The study appraised the impact of credit management on the operational performance of productive firms in the economy focusing on selected productive organizations in Nigeria namely Nigeria Breweries Plc, Guinness Nigeria Plc and Nestle Nigeria Plc. The objectives of this study include the following; to ascertain the effects of debt ratio on the return on asset ratio of the productive firms in Nigeria. The main purpose of this study is to find the influence of account receivable ratio on the return on asset ratio of the Nigerian productive firms and to determine the effect of account payable ratio on the return on asset for the same. The study used ex-post facto as design while the analytical tools used were unit root test, descriptive statistics and random panel regression model. Debt ratio does not have found significant associated on the return on asset ratio. Moreover, return on asset ratio does not found significantly associated with the account receivable ratio. The return on asset ratio does not significantly affected on that account payable ratio. The study concluded that for Nigerian brewery Plc the return on asset ratio and debt ratio were stationary at first difference while account receivable ratio and account payable ratio became stationary at second difference. The study recommended that to encourage credit facilities in a brewery firm the sales department of the firm must have thorough understand of the credit policy which will encourage the customers or client to accept their credit facilities without being bias rather based on returns or yield of profits. Companies should increase the rate of credit sales based on credit behavior and trustworthy of customers only despite the fact that credit sales are a marketing tool to maintain or expand sales.
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