The study empirically assessed the effect of working capital on the profitability of
an organization using selected quoted manufacturing companies across different
industries in Nigeria. The inability
of many organizations to effectively manage their working capital in such a way that it will lead to a sustainable performance has been
identified as the bane of organizational growth in Nigeria. The study applied
ordinary least square i.e multiple regression analysis as its estimating technique. A model that expressed return on capital employed which is a
proxy for organization performance as function of working capital,turn over and equity was formulated. After the model estimation it was discovered that some of the companies used showed a negative relationship
between working capital and organization profitability, others showed a
positive relationship. It wasalso
discovered that working capital of all the firms do not have significant impact
on their performances during the
period under review. Consequently, it is recommended that firms should
reappraise the trends of their
workingcapitalvisavistheirperformanceswithaviewtochoosingappropriatelevelofcashconversionflow that will not hamper
their profitability. Again, government should provide enabling environment
forbusiness organizations to thrive since literature have shown that business environment tend to
have more impacton organization’s performance and profitability than working capital especially in a
developing country likeNigeria.
THE EFFECT OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF AN ORGANIZATION (A CASE STUDY OF SELECTED QUOTED MANUFACTURING COMPANIES IN NIGERIA)
ABSTRACT The study empirically assessed the effect of working capital on the profitability of an organization using selected quoted manufacturing companies across different industries in Nigeria. The inability of many organizations to effectively manage their working capital in such a way that it will lead to a sustainable performance has... Continue Reading
ABSTRACT The study empirically assessed the effect of working capital on the profitability of an organization using selected quoted manufacturing companies across different industries in Nigeria. The inability of many organizations to effectively manage their working capital in such a way that it will lead to a sustainable performance has been... Continue Reading
A BSTRACT This study examined the impact of working capital management and profitability of 10 quoted manufacturing companies in Nigeria using a cross-sectional time series data for the period 2010 – 2015. The study used secondary data generated from the published annual reports and account of the sampled companies. Data were... Continue Reading
A BSTRACT This study examined the impact of working capital management and profitability of 10 quoted manufacturing companies in Nigeria using a cross-sectional time series data for the period 2010 – 2015. The study used secondary data generated from the published annual reports and account of the sampled companies. Data were analysed using... Continue Reading
ABSTRACT Working capital management involves the management of the most liquid resources of the firm which includes cash and cash equivalents, Inventories and trade and other... Continue Reading
ABSTRACT The issue of capital structure is being generating controversy among financial manager throughout the world. A lot of theories and suggestions have advanced as to the best way to handle issue, but there seems to be no concessions on the issue. This study and attempt to provide empirical evidence on the trend of capital structure of... Continue Reading
ABSTRACT The issue of capital structure is being generating controversy among financial manager throughout the world. A lot of theories and suggestions have advanced as to the best way to handle issue, but there seems to be no concessions on the issue. This study and attempt to provide empirical evidence on the trend of capital structure of... Continue Reading
ABSTRACT Capital structure is the proportion or each type of capital debt and equity used by a business organisation. Many organizations employ debt in their capital structure because of its benefits. One of the benefits is that interest on debt is tax deductible and reduces tax liability of the organizations concerned. Furthermore, failure to pay... Continue Reading
ABSTRACT Capital structure is the proportion or each type of capital debt and equity used by a business organisation. Many organizations employ debt in their capital structure because of its benefits. One of the benefits is that interest on debt is tax deductible and reduces tax liability of the organizations concerned. Furthermore, failure to pay... Continue Reading
ABSTRACT The study examined the impact of capital structure on the profitability of selected quoted insurance companies in Nigeria between 2011 and 2016. The data were obtained from the published financial reports of selected firms. The panel data analysis was employed in the study. The findings showed that: Total debt ratio (β= 0.07; p>0.05)... Continue Reading