Effect of Turnover Ratios on the Value of Consumer Goods Firms in Nigeria

Udeh, Anastasia Ifeoma; Nwoha, Chike Ernest; Okwo, Ifeoma Mary

doi:10.5281/zenodo.7334366

Effect of Turnover Ratios on the Value of Consumer Goods Firms in Nigeria

Authors: Udeh, Anastasia Ifeoma, Nwoha, Chike Ernest, Okwo, Ifeoma Mary

Journal: Global Journal of Finance and Business Review (GJFBR), ISSN 1694-450X

Citation: GJFBR 5(4), 2022-11-20.

DOI: 10.5281/zenodo.7334366

PDF: Download full-text PDF

Type: Original Research

Abstract

The study examined the effect of turnover ratios on the value of consumer goods firms in Nigeria as large number of business failures have been blamed on the inability of the firm managers to successfully use efficiency ratios to analyze, monitor and control the progress and performance of their firms. The ex-post facto research design and multiple regression analysis were adopted. The findings showed that inventory turnover ratio significantly affects earnings per share of consumer goods firms in Nigeria with a t-statistic of 4.074926 and probability value of 0.0006 at 5% level of significance. Assets turnover ratio significantly affects earnings per share of consumer goods firms in Nigeria with a t-statistic of 5.139843 and probability value of 0.0094 at 5% level of significance, It was equally observed that account receivable turnover ratio significantly affects earnings per share of consumer goods firms in Nigeria with a t-statistic of 3.473243 and probability value of 0.0475 at 5% level of significance, the study further discovered that account payable turnover ratio significantly affects earnings per share of consumer goods firms in Nigeria with a t-statistic of 4.410422 and probability value of 0.0050 at 5% level of significance. Based on the findings it was recommended that inventory of the companies should be reduced to avoid obsolete stocks. With effective account receivables and account payables the cashflow of companies will experience tremendous improvement.

Keywords

Turnover Ratios, Value, Consumer Goods Firm, Nigeria Authorship 1 Udeh, Anastasia Ifeoma, 2 Prof. Nwoha, Chike E. and 3 Prof. Okwo, Ifeoma M. FULL PDF | DOI: 10.5281/zenodo.7334366

Published by Academic Ink Review Journal. Open Access under CC BY 4.0.