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 3000
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
FACTORS THAT INFLUENCE CONSUMER PURCHASE AND CONSUMPTION OF EGGS IN ENUGU STATE
Abstract
This research project was embarked upon to examine the factors that influence consumer purchas...
DESIGN AND IMPLEMENTATION OF A COMPUTERISED STUDENTS ADMISSION SYSTEM
Abstract
The ultimate statement of the proposed system is to over come the problems in the existing sys...
ADAPTATION OF EMPIRICAL ELECTRIC FIELD STRENGTH MODELS FOR TERRESTRIAL TELEVISION BROADCAST IN EKITI STATE, NIGERIA
ABSTRACT
This study investigates the coverage areas of VHF and UHF signals of two television stations in Ekiti State, Nigeria by quantita...
THE INFLUENCE OF ORGANIZATIONAL JUSTICE ON EMPLOYEE MOTIVATION
Abstract: THE INFLUENCE OF ORGANIZATIONAL JUSTICE ON EMPLOYEE MOTIVATION
Objective: Th...
THE IMPACT OF 3D PRINTING TECHNOLOGY ON VOCATIONAL EDUCATION IN MANUFACTURING
ABSTRACT: The impact of 3D printing technology on vocational education in manufacturing is transformative, offering new avenues for skill deve...
INVESTIGATIVE JOURNALISM PRACTICES AND PROBLEMS IN NIGERIA A CASE STUDY OF AIT ABUJA
ABSTRACT
To discover and appreciate the problem and prospect of investigative journalism in Nigeria there is the need to...
EXAMINING THE STRATEGIES FOR INTEGRATING SUSTAINABILITY PRACTICES INTO VOCATIONAL TRAINING
ABSTRACT: Strategies for Integrating Sustainability Practices into Vocational Training explore approaches to incorporating environmental sustainabi...
INSECURITY, A THREAT TO NATIONAL DEVELOPMENT
ABSTRACT
The research proffers a conceptual and theoretical investigation on insecurity a threat to national development...
THE EFFECTS OF CONSUMERISM IN MARKETING OF FAKE & COUNTERFEIT DRUGS IN NIGERIA
Statement Of The Problem
In Nigeria, the pace at which business activities are increasing especially ma...
ASSESSING E-NAIRA USER CHALLENGES BY FEATURE PHONE USERS
1.1 BACKGROUND OF THE STUDY
The general market and the majority of financial markets have changed greatly. In this sense...
