Operational Efficiency and Financial Performance of Listed Industrial Goods Companies in Nigeria

This study primarily aimed to examine the effect of operational efficiency on the financial performance of listed industrial good companies in Nigeria. The research design adopted in this study was ex post facto research, secondary data were employed, and a population of 13 companies was used. The sample size was 11 purposively selected companies. Pooled OLS regression analysis was used to analyze the data, and STATA 17 was employed as the statistical package. The analysis results revealed that inventory turnover has a significant positive effect on the return on capital employed; receivable turnover has a significant positive effect on the return on capital employed; and noncurrent assets turnover has a significant positive effect on the return on capital employed of listed industrial goods firms in Nigeria. Thus, it was concluded that operational efficiency has a significant effect on the financial performance of listed industrial good companies in Nigeria. Therefore, companies should implement robust strategies to optimize inventory levels, such as improved forecasting techniques, efficient supply chain management, and just-in-time inventory systems, feasible, to minimize holding costs and enhance cash flow.