ASSET MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED MANUFACTURING COMPANIES IN NIGERIA (A STUDY OF CADBURY NIGERIA PLC)

ABSTRACT Asset management is very vital to the survival of manufacturing firms in Nigeria. Nevertheless, poor performance of the sector that forced about 857 manufacturing firms in Nigeria to either close down their operations or relocate to other neighboring countries since 1999 with more than 50% of the surviving firms classified as ailing in 2016 puts to question the efficiency of asset management by manufacturing firms in Nigeria. The study examines the effect of assets management on the financial performance of quoted manufacturing firms in Nigeria (Cadbury Nigeria PLC). The asset management variables studied was total asset turnover ratio, non-current asset turnover ratio, inventory turnover ratio and receivable turnover ratio. Secondary data were obtained from the Audited Annual Reports of Cadbury Nigeria PLCfor the period 2011-2022. Hypotheses were tested using panel data ordinary least square regression. The findings of this study reveal that, total asset turnover ratio, non-current asset turnover ratio and inventory turnover ratio have positive and statistically significant relationship with the financial performance of manufacturing firms in Nigeria proxy with return on assets (ROA) and return on equity (ROE). The study therefore concludes that asset management has positive effect on the financial performance of manufacturing firms in Nigeria. The finding therefore suggest that, Management of manufacturing firms in Nigeria should utilize their various forms of assets efficiently in generating more income for the company that will lead to higher financial performance.