The Effect of Financial Literacy on the Efficiency of Small-Scale Enterprice in Abia State

This study looked at the effect of working capital management on the profitability of selected manufacturing firms in Nigeria. The deficiencies encountered by firms working capital management in Nigeria with regards to their performance and profitability prompted the need for this study. Thus, the broad objective is to examine the effect of working capital management on the profitability of manufacturing firmss in Nigeria. The specific objectives of the study are to ascertain the effect of current ratio (CR), days in account receivable (DAR), days in account payable (DAP), days in inventory turnover (DINN) and cash conversion circle (CCC) as well as creditors turnover (CT) on return on investment of Nigerian manufacturingfirmss This study is anchored on pecking order theory and used secondary data collected from companies quoted on the Nigerian stock Exchange (factbook) and statement of financial position for the various companies from 1986 to 2016. Panel data analyses were used for Generalized Least Square regression model for the variables considered for the study. The result of the panel data study show that current ratio (CR) and cash conversion cycle (CCC) has negative and insignificant effect on return on investment of manufacturing firms in Nigeria while days in account receivables (DAR), days in account payables (DAP) and days in inventory turnover (DINN) as well as creditor turnover (CT) has a positive and insignificant effect on return on investment of manufacturing firmss in Nigeria. The study conclude that working capital management have insignificant effect on return on investment in Nigeria and recommend that for manufacturing firmss to achieve growth and maintain profitability, firm's manager should strive to strike a balance between current assets (CA) and current liabilities (CL).