Effect Of Effective And Efficient Working Capital Management In Manufacturing Firms In Nigeria (A Case Study Of Pz Cussion Nigeria Plc)

ABSTRACT

This work is based on establishing the relationship between

efficient and effective working capital and profitability in Nigeria

Manufacturing company using PZ cussion Nigeria Plc as a case

study. The researcher used ten years (2000-2009) financial

statement of the above firm as secondary data. Working capital

ratios and profitability ratio are derived from the financial

statement and their relationship were established using

regression analysis. It was deduced that working capital in

manufacturing firms has no significant relationship with

profitability; though, a relationship exists. It is therefore

recommended amongst others that liquidity management

activities should be more organized through the use of idle funds

for productive investments.