Research Objectives: The study examined the effect of corporate assets on profitability of pharmaceutical firms in Nigeria from (2018-2023). The specific objectives include: determine the effects of non-current assets on the profit for the year of pharmaceutical firms in Nigeria, ascertain the extent to which current assets affect profit for the year of pharmaceutical firms in Nigeria and examine the effect of intangible assets on profit for the year of pharmaceutical firms in Nigeria.
Methodology: The study employed secondary sources of data from the annual report of the selected pharmaceutical firms in Nigeria (May & Baker and Fidson Healthcare Plc). Ex-post facto research design was adopted. The study employed multiple regressions of the Panel Least Squares method.
Findings: The result revealed that Non-current assets have positive (coefficient 0.105098) and non-significant (P-value 0.2554) effect on profit for the year of pharmaceutical firms in Nigeria, Current assets have a positive (coefficient 0.056640) and non-significant (P-value 0.3809) effect to Profit for the year of pharmaceutical firms in Nigeria and Intangible assets have a negative (coefficient -30.65626) and non-significant (P-value 0.3052) effect on Profit for the year of pharmaceutical firms in Nigeria and also the Adjusted R-squared was 60%.
Recommendations: Pharmaceutical firms should prioritize investments in non-current assets, ensuring they are modern and efficient. This will not only enhance production capabilities but also improve long-term profitability. Pharmaceutical firms should implement robust inventory management systems to minimize wastage and ensure timely availability of products. Efficient credit management practices should be enforced to optimize receivables, reducing the risk of bad debts and Pharmaceutical firms should invest in research and development to create proprietary drugs and treatments, thus enhancing their intellectual property portfolio. Protecting these assets through patents and trademarks will provide a competitive edge and potentially higher profit margins.
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