- Adeniran, Titilope F., Aliu, I. A. B., Adisa, A. M. & Baanu, O. B.*
- Department of Bursary and Accountancy Oyo State College of Agriculture and Technology Igboora, Oyo State, Nigeria
- DOI: 10.5281/zenodo.19671836
Efficient accounts receivable management plays a
crucial role in determining firm liquidity, operational efficiency, and
profitability, particularly in sectors where trade credit is widely practiced.
This study examined the effect of accounts receivable management on the
financial performance of listed consumer goods firms in Nigeria. Specifically,
the study investigated the influence of Average Collection Period (ACP),
Accounts Receivable Turnover (ART), and Bad Debt Ratio (BDR) on Return on
Assets (ROA).
The study adopted an ex-post facto research design and
utilized secondary data obtained from the audited annual reports of Nestlé
Nigeria Plc, Cadbury Nigeria Plc, and PZ Cussons Nigeria Plc for the period
2013–2022. Panel data analysis involving descriptive statistics, correlation
analysis, and multiple regression estimation was employed.
The
findings revealed that Average Collection Period and Bad Debt Ratio exerted
significant negative effects on Return on Assets, while Accounts Receivable
Turnover had a significant positive effect on financial performance. The study
concluded that efficient receivable management enhances profitability and
strengthens financial sustainability.
The study
recommended that firms should improve credit appraisal systems, strengthen debt
recovery mechanisms, and adopt effective receivable monitoring strategies.
