Capital Structure and Financial Performance of Quoted Consumer Goods Manufacturing Companies in Nigeria

Abstract

This paper examined the impact of Capital structure on financial performance of quoted Consumer goods manufacturing companies in Nigeria. The data was secondary in nature data were retrieved from the annual reports of quoted consumer goods manufacturing companies whose financial statements were available for the period 2018 to 2020 on the Nigerian Stock Exchange. The population of the study is made of (20) quoted consumer goods manufacturing companies in Nigeria, out of which seventeen (17) companies were selected as the sample size for the study. The results amongst others statistically revealed that no significant relationship exist between capital structure (CS) and Net Profit Margin as shown from the P-value of 0.347 also, there is no relationship between capital structure and Gross Profit Margin with P-value of 0.196. In view of these findings, the study recommended among many others that every firm should take advantage of equity benefits by not focusing only on debt financing because of the relationship revealed by the outcome of this study