Working Capital Management and Profitability of Listed Manufacturing Firms in Nigeria
Samuel Adebayo Olaoye
Department of Accounting, Babcook University, Ilisan Remo, Ogun State, Nigeria.
Richard Adeleye Okunade *
Department of Accounting, Babcook University, Ilisan Remo, Ogun State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study observed the link amid working capital management and profitability of quoted manufacturing firms in Nigeria. Using panel methodology, this study discovered a significant influence of working capital management (ITID, CPP & ACP) on profitability of listed manufacturing firms in Nigeria. Although, creditors payment period shows a significant impact on profitability while inventory turnover days and account receivables period were insignificant. This study recommends that well managed CPP over time would be a plus for manufacturing entities, to enhance their financial performance.
Keywords: Profitability, liquidity, working capital management, turnover, stability.