Impact Of Working Capital Management On The Profitability Of Manufacturing Firms In Nigeria (A Study Of Guinness Nigeria Plc.)

ABSTRACT

There is no doubt that the ultimate objective of any firm is to maximize profit. However, the preservation of the liquidity of a firm is an : important objective too and it is the efficient management of the various components of working capital that helps to preserve liquidity. This paper therefore examined the impact of working capital management on profitability of manufacturing firms in Nigeria using the study of Guinness Nigeria Plc. Secondary data gathered from the annual reports of the selected company covering the period between 2005 and 2014 was used for the study. Data collected was analyzed using simple regression analysis. The study therefore concluded that the working capital management has no significant impact on ROCE. However it is positively related to ROA, EPS and NPM pending other factors. The study infers that working capital management has positive relationship with variables on measure. Thus, this work recommends that efficient working capital management should be adopted by firms to facilitate the performance and profitability of the firm.