ABSTRACT

This work examines the effect of cash flow components on the financial performance of listed firms in Nigeria. Cash flow statement, as the third main financial statement, shows the resources and consumptions of cash in a business unit during an accounting period. The study adopts ex-post facto research design. The population ofthe study covers the five listed agro allied companies on the Nigerian stock exchange market but for the constraint of getting financial statement the study looks at 4. The research work adopts the secondary source ofdata in obtaining all the data needed for the study. Extracted data from the audited financial statements ofthe sampled companies will be meticulously examined and relevant data extracted from the period 2009-2015 for analysis. The descriptive statistics is used to summarize the collected data in a clear and understandable way using numerical approach. The multiple regression technique using ordinary least square regression (OLS) method is adopted in investigating the relationship between the dependent and independent variables. It was therefore found that there is no significant effect of cash flow from operations on profitability of listed firms and there is a significant effect of Cash flow from financing activities on profitability of listed firms. The study therefore recommends that firms should maintain a high cash flow ratio as these will give room for them to have access to readily cash which will enhance their business transactions and increase their performance. Conclusively, cash flow from operations has no significant effect on the profitability oflisted firms and cash flow from financing activities has a significant effect on the profitability oflisted firms.