ABSTRACT
Effective working capital management as a tool for enhancing
profitability in business with a case study of Goodluck Agro-feeds Nig. Ltd.
Osisioma Industrial layout Aba). The specific objective of this project are: To
establish the link between profitability and the working capital of the
business enterprise so as to determine whether or not effective management of
working capital will enhance profit maximization in the business enterprise. To
ensure that there is effective working capital management in order to increase
profitability margin of the enterprise. The study also intend to establish a
good procedure of working capital management which if judiciously followed will
lead to operational cost reduction, as profit is said to be maximum when cost
is minimum. In the course of this research work primary data are collected
using questionnaires, interview and observation. Oral interview were used to
substantiate and elucidate the validity and objectivity of the information
supplied in the questionnaire by the respondents. The data were presented in
tables and simple percentage to show degree of responses and chi-square were
used to test the hypotheses. The major problem findings of the study are Lack
of experienced personnel who has the basic knowledge of working capital
management. Wrong application management of working capital (i.e holding of
idle cash in the office for no just course). Hence profit is said to be maximum
when cost is minimum. The researcher therefore recommended that: All the
components of working capital of the enterprise should be effectively managed.
Idle cash must be held in the office for no just cause. Effective cost
management leads to profit maximization and cost reduction is best achieved
when the working capital components of the enterprise are effectively managed.
It is anticipated that the identification of the major problems and
implementation of the recommendation here will ensure effective management of working
capital of an enterprise that will no doubt guarantee and improve the
achievement of the enterprise's objective.
IWUAGWU, C (2021). Effective Working Capital Management As A Tool For Enhancing Profitability In Business (A Case Study Of Goodluck Agro-Feeds Nig. Ltd. Osisioma Industrial Layout Aba). Mouau.afribary.org: Retrieved Nov 27, 2024, from https://repository.mouau.edu.ng/work/view/effective-working-capital-management-as-a-tool-for-enhancing-profitability-in-business-a-case-study-of-goodluck-agro-feeds-nig-ltd-osisioma-industrial-layout-aba-7-2
C, IWUAGWU. "Effective Working Capital Management As A Tool For Enhancing Profitability In Business (A Case Study Of Goodluck Agro-Feeds Nig. Ltd. Osisioma Industrial Layout Aba)" Mouau.afribary.org. Mouau.afribary.org, 15 Jul. 2021, https://repository.mouau.edu.ng/work/view/effective-working-capital-management-as-a-tool-for-enhancing-profitability-in-business-a-case-study-of-goodluck-agro-feeds-nig-ltd-osisioma-industrial-layout-aba-7-2. Accessed 27 Nov. 2024.
C, IWUAGWU. "Effective Working Capital Management As A Tool For Enhancing Profitability In Business (A Case Study Of Goodluck Agro-Feeds Nig. Ltd. Osisioma Industrial Layout Aba)". Mouau.afribary.org, Mouau.afribary.org, 15 Jul. 2021. Web. 27 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effective-working-capital-management-as-a-tool-for-enhancing-profitability-in-business-a-case-study-of-goodluck-agro-feeds-nig-ltd-osisioma-industrial-layout-aba-7-2 >.
C, IWUAGWU. "Effective Working Capital Management As A Tool For Enhancing Profitability In Business (A Case Study Of Goodluck Agro-Feeds Nig. Ltd. Osisioma Industrial Layout Aba)" Mouau.afribary.org (2021). Accessed 27 Nov. 2024. https://repository.mouau.edu.ng/work/view/effective-working-capital-management-as-a-tool-for-enhancing-profitability-in-business-a-case-study-of-goodluck-agro-feeds-nig-ltd-osisioma-industrial-layout-aba-7-2