Home » Accounting » IMPACT OF WORKING CAPITAL MANAGEMENT ON CORPORATE PROFITABILITY OF NIGERIAN MANU...
IMPACT OF WORKING CAPITAL MANAGEMENT ON CORPORATE PROFITABILITY OF NIGERIAN MANUFACTURING FIRMS: 2000 TO 2011
Sold By: Joe Project Store | Item Type: Project Material | Report this? | Attributes: 65 pages | 1-5 chapters | Amount: ₦5,000 | 9 orders. | Marked useful: 4,403 times
INSTANT PROJECT MATERIAL DOWNLOADThis study examined the impact of working capital management on the profitability of Nigerian quoted Manufacturing firms. The working capital variables studied comprise accounts payable, accounts receivable, cash conversion cycle, stock/inventory turnover and liquidity. This study also used sales growth and Debt as control variables in examining the impact of working capital management on the profitability of Nigerian firms. Secondary sources of data were sourced from the Annual Reports of the 22 manufacturing firms selected for this study for the period 2000-2011. Five Hypotheses were estimated with the use of Generalized least square multiple regression. The findings of the study show that, accounts payable ratio [AP] had negative relationship with the industries’ profitability. On the other hand, accounts Receivable ratio [AR] had positive and significant relationship with profitability of the firms studied. Stock turnover ratio had negative and significant relationship with profitability of the firms under study. Results also show that firms cash conversion cycle [CCC] had positive but non-significant relationship with the industries profitability, and Liquidity ratio had negative relationship with the industries profitability. Based on the findings of the study, the following recommendations were made; there should be a balance between liquidity and profitability. They should also avoid stock-outs because of the huge sales they made during the years under study. They are encouraged to reduce their cost of sales to make more profit. There should also increase their credit sales so as to have enough cash to settle their obligations. Specialized persons should be hired by these companies for expert advice on working capital management. One of the greatest contributions of this study is the perspective we followed in the measurement of variables (Descriptive and four functional models of multiple regression).
A firm’s investment in current assets such as cash, bank deposits, short term securities, accounts receivables and inventories are called working capital. To put it differently, net working capital is the surplus of current assets over the short term liabilities and represents the liquidity margin available to meet the cash demands in order to maintain the daily operations and benefit from the profitable investment opportunities (Yaday, Kamtt and Manjrekar, 2009, Padachi, 2006).
This material content is developed to serve as a GUIDE for students to conduct academic research
DOWNLOAD THIS PROJECT MATERIAL NOW!
Advertise Here
Not what you were looking for? Perform a search
What's your project topic?
Comment on Facebook:
Related Project Materials
- 1.
INVESTIGATING FORENSIC AUDIT AS A PANACEA FOR PREVENTING CORPORATE FRAUD IN CAMEROON'S PUBLIC SECTOR
CHAPTER ONE INTRODUCTION 1.1 Background of the study The proliferation of financial crimes in these developing economies is concerning and catastrophi...More »
Item Type: Project Material | 54 pages | 212 engagements |
- 2.
INTERNAL AUDIT: EXAMINING ITS ROLE IN ENSURING ETHICAL CONDUCT IN CHENWI-ASSOCIATES, CAMEROON
INTERNAL AUDIT: EXAMINING ITS ROLE IN ENSURING ETHICAL CONDUCT IN CHENWI ASSOCIATES, CAMEROON CHAPTER ONE INTRODUCTION Background of the Study Auditin...More »
Item Type: Project Material | 54 pages | 179 engagements |
- 3.
EXTERNAL AUDIT AND QUALITY OF ACCOUNTING AND FINANCIAL INFORMATION IN THE CAMEROONIAN PUBLIC SECTOR
CHAPTER ONE INTRODUCTION 1.1 Background of the study The main purpose of external audit as a governance mechanism is to enhance the accuracy and trust...More »
Item Type: Project Material | 54 pages | 172 engagements |
- 4.
EXAMINING THE ROLE OF FORENSIC AUDIT IN DETECTING FINANCIAL FRAUDS IN THE CAMEROONIAN PUBLIC SECTOR:...
CHAPTER ONE INTRODUCTION 1.1 Background of the study Forensic auditing and forensic accounting are often used interchangeably. It has been officially ...More »
Item Type: Project Material | 54 pages | 181 engagements |
- 5.
EXAMINING THE IMPACT OF THE AUDIT REPORT ON INVESTMENT IN FINANCIAL INSTITUTIONS IN CAMEROON
CHAPTER ONE INTRODUCTION 1.1 Background of the study According to the Companies Act, all registered companies must present audited accounts to their s...More »
Item Type: Project Material | 54 pages | 194 engagements |
- 6.
EXAMINATION OF CHALLENGES ENCOUNTERED BY INTERNAL AUDITORS IN PUBLIC SECTOR AUDIT OF CAMEROON
CHAPTER ONE INTRODUCTION 1.1 Background of the study The demand for internal auditing mostly arises from the necessity for an independent verification...More »
Item Type: Project Material | 54 pages | 206 engagements |