IMPACT OF WORKING CAPITAL MANAGEMENT ON THE PRODUCTIVITY OF MANUFACTURING COMPANIES
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
ABSTRACT
The management of current assets and short term funds is as important as that of fixed assets and long term funds. Therefore, the need for effective working capital management cannot be overemphasized in manufacturing companies for realization of their objectives. The effectiveness of that working capital management depends largely on proper financing of working capital. It was therefore considered appropriate in this research to evaluate the impact of working capital financing management policieson productivity of manufacturing firms in Nigeria. The main objective of the study was to come up with evidences that establish the relationship between working capital management policy and productivity of a firm, and identify the working capital management policy that contributes most to the productivity of a firm under different conditions. To achieve this objective, six (6) manufacturing companies that are quoted in the Nigerian Stock Exchange were selected as a case study, and a sample of one hundred and fifty (150) respondents who were employees of the companies was used in the study. Thus, data from primary sources were analyzed using simple descriptive research design. In addition, three (3) hypotheses were formulated and tested for significance using the t- test statistic technique. The secondary data were collected from the published financial statements of the companies under study and analyzed using correlation coefficient and financial ratios for the period 1999 to 2003. The research revealed that companies using different working capital management policieshad different profitability, which concluded that there is significant relationship between working capital management policy and productivity of manufacturing company, and such relationship depends on the operating performance of the firm. It was also discovered that manufacturing companies that adopt conservative working capital management policy are more profitable especially when the demand for company’s product is high. Finally, the researcher recommended that manufacturing companies should employ qualified financial managers so as to effectively control cost of production and balance the trade off between cost of sales and quality of products manufactured in order to boost sales. It was also recommended that factors affecting working capital needs should be critically studied, so that investment in working capital would be appropriate to avoid high risk ofuncertainties.
Related Project Materials
The Impact of GDP Growth on Employment Levels in Nigeria: A Case Study (2010–2020)
Background of the Study
Nigeria’s economic narrative between 2010 and 2020 is marked by episodes of rapid GDP growth...
The Effect of Rental Price Regulation on Landlord-Tenant Relationships in Benue State
Background of the Study
Rental price regulation is a policy designed to control the amount that landlords can charge tenant...
EARLY CHILDHOOD EDUCATION AND CONFLICT MANAGEMENT
ABSTRACT: The role of early childhood education (ECE) in teaching conflict...
Exploring the Use of Machine Learning in Network Traffic Analysis in Federal University, Wukari, Taraba State
Background of the Study
The exponential growth in network traffic has necessitated advanced methods for...
EFFECTS OF MULTIMEDIA AND FIELD-TRIP INSTRUCTIONS ON PERFORMANCE AND RETENTION OF UPPER BASIC (JSS II) ISLAMIC STUDIES STUDENTS IN KADUNA STATE, NIGERIA
ABSTRACT
This study assessed the effectiveness of multimedia and field trip instructions on the performance and retention of Upper Basic...
HISTORICAL DISCOURSE ON SOCIAL WELFARE SERVICES OF THE CATHOLIC CHURCH IN OWERRI ECCLESIASTICAL PROVINCE, NIGERIA, 1968-2016
Background to the Study
The Church from inception has rendered various levels of social welfare services to humanity as...
INVESTIGATION OF GEOTHERMAL ENERGY POTENTIAL USING AEROMAGNETIC AND AERO-RADIOMETRIC DATA
ABSTRACT
The study focuses on both quantitative and qualitative analysis of high resolution aeromagnetic data for the estimation of geoth...
The Challenges and Prospects of Accounting Information System in Strengthening Local Government Budgets
Background of the Study
Accounting Information Systems (AIS) can play a significant ro...
DEVELOPMENT OF A SMELL AGENT OPTIMIZATION ALGORITHM FOR COMBINATORIAL OPTIMIZATION PROBLEMS
Excerpt from the Study
Combinatorial optimization involves the mathematical study of arraignment, ordering, selection or...
The Influence of Digital Media on Career Counseling in Shendam Local Government Area, Plateau State
Chapter One: Introduction
