Impact of Working Capital Management on the Profitability of Cement Manufacturing Companies Listed on the Nigeria Stock Exchange:- Azubuike, Prisca C.

ABSTRACT

The study examined the impact of working capital management on the profitability of cement manufacturing companies listed on the Nigeria stock Exchange from 2006 to 2020. Specifically, it assess the impact accounts collection period on profitability of cement manufacturing companies listed on the Nigeria stock Exchange, it examine the impact of inventory conversion period on profitability of cement manufacturing companies listed on the Nigeria stock Exchange, it ascertain the impact of accounts payment period on profitability of cement manufacturing companies listed on the Nigeria stock Exchange and it determine the impact of cash conversion cycle of profitability of cement manufacturing companies listed on the Nigeria stock Exchange. The ex-post facto research design was adopted. The data were sourced from financial statement of selected cement manufacturing companies in Nigeria. Regression analysis was used to analyze the stated hypotheses. The results show that account collection period has positive and significant impact on the profitability of listed cement companies in Nigeria, Inventory conversion period has positive and significant impact on the profitability of listed cement companies in Nigeria, accounts payment period has positive and significant impact on the on the profitability of listed cement companies in Nigeria and that cash conversion cycle has negative and significant impact on the profitability of quoted cement companies in Nigeria. The study  recommended that the management  of these cement companies should manage their working capital in more efficient ways by reducing the number of days inventory are held to an minimum level in order to enhance their profitability as well as create value for their shareholders