Effect of Working Capital Management on Financial Performance.

Student: Aishat Iyabo Jimoh (Project, 2025)
Department of Accounting
University of Abuja, Abuja, Fct


Abstract

ABSTRACT Effective working capital management is crucial for sustaining operational efficiency and enhancing financial performance within an organization. This study examines the effect of working capital management on the financial performance of Dangote Sugar PLC, a leading player in the sugar industry. The research investigates key components of working capital, including inventory management, accounts receivable and payable, and cash conversion cycles, to understand their impact on profitability and liquidity. Using a combination of quantitative analysis of financial data over a specific period and relevant financial ratios, the study highlights how strategic management of working capital contributes to improved financial outcomes. The findings provide valuable insights for managers seeking to optimize financial resources and maintain a balance between profitability and operational efficiency. Recommendations drawn from the analysis aim to inform better financial decision-making and strategies for enhancing performance in similar manufacturing sectors.

Keywords
Effect working capital management financial performance dangote sugar