|Title: EFFECT OF WORKING CAPITAL MANAGEMENT ON THE FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA|
HUSSAINI, Yusufa , NNEJIWUIHE, Franklin Chinwikeb and FASASI, Kazeem Adeolac
This study examines the effect of working capital management on the financial performance of listed consumer goods firms in Nigeria for a period of ten (10) years (2011-2020). Data for the study were quantitatively retrieved from the annual reports and accounts of the studied firms. Ex-post facto research design was used for the study. The study employed descriptive statistics to describe the variable while the relationships among the variables were established via correlation. Multiple regression model were adopted for testing all the hypotheses and the study result reveals that there was a negative significant relationship between the Debtors’ Turnover and financial performance of the Nigerian listed consumer goods firms. It also reveals that the ROA is significantly influenced by the number of days inventories are held in store. The study results advocates that the FP of selected firms is influenced by WCM. The study however, recommends among others that listed consumer goods firms should maintain the current debtors’ turnover or further reduce it in order to continue to enhance financial performance.
|Keywords: Working capital, financial performance.|