ABSTRACT

 Cash management is essential to every business that desires to meet up with its short-term financial obligations. Cash represents the basic input necessary to start and keep a business running. A company needs to maintain sufficient cash to keep its business running smoothly. Cash shortage will disrupts the turn's operation and can even lead to insolvency. Excessive cash will tie down unnecessarily long-term capital with a result that the return on capital employed will be low. Cash management deals with maintaining sufficient quantity of cash in such a way that the quantity denotes the lowest adequate cash figure to meet business obligations. Cash management involves managing cash flows (into and out ofthe firm), within the firm and the cash balances held by a concern at a point oftime. Mtn is now thinking about the customer’s point ofview and try to bring the maximum services door to door ofthe consumer. Efficient cash management services assures for the effective collection and payment technique, proper disbursements offree funds, helpful for urgent cash requirement, and manage the Mtn who manage these activities ofthe company. The main objective of the study is to determine cash management and performance of service organizations in Abia state, while the specific objectives are; to determine the effect of cash ratio on return on asset, to ascertain the effect of cash ratio on return on equity and to examine the effect of cash ratio on profit margin. In conclusion ofthe study, Cash ratio has a significant effect on Return on asset of Service firms in Nigeria, Cash ratio has significant effect on Return on equity of Service firms in Nigeria and Cash ratio has significant effect on profit margin of Service firms in Nigeria.