Effect of Working Capital Management on Profitability of Manufacturing Firms” (A Study of Nigeria Brewery):- Okechukwu Ruth O

ABSTRACT

The study determined the effect ofworking capital management on the profitability of brewery firms in Nigeria. This study adopted the ex-post-facto research design and employed the Ordinary Least Square (OLS) regression technique in analyzing the data. To ascertain the effect ofworking capital management (account receivables and cash conversion cycle) on the profitability (return on assets and current ratio) ofbreweryfirms in Nigeria, the study used the sample ofNigerian Breweries Picforthe period of2000 to 2018. And thefindings suggest that the management ofthe account receivables and cash conversion cycle are significantfactors in the accomplishment ofthe profitability objective ofbreweryfirms in Nigeria. It was recommended that breweryfirms should reduce heavy investments in current assets to avoid high inventory costs, and excess cash holdings and account receivables.