Year: 2024
Type: article
Abstract: This study explores the impact of asset efficiency on the financial performance of Nigerian listed non-financial firms. Total asset turnover ratio, non-current asset turnover ratio, inventory turnover ratio, and receivable turnover ratio were the asset efficiency indicators evaluated. Secondary data were gathered from the audited annual reports of the 40 non-financial firms sampled for this study for the period 2015-2022. Panel data least square multiple regression was used to test the hypotheses. According to the findings of this study, total asset turnover ratio, non-current asset turnover ratio, and inventory turnover ratio show a positive but statistically insignificant link with the financial performance of Nigerian non-financial firms. The findings, on the other hand, show that the turnover ratio and business size have a positive and statistically significant relationship with the financial performance of the firms analyzed. The study concludes that asset efficiency has a favorable effect on the financial performance of Nigerian non-financial firms. The study therefore, recommends among others that non-financial firms in Nigeria should efficiently maintain and use their different forms of assets to generate more income for the organization in order to promote higher financial performance.
DOI: 10.15640/jfbm.v11p4
Author: Ismail Alhassan
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7127059010