The Impact of Effective Asset Management on Financial Performance of Nigerian Consumer Goods Corporations
- Post by: ams
- October 3, 2023
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ABSTRACT
The study examined the impact of effective asset management on financial performance of Nigerian consumer goods corporations. The specific objectives of the study were to determine the effect of Account Receivables Turnover Ratio, Inventory Turnover Ratio and Property, Plant and Equipment (PPE) Turnover Ratio on Return on Assets (ROA) of Consumer Goods Firms in Nigeria. The research design employed in this study was ex post facto, spanning the years 2013 to 2022. Secondary data were extracted from the annual reports and accounts of the selected consumer goods firms in Nigeria. The data analysis involved multiple panel regression using a fixed effect model. The result revealed that the Account Receivables Turnover ratio has a positive (t-Statistic 2.92988) and significant (p-value 0.0267) effect on the Return on Assets of the sampled Consumer Goods Firms in Nigeria. Similarly, the Inventory Turnover Ratio demonstrated a positive (t-Statistic of 4.41911) and significant (p-value 0.0010) effect on the Return on Assets of these firms. Additionally, the Property, Plant, and Equipment Turnover Ratio exhibited a positive (t-Statistic 2.25927) and significant effect (p-value 0.0140) on the Return on Assets of the sampled Consumer Goods Firms in Nigeria. The findings implies that efficient management of account receivables, inventory, and property, plant, and equipment turnover can significantly contribute to enhancing the financial performance of consumer goods firms in Nigeria. In conclusion, the study demonstrates the positive and statistically significant effects of Account Receivables Turnover, Inventory Turnover, and Property, Plant, and Equipment Turnover Ratios on the Return on Assets of consumer goods firms in Nigeria. The study recommended that management of consumer goods firms in Nigeria should focus on optimizing their account receivables, inventory, and property, plant, and equipment turnover as strategies to improve financial performance.
Keywords: Effective Asset Management; Financial Performance; Nigerian Consumer Goods Corporations
Citation: Nkwo, F. N. & Eneh, S. N. (2023). The Impact of Effective Asset Management on Financial Performance of Nigerian Consumer Goods Corporations. Annals of Management Studies, 10(4), 13-22. DOI: https://doi.org/10.5281/zenodo.8403041
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