Effect of Assets Composition on Financial Performance of Industrial Goods in Nigeria

Résumé

The study ascertained the effect of assets composition on financial performance of industrial goods in Nigeria. Working capital was used as independent variable and return on equity as the dependent variable. The study employed Ex Post Facto research design. Twelve industrial goods firms consists the population of the study. Data were extracted from audited annual accounts of industrial goods firms in Nigeria. The result showed that P-value of the test was 0.000 less than 0.05 (5%), this study upholds that working capital has significantly affect financial performance of listed industrial goods firms in Nigeria. Based on the findings, the Study recommended that the management of industrial goods in Nigeria should ensure that it takes into consideration the quality of working capital in order to ensure they contribute positively to the productivity of the firm, so as to enhance the overall profitability of the firm.