Analysis of the Effect of Sales Growth and Managerial Efficiency on the Profitability of Health Care Firm In Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.4(2)2022.001Keywords:
Profitability, sales growth, efficiency, healthcare firms, size, NigeriaAbstract
The study investigated the effect of sales growth, managerial efficiency and size on the profitability of healthcare firms in Nigeria by using the data of five (5) healthcare sampled firms obtained from 2007-2021 which was extracted from their annual reports and accounts. The study uses panel data regression technique for data analysis and the outcome suggests that sales growth and size variables have strong and significant effect on the profitability of the health are firms. However, managerial efficiency was found to have no significant effect on the health care firms’ profitability. The result suggests that size of firms and increased revenue will impact positively on their profitability but efficiency in management of resources in isolation has no significant impact on their profit. The study recommends that health care firm in this sector should continue to focus attention on sales growth potential and through improved revenue, and expansion of size, through assets base and efficient resource utilization.
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