IMPACT OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF LISTED CONGLOMERATE COMPANIES IN NIGERIA.

This study examined the impact of working capital management on the profitability of listed conglomerate companies in Nigeria covering the period 2020 to 2024. The analysis was based on six conglomerate firms whose data were obtained from published annual reports. Working capital management was measured using inventory period, receivables collection period, payables period, and cash conversion cycle, while profitability was proxied by return on assets (ROA). Panel regression analysis was employed to test the hypotheses formulated. The findings revealed that efficient management of inventory and receivables had a positive and significant effect on profitability, whereas payables period showed a mixed effect. The cash conversion cycle was negatively associated with profitability, implying that shorter cycles enhance firm performance. The study concludes that effective working capital management is a vital driver of profitability among Nigerian conglomerates. It recommends that firms adopt proactive policies in managing inventory, receivables, and payables, while paying close attention to maintaining shorter cash conversion cycles in order to achieve sustained profitability.