INFLUENCE OF NON-CURRENT ASSETS MANAGEMENT ON FINANCIAL PERFORMANCE

Abstract

It is observed that corporate entities spend funds on Plant, Property Equipment (PPE); and acquisition and maintenance each financial year, even in low profit, or loss situations. The study found that annual PPE acquisition cost to total PPE ratio has low positive effect on EPS has effect on ROE. It was also found that annual PPE maintenance cost to total PPE ratio has influence on both EPS and ROE. The findings practically implies that when PPE are acquired and maintained in consideration of the total PPE value at any point in time, this would moderately impove financial performance of oil and gas firms in Nigerian Stock Exchange. The study thus recommends that strategic managers should evaluate the PPE acquisition and maintenance costs annually in the light of the total PPE value it holds. The study contributes to scholarship as it draws attention to these ratios in PPE decision making which was not sighted in extant literatures.