Credit Management and Return on Asset of Listed Consumer Goods Companies in Nigeria

The paper assessed credit management and ROA of listed consumer goods companies in Nigeria. Secondary data were obtained through annual report and accounts of the selected firms, covering 15 years span (2010-2024) from ten listed Nigerian consumer goods firms. The findings revealed at 0.05 significant threshold that receivables collection period (p=0.0390 < 0.05), payables payment period (p=0.0309 < 0.05), cash ratio (p=0.0243 < 0.05), and firm size (p=0.0337 < 0.05) all had significant effect on return on assets. The study recommended that sales department in consumer goods firms should ensure customers understand the credit policy in a clear and flexible way.

Keywords: ROA, credit management, consumer goods firms, credit policy,