3.4 SAMPLING DESIGN
Given a research of this nature we are intended to work with
samples of value since we cannot cover the entire financial industry in
Cameroon. To do so we are going to make use of purposive random sampling since
we are going to work with organisations which have a branches in almost every
province of the country. The sampling was made according to the level of
activity of the commercial banks such as AFRILAND FIRST BANK. We also noticed
the importance of micro-financial credit unions that is why our sampling
technique allowed us to work with SOWEFCU-KUMBA. Having sampled our target of
interest, we are now going to talk about the method of analysis.
3.4 METHOD OF ANALYSIS
In analysing our information we will make use of the following
tools of analysis:
3.4.1 RATIOS ANALYSIS
Ratio analysis is an important technique in assessing the
financial condition of a company and the relative attraction of its securities.
They are useful because they can briefly summarize relationships between items
in the financial statement which are significant.
We have for instance what is meant as profitability ratios
within which we can fund the liquidity ratio which is given as follows:
Currents
assets
Liquidity ratio =
Currents
liabilities
It attempts to measure the ability of a company to meet its
short-term commitments. Ratios are generally expressed in percentages and they
express the degree of variation or relationship between financial indicators of
the company.
3.4.2 STANDARD DEVIATION (ó)
Standard deviation is a statistical tool of analysis usually
computed to determine the risk figures. It is merely used in measuring the time
series deviations between two variables. It quantifies the risks in
mathematical terms and its expression is given as follows:
? (X - u)
2
S or ó = v
N
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