EFFECT OF CREDIT MANAGEMENT ON PROFITABILITY OF FIDSON PHARMACEUTICAL NIGERIA PLC
Abstract
The study examined the effect of credit management on profitability of Fidson Pharmaceutical Nigeria Plc from 2013-2022. The main objective of the study was to assess the effect of credit management variables on profitability. Ex-post facto was adopted as the research design and past data in the form of secondary data was utilized for the research work. Data for the study were extracted from the annual reports and accounts of the company and analyzed using regression technique. Findings reveals that receivables turnover and receivables collection period (RCP) has a significant effect on return on asset. While payables payment period (PPP) does not have a significant effect on return asset. The study recommends streamline the accounts payable process to ensure that bills are paid efficiently and within the agreed-upon terms. Implement effective credit and collection policies to reduce receivables collection period. Strive to reduce the receivables turnover period by speeding up the conversion of receivables into cash.
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