Effect of Working Capital Management on the Profitability of Brewery Firms in Nigeria
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 2
Abstract
The study aims to determine the effect of working capital management on the profitability of brewery firms in Nigeria. This study adopts the ex-post-facto research design and employed the Ordinary Least Square (OLS) regression technique in analyzing the data. To ascertain the effect of working capital management (number of days account receivables are outstanding, number of days inventory are held, and cash conversion cycle) on the profitability (return on assets) of brewery firms in Nigeria, the study used the sample of Nigerian Breweries Plc and Guinness Nigeria Plc for the period of 2006 to 2014. And the findings suggest that the management of the number of days account receivables are outstanding, numbers of days inventory are held, and cash conversion cycle are significant factors in the accomplishment of the profitability objective of brewery firms in Nigeria. It was recommended that brewery firms should reduce heavy investments in current assets to avoid high inventory costs, and excess cash holdings and account receivables.
Authors and Affiliations
Uguru Leonard C. , Chukwu U. C. , Elom J. O.
Keywords
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- EP ID EP414566
- DOI 10.9790/5933-0902020920.
- Views 193
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