The Effect Of Financial Ratios On Financial Performance Of Selected Quoted Food And Beverage Companies In Nigeria
ABSTRACT
This study determined the effect of financial ratio analysis on financial performance of food and beverages companies in Nigeria, using market ratio, debt-equity ratio, profitability ratio and return on assets. Ex-post facto research design was employed in the study. In this study, simple linear regression was utilized. The data were obtained from the annual reports of the twenty (20) sampled firms under study for a six (6) year period covering from 2016-2021. The result of the regression analysis reveals that market ratio, debt-equity ratio and profitability ratio significantly affect return on assets of food and beverage companies in Nigeria at 5% level of significance. It was recommended that company management should utilize its cost efficiently in generating more income for the company, thus maximizing shareholders’ wealth through improved earnings per share.