Performance Measurement in Business Organizations: An Empirical Analysis of the Financial Performance of Some Breweries in Nigeria

Abstract

Performance measurement system plays a catalytic role and has many dynamic benefits crucial for business growth. It involves the use of different measures to collect and report information regarding the performance of an individual, groups or organization. The aim of this study was to review the different performance measurement parameters in use in business organizations and to empirically analyse the performance of four breweries that are traded on Nigeria Stock Exchange. The financial statements of the breweries were critically analysed using financial ratio broadly classified into 3 main groups. Loan safety ratios, management efficiency ratios and profitability ratios. With the simple reason that most business ventures are set with the main aim of making profit, the study made its conclusion based on profitability. The finding shows that Nigeria Breweries Plc is more financially healthy than the other breweries, followed by Guiness Nigeria Plc.

Keywords: Financial Performance, Breweries, Profitability ratio, Management Efficiency ratio, Loan Safety ratio.