ABSTRACT
This research work aimed at
providing empirical evidence on the effects of Working Capital Management on
Corporate Profitability of Manufacturing Firms in Nigeria. There are indeed
numerous challenges confronting Nigerian Firms in attempt to effectively manage
their Working Capital. The researcher, having buttressed these problems, also
proffered solutions and recommendations to ameliorate these challenges, which
are anchored on obtaining optimum profitability. To this end, some of the
problems that propelled the researcher to go into this area of study include
the mixed findings that have shrouded this particular area of study, hence to
contribute towards determining the relationship that exists between Working
Capital components and Profitability of Manufacturing Firms, as well as the
relationship that exists between Cash Conversion Cycle and Net Operating Income
of Manufacturing Firms; these were also the research objectives. Two Hypotheses
were formulated in a null form. Two Firms (Guinness Nig. P/c. & PZ Cussons)
were selected for this study for a period of ten (10) years (2004- 20 13)
Financial Years. The data were collected through secondary sources and analyzed
using Simple Regression and Pearson correlation Analysis. The study discovered
that there is a significant relationship between some of the Components of the
Working Capital and Profitability of the selected Firms, and that proper
Working Capital Management positively affects Profitability. Conclusively, the
study recommends the following: adequate Cash Budget, the firms should maintain
optimum stock level, reduce Average Collection Period, increase Average Payment
Period; and responsible Working Capital management.
NWORGU, C (2021). Effects Of Working Capital Management On Corporate Profitability Of Manufacturing Firms In Nigeria (A Study Of Selected Firms). Mouau.afribary.org: Retrieved Nov 27, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-working-capital-management-on-corporate-profitability-of-manufacturing-firms-in-nigeria-a-study-of-selected-firms-7-2
CHIMEZIE, NWORGU. "Effects Of Working Capital Management On Corporate Profitability Of Manufacturing Firms In Nigeria (A Study Of Selected Firms)" Mouau.afribary.org. Mouau.afribary.org, 22 Jul. 2021, https://repository.mouau.edu.ng/work/view/effects-of-working-capital-management-on-corporate-profitability-of-manufacturing-firms-in-nigeria-a-study-of-selected-firms-7-2. Accessed 27 Nov. 2024.
CHIMEZIE, NWORGU. "Effects Of Working Capital Management On Corporate Profitability Of Manufacturing Firms In Nigeria (A Study Of Selected Firms)". Mouau.afribary.org, Mouau.afribary.org, 22 Jul. 2021. Web. 27 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-working-capital-management-on-corporate-profitability-of-manufacturing-firms-in-nigeria-a-study-of-selected-firms-7-2 >.
CHIMEZIE, NWORGU. "Effects Of Working Capital Management On Corporate Profitability Of Manufacturing Firms In Nigeria (A Study Of Selected Firms)" Mouau.afribary.org (2021). Accessed 27 Nov. 2024. https://repository.mouau.edu.ng/work/view/effects-of-working-capital-management-on-corporate-profitability-of-manufacturing-firms-in-nigeria-a-study-of-selected-firms-7-2