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Asset Management and Financial Performance of Listed Consumer Goods Firms in Nigeria

Author

Listed:
  • ADEYEFA Felix Ademola

    (Department of Accountancy, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria)

  • ADEYEFA Oluwafunmilayo Adeuti

    (Department of Insurance, Rufus Giwa Polytechnic, Owo, Ondo State, Nigeria)

Abstract

The study investigated the effect of asset management on the financial performance of listed consumer goods firms in Nigeria from 2015 to 2024. The study specifically aimed at determining the effect of current asset to total asset ratio, net fixed asset ratio, total asset turnover and tangibility ratio on return on asset as a proxy for financial performance of listed consumer goods firms in Nigeria. Data were secondarily sourced from the audited annual reports of the five (5) selected listed consumer goods firms in Nigeria. The formulated hypotheses for the study were analysed with the aid of random effect panel data regression. Other analytical techniques employed in the study for the pre-test were descriptive statistics, correlation test, panel unit root test, Hausman test and Kao Residual Panel Co-Integration test to prevent spurious results. Findings showed that current asset to total asset ratio has a direct and significant effect on return on asset, net fixed asset ratio has a direct and significant effect on return, total asset turnover has a direct and significant effect on return on asset, and the tangibility ratio has a direct and significant effect on return on asset. The study, therefore, recommended that consumer goods firms should ensure the acquisition and use of tangible assets that support business operations, reduce idle time, and implement maintenance schedules to drive revenue growth. Also, the management of consumer goods firms should optimise inventory management by reducing inventory levels, implementing just-in-time systems, and improving supply chain efficiency.

Suggested Citation

  • ADEYEFA Felix Ademola & ADEYEFA Oluwafunmilayo Adeuti, 2025. "Asset Management and Financial Performance of Listed Consumer Goods Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 6397-6414, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-8:p:6397-6414
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    References listed on IDEAS

    as
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