ABSTRACT

This work tilled "the impact of working capital management on the profitability of manufacturing company is wholly anchored on the efficient management of working capital of manufacturing companies in order to enhance their profitability. Some of the problems that prompted the researcher to go into this area of study includes: problem of determining the kind of relationship that exist between working capital and profitability of manufacturing firms and problem of determining how appropriate working capital management can affect the profitability of manufacturing firms. This leads to the formulation of the research objectives which include: To determine the kind of relationship that exist between working capital and profitability and also to determine how appropriate management of working capital can affect the profitability of the manufacturing companies. Two hypotheses were stated in a null form (Ho) for the purpose of this research of which one of then is that "there is no significance relationship between working capital and profitability. For the purpose of this study the researcher studied some selected staff of Nigerian Bottling Company Owerri plant and the data collected were through secondary data sources (e.i fmancial summaries of the company). The data were analysed with simple regression and after analysis, the researcher found out that there is a negative relationship between working capital and profitability of a firm also that proper working capital management affects the profitability. This led the researcher to recommend the following. Cash budget should be prepared to project the cash requirement so that excess cash can be invested in short term investment basis and also. The responsibility of the company's working capital can be assigned to a responsible officer for proper attention.