IMPACT OF LIQUIDITY AND SALES GROWTH ON FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

Abstract

This study examined how liquidity and sale growth impact on financial performance of listed
industrial goods firms in Nigeria. A correlational research design was used for the study. The
population of the study consist of twelve (12) listed industrial goods firms in the Nigerian
Exchange Limited. In arriving at the sample size the census sampling technique was used, hence twelve (12) listed firms. The study period ranges from 2010 to 2022 thereby
establishing a thirteen (13)-year period. While data were sourced secondarily the study used
multiple regression analysis to analyse the data. From the analysis the findings revealed that
liquidity has a positive but insignificant impact on financial performance while sales growth
has a negative but significant impact on financial performance of listed industrial goods firms
in Nigeria. Based on the findings the study recommended that the firms should maintain an
adequate liquidity level that can meet maturing obligations as they fall due. Nevertheless, management of listed firms should continuously review the sales growth while ensuring that cost of operation is put in check in order to improve performance.