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.
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AGUSI, S (2024). Effect Of Liquidity Management On Financial Performance Of Manufacturing Industries In Nigeria (A Case Study Of Pz Cussons Plc):- Agusi Charles S. Repository.mouau.edu.ng: Retrieved Nov 23, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-financial-performance-of-manufacturing-industries-in-nigeria-a-case-study-of-pz-cussons-plc-agusi-charles-s-7-2
SOPURUCH, AGUSI. "Effect Of Liquidity Management On Financial Performance Of Manufacturing Industries In Nigeria (A Case Study Of Pz Cussons Plc):- Agusi Charles S" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 07 Aug. 2024, https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-financial-performance-of-manufacturing-industries-in-nigeria-a-case-study-of-pz-cussons-plc-agusi-charles-s-7-2. Accessed 23 Nov. 2024.
SOPURUCH, AGUSI. "Effect Of Liquidity Management On Financial Performance Of Manufacturing Industries In Nigeria (A Case Study Of Pz Cussons Plc):- Agusi Charles S". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 07 Aug. 2024. Web. 23 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-financial-performance-of-manufacturing-industries-in-nigeria-a-case-study-of-pz-cussons-plc-agusi-charles-s-7-2 >.
SOPURUCH, AGUSI. "Effect Of Liquidity Management On Financial Performance Of Manufacturing Industries In Nigeria (A Case Study Of Pz Cussons Plc):- Agusi Charles S" Repository.mouau.edu.ng (2024). Accessed 23 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-liquidity-management-on-financial-performance-of-manufacturing-industries-in-nigeria-a-case-study-of-pz-cussons-plc-agusi-charles-s-7-2