ABSTRACT: This study investigates the effect of debt management on the performance of listed healthcare firms in Nigeria between 2015 and 2024. Debt management remains a critical aspect of financial strategy, especially in capital-intensive sectors like healthcare. The research specifically explores how indicators such as debt ratio and interest coverage ratio influence return on assets (ROA) among selected firms. A panel data analysis was conducted using secondary data sourced from the published financial statements of five listed healthcare firms: Fidson Healthcare Plc, May & Baker Nigeria Plc, GlaxoSmithKline (GSK) Nigeria Plc, Neimeth International Pharmaceuticals Plc, and Morison Industries Plc. The study employed multiple regression analysis to determine the statistical relationship between debt indicators and firm performance. The findings reveal that effective debt management, particularly maintaining optimal levels of debt ratio and improving interest coverage, has a significant positive effect on firm performance. The study concludes that prudent debt policies can enhance financial stability and profitability in the healthcare sector. It recommends that healthcare firms regularly evaluate their capital structures and implement strategic debt decisions to improve operational outcomes and shareholder value.

Keywords: Debt management, Financial performance, Interest covered ration, Gearing ratio, Asset to debt ratio