Influence of Revenue Growth on Financial Performance. The Case of Nestle Nigeria Plc

Abstract

A look at financial performance and revenue growth is what this study is all about. The Situation at Nestle Nigeria Plc. The study's methodology was an ex post facto research design. Secondary data was sourced from the company's publicly available financial statements for the years 2011– 2020. Using E-view 9.0 Software, the researchers in this study analyzed the data by employing multiple regression and descriptive statistics. The rate of revenue growth was chosen to serve as the study's dependent variable, whereas returns on investment, return on assets, debt-to-equity ratio, were chosen as proxies for financial performance. The findings indicate that RGR substantially and favorably impacted ROA, ROI, and DEQ. The overall rate of revenue growth for Nestle Nigeria plc is significantly impacted by the firm's financial performance. Financial performance metrics do have a substantial impact on sales growth, according to the conclusions. Since ROA, ROI, and DEQ affect the growth of the company, Nestle Nigeria Plc should finance their activities more with them. Nestle Nigeria Plc should be careful when deciding how much debt or equity to employ to fund the business, since taking on too much debt can stunt its expansion plans, and Nestle Nigeria Plc should use the profits from their investments to fuel even more business expansion.