Accounts Receivable Management and Financial Performance of Listed Consumer Goods Firms in Nigeria

Efficient accounts receivable management plays a crucial role in determining firm liquidity, operational efficiency, and profitability, particularly in sectors where trade credit is widely practiced. This study examined the effect of accounts receivable management on the financial performance of listed consumer goods firms in Nigeria. Specifically, the study investigated the influence of Average Collection Period (ACP), Accounts Receivable Turnover (ART), and Bad Debt Ratio (BDR) on Return on Assets (ROA). The study adopted an ex-post facto research design and utilized secondary data obtained from the audited annual reports of Nestlé Nigeria Plc, Cadbury Nigeria Plc, and PZ Cussons Nigeria Plc for the period 2013–2022. Panel data analysis involving descriptive statistics, correlation analysis, and multiple regression estimation was employed. The findings revealed that Average Collection Period and Bad Debt Ratio exerted significant negative effects on Return on Assets, while Accounts Receivable Turnover had a significant positive effect on financial performance. The study concluded that efficient receivable management enhances profitability and strengthens financial sustainability. The study recommended that firms should improve credit appraisal systems, strengthen debt recovery mechanisms, and adopt effective receivable monitoring strategies.