Evaluation Of Cash And Credit Management Policies As An Instrument For Avoiding Liquidation
ABSTRACT
The study carried out an
investigation on the evaluation of cash and credit management policies as an
instrument for avoiding liquidation. The major objectives of the study is to
determine the effect of cash conversion circle, Acid test ratio and current
ratio on return on asset of the firm. Also to ascertain the influence of cash
conversion circle, Acid test ratio and current ratio on gross profit margin of
the firm. To achieve the objectives of the study, ex- post facto research design
was adopted. The researcher adopted secondary data in getting the required
information. In testing the hypotheses multiple regression was used. The
findings shows that cash conversion cycle, Acid test ratio and current ratio
have no effect on return on asset of the firm. Lastly, that cash conversion
circle, and current ratio have no influence on gross profit margin of the firm.
Thus, Acid test ratio from the analysis shows a positive relationship with
gross profit margin of the firm. The researcher therefore recommends that the
company is advised to use financial ratios to measure the level of corporate
profit growth to know the condition of the company which can eventually affect
the investors in investing.
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ONWUCHEKWA, M (2021). Evaluation Of Cash And Credit Management Policies As An Instrument For Avoiding Liquidation. Mouau.afribary.org: Retrieved Nov 27, 2024, from https://repository.mouau.edu.ng/work/view/evaluation-of-cash-and-credit-management-policies-as-an-instrument-for-avoiding-liquidation-7-2
MAUREEN, ONWUCHEKWA. "Evaluation Of Cash And Credit Management Policies As An Instrument For Avoiding Liquidation" Mouau.afribary.org. Mouau.afribary.org, 22 Jul. 2021, https://repository.mouau.edu.ng/work/view/evaluation-of-cash-and-credit-management-policies-as-an-instrument-for-avoiding-liquidation-7-2. Accessed 27 Nov. 2024.
MAUREEN, ONWUCHEKWA. "Evaluation Of Cash And Credit Management Policies As An Instrument For Avoiding Liquidation". Mouau.afribary.org, Mouau.afribary.org, 22 Jul. 2021. Web. 27 Nov. 2024. < https://repository.mouau.edu.ng/work/view/evaluation-of-cash-and-credit-management-policies-as-an-instrument-for-avoiding-liquidation-7-2 >.
MAUREEN, ONWUCHEKWA. "Evaluation Of Cash And Credit Management Policies As An Instrument For Avoiding Liquidation" Mouau.afribary.org (2021). Accessed 27 Nov. 2024. https://repository.mouau.edu.ng/work/view/evaluation-of-cash-and-credit-management-policies-as-an-instrument-for-avoiding-liquidation-7-2