Influence of Liquidity Management on the Profitability of Listed Manufacturing Firms in Nigeria

Student: Afeez Olalekan Eleyele (Project, 2025)
Department of Accountancy
Osun State Polytechnic, Iree, Osun State

Abstract

ABSTRACT This study examined the liquidity management and profitability of manufacturing firm in Nigeria by determining the impact of inventory held on organizational profitability; and examining the impact of cash conversion cycle on the profitability of an organization. Ex-post facto method was adopted and times series data were extracted from the annual reports and accounts of Dangote Pic. The hypotheses were tested using regression analysis and results showed that inventory held and cash conversion cycle had significant impact on the profitability of a manufacturing company. These results indicated that liquidity management had significant impact on profitability of a manufacturing firm. Based on the findings the study recommended that managers should strive to achieve a reasonable level of profitability in order to maximize their shareholders wealth; the operating activities of manufacturing company listed on the floor of the Nigeria Stock Exchange should be such that it could finance a larger percentage of their current liability from it operation and management should strive to maintain a very low CCC.

Keywords
influence liquidity management profitability listed manufacturing firms nigeria
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