Financial ratio analysis and performance of two commercial poultry farms in Zamfara State, North-Western, Nigeria

Abstract

The survey of the performance of two commercial poultry farms Rufai and Guruza farms in Zamfara State were carried out with the aim of assessing the profitability of the farms. The balance sheets and income statements were used to evaluate the financial position of the two farms. The findings of the study revealed that both farms were operating profitably. However, Rufai farm was less liquid than Guruza farm, both the farms are solvent, however, Rufai farm had more debts liabilities than the Guruza farm. The profitability ratios of the farms are within the normal range 0.24 and 0.53 for Guruza and Rufai respectively. Based on the Gross ratio of the two farms the study revealed that Rufai has (0.04) while Guruza has (0.23), while based on the capital turnover ratio Rufai has (3.54) while Guruza (0.30) it was concluded that Rufai farm was more profitable than Guruza. However, it was concluded that commercial poultry farming was profitable venture and strategic tool for food security.