Impact Of Working Capital Management On Profitability Of Manufacturing Companies (A Case Study Of Guinness Nigeria Plc. Aba.)

ABSTRACT

The purpose of this study is to investigate the impact of working capital management on profitability of production companies using Guinness Nigeria Plc Aba, as a case study. A panel data has been used in this study on the firm's profitability over a period for the year 2006-2011. The results are obtained by using sample pearsons correlation analysis for identifying the relationship between working capital management and profitability. The Findings shows that the working capital management has significant impact on profitability of production companies and it is concluded that managers can increase value of shareholder and return on asset by reducing their inventory size, cash conversion cycle and net trading cycle. Increase in liquidity and time period to supplier will also lead firms over all performance.