Working Capital Management On Performance Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigeria Plc)
ABSTRACT
The research on working capital management on the performance of
manufacturing companies focused on Nestle Nigerian plc. The study made use of
secondary data, sourcing data from 2006 to 2017. The study adopted descriptive
research method regression model as its statistical technique. The study adopted
Return on Asset as its dependent variable. The independent variables include; cash
conversion cycle, account receivable turnover, accounts payable turnover and
inventory turnover. The findings revealed that account receivable turnover and
inventory turnover has a positive and insignificant effect on return on asset while
account payables turnover and cash conversion cycle has a positive and signflcant
effect on return on asset. The result conclude that for nestle plc, working capital
management with particular reference to Account payable turnover and cash
conversion cycle has a sign fIcant impact on performance. We recommend that
firms should manages cash conversion cycle by reducing the period between sales
of goods and recezt of cash from sales and also Nigeria firm should reduce heavy
investments in current assets to avoid inventory cost, lost returns, excess cash
holdings and receivables. Efficient management and financing of working capital
management can increase profitability and also financial manager should have
knowledge of the source of working cap ital funds.
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ONYESO, U (2021). Working Capital Management On Performance Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigeria Plc). Repository.mouau.edu.ng: Retrieved Nov 25, 2024, from https://repository.mouau.edu.ng/work/view/working-capital-management-on-performance-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigeria-plc-7-2
UGONNA, ONYESO. "Working Capital Management On Performance Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigeria Plc)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 09 Jun. 2021, https://repository.mouau.edu.ng/work/view/working-capital-management-on-performance-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigeria-plc-7-2. Accessed 25 Nov. 2024.
UGONNA, ONYESO. "Working Capital Management On Performance Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigeria Plc)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 09 Jun. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/working-capital-management-on-performance-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigeria-plc-7-2 >.
UGONNA, ONYESO. "Working Capital Management On Performance Of Manufacturing Companies In Nigeria (A Study Of Nestle Nigeria Plc)" Repository.mouau.edu.ng (2021). Accessed 25 Nov. 2024. https://repository.mouau.edu.ng/work/view/working-capital-management-on-performance-of-manufacturing-companies-in-nigeria-a-study-of-nestle-nigeria-plc-7-2