Abstract
This study assessed the effect of financial ratio regulations on agricultural enterprise profitability in Nigeria over the period 2014–2024. Return on Assets (ROA) was adopted as the proxy for profitability, while the explanatory variables included the Current Ratio (CR), Debt-to-Equity Ratio (DER), and Asset Turnover Ratio (ATR), representing liquidity, leverage, and efficiency respectively. The study employed panel data from five listed agricultural firms and analyzed the data using the Panel Least Squares (PLS) regression technique. Descriptive statistics indicated moderate variability among the variables, suggesting differences in liquidity, capital structure, and operational efficiency across firms. The regression results revealed that the Current Ratio (β = 0.1209, p = 0.0000) and Asset Turnover Ratio (β = 0.2091, p = 0.0000) exerted positive and statistically significant effects on ROA, implying that stronger liquidity positions and efficient asset utilization substantially enhance profitability. Conversely, the Debt-to-Equity Ratio (β = 0.0055, p = 0.5632) exhibited a positive but statistically insignificant relationship with ROA, indicating that leverage had minimal influence on profitability during the study period. The high R-squared value (0.9765) suggests that the selected financial ratios collectively explain a large proportion of variations in firm performance. The study concludes that profitability in Nigeria’s agricultural sector is primarily driven by internal liquidity and operational efficiency rather than capital structure. It recommends that firms strengthen liquidity management and optimize asset utilization while policymakers address sectoral challenges such as credit access, infrastructure and regulatory consistency to enhance sustainable profitability.