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ABSTRACT
The study examined capital structure and profitability of quoted pharmaceutical company. The objectives of the study was to identify the examine the relationship between long term debt and return on asset of quoted pharmaceutical companies in Nigeria, to investigate the effects of short term loan and return on asset of quoted pharmaceutical companies in Nigeria and to determine the effect of firm size in return on assets of quoted pharmaceutical companies in Nigeria. The methodology is a panel study which make use of expo-facto research design. The data used for the purpose of this study was gathered from secondary sources such as annual financial reports and account of the selected quoted pharmaceutical companies in Nigeria for a period of seven (7) years starting from 2018 – 2023. The findings of this study revealed that the financial performance of Nigerian listed pharmaceutical businesses is significantly influenced by their capital structure, namely their equity capital. The study recommended that: Management of listed pharmaceutical companies in Nigeria should pay more attention to their capital structure because it is a major determinant in enhancing the overall profitability. Pharmaceutical businesses can reduce debt reliance and financial risks by diversifying funding sources, including equity financing, strategic partnerships, and non-dilutive methods like grants and collaborations. Pharmaceutical companies should manage their debt levels to avoid excessive leverage, optimize their capital structure through regular evaluations of debt capacity and refinancing options for long-term financial health.
