Capital Structure and Profitability of Listed Consumer Goods Companies in Nigeria


  • Amiru Balarabe Lawal Faculty of Management and Social Sciences, Federal University Gusau, Zamfara State
  • Jamilu Abdulkadir Distance Learning Centre, Ahmadu Bello University, Zaria



The general objective of this study is to investigate the effect of capital structure on profitability of listed consumer goods companies in Nigeria. The study covers a period of ten years from 2013 to 2022 using a population of twenty one (21) consumer goods companies and sample of thirteen (13) companies. Data for the study were obtained through secondary sources using annual financial reports of the listed companies on the Nigerian stock exchange for the period. Capital Structure was measured using debt ratio and debt to equity ratio while return on assets was used to measure profitability using Ordinary Least Squares Regression. Findings revealed that debt ratio has negative and insignificant effect on return on assets, while debt to equity ratio has positive insignificant effect on return on assets. It was recommended that the consumer goods companies in Nigeria should carefully manage their capital structure to ensure financial stability, continue to monitor their financial performance and adjust their capital structure as needed, diversify funding sources and carefully consider the mix between debt and equity to mitigate financial risk.


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How to Cite

Amiru Balarabe Lawal, & Abdulkadir, J. (2023). Capital Structure and Profitability of Listed Consumer Goods Companies in Nigeria . Minhaj International Journal of Economics and Organization Sciences, 3(2).



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