WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF CONSUMER/INDUSTRIAL GOODS COMPANIES IN NIGERIA

ABSTRACT This study examined working capital management and financial performance of listed firms in Nigeria utilizing panel data spanning 2017 to 2022 from 16 listed firms.With The population of the study which comprises of all quoted firms on the floor of the Nigerian Exchange Group and sampling size of 16 quoted firms,The studyinvestigated the relationship between current ratio, liquidity ratio and inventory turnover on the performance of listed firms in Nigeria. The study employed thedescriptive statistics and correlation analysisfor the empirical estimation of the model. Three hypotheses were raised and evaluated using the robust least squares estimator. The analysis revealed that: current ratio does not significantly affect the financial performance of quoted firms; liquidity ratio has no significant relationship with the financial performance of quoted firms; and inventory turnover significantly influences the financial performance of quoted firms in Nigeria. Based on these findings, it was recommended that: firms should implement inventory management systems that minimize holding costs and avoid stockouts, ensuring a smooth flow of goods that meets customer demand without unnecessary delays; firms should regularly monitor their current ratio to ensure they can meet short-term obligations without straining their cash flows; and rather than focusing solely on maintaining high liquidity ratios, firms should consider a balanced approach that aligns liquidity management with overall strategic goals.