Abstract
This study was embarked upon to investigate the effect of liquidity management on financial performance of listed foods and beverage firms in Nigeria. The study adopted an ex-post-facto research design and secondary data was gathered to analyze the relationship between the variables. The population of the study consisted on twenty-one (21) food beverages firms listed on the NSE, however, only eight (8) samples were selected from the population. The data was collected from their annual financial report covering a period of ten (10) years (2010-2019). The collected data were analyzed using Ordinary Least Square (OLS) regression analysis. From the results of the findings, it was revealed that the cash conversion cycle has positive and significant effect on financial performance of listed food and beverage firms in Nigeria (p<0.0046); current ratio has positive and significant effect on financial performance of listed food and beverage firms in Nigeria (p<0.0379), however, quick/acid test ratio has no significant effect on financial performance of listed food and beverage firms in Nigeria. (p>0.6580). The study concluded that current ratio is not a significant predictor of food and beverage performance in Nigeria. Acid test ratio as a liquidity measurement ratio maintained a positive and significant relationship with financial performance of listed food and beverage firms in Nigeria and also acid test ratio is a strong liquidity predictor of the financial performance of listed food and beverage firms in Nigeria.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Kampala International University Interdisciplinary Journal of Humanities and Social Sciences
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.