Profitability

Effectiveness of Inventory Management on the Profitability of Manufacturing Sectors in Nigeria Bottling Company, Kaduna (Published)

Inventory management plays a crucial role in the profitability of manufacturing sectors, including the Nigeria Bottling Company in Kaduna. The study aimed to assess the effectiveness of inventory management on the profitability of manufacturing sectors in Nigeria Bottling Company, Kaduna. The study is quantitative and utilizes both primary and secondary data. A survey instrument was developed to collect primary data from a sample of 100 managers and employees within the Nigeria Bottling Company, Kaduna. Additionally, secondary data was collected from annual reports and financial statements of the company. The primary data collected was analyzed using statistical techniques such as descriptive statistics and regression analysis, while the secondary data was analyzed using content analysis. This mixed-method approach allowed for a comprehensive examination of the effectiveness of inventory management on the profitability of the manufacturing sectors in the Nigeria Bottling Company, Kaduna. From the result of data analysis, the hypothesis there is a positive relationship between inventory management and prompt delivery in manufacturing sectors (Nigerian Bottling Company) Kaduna, was rejected and the alternate was accepted. The study concludes that although inventory management is a key factor in prompt service delivery, it is not the only factor. The organization must balance its operations by putting in place important management and operational policies that support service delivery. Some of which are recommended to include the implementation of advanced inventory management techniques, enhancing demand forecasting and production planning processes, among other things.

 

 

Keywords: Inventory Management, Nigeria bottling company, Profitability, manufacturing sectors

Macroeconomic Factors and Profitability: A Study of Selected Multinational Food and Beverages Companies in Nigeria (Published)

Manufacturing, particularly the food and beverage industry, remains critical to every economy around the world, as do the realities in Nigeria. Due to increased population, disposable incomes, changing tastes and products, Nigeria’s food and beverage sector is expected to grow rapidly. However, fluctuating macroeconomic factors threaten the daily operations of Nigeria’s food and beverage industry. This study examined the effect of macroeconomic factors (political, economic, socio-cultural, and technological) on the profitability of selected multinational food and beverages companies in Nigeria using a survey research design with specific reference to Coca-cola, PepsiCo, Nestle, Unilever, and Cadbury Nigeria Plc. A questionnaire was used to collect primary data from a sample of 417 employees drawn from five multinational food and beverage companies located in Lagos State, Nigeria. Multiple regression analysis was used to test the hypotheses formulated. Results indicated that macroeconomic factors (political, economic, and technological) had a significant effect on the profitability of multinational food and beverage companies in Nigeria. The study concluded that macroeconomic factors are vital and have a significant impact on the extent to which enterprises’ operations generate a profit, thus, it was recommended that the management of the multinational food and beverage companies in Lagos State, such as Coca-Cola, PepsiCo, Nestle, Unilever, and Cadbury, need be aware of the macro-environmental factors influencing their profitability in order to make decisions that will increase the firm’s profit.

Keywords: Nigeria, Profitability, economic factor, food and beverages companies, political factor, technological factor

Six Sigma Manufacturing and Performance of Brewing Firms in South-South, Nigeria (Published)

The broad objective of this paper is to determine the type of relationship that exists between Six Sigma Manufacturing and Performance of brewing firms in South-South, Nigeria. Specifically, this study seeks to ascertain the type of relationship between quality input and profitability of brewing firms in South-South, Nigeria. The study was anchored on The Theory of Constraint (TOC) propounded by Goldraft (1984). Expost-facto research design was adopted for the study. Secondary data extracted from the annual financial reports of the three studied brewing firms (Guinness Nigeria Plc, Champion Brewery and International Brewery Plc.) were used for the study with regression analysis applied on the collected data. Results obtained from the test of the hypothesis revealed that a significant positive relationship exists between quality input and profitability since (F-statistic = 57.11217; R-squared = 0.815; P <.05). Based on the findings, the researchers concluded that there exists a strong significant positive relationship between Six Sigma Manufacturing and Performance of brewing firms in South-South, Nigeria.

Citation: Nnabuife, E  and  Ohue Paul Itua (2021) Six Sigma Manufacturing and Performance of Brewing Firms in South-South, Nigeria, European Journal of Business and Innovation Research, Vol.9, No.4, pp. 41-55

Keywords: Organizational Performance, Profitability, quality input, six sigma manufacturing

Social Cost Accounting and Profitability of Glaxo Smith Kline Nigeria Plc. Listed On the NSE (Published)

This study examined the relationship between social cost accounting and profitability with a focus on GlaxoSmithKline Consumer Nigeria PLC in a case study. The study adopted employee benefits, incentives welfare and healthcare cost (EBI) and contribution to government revenue (CGR) as proxy for social cost accounting (the independent variables), while profit after tax (PAT) representing profitability was adopted as the dependent variable. Secondary data for the selected study variables were obtained through content analysis of the annual reports of GlaxoSmithKline for the period 2011 to 2018. The study employed descriptive statistics and multiple regression analysis based on the E-view 10 software as techniques for data analysis. The results revealed that all the independent variables had positive relationship with profit after tax, but only contribution to government revenue was significant at 5% level. The regression results also showed that the coefficient of determination (R-squared) value of approximately 0.94 indicating that 94% of changes in the dependent variable are accounted for by the combined effect of changes in the independent variables. The combined effect of variations of the explanatory variables significantly explained changes in the dependent variable with probability of F-statistic value of 0.000007 (at 5% level of significance). The study concluded that social cost accounting is significantly related to profitability. Based on the findings of the study it was recommended that the management of GlaxoSmithKline should continue to implement the social cost accounting policies already put in place as they provide a good social image for the company, and that would guarantee the long run success and survival of the company.

Keywords: Accounting, Contribution, Profitability, employee benefits, social cost

Effect of Liquidity Management on the Financial Performance of Banks in Nigeria (Published)

This study examines the effect of liquidity management on financial performance of banks in Nigeria for the period 2010 to 2018. The study uses secondary data from five banks listed bank on the stock exchange in Nigeria. The proxies employ for liquidity management are; Liquidity ratio (LQR), Loan to deposit ratio (LDR), Cash reserve ratio (CRR) and deposit ratio (DR), while return on assets (ROA), return on equity (ROE) and return on net interest margin (NIM) are proxies for financial performance (Profitability). The study uses panel regression analysis in estimating the model and Hausman test while making a choice between fixed effect and random effect model. The study finds that liquidity ratio (LQR) have positive and significant effect on financial performance of DMB as measured by return on assets (ROA), return on equity (ROE) and net interest margin(NIM).It therefore recommends that banks in Nigeria should establish sound governance and risk management systems by developing strategies, policies for  liquidity management that is well integrated into its risk management practices as well as establish a contingency funding plan to address any liquidity shortfall during periods of stress or emergency while ensuring  that  active monitoring liquidity funding needs to avert any liquidity challenge that could trigger crisis in the banks is promptly addressed.

Keywords: Banks’, Liquidity Management, Profitability

Ethical Compliance and Organizational Profitability of Telecommunication Companies in Nigeria (Published)

One of the industries in Nigeria economy that attracts much complains from her numerous customers in terms of ethical compliance is the telecommunication industry. This therefore prompts the curiosity to examine the impact of ethical compliance on organisational profitability in the Nigerian telecommunication companies. The study focuses on three ethical compliance variables which are integrity, customer value and fairness to customers while profitability was measured in terms of customers’ patronage and loyalty. The descriptive survey design was adopted and the study was guided by three research questions and three hypotheses. The population of the study comprised telecommunication subscribers in Akwa Ibom state and a sample of 384 respondents was estimated using Walpole’s sample size for infinite population formula. The selection of samples was done using convenience sampling. Ethical Compliance and Organisational Profitability Questionnaire (ECOPQ) developed by the researcher was used in data collection. The instrument was validated by experts and reliability of the instrument was established using Cronbach Alpha method of reliability testing and the reliability coefficient of 0.89 was obtained.  Data obtained were analysed using simple percentages and multiple linear regression and all hypotheses were tested at the 0.05 level of significance. To enhance data analysis, the study employed the use of Statistical Package for Social Science (SPSS version 22.0).  Result obtained shows significant positive impact of ethical compliance as measured by integrity, customers’ value and fairness on profitability in Telecommunication companies. It is therefore important that the management of Telecommunication companies pay more attention to the issue of ethical compliance as this will help improve their profitability.   

Keywords: Ethical Compliance, Profitability, Telecommunication Companies

Impact of Liquidity Risk on Firm Specific Factors: A Case of Islamic Banks of Pakistan (Published)

The major objective of the study is to develop a model and to test the relationship among liquidity risk and firm performance through its facets.  The main facets of firm performance in the study are i-e profitability, firm size, leverage, share prices and earnings on assets. The present study mainly attempts to analyses qualitative, quantitative & contextual relationship of liquidity risk in Pakistan. Moreover, liquidity risk is less investigated in Pakistan and mainly regarding Islamic banking sector with respect to current data. Therefore, study is mainly investigated on the fourth pillar of significance i-e contextual significance. While, Islamic banking sector of Pakistan is investigated in current study. And the data is acquired from state bank of Pakistan database and through annual reports of the banks. Though, the study has supported past investigations results. Hence, the study has revealed key findings that will be fruitful for theorists, educationists and research scholars as well.

Keywords: Contextual study, Islamic banking, Leverage, Liquidity risk, Pakistan, Profitability, Return on Assets, bank size

Bank Capital and Profitability: A Study of Selected Banks in Ghana (Published)

The study investigated the relationship between bank equity capital and profitability by sampling fourteen (14) banks, using the purposive sampling technique, out of the twentyeight (28) universal banks operating in Ghana at the time, with data covering an eleven- year period (2005-2015). The study adopted the panel data methodology to examine the effect of bank capital on profitability. The random-effects Generalised Least Square (GLS) regression was adopted as an estimation technique for the research.  The study revealed that equity capital is significantly and positively related to Net Interest Margin (NIM), and Return-on-Equity (ROE). Bank size is significantly and negatively related to ROE, and insignificantly inversely related to NIM. Regulated bank capital is a disincentive to inclusive financial intermediation in Ghana.

Keywords: Bank, Capital, Equity, Ghana, Profitability, Size

Effects of the Implementation of Good Corporate Governance on Profitability (Published)

The Indonesian Institute for Corporate Governance (IICG) always conducts research about the proper application of corporate governance every year, especially in public companies in Indonesia’s Stock Exchange. Basically, Good Corporate Governance is the procedure of company management in running their goals that result in optimal profitability or profit for the investors. In theory, the application of good corporate governance will increase the profitability of a company. But in reality, it is necessary to conduct research on the issue. Some problem identifications that arise are the questions about the implementation of good corporate governance, the level of profitability (return on assets) and how much the implementation of Good Corporate Governance affects the profitability (return on assets). This study involved 9 companies which participated in The Indonesian Institute for Corporate Governance (IICG) research. For this study, the authors used quantitative research method to test the hypothesis that has been set. The variables correlation is causal or causal associative. The statistical test measurement used to determine the effects is simple regression. The statistical tool to measure the effect of the used measurement scale is ratio and interval. Based on the research conducted by the author, the result that is obtained is the implementation of CGPI that is measured through CGPI increased and decreased, although in general it increased. Meanwhile profitability that is measured through average ROA increased. Based on the result of hypothesis testing, the implementation level of Good Corporate Governance has a positive effect on the sampled company’s profitability (return on assets). The effect is 19.8%.

Keywords: Corporate Governance, Profitability

THE ERA OF POST-CONSOLIDATION AND BANKS’ PROFITABILITY IN NIGERIA (2000- 2013): A MULTIVARIATE CO-INTEGRATION ANALYSIS (Review Completed - Accepted)

The paper examined the relationship between the era of post-consolidation and banks’ profitability in Nigeria using data spanning (2000-2013). Secondary data was collected from the CBN statistical and economic and financial review bulletins. Hypotheses were formulated and tested using error correction model (ECM) and the study reveals that the variables are stationary and integrated of order at various levels. There is also long-run equilibrium relationship between the era of post-consolidation and banks’ profitability in Nigeria and the result confirms that about 62% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicates that about 27% of the variations in banks’ profitability are explained by changes in the era of post-consolidation variables. The study therefore recommends that bank management should strengthen their supervising units in credit administration to avoid the issue of non-performing load. For Nigeria banks to be a major player in domestic and international market, banks capital should be above minimum regulatory requirements at all times. Shareholders’ funds and total assets of banks should be periodically evaluated and aggregate marketing should be vigorously intensified by the banks

Keywords: Banks’, Era, Nigeria, Post-Consolidation, Profitability