ABSTRACT

This research project is focused on "Impact of working capital management on the profitability of a manufacturing company," (A study of Nigerian Bottling Company Plc Aba Abia State). The highlight of the study addresses such critical issues on how a proper management of working capital can improve profitability of manufacturing firms. An overview, Definition and concept of working capital of the study were reviewed and surveyed. Data were obtained from two sources namely primary and secondary sources. For primary data structured questionnaire was used. Secondary data consist of data from figures collected by previous researcher. The data collected were analyzed using tables and percentages while the hypotheses was tested with chi-square statistics. This study has reviewed related literature on the two key variables: working capital and profitability. Under this aspect of the study, the following findings were made. That NBC Plc, operate optimal levels of liquidity which ensures that there is no excess of uninvited cash and also that NBC adequately meet up with its obligation as they fall due. That NBC do not make profit at the expense of working capital hence, working capital management is a firms survival strategy which instills corporate disciples, shrewdness and managerial consciousness in the management of company's liquid resources. On the basis of the findings the following major recommendations were made. That the organization should consider working capital management as a crucial managerial function which should be handled competently and optimum investment in working capital should always be a target of the organization since profitability is a function of efficient working capital management.