ASSET MANAGEMENT AND OPERATING EFFICIENCY OF LISTED ICT FIRMS IN NIGERIA
Keywords:
Asset Management, Current Asset Turnover, Net Profit Margin, Noncurrent Asset Turnover, Operating EfficiencyAbstract
This study examined the effect of asset management on the operating efficiency of listed ICT firms in Nigeria. The specific objective was to determine how current asset turnover and noncurrent asset turnover influence net profit margin. An ex post facto research design was adopted, using panel data covering the period 2015 to 2024. The population consisted of eight listed ICT firms, from which five were purposively selected based on data availability. Secondary data were sourced from audited annual reports, and the hypotheses were tested using fixed effect regression following the Hausman specification result. The findings showed that: current asset turnover has a positive and significant effect on net profit margin (β = 0.000274, p = 0.0000); noncurrent asset turnover has a positive and significant effect on net profit margin (β = 0.010657, p = 0.0012). In conclusion, efficient utilisation of both current and noncurrent assets plays an important role in improving the profitability of listed ICT firms in Nigeria. Hence, financial managers and accountants in listed ICT firms should regularly monitor and optimise the utilisation of current assets, such as cash, receivables, and inventory, to ensure that these resources are generating maximum revenue within the shortest possible time.
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