Profitability Indices and Manufactured Capital of Conglomerates in Nigeria

Abstract

The study was to verify the relationship between Profitability (independent variables) and manufactured capital (dependent variable) of conglomerates in Nigeria for the period 2016 to 2025.  Profitability was expressed with Gross Margin, Net Profit Margin and Cash Ratio. The test of the three hypotheses showed that all the independent variables had no relationship with manufactured capital. It therefore concluded that conglomerates operating in Nigeria’s emerging market during that period should check for variables that can yield good relationship on their manufactured capital since none of the independent variables had positive relationship with it.  Manufactured Capital should result in enhanced performance to improve upon Profitability unfortunately, this was not the case here.  Management should therefore conduct a detailed analysis to understand why this was not so in these companies.  There is need to increase spending on research and development (R&D), expansion projects, and employee up-skilling to drive sustainable growth as well as explore strategic partnerships, acquisitions, or market expansion to deploy excess cash effectively.