ABSTRACT

The change of stance of policy and strategy has affected the profitability level of many manufacturing firms. The study was spurred by the reportedly inefficient in working capital management. One way of bringing a positive profitability levels is the effective management of working capital. A manufacturing firm in PortHarcourt forms the focus of our study. Chapter one of this study received the background of the entire work and the definition of the subject matter. The review of related literature in chapter two deals with the concept of working capital, the need for working capital and determination of working capital among other things. The major methods of investigation were the study approach, and interviews method in the data analysis as discussed in chapter three. Questionnaires were raised and hypothesis tested using Chi-square method in chapter four, it was based on that, the finding reveals that the level of working capital is fair. This was elicited through the questionnaires raised where all the responses were agreed to the fact that good management of working capital affects the profitability of the firm and all the responses were of the view that working capital management are "1ispensab1e in an organization. Findings also revealed that profitability has direct ys with working capital and the low liquidity level of the firm. It was also on record that the management has Luke-worm attitude towards investment. However, converted effect should be workers and improvement in the community relations as these could maximize the profit of the organization. Improvement in the workers welfare could also reduce the level of fraud and pilferage committed by the officers in their respective offices. These were postulated in chapter five