The effect of liquidity and leverage on the financial performance of selected listed pharmaceutical companies in Nigeria Department:Accountancy By: Kpishi Project ID: 9307 Rating: (5.0) votes: 1 Price:₦5000 Get the Complete MaterialAbstractThis study examined the effect of liquidity and leverage on the financial performance of selected listed pharmaceutical companies in Nigeria. The specific objectives were to determine the effect of the Current Ratio and Debt Ratio on Return on Assets (ROA) and Return on Equity (ROE). Secondary data were obtained from the published annual reports of selected listed pharmaceutical companies covering the study period. Descriptive statistics, Pearson correlation analysis, and multiple regression analysis were employed to analyse the data. The findings revealed that the Current Ratio had a positive but statistically insignificant effect on Return on Assets, while the Debt Ratio had a negative but statistically insignificant effect on Return on Assets. Similarly, the Current Ratio had a negative but statistically insignificant effect on Return on Equity, whereas the Debt Ratio had a positive but statistically insignificant effect on Return on Equity. The study concluded that liquidity and leverage did not significantly influence the financial performance of the selected listed pharmaceutical companies during the period under review. It recommended that management maintain an optimal liquidity level, adopt prudent debt management practices, and improve operational efficiency to enhance profitability. Keywords: Liquidity, Leverage, Financial Performance, Current Ratio, Debt Ratio, Return on Assets, Return on Equity, Pharmaceutical Companies, Nigeria....Preview Download Preview +Other Accountancy project topics and materials you might be interested in»The Impact of Accounting Ratio in Decision Making ( A Case Study of Nigeria Breweries Plc Enugu) »The impact of budget and budgetary control in tertiary institutions ( A Case study of imo state university )»Internal control as a tool for improving profitability»The role of financial institutions in the development of Nigeria economy»Impact of computerization of accounting system of commercial banks ( A case study of union bank plc )»The Impact of product development on banks performance ( A Case study of first bank plc )»Effects of standard costing on the profitability of manufacturing companies (a case study of nigerian breweries plc, Ama, Udi local government of Enugu state) »The role of accounting system in measuring organizational performance of transport company ( A Case study of ABC Transport )»Role of good accounting system in the management of private enterprise in Nigeria ( A Case Study of Nwaogo pam paper mills limited )»The impact of development finance institutions (DFIS) in economic development of Nigeria»Auditing in Nigeria companies, problems and prospects»Effect of misrepresentation of information in a financial statement»Effective internal control as an aid to management efficiency ( Case Study of Nigeria Bottling Company Owerri )»The effects of computerized accounting system on the performance of banking industry in Nigeria»An appraisal of fraud prevention measures in Nigerian banking sector ( Case study of access bank plc owerri )