Title: The Role of Financial Analysais in Measuring of Performances' Efficiency of Yemen Banks
Authors: Dr. Elsafi Mohammed Ahmed Adam and Dr. Karrar Mohammed Hassan Mohammed
Volume: 9
Issue: 10
Pages: 110-119
Publication Date: 2025/10/28
Abstract:
The research aimed to highlight the importance of the financial analysis of the consolidated budget items of the Yemen commercial and Islamic banks in measuring the efficiency of performance, and to measure the extent to which the management of these banks is interested in the results obtained through the financial analysis of the published financial statements. The importance of this research was to provide decision makers with appropriate information about financial performance, using financial analysis of the financial statements. In addition, the theoretical of research aimed to clarify the concept, importance and aims of financial analysis in a more detailed manner. The research problem was the use of financial analysis to obtain the appropriate financial indicators by which to measure the efficiency of the Yemen commercial and Islamic banks. In order to achieve the objectives of the research. The research tested main hypothesis: "The financial analysis of the consolidated budget items affects measuring the efficiency of the performance of Yemen commercial and Islamic banks". To test the hypothesis, the researcher analyzed the consolidated budget of Yemen commercial and Islamic banks for the period 2018 - 2019. The findings of research include: Financial analysis helps the management of Yemen commercial and Islamic banks to measuring financial efficiency by providing financial indicators that help in the search for raising the efficiency of the financial and operational performance of these banks. The current published financial statements are not a sufficient source to provide the necessary information that helps decision makers to make rational decisions unless that information is addressed by a comprehensive financial analysis. The research recommended: the need to pay attention to financial analysis by the management of Yemen commercial and Islamic banks, and the establishment of a specialized department to carry out financial analysis of the financial statements, and the appointment of financial analysts with sufficient experience. And the management of Yemen commercial and Islamic banks benefit greatly from financial analysis in order to identify how to measure performance efficiency more accurately and reliably.