ABSTRACT
This study
sought to establish the effect of accounts receivables on financial performance
of quoted companies in Nigeria. The target population comprised all quoted
companies in the Nigerian stock market. The study reviewed both theoretical and
empirical literature on accounts receivable. From the review ofrelated
literature, a comprehensive conceptual framework of argument of the
relationship between accounts receivables and financial performance was
formulated. Secondary data was collected from the annual financial statement
ofthe reviewed quoted company. Profit after tax (PAT) was used as proxy for
financial performance while Account Receivable Collection Ratio (ARCR), account
receivable turnover ratio (ARTR) and inventory conversion ratio (ICR) were used
as proxies for independent variable.Applying E-Views version 10.0, descriptive
and inferential statistic were used to analyse the data. The result ofthe
correlation analysis showedthat there is a positive relationship between
accounts receivables and financial performance of Premier Paints Pic.
Specifically, account receivable collection ratio had statistically significant
[2.0851] effect on profit after tax, account receivable turnover ratio also had
significant [2.548] effect on profit after tax while inventory conversion ratio
showed positive and significant [3.856] effect on profit after tax. The
coefficient determination (R2= 0.6044) showed that about 60% of the variations
in the dependent variable was influenced by the independent variables;
therefore, the study concluded that there is significant effect of account
receivables on profit after tax ofPremier Paints Pic. The study recommend that
managers in the quoted company should put in place good credit policies to
enhance efficient management of accounts receivable thereby improve on their
financial performance.
EKUKAH, C (2024). Effect of Accounts Receivables on the Financial Performance of Quoted Companies in Nigeria:- Emukah Lisa C. Mouau.afribary.org: Retrieved Oct 30, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-accounts-receivables-on-the-financial-performance-of-quoted-companies-in-nigeria-emukah-lisa-c-7-2
CHINWENDU, EKUKAH. "Effect of Accounts Receivables on the Financial Performance of Quoted Companies in Nigeria:- Emukah Lisa C" Mouau.afribary.org. Mouau.afribary.org, 10 Jul. 2024, https://repository.mouau.edu.ng/work/view/effect-of-accounts-receivables-on-the-financial-performance-of-quoted-companies-in-nigeria-emukah-lisa-c-7-2. Accessed 30 Oct. 2024.
CHINWENDU, EKUKAH. "Effect of Accounts Receivables on the Financial Performance of Quoted Companies in Nigeria:- Emukah Lisa C". Mouau.afribary.org, Mouau.afribary.org, 10 Jul. 2024. Web. 30 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-accounts-receivables-on-the-financial-performance-of-quoted-companies-in-nigeria-emukah-lisa-c-7-2 >.
CHINWENDU, EKUKAH. "Effect of Accounts Receivables on the Financial Performance of Quoted Companies in Nigeria:- Emukah Lisa C" Mouau.afribary.org (2024). Accessed 30 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-accounts-receivables-on-the-financial-performance-of-quoted-companies-in-nigeria-emukah-lisa-c-7-2