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Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria

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Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria


Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George



Agbata, Amaka Elizabeth | Osingor, Arinze Stanley | Ezeala, George "Effect of Financial Ratios on Firm Performance: Study of Selected Brewery Firms in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5, August 2021, pp.1664-1671, URL: https://www.ijtsrd.com/papers/ijtsrd45177.pdf

The study assessed the effect of financial ratios on performance of Quoted Breweries firms in Nigeria. It made use of ex-post facto research design. Data were gotten from secondary sources obtained from NSE fact books and annual reports/accounts of the selected Breweries Companies. The population of the study consisted of thirteen (13) quoted Breweries firms listed on the Nigerian Stock Exchange as at 31st December, 2018. Four (4) of the quoted Breweries firms are selected to form the sample of the study for the period of nine (9) years (2010 – 2018). The relevant data obtained were subjected to statistical analysis using Pearson correlation coefficient and regression analysis. The results of this study revealed that there is a significant relationship between current ratio and firm performance but negative effect. Debt equity ratio has a significant effect on return on asset of Nigerian Breweries. The result of the study concludes that Nigerian breweries companies are relatively using an optimal mix of debt to equity which is evident from the significant positive relationship of debt-equity ratio with financial performance of the Nigerian Breweries. The researchers recommended that the management should employ all carefulness while financing with long term debt instruments; endeavor to find out the best and optimal combination of long term debt and equity that will impact positively on the value of the firm.

Financial Ratios, Firm Performance, Brewery Firms, Debt Instruments, Equity


IJTSRD45177
Volume-5 | Issue-5, August 2021
1664-1671
IJTSRD | www.ijtsrd.com | E-ISSN 2456-6470
Copyright © 2019 by author(s) and International Journal of Trend in Scientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0)

International Journal of Trend in Scientific Research and Development - IJTSRD having online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International Journal which provides rapid publication of your research articles and aims to promote the theory and practice along with knowledge sharing between researchers, developers, engineers, students, and practitioners working in and around the world in many areas like Sciences, Technology, Innovation, Engineering, Agriculture, Management and many more and it is recommended by all Universities, review articles and short communications in all subjects. IJTSRD running an International Journal who are proving quality publication of peer reviewed and refereed international journals from diverse fields that emphasizes new research, development and their applications. IJTSRD provides an online access to exchange your research work, technical notes & surveying results among professionals throughout the world in e-journals. IJTSRD is a fastest growing and dynamic professional organization. The aim of this organization is to provide access not only to world class research resources, but through its professionals aim to bring in a significant transformation in the real of open access journals and online publishing.

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