The Influence of Working Capital Management on Firm Profitability: A Study of BUA Cement in Kano State
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
Working capital management is a crucial aspect of a company's financial management. It involves the management of current assets and liabilities to ensure that a business maintains sufficient liquidity to meet its short-term obligations while maximizing profitability. For firms in capital-intensive industries, such as cement manufacturing, effective working capital management is essential for maintaining smooth operations and achieving sustainable profitability. BUA Cement, one of the leading cement manufacturers in Nigeria, operates in a highly competitive and dynamic market. Its ability to manage working capital effectively can directly impact its financial performance, liquidity, and overall success.
In Kano State, BUA Cement plays a key role in the regional economy by providing jobs, contributing to infrastructure development, and influencing the local supply chain. However, challenges related to cash flow management, inventory control, and receivables collection can significantly impact the company's profitability. This study will examine how working capital management influences the profitability of BUA Cement in Kano State, with a focus on the company’s practices in managing short-term assets and liabilities.
Statement of the Problem
Despite the significance of working capital management in maintaining profitability, many firms, including BUA Cement, face difficulties in optimizing their working capital. Poor working capital management can result in cash flow problems, operational inefficiencies, and lost profitability. This study will address the gap in understanding how working capital management practices affect the profitability of BUA Cement in Kano State, specifically examining the firm’s strategies for managing inventory, receivables, and payables.
Objectives of the Study
1. To assess the impact of working capital management on the profitability of BUA Cement in Kano State.
2. To identify the key working capital management practices that influence the financial performance of BUA Cement.
3. To recommend strategies for improving working capital management to enhance profitability at BUA Cement in Kano State.
Research Questions
1. How does working capital management influence the profitability of BUA Cement in Kano State?
2. What are the key working capital management practices that affect the financial performance of BUA Cement?
3. How can working capital management be improved to enhance profitability at BUA Cement in Kano State?
Research Hypotheses
1. There is a significant positive relationship between effective working capital management and the profitability of BUA Cement in Kano State.
2. Inventory management and receivables collection significantly impact the profitability of BUA Cement in Kano State.
3. Improved working capital management practices will lead to increased profitability for BUA Cement in Kano State.
Scope and Limitations of the Study
This study will focus on the working capital management practices at BUA Cement in Kano State, examining their impact on profitability. Limitations include potential difficulties in accessing internal financial data and external factors that may affect the company’s working capital and profitability, such as market fluctuations.
Definitions of Terms
• Working Capital Management: The management of a company’s short-term assets and liabilities to ensure sufficient liquidity and operational efficiency.
• Profitability: The ability of a firm to generate income relative to its revenue, assets, or equity.
• Cement Manufacturing: The industrial process involved in producing cement, including the sourcing of raw materials, production processes, and distribution.
Related Project Materials
An assessment of the social impact of renewable energy projects: A case study of Edo State
Background of the study
Renewable energy projects have garnered increasing attention as sustainable alternatives to conv...
LOCAL GOVERNMENT SYSTEM IN NIGERIA AS AN INSTRUMENT FOR RURAL DEVELOPMENT
Abstract
Local government in modern day life is responsible for delivering basic goods and services to its local communities in faster, e...
INNOVATIVE TECHNOLOGIES AS A CORRELATION OF LIBRARY SERVICE DELIVERY IN THE BELLS UNIVERSITY, OTA, OGUN STATE
BACKGROUND OF THE STUDY
Libraries are mainly entrusted with a host of predetermined tasks like acquirin...
THE EFFECT OF COVID-19 ON FINANCIAL REPORTING AND DISCLOSURE REQUIREMENTS
Abstract
This study examines the effect of COVID-19 on financial reporting and disclosure requirements...
An Evaluation of Political Campaign Promises and Post-Election Accountability: The Case of Bauchi Local Government, Bauchi State
Chapter One: Introduction
1.1 Background of the Study
Political campaign promises are an essenti...
An examination of interbank relationships in corporate banking: A case study of Citibank Nigeria, Lagos
Background of the Study
Interbank relationships are fundamental to the efficient functioning of the corporate banking ecosy...
The Impact of Updated Regulatory Frameworks on Strengthening Bank Governance in Nigeria: A Case Study of First Bank of Nigeria
Background of the Study
Robust regulatory frameworks are essential for ensuring transparency, stability, and sound governan...
EVALUATION OF A CO-PROCESSED EXCIPIENT FROM COW BONE POWDER AND GELATIN FOR USE IN DIRECT COMPRESSION TABLETING
ABSTRACT
The objective of the study was to develop an excipient consisting of cow bone powder and gelatin by the co-processing method and...
EFFECTIVE MARKET CAPITALIZATION AND THE NIGERIA STOCK MARKET GROWTH
ABSTRACT
The capital market is one the compartment of financial system that promote savings and investment in an economy, by providing th...
An investigation of students’ perceptions of the adequacy of library resources in University of Abuja College of Nursing
Background of the Study
Library resources are fundamental to the academic success of students, especially in fields like nursing where re...
