ASSESSING THE INFLUENCE OF LIQUIDITY MANAGEMENT ON THE FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

This study investigates the effect of liquidity management on the financial performance of listed consumer goods firms in Nigeria from 2020 to 2025. Liquidity management was measured using three indicators: Debt-to-Equity Ratio, Long-term Debt Ratio, and Short-term Debt Ratio, while financial performance was assessed using Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Secondary data was obtained from the annual reports of six purposively selected consumer goods companies listed on the Nigerian Exchange Group. Descriptive statistics, correlation analysis, and multiple linear regression were employed to analyze the data. The findings reveal that liquidity management significantly affects profitability. Specifically, short-term debt ratio negatively influences ROE and NPM, while long-term debt ratio also has a negative effect on NPM. However, the effect of liquidity management on ROA (a proxy for corporate stability) was statistically insignificant. The study recommends that firms minimize short-term borrowing, maintain a balanced debt structure, and strengthen internal liquidity forecasting tools. This research contributes to the literature by offering evidence from Nigeria’s czsonssumer goods sector and highlights practical implications for corporate finance decision-making. Keywords: Liquidity Management, Debt-to-Equity Ratio, Financial Performance, ROE, NPM, Nigerian Exchange Group