EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF MANUFACTURING INDUSTRY IN NIGERIA. (A CASESTUDY OF NIGERIA BOTTLING COMPANY, IBADAN PLANT)
Abstract
ABSTRACT
This study investigates the effect of working capital management on the performance of Nigeria Bottling Company (NBC), Ibadan Plant. The specific objectives of this study are to examine the relationship between working capital management metrics and performance indicators, and to determine the impact of efficient working capital management on profitability and liquidity.To achieve these objectives, the research employs a quantitative approach, utilizing financial data from NBC's annual reports and accounts. The study examines the relationship between working capital management metrics (cash conversion cycle, accounts receivable days, accounts payable days, and inventory turnover) and performance indicators (profitability and liquidity). The findings reveal a significant positive relationship between efficient working capital management and profitability. The study concludes that effective management of working capital is crucial for enhancing NBC's financial performance. The results have implications for manufacturing companies in Nigeria, highlighting the need for efficient working capital management strategies to improve profitability and competitiveness.
In conclusion this study contributes to the existing literature on working capital management in emerging economies and provides insights for policymakers, managers, and investors.
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