Article,
Firms Growth and Cashflow Analysis: An Empirical Analysis of Nigeria Firms
Central Asian Journal of Innovations on Tourism Management and Finance, 4 (5): 32-41 (May 2023)
Abstract
This study explores the nexus between firm’s growth and cashflow analysis of Nigeria firms. It utilized an ex post facto research design in investigating the relationship between cashflow analysis and firm growth in consumer goods firms in Nigeria. Data on cash flow, revenue growth, and growth of profit were collected from the financial statements of the firms. Correlation and regression analyses were utilized to analyze the data and testing of the hypothesis. From the results, it was revealed that there is a weak positive correlation between firm growth and net cash flow, and a significant positive nexus between net cash flow and firm growth after controlling for the effect of profit growth. The research study also found a trade-off between net cash flow and profit growth. On the premise of these findings, it was recommended that companies in Nigeria should prioritize maintaining a healthy cash flow to facilitate growth and balance their financial priorities to maximize their growth potential. These findings can help inform business decisions and policies aimed at promoting economic growth in the country.
