Effect Of Liquidity Management On Financial Performance Of Manufacturing Industries In Nigeria (A Case Study Of Pz Cussons Plc):- Agusi Charles S

ABSTRACT

 Liquidity and its management determines to a great extent the growth and profitability of a firm. This is because either inadequate liquidity or excess liquidity may be injurious to the smooth operations of the organization. This seeming controversy has attracted a lot of inters in the subject ofliquidity management. The primary aim ofthis paper is to investigate the relationship between liquidity and profitability. The analysis is based on a sampling of PZ Cussons PLC a manufacturing company listed in the Nigerian Stock Exchange for the period 2009-2018 using Expo facto research design. The result suggests that liquidity has a positive effect on both Turnover and Profit after Tax. This finding suggests that the more often a company puts into consideration liquidity management practices, the more viable and sustainable the business is. The findings ofthis study could be useful to potential investors, managers, firms etc. Since good liquidity management will ensure better control of risk, increase the opportunity for profit, strengthen the company’s financial position, boost customer confidence in the company and improve operational efficiency. A recommendation that adds value to the study were for manufacturing companies to properly manage its current assets especially stock so as to be able to meet its short financial obligation through the adoption of Economic Order Quantity or Just In Time System and secondly for them to produce quality goods that is easily marketable so as to maintain liquidity. This will go a way further towards increasing financial performance of manufacturing industries.