Non-Current Assets And Profit After Tax Of Listed Consumer Goods Firm In Nigeria

Gboyega Olopade, Adeniyi Alexander Abu, Olusola Gabriel oladapo, Sadat Badanga Iyadi, Michael Ayotunde Oladele, Emmanuel kwaltam Lohfa

Abstract


 This paper examines the relationship between non-current assets and profit after tax listed consumer goods firms in Nigeria. An ex post facto research design was employed, and the data collected were from the audited annual reports of 17 firms from 2011 to 2020, using multiple regression utilizing STATA software. This study reveals that additional investment in the leasehold land and plant and machinery leads to positive and significant influence on profit after tax. Contrarily, buildings, motor vehicles, furniture and equipment had an insignificant effect. Therefore, the study concludes that strategic investments in some of the non-current assets, such as leasehold land and plant and machinery, have the potential to increase the profitability of the business, while other asset classes may have no direct influence on the financial performance. In addition, this study recommends that consumer goods firms must place leasehold land and plant & machinery as the best assets to be advanced for listed consumer goods firms in Nigeria. All firms should prioritize investing in these areas to realize the greatest financial return on their deployed resources. This is also supported by the fact that investments in buildings, motor vehicles, furniture and equipment have shown no effect on profitability—at least none that a firm manager could easily influence, but by directing attention to those assets that might generate a greater return potential. 

Keywords


Buildings, Furniture and equipment, leasehold land, Plant and machinery, Profit after tax

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References


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DOI: http://dx.doi.org/10.52155/ijpsat.v50.1.7165

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