Abstract:

This article looks at two broad-spectrum of financial management discipline; the first one examines the financial stability of commercial banks by analysing their published financial statement to test their stability in the market place before the Ebola scourge. This paper focus on the Sierra Leone Company’s Act 2009 and relevant Sections of the Banking Acts of Sierra Leone to analysis its alignment with the reporting standards of its financial statement produced by various firms in compliance with the IFRS standards. This report tests the financial stability of seven commercial banks in Sierra Leone with the major financial ratios used, especially the z-score analysis that check the financial stress of a firm.

Keywords: Profitability, Liquidity, Stress test, Financial Performance, Return on Capital Employed, Z-Scores, and financial statement analysis.

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