INVESTIGATING IMPACT OF OPERATING AND FINANCING ACCOUNTS ON FIRMS PROFITABILITY: A CASE STUDY OF QUOTED FOOD AND BEVERAGES INDUSTRY IN NIGERIA

This study investigate impact of operating and financing accounts on profitability .The objective of the research presented here is to provide empirical evidence about the impact of operating and financing accounts on the profitability of quoted companies under food and beverages in Nigeria. To realize the objectives of the study; current assets and current liabilities were distilled into current operating assets, current financing asset, current operating liability and current financing liability. With this in mind the whole census of the companies quoted in food and beverages industry was studied covering a period of between 2006 and 2010. Secondary data collected from the annual statements of the companies were used to calculate data for the analysis. The overall significance of the model was evaluated by ANOVA. The results showed that the model is significant with the value of F-statistic =110.86 and Prob(F-statistic) =.00. The multiple regressions were used to overcome the weakness of Product Moment Coefficient of Correlation. The result indicated that operating assets and operating liability are drivers of profitability validating proposition of Fleuriet model.