WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF LISTED PHARMACEUTICAL FIRMS IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Working capital managemt involves the management of the most liquid resources of the firm which includes cash and cash equivalents, inventories, trade debtors and other receivables. Most firms do not ensure optimal level of working capital and this has been a major obstacle to their overall profitabilty. The study examined the impact of working capital management on the profitability of Pharmaceutical firms listed on the Nigerian Stock Exchange market. Correlation and ex-post facto research design were used in a sample of 5 Pharmaceutical firms. Secondary data for a period of 10 years (2002-2011) was used, and Ordinary Least Squares (OLS) multiple regression was employed in data analysis. The study found that working capital management (account receivables collection management, accounts payables management, inventory management, cash conversion cycle management, operating cash flow management) has a significant impact on the profitability of listed pharmaceutical firms in Nigeria. It is therefore recommended among others that managers should focus on reducing inventory days, collect receivable as soon as possible because it is better to recieve inflows sooner than later, and delay payment of creditors inorder to invest the money in short-term securities which are profitable. Also, the cash conversion cycle should be elongated to the extent that it maximizes profit.
Related Project Materials
THE ROLE OF LEADERSHIP IN FOSTERING A POSITIVE WORK ENVIRONMENT
THE ROLE OF LEADERSHIP IN FOSTERING A POSITIVE WORK ENVIRONMENT
This research explores...
ASSESSMENT OF RATIONAL USE OF ANTIRETROVIRAL DRUGS IN HEALTH INSTITUTIONS IN NIGERIA
ABSTRACT
With the national prevalence of 5.0% in Nigeria, HIV infections have become one of the most dreadly medical challenges. Availabi...
THE IMPACT OF PARENTS SOCIO-ECONOMIC STATUS ON THE ACADEMIC PERFORMANCE OF SECONDARY SCHOOL BIOLOGY STUDENT
ABSTRACT
This study was undertaken to test the impact of parent’s socio-economic status on academic performance of...
THE IMPORTANCE OF STUDYING CO-OPERATIVE ECONOMICS AND MANAGEMENT
Introduction
Co-operative Economics and Management in tertiary institutions help to improve the co-oper...
THE INFLUENCE OF PROJECT PLANNING ON PROJECT OUTCOMES
Abstract: This research examines the influence of project planning on project outcomes, with objectives to:...
A SURVEY ON TAX INCENTIVE AS A CATALYST FOR PERFORMANCE OF BEVERAGE COMPANIES
EXCERPT FROM THE STUDY
The prospects for beverage companies (and other manufacturing firms) are considerable, but the ob...
OFFICE TECHNOLOGY AND MANAGEMENT GRADUATES AND HUMAN RELATIONS SKILLS REQUIRED OF THEM IN BUSINESS ORGANIZATION
EXECERPT FROM THE STUDY
There are 23 Personal Soft Skills indicator, namely: Personal Effectiveness, Flexibility, Manage...
THE IMPORTANCE OF BLOOD CULTURES IN THE DIAGNOSTIC AND THERAPEUTIC PROCESS OF SEPTICEMIA
ABSTRACT
A study of septicaemia was conducted in Enugu metropolis with a view to determine the relevance of blood culture to the diagnosi...
THE BENEFITS OF EARLY CHILDHOOD EDUCATION IN PROMOTING ENVIRONMENTAL SUSTAINABILITY
ABSTRACT: The benefits of early childhood education in promoting environme...
COMPARATIVE EVALUATION OF THE HYPOTENSIVE EFFECTS OF THE SEED AND LEAF EXTRACTS OF MORINGA OLEIFERA LAM (Moringaceae) IN LABORATORY ANIMALS
ABSTRACT
Moringa oleifera is locally used in Nigeria for the management of respiratory disorders, hypertension and poor blood circulation...
