WORKING CAPITAL MANAGEMENT AND FIRMS PERFORMANCE. A STUDY OF MANUFACTURING COMPANIES IN NIGERIA.

WORKING CAPITAL MANAGEMENT AND FIRMS PERFORMANCE. A STUDY OF MANUFACTURING COMPANIES IN NIGERIA.

ABSTRACT

This study investigated the relationship between working capital management measured by account receivable period (ACRP), inventory period (INVP), cash conversion cycle (CCC) and sales Growth (SG) and profitability performance measured by returns on assets (ROA). The study utilized secondary data obtained from the annual financial statements of Nigerian Manufacturing companies listed on the Nigerian Stock Exchange (NSE) for period 2008 – 2012. Multiple regression model were adopted for testing all the hypotheses and the study result reveals that there was a negative significant relationship between the account receivable period and profitability of the Nigerian Manufacturing companies. It also reveals that the profit is significantly influenced by the number of days inventory were held (INVP) and that the profitability performance negatively and significantly related to the cash conversion cycle (CCC). These results suggest that effective policies must be formulated for the individual components of working capital. Furthermore, efficient management and financing of working capital (current assets and liabilities) can increase the operating profitability of manufacturing firms.

 

 

 

BUY THIS TOPIC ON WHATSAPP

Related Project Materials

ABSTRACT

This study examines the impact of Training and human capital development on effective performance of workers in...

Background of the Study

The moral influence that television may have on Nigerian students is a fact of education that th...

ABSTRACT

This research project is aimed at the development of an Estate Agent and Property Management System for rea...