Impact Of Working Capital Management On The Profitability Of Listed Pharmaceutical Firms In The Nigeria Stock Exchange
ABSTRACT
The study analysed the effects of working capital management
on the profitability of pharmaceutical firms listed on the Nigerian Stock
Exchange. Data was obtained from document analysis of consolidated financial
reports of years ending December: 2005, 2006, 2007, 2008, 2009, 2010, 2011,
2012, 2013 and 2014. Multiple regression and correlation analyses were carried
out on the data to determine the relationships between components of working
capital management and the gross operating profit of the firms. The study
established that gross operating profit was positively correlated with Average
Collection Period and Average Payment Period but negatively correlated with
Cash Conversion Cycle. The relationship between Inventory Turnover in Days and
gross operating profit was sign Wcant. Profitability of manufacturing firms
depends upon effective working capital management. The study therefore
recommended that managers should focus on reducing cash conversion cycles,
collect receivables as soon as possible because it is better to receive inflows
sooner than later and delay payment of creditors in order to invest the money
in short term securities which are profitable.
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PETERS, U (2021). Impact Of Working Capital Management On The Profitability Of Listed Pharmaceutical Firms In The Nigeria Stock Exchange. Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-the-profitability-of-listed-pharmaceutical-firms-in-the-nigeria-stock-exchange-7-2
U, PETERS. "Impact Of Working Capital Management On The Profitability Of Listed Pharmaceutical Firms In The Nigeria Stock Exchange" Mouau.afribary.org. Mouau.afribary.org, 25 Nov. 2021, https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-the-profitability-of-listed-pharmaceutical-firms-in-the-nigeria-stock-exchange-7-2. Accessed 31 Oct. 2024.
U, PETERS. "Impact Of Working Capital Management On The Profitability Of Listed Pharmaceutical Firms In The Nigeria Stock Exchange". Mouau.afribary.org, Mouau.afribary.org, 25 Nov. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-the-profitability-of-listed-pharmaceutical-firms-in-the-nigeria-stock-exchange-7-2 >.
U, PETERS. "Impact Of Working Capital Management On The Profitability Of Listed Pharmaceutical Firms In The Nigeria Stock Exchange" Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/impact-of-working-capital-management-on-the-profitability-of-listed-pharmaceutical-firms-in-the-nigeria-stock-exchange-7-2