Impact of Working Capital Management on Financial Performance of Listed Manufacturing Firms in Nigeria

Zainab Dabo, Helen Afang Andow, Tokan Nuhu Shekari

This paper is an empirical analysis of the impact of working capital management on financial performance of listed manufacturing firms in Nigeria for the period of seven years (2011 to 2016). The population consists of ninety one  (91) listed manufacturing firms in Nigeria Stock Exchange and the paper used forty seven (47)as the sample size. The study aims to investigate whether working capital management (proxy cash conversion cycle and Inventory Turnover in Days,) have any significant contribution on firm’s financial performance. The study adopted Simple Regression Analysis technique and data were collected from secondary source through the audited annual reports and accounts of the firms. The findings reveal that working capital management influences firm’s performance. Therefore it recommended that the listed manufacturing firms should maintain a considerable number of days in managing the process of converting raw materials to finish goods and cash collection to improve firms’ performance.