ABSTRACT
A well designed and implemented working capital management
has a significant contribution for firms' profitability, as well as to maintain
liquidity powers. It is also expected to contribute positively to the creation
of a firm's value and increase the wealth of its shareholders. The core purpose
of this study is to examine the trends in working capital management and the
impact of working capital on corporate performance. The trend in working
capital needs and profitability were examined to identify if there is any
significant relationship between working capital and a firm's profitability,
and the creation of shareholders wealth. To achieve this, a five year financial
summary of Saclux Industries Ltd for the period 2006 —2010 was used for the
sample analysis. The study also dealt extensively on the importance of
effective management of working capital and its benefits, the difficulties
encountered while striving to achieve optimal level of working capital was also
not left out. Some of the factors that determine effective management of
working capital such as inflation, economic recession, size of business, nature
of business etc were also studied. Finally, the study suggested ways to improve
the management of working capital in order to achieve efficiency and
effectiveness. Nine research questions were raised for the study while survey
research was adopted for the study within a sample size of sixty (60). The data
collected was subjected to simple validity and reliability test. The analysis
of data was based on a statistical frequency table while the two hypotheses
formed were tested using regression analysis at 0.05 level of significance.
Some of the findings of the research work include that there is a cogent need
for full and underground knowledge of working capital contents and
implementation by financial managers, and also some planning constraints were
identified as inhibiting the effective management of working capital.
Recommendations were made to the effect of achieving optimal working capital
management.
MICHAEL, U (2021). Impact Of Working Capital Management On Corporate Performance (A Study Of Saclux Industries Ltd, Umuahia). Mouau.afribary.org: Retrieved Nov 28, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-corporate-performance-a-study-of-saclux-industries-ltd-umuahia-7-2
UNIVERSITY, MICHAEL. "Impact Of Working Capital Management On Corporate Performance (A Study Of Saclux Industries Ltd, Umuahia)" Mouau.afribary.org. Mouau.afribary.org, 08 Nov. 2021, https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-corporate-performance-a-study-of-saclux-industries-ltd-umuahia-7-2. Accessed 28 Nov. 2024.
UNIVERSITY, MICHAEL. "Impact Of Working Capital Management On Corporate Performance (A Study Of Saclux Industries Ltd, Umuahia)". Mouau.afribary.org, Mouau.afribary.org, 08 Nov. 2021. Web. 28 Nov. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-corporate-performance-a-study-of-saclux-industries-ltd-umuahia-7-2 >.
UNIVERSITY, MICHAEL. "Impact Of Working Capital Management On Corporate Performance (A Study Of Saclux Industries Ltd, Umuahia)" Mouau.afribary.org (2021). Accessed 28 Nov. 2024. https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-corporate-performance-a-study-of-saclux-industries-ltd-umuahia-7-2