Title page
Approval Page
List of Appendixes
List of Tables

Chapter One 
1.1       Background of the study
1.2       Statement of research problem
1.3       Objectives of the study
1.4       Research Questions
1.5       Research Hypotheses
1.6       Scope of the study
1.7       Significance of the study
1.8       Limitation of the study
1.9       Operational definition of terms

Chapter Two
Review of Related Literature
2.1       Introduction
2.2       Conceptual framework
2.2.1    Current Assets
2.2.2    Non-Current Assets
2.2.3    Current Liabilities
2.2.4    Difficulties in Managing working Capital
2.2.5    Overtrading
2.2.6    Accounts receivable management
2.2.7    Cash Conversion Cycle
2.2.8    Accounts Payable management
2.2.9    Liquidity management
2.2.10  Stocks/Inventories management
2.3       Theoretical framework
2.3.1    Operating Cycle Theory
2.3.2    The Importance of Operating Cycle Theory
2.3.3    Trade-Off Theory
2.4       Empirical Review
2.5       Summary of Literature Review

Chapter three
Research Methodology
3.1       Research Design
3.2       Population and Sample size
3.3       Nature and Sources of Data
3.4       Description of Research Variables
3.4.1    Dependent Variable (Profitability)
3.4.2    Independent Variables Accounts Receivables Stock Turnover Accounts Payable Cash Conversion Cycle ratio Liquidity ratio
3.5       Techniques for Analysis
3.6       Model Specification
3.7       Computed and Multiple Regression Analyse

Chapter Four           
Data presentation and analysis
4.1       Introduction
4.1.1    Raw Data
4.2       Descriptive statistics
4.2.1    Descriptive statistics for the twenty two firms considered in the study
4.2.2    Food and Beverages sub –sector
4.2.3    Industrial and Domestic products sub- sector
4.2.4    Healthcare sub-sector
4.2.5    Building materials and chemical sub- sector
4.2.6    Breweries sub-sector
4.2.7    Packages sub-sector
4.2.8    Automobile and Tyre sub-sector
4.2.9    A cross  sub- sector comparison
4.2.9    Food and Beverages
4.2.10  Industrial and domestic Sub-Sector
4.2.11  Health sub-sector
4.2.12  Building materials and chemicals
4.2.13  Breweries sub-sector
4.2.14  Packages sub-sector
4.2.15  Automobile and tyre sub-sector
4.2.16  All the sub- sectors in Nigeria manufacturing firms
4.3.      Correlation Matrix
4.3.1    Discussion of sub-sectors Result
4.3.1    Food and Beverages
4.3.2    Industrial and Domestic Products firms
4.3.3    Healthcare firms
4.3.4.   Building material, chemical and paints
4.3.5    Breweries firms
4.3.6    Packaging firms
4.3. 7   Automobile and tyre firms
4.3.8    All manufacturing firms in Nigeria
4.4       Discussion of individual Industry Results
4.4.1.   Seven – up Bottling Company
4.4.2.   Cadbury Nigeria Plc
4.4.3    Flour mill Nigeria Plc
4.4.4    Nestle food Nigeria Plc
4.4.5    Nigeria Bottling Company
4.4.6    First Aluminium Nigeria
4.4.7    Aluminium  Extrusion Nigeria PLC
4.4.8    B.O.C. Case  Nigeria PLC
4.4.9    Enamelware  Nigerian PLC
4.4.10  Vita Foam Plc
4.4.11  Vono Product Nigeria Plc
4.4.12  Evans Medical Nigeria
4.4.13  May and Baker Nigeria
4.4.14  Pharma-Deko Nigeria Plc
4.4.15  Benue cement Nigeria Plc
4.4.16  Berger Paints Nigeria
4.4.17  Premier Paints Nigeria
4.4.18  Guiness Nigeria Plc
4.4.19  Nigeria Breweries Plc
4.4.20  Avon Nigeria Plc Beta Glass Nigeria Plc
4.4.22  Incar Nigeria
4.4       Test of Hypotheses
4.5.1    Robustness test
4.5.2    Discussion of Findings

Chapter Five
5.0       Summary of findings, conclusion and Recommendations
5.1       Introduction
5.2       Summary of Research findings
5.2.1    Comparison of findings with Objectives of the study
5.3.      Conclusion
5.4       Recommendations
5.5       Contribution to knowledge
5.6       Recommended Areas for further Research

This study examined the impact of working capital management on the profitability of Nigerian quoted Manufacturing firms. The working capital variables studied comprise accounts payable, accounts receivable, cash conversion cycle, stock/inventory turnover and liquidity. This study also used sales growth and Debt as control variables in examining the impact of working capital management on the profitability of Nigerian firms. Secondary sources of data were sourced from the Annual Reports of the 22 manufacturing firms selected for this study for the period 2000-2011. Five Hypotheses were estimated with the use of Generalized least square multiple regression. The findings of the study show that, accounts payable ratio [AP] had negative relationship with the industries’ profitability. On the other hand, accounts Receivable ratio [AR] had positive and significant relationship with profitability of the firms studied. Stock turnover ratio had negative and significant relationship with profitability of the firms under study. Results also show that firms cash conversion cycle [CCC] had positive but non-significant relationship with the industries profitability, and Liquidity ratio had negative relationship with the industries profitability. Based on the findings of the study, the following recommendations were made; there should be a balance between liquidity and profitability. They should also avoid stock-outs because of the huge sales they made during the years under study. They are encouraged to reduce their cost of sales to make more profit. There should also increase their credit sales so as to have enough cash to settle their obligations. Specialized persons should be hired by these companies for expert advice on working capital management. One of the greatest contributions of this study is the perspective we followed in the measurement of variables (Descriptive and four functional models of multiple regression).



1.1             Background of the study

The sustainability of a firm heavily depends on the ability and success of its financial management function (Karaduman et al 2011). Traditionally, corporate finance involves capital budgeting, capital structure and working capital management, capital budgeting and structure, such as investments in fixed assets are about the management of long-term capital and attract more attention than working capital management in finance literature. However, working capital management is also a very important field of corporate finance, because of its considerable effects on the firms profitability and liquidity (Nazir and Afza, 2009, Chiou, et al 2006, and Alshubiri; 2011) In order to maintain its activity firms typically need two types of assets, fixed assets and current assets. Fixed assets which include, building, plant, machinery, furniture, fixture and fitting among others are not only purchased for the purpose of resale, but also for operational purposes (Singh and Pandey, 2008). On the other hand, current assets are seen as key components of the firm`s total assets. A firm may be able to reduce its investment on fixed assets by leasing, but this becomes practically difficult for current assets. (Afza and Nazir 2008)

A firm’s investment in current assets such as cash, bank deposits, short term securities, accounts receivables and inventories are called working capital. To put it differently, net working capital is the surplus of current assets over the short term liabilities and represents the liquidity margin available to meet the cash demands in order to maintain the daily operations and benefit from the profitable investment opportunities (Yaday, Kamtt and Manjrekar, 2009, Padachi, 2006). Therefore it is possible to say that working capital can be regarded as lifewire of the firm and its efficient management can ensure the success.....

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