to Earnings Ratio (P/E) helps investors determine if
a stock is undervalued or overvalued relative to others in the same sector and 42.4% of the respondents
agreed while 55.8% strongly agreed. However, 1.8% disagreed. In an interview with some of the respon-
dents, they indicated that the major base of Price To Earnings Ratio (P/E) helps investors determine if a
stock is undervalued or overvalued and the Water Company had not looked at the other indicators with a
keen eye.
6.3 Projected Earnings Growth compensates investors with growth rate of the stock
The study also sought to find out key indicators from the respondents on Projected Earnings Growth (PEG)
cannot be use to compensates for investors by anticipating the one-year earnings growth rate of the stock
and the findings are presented in table 6.3
Table 6.3: Projected Earnings Growth compensates investors with growth rate of the stock
Frequency Percent Valid Per- Cumulative
cent Percent
Agree 43 41.1 41.1 100.0
Total 104 100.0 100.0
Table 6.3 indicates that 41.1% of the respondents agreed that Projected Earnings Growth (PEG) cannot
compensates investors by anticipating the one-year earnings growth rate of the stock while 58.9% strongly
agreed. It was concluded that Projected Earnings Growth (PEG) compensates investors by anticipating the
one-year earnings growth rate of the stock. This was further justified by an interviewee who stated that
Projected Earnings Growth (PEG) compensates investors by anticipating the one-year earnings growth rate
of the stock and this probably due to the perception that t Projected Earnings Growth are going to be
raised.
6.4 Free Cash Flow shows a company financial strength to shareholders
The study sought to find out from the respondents, whether Free Cash Flow (FCF) shows a company still
has enough cash to reward its shareholders through dividends after funding operations and capital ex-
penditures and the findings are presented in table 6.4
Table 6.4: Free Cash Flow shows a company financial strength to shareholders
Agree 48 46.4 46.4 100.0
Total 104 100.0 100.0
Table 6.4 shows that cumulatively, 98.2% of the respondents agreed with the statement that Free Cash
Flow (FCF) shows a company still has enough cash to reward its shareholders through dividends after
funding operations and capital expenditures while only 1.8% disagreed. This indicated that Free Cash Flow
(FCF) shows a company still has enough cash to reward its shareholders through dividends after funding
operations and capital expenditures.
6.5 Price to Book Ratio aids investors to find out stock value, is under or overvalued
The study sought to find out from the respondents if Price to Book Ratio (P/B) aids investors, determine
whether the stock is under or overvalued relative to its book value and the findings are presented in table
6.5.
Table 6.5: Price to Book Ratio aids investors to find out stock value, is under or overvalued
Uncertain 4 3.6 3.6 5.4
Agree 49 46.4 46.4 100.0
Total 104 100.0 100.0
Price To Book Ratio (P/B) aids investors, determine whether the stock is under or overvalued relative to its
book value. This was indicated by 42.6% of the respondents agreed while 46.4% strongly agreed. On the
contrary, 1.8% disagreed and 3.6% were uncertain. What was concluded was that Price to Book Ratio (P/
B) aids investors, determine whether the stock is under or overvalued relative to its book value.
6.6 Return on Equity measures positive returns to its shareholders’ investment.
The study sought to find out from the respondents if Return on Equity (ROE) measures how well a com-
pany generates positive returns to its shareholders’ investment and the findings are presented in table 6.6.
Table 6.6: Return on Equity measures positive returns to its shareholders’ investment.
Uncertain 2 1.8 1.8 10.7
Agree 44 42.9 42.9 100.0
Total 104 100.0 100.0
Return on Equity (ROE) measures how well a company generates positive returns to its shareholders’ in-
vestment. This was indicated by the majority 46.4% of the respondents who strongly agreed while 42.9%
agreed, 8.9% disagreed. Only 1.8% of the respondents were uncertain.
What was concluded was that Return on Equity (ROE) measures how well a company generates positive
returns to its shareholders’ investment.
6.7 Dividends Payout Ratio tells you a net income of a company returns.
Dividends Payout Ratio (DPR) tells you what portion of net income a company returns to its shareholders,
as well as how much it sets aside for growth, cash reserve, and debt repayments and the findings are pre-
sented in table 6.7.
Table 6.7: Dividends Payout Ratio tells you a net income of a company returns.
Agree 63 60.7 60.7 100.0
Total 104 100.0 100.0
The respondents were also asked to indicate whether Dividends Payout Ratio (DPR) portion of net income
a company returns to its shareholders, and for growth, cash reserve, and debt repayments, and 60.7% of the
respondents agreed while 37.5% strongly agreed though 1.8% disagreed. These survey results that are
presented in Table 6.7 indicate that Dividends Payout Ratio (DPR) portion of net income a company
returns to its shareholders, and for growth, cash reserve, and debt repayments.
6.8 Price to Sales Ratio shows the market values of the company’s sales
The study sought to find out from the respondents if Price to Sales Ratio(P/S) shows the market values the
company’s sales effectively in valuing growth stocks into a profit and the findings are presented in table
6.8.
Table 6.8: Price to Sales Ratio shows the market values of the company’s sales.
Valid Per- Cumulative Per-
Frequency Percent cent cent
Strongly Disagree 60 57.7 57.7 100.0
Total 104 100.0 100.0
Respondents were asked to indicate whether Price to Sales Ratio(P/S) shows the market values the com-
pany’s sales effectively in valuing growth stocks into a profit and 57.7% strongly disagreed while 42.3%
disagreed. It was concluded that Price to Sales Ratio(P/S) did not shows the market values the company’s
sales effectively in valuing growth stocks into a profit.
6.9 Dividend Yield Ratio better investors in getting back every invested dollar.
The study also sought to find out if tax strategies lead to a flow of resources to other sector that may have
lower productivity and the findings are presented in table 6.9.
Table 6.9: Dividend Yield Ratio better investors in getting back every invested dollar.
Uncertain 2 1.8 1.8 10.7
Agree 45 42.9 42.9 100.0
Total 104 100.0 100.0
Dividend Yield Ratio (DYR) is important to investors in getting back every dollar they’ve invested in the
company’s stock. This was indicated by the majority 46.4% of the respondents who strongly agreed while
42.9% agreed. Only 8.9% disagree and 1.8% was uncertain. What was concluded was that Dividend Yield
Ratio (DYR) is important to investors in getting back every dollar they’ve invested in the company’s stock.
6.10 Debt-To-Equity Ratio helps investors evaluate the financial leverage of a company.
The application of tax strategies in most developing countries remains a challenge to the tax authorities and
the findings on this issue are presented in table 6.10.
Table 6.10: Debt-To-Equity Ratio helps investors evaluate the financial leverage of a company.
Cumulative Per-
Frequency Percent Valid Percent cent
Valid Agree 34 32.1 32.1 32.1
Strongly agree 70 67.9 67.9 100.0
Total 104 100.0 100.0
Table 6.10 above indicates that 67.9% of the respondents strongly agreed with the statement that Debt-to-
Equity Ratio (D/E) helps investors evaluate the financial leverage of a company while 32.1% agreed. This
probably is the reason why Debt-to-Equity Ratio (D/E) helps investors evaluate the financial leverage of a
company stated by an interviewee.
Table 6.11: Descriptive Statistics on Companies’ investment indictors and a MOP
N Mini- Maxi- Mean Std. Devia-

mum mum tion
Investors used a growing Earnings Per Share to 104 4.00 5.00 4.6071 .49281
worth more shares.
Price To Earnings Ratio helps investors to under- 104 4.00 5.00 4.6964 .46396
valued or overvalued stocks
Projected Earnings Growth compensates investors 104 4.00 5.00 4.6071 .49281
with growth rate of the stock.
Free Cash Flow shows a company financial strength 104 4.00 5.00 4.6964 .46396
to shareholders
Price to Book Ratio aids investors to find out stock 104 4.00 5.00 4.6786 .47125
value, is under or overvalued
Return on Equity measures positive returns to its 104 4.00 5.00 4.6250 .48850
shareholders’ investment
Dividends Payout Ratio tells you a net income of a 104 4.00 5.00 4.6429 .48349
company returns.
Price to Sales Ratio shows the market values of the 104 4.00 5.00 4.6964 .46396
company’s sales
Dividend Yield Ratio better investors in getting 104 4.00 5.00 4.6786 .47125
back every invested dollar.
Debt-To-Equity Ratio helps investors evaluate the 104 4.00 5.00 4.6429 .48349
financial leverage of a company

Source: SPSS data
For indictors for investment in companies, for their earning performances, liquidity, positive economic
soundness and a measure of organization performance, respondents who participated in the current study
stated the following:
A growing Earnings Per Share (EPS) is used by investors to means that their shares are likely to be worth
more. (X=4.6071, sd=0.49281); Price to Earnings Ratio (P/E) helps investors determine if a stock is under-
valued or overvalued relative to others in the same sector. (X=4.6964, sd=0.46396); The Projected Earn-
ings Growth (PEG) cannot compensate investors by anticipating the one-year earnings growth rate of the
stock. (X=4.6071, sd=0.49281); Free Cash Flow (FCF) shows a company has enough cash to reward its
shareholders through dividends after funding operations and capital expenditures. (X=4.6964,
sd=0.47125); Price To Book Ratio (P/B) aids investors, determine whether the stock is under or overvalued
relative to its book value. (X=4.6250, sd=0.48850); Return on Equity (ROE) measures how well a com-
pany generates positive returns to its shareholders’ investment. (X=4.6429, sd=0.48349); Dividends Payout
Ratio (DPR) portion of net income a company returns to its shareholders, and for growth, cash reserve, and
debt repayments (X=4.6964, sd=0.46396); Dividend Yield Ratio (DYR) is important to investors in getting
back every dollar they’ve invested in the company’s stock. (X=4.6786, sd=0.47125); Debt-To-Equity Ra-
tio (D/E) helps investors evaluate the financial leverage of a company ( X =4.6429, sd=0.48349).
The Means and Standard Deviations in Table above clearly show that the respondents who participated in
the current study on average agreed that the indictors for investment in companies, for their earning perfor-
mances, liquidity, positive economic soundness and a measure of organization performance.
Model Summary
Table 6.12: Model Summary results Companies’ investment indictors and a MOP
Model R Adjusted R Std. Error of the Esti-
R Square Square mate
Dimension0 1 .434a .189 .089 .57146
a. Predictors: (Constant), earnings per share, price to earnings ratio, projected
earnings growth, free cash flow, price to book ratio, return on equity, dividends
payout ratio, price to sales ratio, dividend yield ratio, debt-to-equity ratio.
The Adj. R2 of .089 from the model summary of the regression indicated that indictors for investment in
companies, for their earning performances, liquidity, positive economic soundness and will improve mea-
surement of organization performance in Water Company, South Sudan. It means that the 91.0% is con-
tributed by other indicators which influence measurements of organization performance in the water Util-
ity. Furthermore, there was a linear relationship between the indictors for investment in companies, for
their earning performances, liquidity, positive economic soundness and a measure of organization perfor-
mance [F (1, 104) = 1.897, p < 0.01].

ANOVAb
Model Sum of
Squares Df Mean Square F Sig.
1 Regression 3.717 6 .620 1.897 .100a
Residual 16.002 97 .327
Total 19.719 103
a. Predictors: (Constant), earnings per share, price to earnings ratio, projected
earnings growth, free cash flow, price to book ratio, return on equity, divi-
dends payout ratio, price to sales ratio, dividend yield ratio, debt-to-equity ra-
tio.
b. Dependent Variable: A measure of organization performance
Summary
The undergoing discussion of survey results indicates that indictors for investment in companies, for their
earning performances, liquidity, positive economic soundness that will contribute to measurement of orga-
nization performance in the Water Company were found to be hard to improve the Company because indi-
cators improvement would affect the betterment Water Company. The Company focused on direct and in-
direct indicators yet this could raise shares to the shareholders. The strategies that could improve on indic-
tors for investment in companies, for their earning performances, liquidity, positive economic soundness
and a measure of organization performance and efficient functioning of the Water Utility remains a case in
Eastern Equatoria State -Torit.

7 CHAPTER SEVEN
TOWARDS HARMONIZATION OF USE OF FINANCIAL RATIO ANALYSIS AND A MEA-
SURE OF ORGANIZATION PERFORMANCE
This chapter discusses the various constructs of the concept of use of financial ratio analysis and a measure
of organization performance in a case study of Torit Urban Water Supply and Sanitation Co. Ltd.
Various constructs of use of financial ratio analysis and a measure of organization performance in a case
study of Torit Urban Water Supply and Sanitation Co. Ltd are discussed as below:
7.1 FRA has helped in forecasting, planning and performing trend analysis and MOP
The study has confirmed that, the Water Utility vision can be reached through strategic forecasting, plan -
ning and preforming trend analysis for the Water Company whereby 80.4% of the respondents strongly
agreed statistically.
7.2 Financial ratio analysis has estimated fiscal budgets for firm by analyzing previous trend.
The Company fiscal budgets (all planned activities, costings, etc) since 2015-2022 had been incrementally
estimated by the use of financial ratio analysis whereby the conformity has been realized in the current
studies as 58.7% of the respondents strongly agreed while 41.3% agreed that betterment results to a mea-
sure of organization performance.
7.3 Financial ratio analysis has determined how efficiently a firm is operating.
The efficiencies and effectiveness of the staff in performing all assigned responsibilities and duties and
meeting the datelines of the project has been felt by the staff due to powers to use financial ratio analysis
impacts (positive and negative). 59.6% of the respondents strongly agreed while 39.4% agreed. It thus a
cardinal requirement that, in any firm operating in a state, that efficiency be availed.
7.4 FRA has provided significant information to users of accounting information.
Internal and external users of accounting information were significantly been provided by impact applica-
tions of use of financial ratio analysis that the study confirmed that 58.7% of the respondents strongly
agreed while 41.3% agreed. This again confirms that the financial ratio analysis had provided significant
information to users of accounting information that accorded the organization performance.
7.5 FRA aid in comparisons of two or more firms of similar goods productions and supplies.
The two or more firms / Companies / Utilities of similar goods and services can be compared on their prof -
itability, growth and expansions cash flows, on number of staff and that results to measurements of organi-
zation performance. 55.4% of the respondents strongly agreed that the financial ratio analysis has aid in
comparisons of two or more firms / companies of similar goods productions and supplies while 44.6%
agreed.
7.6 Financial ratio analysis has determined both liquidity and long solvency of the firm.
The cash flows as liquidity and long-term solvency of the firm / company / Utility are well known in deter -
minations through the use of financial ratio analysis which is stated by current research. 62.5% of the re-
spondents who participated in the current study strongly agreed with the statement that the financial ratio
analysis has determined both liquidity and long solvency of the firm and organization performance while
37.5% agreed.
7.7 FRA statements have been seen to be complicated in understanding.

Use of financial ratio analysis is a language that’s only known by the business people and very completed
to interpreted the statements. financial ratio analysis statements seen to be complicated in understanding
that led to poor organization performance where 64.3% of the respondents strongly agreed while 35.7%
disagreed.
7.8 Ambiguousness factors compares two or more processing firms
Ambiguous factors in comparisons of two or more utilities / firms / Companies processing different envi -
ronmental positions that negatively affects the Utilities comparisons. 69.2% of the respondents strongly
agreed while 34.8% agreed. It was concluded that the financial ratio ambiguousness factors in the Firm
were well defined and these unable the organization performance.
7.9 Views and hypothesis have been influenced by financial data and criteria
The influence of financial data and criteria, reduced comparability measure of organization performance
whereby this has been revealed by the study and 67.9% of the respondents strongly agreed while 32.1%
agreed. This again confirms that financial ratio analysis views and hypothesis have been influenced by fi -
nancial data and criteria (Methods) reduced comparability of organization performance.
7.10 Detailed prior data while users are more concerned about current and future data
The financial ratio analysis users are more concerned of current and future data for the improvement of the
organization performance rather than the detailed prior data that the financial ratio analysis has. 64.3% of
the respondents strongly agreed while 35.7% disagreed. It was concluded that users are more concerned
about current and future data for the improvements of organization performance.
7.11 A SWOT analysis improves your business adoptability to market trend
It was concluded that adoptability to market trend was regarded as an important analysis in the Water
Company administrations in Eastern Equatoria state-Torit and South Sudan. 69.6% of the respondents
agreed with the statement while 30.4% strongly agreed. The SWOT Analysis leads to better use of re-
sources in water Utility are most importance of use of financial ratio analysis importance.
7.12 Business operations in the water Utility are well improved through SWOT analysis.
The SWOT analysis has improved the water Utility Business operations that was indicated that 60.7% of
the respondents agreed with the statement that business operations in the water Utility are well improved
through SWOT analysis while 39.3% strongly agreed. In an interview with some of the interviewees, there
was a general agreement that Water Utility through the SWOT analysis had improved these financial ra-
tios.
7.13 A SWOT analysis led / enforced to discoveries of new opportunities
SWOT analysis had enforced discoveries of new opportunities to the Water company and 69.6% agreed
while 30.4% strongly agreed. It was concluded that the SWOT analysis should enforce financial ratio anal-
ysis for measurement of firm / organization performance. An interviewee further reinforced this by saying
“…… enforcing financial ratio through SWOT analysis will promote discoveries of new opportunities
which in the end will result to a measure of organization performance….”
7.14 Future business risks understandings are with the help of SWOT analysis
SWOT analysis undertook business risks as much as the future business operations are concerned and
58.7% of the respondents strongly agreed with the statement that future business risks should be done
through the use of SWOT analysis while 41.3% disagreed. One of the benefits of using SWOT analysis
was that understanding the future business risks, could reach measurement of organization performances.
7.15 A SWOT Analysis gives business competitive advantages
This pointed out that the respondents supported SWOT analysis in Water utility administration probably
due to its numerous competitive advantages. SWOT analysis had been done through competitive advan-
tages where 66.1% of the respondents strongly agreed while 32.1% agreed. Only 2(1.8%) of the respon-
dents were Uncertain.
7.16 A SWOT Analysis applies unique technologies and adequate skilled staff
The applications of unique technologies and adequate skilled staff clearly improved the Water utility where
42.9% of the respondents agreed while 55.4% strongly agreed with only 1.8% being uncertain of financial
ratio analysis had been done through applications of unique technologies and adequate skilled staff. It was
concluded that for financial ratio analysis to be effective, there was need for organization performance to
be done through applications of unique technologies and adequate skilled staff. This probably ensured that
the organization performance could be easily tracked; secure as well being recorded easily.
7.17 A SWOT analysis has strength and limits in penetration into market and meet targets
SWOT analysis improves measurements of organization performance, financial ratio should also be done
through SWOT analysis because strength and limitations in penetrating market and meet Water utility tar-
gets from businesses could easily be realized. 60.7% of the respondents agreed that financial ratio should
also be done through perceptions of strength and limitations in penetrating market and meet targets while
39.3% strongly agreed with the statement.
7.18 A SWOT analysis mitigates future roadblocks and ensure long term growth
The study mitigated the future of the Utility by the respondents if measurement of organization perfor-
mance should be carried out using SWOT analysis whereby 69.6% of the respondents agreed with the
statement while 30.4% strongly agreed. It was concluded that organization performance should be carried
out using SWOT analysis.
7.19 A SWOT analysis allocates resources for revenue growth and profitability
67.9% of the respondents strongly agreed with the statement that allocations of resources effectively and
efficiently for revenue growth and profitability should be used in SWOT analysis when performing mea-
surement for organization performance while 32.1% agreed. The effectively and efficiently allocations of
resources resulted to Water utility in revenue growth and profitability the Water Company (WC), Eastern
Equatoria State and in South Sudan at large.
7.20 Investors used a growing Earnings Per Share to worth more shares
The portion of a company’s profit that is assigned to each share of its stock. It’s essentially the bottom-line
of net income, just on a per-share basis. The findings on whether a growing Earnings Per Share (EPS) is
used by investors to means that their shares are likely to be worth. This was indicated by 42.8% of the re-
spondents who agreed while 55.4% strongly agreed with only 2(1.8%) being uncertain.
7.21 Price To Earnings Ratio helps investors to undervalued or overvalued stocks

Price to Earnings Ratio (P/E) helps investors determine a stock was undervalued or overvalued relative to
others in the same sector in the Water Utilities. 42.4% of the respondents agreed while 55.8% strongly
agreed. However, 1.8% disagreed. In an interview with some of the respondents, they indicated that the
major base of Price to Earnings Ratio (P/E) helps investors determine if a stock is undervalued or overval-
ued and the Water Company had not looked at the other indicators with a keen eye.
7.22 Projected Earnings Growth compensates investors with growth rate of the stock
Key indicators from the respondents on Projected Earnings Growth (PEG) cannot be use to compensates
for investors by anticipating the one-year earnings growth rate of the stock. 41.1% of the respondents
agreed that Projected Earnings Growth (PEG) cannot compensates investors by anticipating the one-year
earnings growth rate of the stock while 58.9% strongly agreed. It was concluded that Projected Earnings
Growth (PEG) compensates investors by anticipating the one-year earnings growth rate of the stock. This
was further justified by an interviewee who stated that Projected Earnings Growth (PEG) compensates in-
vestors by anticipating the one-year earnings growth rate of the stock and this probably due to the percep-
tion that t Projected Earnings Growth are going to be raised.
7.23 Free Cash Flow shows a company financial strength to shareholders

98.2% of the respondents confirmed with the statement that Free Cash Flow (FCF) shows a company still
has enough cash to reward its shareholders through dividends after funding operations and capital ex-
penditures while only 1.8% disagreed. This indicated that Free Cash Flow (FCF) shows a company still has
enough cash to reward its shareholders through dividends after funding operations
7.24 Price to Book Ratio aids investors to find out stock value, is under or overvalued
42.6% of the respondents agreed while 46.4% strongly agreed. On the contrary, 1.8% disagreed and 3.6%
were uncertain. It was concluded that Price to Book Ratio (P/B) aids investors, determine the stock is un-
der or overvalued relative to its book value.
7.25 Return on Equity measures positive returns to its shareholders’ investment

Return on Equity (ROE) measured how well a company generated positive returns to its shareholders’ in-
vestment. This was indicated by the majority 46.4% of the respondents who strongly agreed while 42.9%
agreed, 8.9% disagreed. Only 1.8% of the respondents were uncertain. concluded was that Return on Eq-
uity (ROE) measures how well a company generates positive returns to its shareholders’ investment.
7.26 Dividends Payout Ratio tells you a net income of a company returns
Dividends Payout Ratio (DPR) portion of net income a company returned to its shareholders, and for
growth, cash reserve, and debt repayments, and 60.7% of the respondents agreed while 37.5% strongly
agreed though 1.8% disagreed.
7.27 Price to Sales Ratio shows the market values of the company’s sales
Price to Sales Ratio(P/S) shows the market values the company’s sales effectively in valuing growth stocks
into a profit and 57.7% strongly disagreed while 42.3% disagreed. It was concluded that Price To Sales Ra-
tio(P/S) did not shows the market values the company’s sales effectively in valuing growth stocks into a
profit.
7.28 Dividend Yield Ratio better investors in getting back every invested dollar.
The majority 46.4% of the respondents who strongly agreed while 42.9% agreed. Only 8.9% disagree and
1.8% was uncertain. What was concluded was that Dividend Yield Ratio (DYR) is important to investors
in getting back every dollar they’ve invested in the company’s stock. Dividend Yield Ratio (DYR) is im-
portant to investors in getting back every dollar they’ve invested in the company’s stock.
7.29 Debt-To-Equity Ratio helps investors evaluate the financial leverage of a company
67.9% of the respondents strongly agreed with the statement that Debt-to-Equity Ratio (D/E) helps in-
vestors evaluate the financial leverage of a company while 32.1% agreed. This probably is the reason why
Debt-to-Equity Ratio (D/E) helps investors evaluate the financial leverage of a company stated by an inter-
viewee.
8 CHAPTER EIGHT
CONCLUSIONS AND RECOMMENDATIONS
8.1 Introduction
This chapter presents the conclusions and recommendations based on the findings of this thesis on “Use of
financial ratio analysis and a measure of Organization performance.
8.2 Conclusions
This study is set out to examine the relationship between Financial Ratio Analysis and a measure to Organ-
ization / Firm / Company Performance. It focuses on the Torit Urban Supply and Sanitation Water Utility
in Torit, Eastern Equatoria State, South Sudan. It focused on the following objectives: To examine the im-
pact of financial ratios on investment decision; To elucidate the applications of SWOT analysis on firm im-
provements; To find out the indictors for investment in companies for their earning performances, liquid -
ity, positive economic soundness.
8.3 Impacts on FRA and measure of Organization performance in TUWSS Co. Ltd
The researcher focused on the following; forecasting and planning, estimation of budget, firm efficiency,
Signiant information, comparison of two or more companies, liquidity and long-term solvency of the firm,
complication understanding of financial statement, important factors for financial ratio, influences of finan-
cial data by views and hypothesis, users concern on current and future data were to answer this objective.
8.4 A SWOT Analysis application, elucidates the firm improvements and a MOP
The results on the Strength Weakness Opportunity and Threats (SWOT)Analysis where applications eluci-
date the firm improvements and a measure of organization performance in the Water Utility: Here the re-
searcher focused on business adoptability, better use of resources, improves operations, discovery of new
opportunities, business risks, a competitive advantages, unique technologies and adequate skilled staff,
perceptions of strength and limitations in market trend, future roadblocks and long term growth, effective
and efficient allocation of resources for revenue growth and profitability and use of the Water Resource
Users Associations (WRUA) of 2016 during use of financial ratio analysis.
The Strengths-Weaknesses-Opportunities and Threats Analysis (SWOT) analysis is a tool for analyzing a
company from an internal and external perspective, in order to generate strategies for the firm.
The SWOT matrix, derived from the SWOT analysis, presents a mechanism to facilitate the link between
the strengths and weaknesses (internal factors) and the threats and opportunities of the market (external
factors).
way, it provided a framework for identifying and formulating strategies.
8.5 Companies’ investment indictors and a measure of organization performance.

The results on the Indictors for investment in companies, for their earning performances, liquidity, posi-
tive economic soundness and a measure of organization performance. The study focused on the following
indicators for investment in companies as earning performance: A growing earnings per share; price to
earnings ratio; projected earnings growth; free cash flow; price to book ratio; return on equity; dividends
payout ratio; price to sales ratio; dividend yield ratio and debt-to-equity ratio.
8.6 Recommendations
The following recommendations are made in line with the study findings in this study.
The Water Utility / company / Organization should also focus so as to use financial ratio analysis to im-
prove measurement of organization performance by morally using the staff and shareholders. This will im-
prove the use financial ratio analysis which will improve measure of organization performance in Water
Utility.
The Water Utility / Form/ Organization should implement sections of the Water Act 2016, Act 2014 article
(V) Management which empowers it to water tariffs and also create sales that can improve on sale returns
in the firm. By selling large businesses, the Water Utility will improve on its sales return’s / revenue mobi-
lization.
8.7 Areas for further research
Further research should be carried out on

c) The software (Trainings) and organization performance in the Water Utility/ firm / organization
since the current study reveal lack of skilled and qualified staff in the Water Utility
d) More emphasizes should be put both by Staff and shareholders on key financial performance indi-
cators and efficient and effective tools of tracking.
e) The Water Utility should take care of Additional Key indicators (KPIs) such as Marketing KPIs,
recuring revenue metrics, recuring revenue overview, LOB efficiency measure, financial depart-
ment (operational KPIs etc.

REFERENCE
I.M. Pandey 2010, Financial Management Tenth Edition, published by Vikas Publishing House Pvt
Ltd, 2010, pp. 581-608.
l-Aameri, Zahara Hassan and Al-Saiyyid Ali Khalaf Al-Rikabi (2007). “Importance of Financial Ratios
in Assessment of Performance – A Case Study of Oil Projects Company”
Blumenthal, R. G. (1998). It’s the gift to be simple: Why the 80-year-old Du Pont model still has fans,
CFO Magazine, January, 1998, pp. 1-3.
Bodie, Zvi, Robert C. Merton, and, David L. Cleeton (2009). Financial Economics, Person Prentice
Hall, London, 2nd Edition.
Gibson, Charles H. (2007). Financial Reporting and Analysis: Using Financial Accounting Informa-
tion. Thomson South-Western, 10th Edition.
Gibson, Charles H. (2013). Financial Statement Analysis. South-Western Cengage Learning, 13th Edi-
tion.
Helfert, Erich A. (2003). Techniques of Financial Analysis: A Guide to Value Creation. McGraw Hill,
11th Edition.
Horrigan, J. O. (1965). Some Empirical bases of Financial Ratio Analysis. The Accounting Review,
40, No. 3, 558-568.
Horrigan, J. O. (1968). A Short History of Financial Ratio Analysis. The Accounting Review, 43, No.
3, 339-352.
Kılıç, Ali Uyar; Merve (2012). The Influence of Firm Characteristics on Disclosure of Financial Ratios
in Annual Reports of Turkish firms listed in the Istanbul Stock Exchange, International Journal
of Accounting, Auditing and Performance Evaluation, 8, No.2, 137 – 156.
Laitinen, Erkki K. (2006). Financial Statement Analysis of a Network of SMEs: towards measurement
of Network Performance, International Journal of Networking and Virtual Organizations, 3,
No.3, 258 – 282.

Maggina, Anastasia G. (2008). On the Distributional Properties of Financial Ratios in Annual Reports
of Greek listed Companies, International Journal of Managerial and Financial Accounting, 1,
No.2, 166-183.
Malhotra, Rashmi D.K. Malhotra, and C. Andrew Lafond (2009). Analyzing Financial Services Indus-
try using data Envelopment Analysis, International Journal of Applied Management Science, 1,
No.3, 217-246.
Mirza, Sidra Ali and Attiya Javed (2013). Determinants of Financial Performance of a Firm: Case of
Pakistani Stock Market. Journal of Economics and International Finance, 5 (2), 43-52. DOI:
10.5897/JEIF 12.043
Ou, J. A. and S. H. Penman (1989a). Financial Statement Analysis and the Prediction of Stock Returns,
Journal of Accounting and Economics,11, 295 – 329.
Pazarskis, M. P., K. Pantelidis, and P. Christodoulou (2011). An Accounting Examination of the long-
run Performance of Greek acquiring Firms. International Journal of Financial Services Man-
agement, 5, No.2, 159-176
Sumon KB, Dimova R (2003). Does Ownership Always Matter? Evidence from the Indian Banking In-
dustry. Journal of Global Financial Market. Spring, 33-43.
Weygandt, Jerry J., Donlad E. Kieso, Paul D. Kimmel (2009). Accounting Principles. 9th. Edition,
John Wiley & Sons Inc.

APPENDIX I: Questionnaire;
Dear respondent,
I am Oyito Baptist Habihoi Ben Sofronio, undertaking research on Use of financial ratio analysis and a
measure of organization performance: A case study of Torit Urban Water Supply and Sanitation Company
limited, Eastern Equatoria State -Torit (South Sudan), as a requirement for a Postgraduate Diploma in Fi-
nancial Management of Africa Center for Project Management. Please help me answer the questions be-
low. All information provided will be kept confidential.
I humbly request you, to participate in this study by filling in this questionnaire. All the answers that you
will provide shall be treated with the confidentiality as you deserve, and will be used for only academic
purposes.
Thanks a lot, in advance for your grate contribution to my success and God blesses you all.
SECTION A: BIO DATA (please tick the appropriate box (√)
1.Table 3.2: What is your age range?

Male
Female
2. Table 3.3: What is your age range?

20-29
30-39
40-49
50 and above
3. Table 3.4: What is your marital status?

Married
Cohabiting/engaging
Single
Widowed
Other, please specify…………………………………………………………………………
5. Table 3.5: How long have you served in this Water Utility / Company?
Less than one year
1-3 years
4-6 years
6 years and above

6. Table 3.6: Your highest education level attained
Masters Degree
Degree
Diploma
Certificate
7. Table 3.7: What is your position?
Director
Shareholder
Staffs
Taxpayers
Revenue collectors
Note: The following abbreviations will be used in the following questionnaire sections, that will follow 1=
Strongly Disagree, 2= Disagree, 3= Uncertain, 4= Strongly Agree, and 5= Agree.
Section B
Instructions: Answer the following questions by ticking in the box that best suits your opinion
1 2 3 4 5
Determination of impacts (positive and negative) on financial ratio analy-
sis and measure of Organization performance in TUWSS Co. Ltd
1 Financial ratio analysis has helped in forecasting, planning and performing

trend analysis and measure of organization performance.
2 Financial ratio analysis has estimated fiscal budgets for firm by analyzing pre-
vious trend
3 Financial ratio analysis has determined how efficiently a firm is operating
4 Financial ratio analysis has provided significant information to users of ac-

counting information that accorded the organization performance.
5 Financial ratio analysis has aid in comparisons of two or more firms / compa-
nies of similar goods productions and supplies
6 Financial ratio analysis has determined both liquidity and long solvency of the
firm.
7 Financial ratio analysis statements have been seen to complicated in under-
standing that led to poor organization performance.
8 Financial Ratio analysis have ambiguousness factors (Markets structures, regu-

lations, etc) in comparisons of two or more firm processing different environ-
mental positions.
9 Views and hypothesis have been influenced by financial data and criteria
(Methods) reduced comparability of organization performance
1 Financial ratio analysis has detailed prior data while users are more concerned
about current and future data for improvements of organization performance
0
If you have any other comments on Determination of impacts (positive and negative) on financial ratio
analysis and measure of Organization performance in TUWSS Co. Ltd, please specify
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………
Section C
1 2 3 4 5
A SWOT Analysis application, elucidates the firm improvements and a
measure of organization performance.
1 A SWOT Analysis improves your business adoptability to market trend
1 A SWOT Analysis leads to better use of resources
2
1 Business operations in the water Utility are well improved through SWOT
analysis
3
1 A SWOT analysis led / enforced to discoveries of new opportunities
1 Future business risks understandings are with the help of SWOT analysis
1 A SWOT Analysis gives business competitive advantages
1 A SWOT Analysis applies unique technologies and adequate skilled staff
1 Perceptions of SWOTS analysis has strength and limitations in penetrating

market and meet targets
8
1 A SWOT analysis mitigates future roadblocks and ensure long term growth
2 A SWOT analysis allocates resources effectively and efficiently for revenue

growth and profitability
0
If you have any other comments on A SWOT Analysis application, elucidates the firm improvements and a
measure of organization performance in the Company, please specify
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………
Section D
1 2 3 4 5
Indictors for investment in companies, for their earning
performances, liquidity, positive economic soundness and
a measure of organization performance
21 A growing Earnings Per Share (EPS) is used by investors to means

that their shares are likely to be worth more.
22 Price to Earnings Ratio (P/E) helps investors determine if a stock is

undervalued or overvalued relative to others in the same sector.
23 The Projected Earnings Growth (PEG) cannot compensate investors

by anticipating the one-year earnings growth rate of the stock.
24 Free Cash Flow (FCF) shows a company has enough cash to reward
its shareholders through dividends after funding operations and
capital expenditures.
25 Price To Book Ratio (P/B) aids investors, determine whether the

stock is under or overvalued relative to its book value.
26 Return on Equity (ROE) measures how well a company generates

positive returns to its shareholders’ investment.
27 Dividends Payout Ratio (DPR) portion of net income a company re-

turns to its shareholders, and for growth, cash reserve, and debt
repayments.
28 Price to Sales Ratio(P/S) shows the market values the company’s

sales effectively in valuing growth stocks into a profit.
29 Dividend Yield Ratio (DYR) is important to investors in getting back

every dollar they’ve invested in the company’s stock.
30 Debt-To-Equity Ratio (D/E) helps investors evaluate the financial

leverage of a company.
If you have any other comments on the Indictors for investment in companies, for their earning perfor-
mances, liquidity, positive economic soundness and a measure of organization performance in the Water
Utility, please specify

………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
……………………………………………………
8.8 Appendix II: Interview Guide;
Section B: Determination of impacts (positive and negative) on financial ratio analysis and measure
of Organization performance in TUWSS Co. Ltd
What are the positive impacts of financial ratio analysis and measure of organization performance?
How effective and efficient are the impacts of financial ratio analysis that resulted to better organization
performance?
State the negative impacts of financial ratio analysis and a measure of organization performance?
Section C: A SWOT Analysis application, elucidates the firm improvements and a measure of orga-
nization performance.
How are the applications of SWOT analysis important to the measurement of organization performance?
By what percent has the SWOT analysis improved the measurement of organization performance?
Why does the application of SWOT analysis results to improvement of organization performance?
Section D: Indictors for investment in companies, for their earning performances, liquidity, positive
economic soundness and a measure of organization performance
Explain the indicators for investment in companies for their earnings, that boost the organization perfor-
mance?
State the indicators for investment in the companies for their earnings to results to measurement of organi -
zation performance?
How are the indicators for investment in companies results to effective and efficient earning performance
and improved organization performance?

Appendix III: Ethics Research Approval Form
Africa Center for Project Management
School of Business Administration
ETHICS RESEARCH APPROVAL FORM
Student’s Registration Number: Index Number: JAN/2021/PGD/
Student’s Name: OYITO BAPTIST HABIHOI BEN
Supervisor’s Name: Dr. Mark Rabudi (PhD)
Date Ethics Form submitted: December, 2022
Proposed Starting / Ending Date of the Project: July, 2022/December, 2022
Research Topic: USE OF FINANCIAL RATIO ANALYSIS AND A MEASURE OF ORGANIZA-
TION PERFORMANCE. A CASE STUDY OF TORIT URBAN WATER SUPPLY AND SANITA-
TION CO. LTD
Purpose of the Research: The main objective of the study was to assess the firm’s profitability, efficiency
and measure of organization performance in Torit Urban Water supply and Sanitation Co. Ltd.
Objectives:
Specifically, the study sought to answer the following objectives.
a) To examine the impact of financial ratios on investment decision.
b) b). To elucidate the applications of SWOT analysis on firm improvements
c) c). To find out the indictors for investment in companies for their earning performances, liquidity,
positive economic soundness.
Brief Description of the Methods, Procedures and Strategies to be used:
a) Methods
i. Interviews
ii. Questionnaires
iii. Documentary review
b) Procedures
i. Key informants were identified
ii. Informed the respondents in advance about the time, venue and date of the interview
iii. Distributed the questionnaires to identified informants
iv. Informed those involved in activities and tasks to be observed
v. Informed the TUWSS. Co. Ltd Staff employees about the research to allow access of relevant in-
formation from different stakeholders.
c) Strategies
i. Selected a representative sample of respondents, and interviewees involved in the study
ii. Used the methods noted above, namely: interviews, questionnaires, and documentary
review.
Benefits of the Research: This research is important and its findings will be beneficial to the following
stake holders:
(a) Management;
This study will benefit the Water Company in reflecting the positive impact of the applications of A
SWOT analysis in the business and realizing the hence of trend analysis over a period of time.
The vision of the Water Utility will be able to be achieved through the staff effective and efficient way of
allocation of resource and comparing its performance with its competitors both internally and externally.
Policy makers: This meaningful study of Water administrative issues and impacts of financial ratios on in-
vestment decision, applications of SWOT analysis on firm improvements, indictors for investment in com-
panies for their earning performances, liquidity, positive economic soundness and Water policies in the
Company providing ideas about ways and means through which such issues and problems could be han-
dled appropriately.
The study will serve to highlight and defined Water Company problems (impacts of financial ratios), good
applications of analysis on firm improvements (applications of SWOT analysis) and earning performances,
liquidity, positive economic soundness (indictors for investment) to the Water Utility in the state and the
nation at large.
Researchers: It is the researchers hope that those who will read this will make inputs in view of their ex-
perience, knowledge and skills in regards to their respective organizational settings to add their views ma-
turely.
Good use of Financial Ratio Analysis dresses and addresses issues in order to attain Water Utility sales /
revenue collection as well as being useful to serve the expansion of water supplies network in the State
Government and the nation at large. In this context, the study may serve as a reference material for schol-
ars in colleges, universities and academic institutions. It will further, reinforce the existing literature for
benefit of policy makers, employees, and others in Eastern Equatoria State and South Sudan who may find
it useful in any other aspect. This study may serve to bridge or narrow down the gap of other scholars who
did related field studies previously.
The Clients / Customers: The study was intended to benefit the private and public parastatals sectors in
that, it is ultimately hoped that the findings will make contributions towards effective and efficient use of
financial ratio analysis at a place of work and on other hand to better measurements of organization /
firm /company performance to the Water utility, state government, in the same respect of organizational
setting by providing models rather than claims presented to all organizations in the Water utility.
The study findings are hoped to highlight the financial impacts, indicators and applications of SWOT anal -
ysis where Customers are to pay their dues as water tariff budgeted.
APPENDIX IV: LETTER TO THE FIELD

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USE OF FINANCIAL RATIO ANALYSIS AND A MEASURE OF ORGANIZATION PERFORMANCE.

BY OYITO BAPTIST H BEN SOFRONIO

INDEX NO: JAN/2021/PGD/

POSTGRADUATE DIPLOMA IN FINANCIAL MANAGEMENT FOR NGOs

A PROPOSAL SUBMITTED TO AFRICAN CENTER FOR PROJECT MANAGEMENT IN PAR-

would have been unachievable.

thanks for their valuable contribution to this success.

this dissertation and have been obliging in all times.

sure of organization performance in the Water Utility.

Figure 1:2.5 Conceptual framework...................................................................................................2-26

ACPM - Africa Center for Project Management

vided into two.

a. Fixed asset e.g., building, Equipment etc.

b. Current assets e.g., cash at hand, bank stock debated.

asset of a business e.g., Creditors, bank overdraft.

terest in the company.

the account, value added statement sources and application of funds.

time usually one year.

company’s capital outlay.

i.e., current asses less current liabilities.

or benefit on investment. Example are stocks, bonus etc.

cessive period in side-by-side column.

in a company’s performance and highlight trend.

expressed as a percentage of significant total for example of sale calculation.

Non-operating assets: Assets owned but used in producing revenue.

Solvency: Ability to pay debts as they become due.

in Torit, Eastern Equatoria State, South Sudan.

reached at all by time measure of five years project.

ation during a particular period of time.

to gain insight into the operation and performance of the firm.

this firm over a particular accounting period.

sheet and profit and loss account.

of technical analysis – from what the charts say:

the year by planning and future forecasting of the Firm

1.2 Statement of the Problem

ations of a business at the end of financial period.

or negative impact on the investment or investors.

companies for investment decision.

ment and in experience.

for proper investment decisions.

1.3 Purpose of the Study

1.4 Objectives of the Study

a). To examine the impact of financial ratios on investment decision.

b). To elucidate the applications of SWOT analysis on firm improvements

ive economic soundness.

1.5 Statement of Hypothesis

The hypothesis below would be subjected to testing Null Hypothesis

This study will be very important to the following: -

also taking decision on where to invest.

1.7 Scope of the Study

1.7.1 Content scope

their earning performances, liquidity, positive economic soundness.

1.7.2 Geographical scope

Kapoeta East, Kapoeta South, Kapoeta North and Budi County.

1.7.3 Time scope

1.8 Setting of the study

1.9 Terms institutionally used

vided into two.

a. Fixed asset e.g., building, Equipment etc.

b. Current assets e.g., cash at hand, bank stock debated.

set of a business e.g., Creditors, bank overdraft.

terest in the company.

usually one year.

company’s capital outlay.

Oyito Baptist's Habihoi Ben Research 2022

Oyito Baptist's Habihoi Ben Research 2022