Liquid Assets and Operational Performance of Industrial and Consumer Goods Sectors in Nigeria

This study assessed the relationship between liquid assets and operational performance of industrial and consumer goods sectors in Nigeria. The liquid assets variables studied comprises: Inventory (INV), Cash\Bank Balances (CBB) while the Operational Performance variable studied is Turnover (TNV). Secondary data were sourced from the annual reports of the firms under review. Five Hypotheses were estimated with the use of Random Effect Panel Multi Regression Analyses. The findings of the study show that: Inventory (INV) have positive and significant relationship on the Turnover (TNV) of the industrial goods sectors in Nigeria and have a moderate and very weak positive on consumer goods sector similarly, Cash\Bank Balances (CBB) has a weak positive relationship on turnover of the consumer goods sector. This implies that organization without adequate liquid asset is bound to suffer set back (difficult to meet short term obligation). Based on the findings of the study, the researcher conclude that a well-managed inventory will lead to improvement of operational performance in Industrial goods sectors, while in the consumer goods sector, only inventory among the explanatory variables can predict operational performance effectively. The researcher recommend that management should put more attention on their liquid assets in order to maintain an adequate performance in the sectors because the result of the study has empirically proved that the higher the liquid asset the more the turnover of industrial and consumer goods sector in Nigeria will increase.