Firm Leverage and Financial Performance of Industrial Goods. Firms in Nigeria

The study examined the extent firm leverage affected financial performance of Nigerian Industrial goods. The study used debt-equity ratio as the independent variable while net profit margin represents independent variable. Data were extracted from the eight sampled industrial goods firms in Nigeria from 2013 to 2024. Regression analysis was used to the hypotheses. The study indicated that debt-equity ratio has negative significant effect on net profit margin of Nigerian industrial goods firm. The study therefore concluded that financial leverage has significant effect on financial performance in Nigerian industrial goods firm. Based on the findings, the study recommended that there is need to implement cost-saving measures to reduce expenses and increase profitability, as well secure low-interest debt to minimize interest expenses and maximize returns.