WORKING CAPITAL MANAGEMENT AND FIRMS' PROFITABILTY: EVIDENCE FROM CONSUMER GOODS SECTOR IN NIGERIA (2011-2018)
| dc.contributor.author | Lukman Adebayo Oke | |
| dc.contributor.author | Yusuf Olamilekan Quadri | |
| dc.contributor.author | Daud Omotosho Saheed | |
| dc.contributor.author | Makinde Kehinde Alao | |
| dc.date.accessioned | 2025-02-13T08:49:20Z | |
| dc.date.available | 2025-02-13T08:49:20Z | |
| dc.date.issued | 2019 | |
| dc.description.abstract | Firms’ profitability is maximized as a result of efficiency and interrelationship between some factors. However, from all these factors, working capital is crucial as it affects daily operational activities of firms. This study investigates the impact of working capital management on profitability of firms in the consumer goods sector in Nigeria. Generalised least square technique was used to analyse the data extracted from the audited financial statements of the sampled firms for the period of 2011 to 2018. The study revealed that at 0.05 level of significance, average collection period has a significant positive impact on the profitability of consumer goods firm; inventory holding period has no significant impact on profitability of consumer goods firms; average payment period has significant positive impact on profitability of consumer goods firms; and cash conversion cycle has significant negative impact on the profitability of consumer goods firms. The study concluded that working capital management plays a significant role in the profitability of consumer goods firms in Nigeria. The study therefore recommended that firms should negotiate favourable credit terms with both their customers and suppliers while at the same time, reduce their cash conversion cycle for improved profitability. | |
| dc.identifier.issn | 2705-3407 | |
| dc.identifier.uri | https://kwasuspace.kwasu.edu.ng/handle/123456789/4343 | |
| dc.language.iso | en | |
| dc.publisher | Gombe Journal of Administration and Management | |
| dc.relation.ispartofseries | Vol. 2, No. 2 | |
| dc.title | WORKING CAPITAL MANAGEMENT AND FIRMS' PROFITABILTY: EVIDENCE FROM CONSUMER GOODS SECTOR IN NIGERIA (2011-2018) | |
| dc.type | Article |