Firm Financial Indicators and Profitability of Manufacturing Firms in Nigeria (Published)
This study examines the determinants of profitability in Nigerian manufacturing firms, focusing on internal financial indicators. Despite their importance, these firms face financial challenges leading to market exits. The study assesses the effect of key financial indicators on profitability, proxied by profit for the year, with independent variables including liquidity, leverage, firm size, and sales growth. A sample of 16 manufacturing firms listed on the Nigerian Exchange Group was selected using judgmental sampling. Secondary data from 2013 – 2023 financial reports were analyzed using Panel Least Squares regression and the Granger Causality Test in EViews 11.0. Findings reveal that liquidity and firm size significantly enhance profitability, while leverage and sales growth show positive but insignificant relationships. The adjusted R² of 0.534 indicates that 53.4% of profitability variations are explained by the model. The study highlights theoretical, managerial, and policy implications, recommending strategic liquidity management, balanced capital structures, optimal firm size, and refined sales strategies to enhance profitability
Keywords: Financial indicators, Liquidity Management, Manufacturing Firms, Nigeria, Profitability, cost structure
IMPACT OF LIQUIDITY MANAGEMENT ON THE PERFORMANCE OF AGRIBUSINESS SECTOR IN NIGERIA (1978-2013) (Published)
The performance of the agro-industrial sector in terms of output and exports is of great importance in Nigeria, and the influence of liquidity management is of essence in assessing its growth and development. Therefor this research work is on determining the impact of liquidity management on the performance of agribusiness sector Nigeria (1978-2013). The data used was sourced from the central bank of Nigeria (CBN) statistical bulletin, and were analysed using multiple regression analysis statistical technique. The findings of the study revealed thatliquidity management had a strong bearing on the performance level in the agro-industrial sector in Nigeria.Liquidity management, value of ACGSF loans to agribusiness subsector, government capital expenditure on agriculture, value food import, and rainfall significantly determined agribusiness output in Nigeria within the period under review and based on the specified model. Liquidity management, aggregate producer’s price, agribusiness output and aggregate world price of commodity index significantly determined quantity of agribusiness export in Nigeria within the period of study and based on the specified model.It is recommended that the government should display a high sense of commitmentin its liquidity management to bring about a realistic performance in the agribusiness sector.Farm support policies such as subsidization of agribusiness inputs to produce the desired multiplier effects on agribusiness and food production and the provision of yield increasing technologies are expedient in ensuring that the agricultural sector received the desired boosts and acceleration that it required to meet the food demand of the populace and are hence advocated. Output price incentive scheme is recommended but should not be designed as a welfare scheme rather emphasis of the scheme should be the attainment of the objectives of increasing agribusiness output and export in Nigeria within the possible short period of time.
Keywords: Agribusiness Sector, Liquidity Management, Nigeria, Performance