“Effect Of Cash Conversion Cycle On The Profitability Of Manufacturing Firms In Nigeria (A Study Of Nigeria Breweries Plc):-Egwu, Glory U

ABSTRACT

 Traditionally, corporate finance involves capital budgeting, capital structure, working capital management, cash conversion cycle and structure, such as investment in fixed assets are about the management oflong-term capital and attracts more attention than working capital management in finance literature. However, cash conversion cycle is also a very important field of corporate finance, because of its considerable effects on the firm’s profitability and liquidity. In this study, a quoted company in Nigeria is used because ofthe financial problems encountered in the country by other quoted companies within the country. This study aimed at evaluating the Effect of Cash Conversion Cycle on the Profitability of Quoted Companies in Nigeria, focusing on Nigerian Breweries. The main objective ofthis study would be to evaluate the effect of cash conversion cycle on the profitability of manufacturing companies in Nigeria. The specific objectives includes: to evaluate the effect ofAccounts Receivable Ratio on Net Profit Margin, to ascertain the effect of Inventory Conversion Ratio on Net Profit Margin and to analyze the effect of Accounts Payable Ratio on Net Profit Margin. The study therefore concluded cash conversion cycle have positive effect on the performance ofmanufacturing firms in Nigeria. Therefore, manufacturing companies should provide ways to efficiently and effectively manage their cash conversion cycle so as to improve their corporate profitability