Title: Financial Indices And Financial Performance Of Listed Consumer Goods Firms In Nigeria
Authors: EMIFONIYE, A.A, Prof. Olannye, A.P, Prof. Osuji, C.C
Volume: 9
Issue: 4
Pages: 401-411
Publication Date: 2025/04/28
Abstract:
This study examined financial indices and the financial performance of consumer goods firms listed on the Nigeria Exchange Group (NGX). Using secondary data from 15 years of published annual financial statements, it analyzes the impact of Short-Term Debt Finance (STDF), Long-Term Debt Finance (LTDF) on financial performance, measured by Return on Assets (ROA). Quantitative techniques, descriptive statistics, and a correlation matrix were employed to assess and test these relationships. Analyzing data from 15 listed consumer goods firms in Nigeria, the results reveal: STDF significantly affects ROA. LTDF positively and significantly affects ROA. These findings underscore the importance of a balanced financial mix in enhancing performance. The study concluded that well-balanced financial indices can enhance a firm's financial performance by optimizing its capital structure. The proportion of debt and equity in the financial indices determines the company's cost of capital and overall financial risk. The study recommended that consumer goods firms' quoted on the NEG should increase the equity portion of the debt-equity indices in their financial indices to improve firms' ROA. So, firms should always thrive to attain those optimal indices in order to achieve the overall objective of the organization. The study offers valuable insights for policymakers, investors, and corporate managers, recommending improved financial management and stronger corporate governance to support growth and competitiveness in the consumer goods sector.