Effect Of Working Capital Management On The Herpormance Of Consumer Goods Companies In Nigeria (With Cadbury And Honey Mill Plc As Case Study):- Atuonwu, Nnaemeka A

ABSTRACT

 The study investigated the effect of working capital management on the performance of consumer goods companies in Nigeria. To achieve this objective, the study specifically investigated the effect Inventory Turnover (IT) on Return on Asset (ROA), effect ofAccount receivables turnover (ART) on Return on Asset (ROA), effect ofAccounts payables turnover on Return on Asset (ROA), effects ofCash conversion cycle on Return on Asset (ROA) on consumer goods companies in Nigeria. The study restricted its scope to the period 2008-2017 and data usedfor the study was adoptedfrom the Cadbury Nigeriapic. andHoney wellflour mill Annual Report. The simple regression method was employed as the analytical tool. Findings shows that Account receivable turnover has a positive but insignificant effect on return on asset, Inventory turnover, Accountpayable turnover and cash conversion cycle has a positive and significant effect on return on asset ofconsumer goods companies in Nigeria. The study recommends that current assets at all times should be sufficiently in excess of current liabilities to constitute bufferfor maturing obligations within the operating cycle ofa business. Industry managers are advised to innovate efficient ways of managing working capital to optimize its potentials. Efficient working capital management ensures maintenance ofoptimal levels ofinventory at apoint in time