‘Effect of Liquidity Management in the Profitability of Selected Manufacturing Firms in Nigeria:- Ononogbo, Noble C

Abstract

The study investigated the effect ofliquidity management in the profitability ofselected manufacturing firms in Nigeria with specific objectives to establish the effect of debtors collection period creditors payment period and cash conversion cycle on profitability ne study adopted the ex-post facta research design and therefore extracted data from selected manufacturingfirmsfmmTOOS-goiy.TheresearcherusedketumonAssetsasdependentvariableand creditors Payment penod, Debtors collection Period and Cash Conversion Cycle where engaged each as proxies for Liquidity management The study hod a simple regression analysis to estimate the relationship of the variables. The resuit established from the findings is that oil the liquidity monogement proxies has no significant effect on the return an assets. The study concludes that liquidity management has no significant effect on the nrnfitnhiiitx, d t L . , „ . , ’ t profitability of manufacturing firms and industries and therefore recommends that manufacturing firms should maintain a moderate level of nguidity that does not threaten them going concern status and yet allows them to make adequate profits on theirinvestments.