ASSETS COMPOSITION AND FINANCIAL PERFORMANCE OF CONSUMER GOODS FIRMS IN NIGERIA

Abstract

The study examined assets composition and financial performance of consumer goods firms listed in Nigeria. The study adopted panel research design and employed secondary data from 2017 to 2021 on the research variables sourced from the annual reports of twenty-one consumer goods industries listed on the floor of the Nigerian Exchange Group. Census sampling was employed. Hence, the study sampled all the twenty-one consumer goods industries listed on the Nigeria Exchange Group. The pooled ordinary least square regression was employed as the method of data analysis in the study. The findings showed that non-current assets do not have significant effect on financial performance of listed Consumer Goods industries in Nigeria. Current assets have significant effect on financial performance of listed Consumer Goods industries in Nigeria. The study recommends that consumer goods firms’ management should carefully consider the levels of their non-current assets’ investments, as they may not make any meaningful contribution to financial performance. Firms should improve their current assets at an optimum pace, make good their mature short-term obligations and minimize idle funds to the barest level. This is because such investments will result in a proportionate increase in their financial performance.