Robinson Onuoha Ugwoke

Nigeria has a serious food crisis, which can be attributed to poor management of tangible non-current assets by food manufacturing companies, which leads to low productivity, product wastages, and ineffective processing and distribution of products culminating in low return on assets. Therefore, this study examined the effects of changes in tangible non-current assets on return on assets of food manufacturing firms in Nigeria. The study employed an ex-post facto research approach with data obtained from top food manufacturing companies quoted on the Nigerian Stock Exchange from 2008 to 2020. The finding revealed that tangible non-current assets play a very important role in the return on assets of food manufacturing companies in Nigeria. Specifically, the study revealed that changes in investment in land and buildings, plants and machineries and motor vehicles have a statistically significant influence on return on assets (ROA) of quoted food manufacturing companies (FMCs). It was concluded that an increase in tangible non-current assets enhances the return of assets of food manufacturing companies. In line with the findings of this study, it was recommended that considerable attention should be paid by the management of FMCs to efficient utilization of tangible non-current assets because it is only when non-current assets are efficiently utilized that they would have significant contributions to or implications for the return on assets of the business.