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Impact of working capital management on the profitability of industrial goods in Nigeria

 Department: Accountancy  
 By: usericon SIRJOSEPH  

 Project ID: 7805
   Rating:  (5.0) votes: 1
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   Price:₦4000
Abstract
This study examines the impact of working capital management on the profitability of quoted industrial goods firms in Nigeria. The study covers the period of eight years (2009 -2016) with the population of twenty-one (21) listed industrial goods firms listed on the floor of the Nigeria Stock Exchange (NGX) as at 31st December 2017. The study adopted Correlation Research Design. The data were analyzed using OLS multiple regression technique. The study finds amongst others that Account Receivable Day (ARD) has a positive significant impact on the return on Asset (ROA) of industrial goods in Nigeria at 1% significance level, Account payable Days (APD) has a negative insignificant impact on the Return on Assets (ROA) at 1% level of significance. Whilst, Inventory Turnover Day (ITO) has a negatively significant impact on the Return on Asset (ROA) of industrial goods firms in Nigeria at 1% level of significance and cash Conversion Circle (CCC) has a positively significant impact on Return on Asset (ROA) of the industrial goods companies in Nigeria at 5% level of significance. Therefore, the study recommends that the management of the listed industrial goods firms in Nigeria should enhance the performance of the companies by maintaining the number of days in inventories to a reasonable level. Therefore, the research concludes that there is a significant relationship between Profitability (ROA) and Working Capital Management in industrial goods in Nigeria as represented by Account Receivable Days (ARD), Account Payable Days (APD), Inventory Turnover Days (ITO) and Cash Conversion Circle. ...
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