Effect of Working Capital Management on Efficient Performance of Manufacturing Firm (a Case Study of Nigerian Brewries Plc.)

ABSTRACT The topic of this research is Impact Of Working Capital Management On The Profitability Of Manufacturing Company. The purpose of this study was to find out if the adequate management of working capital have any or significant effect on profitability of manufacturing firm and to examine the relationship between various working capital variables used in this research work and profitability of manufacturing companies. The design of this study is descriptive survey method and scope of this study was restricted to Pals Water Offa, Kwara State. Self administered questionnaire was adopted to collect data primarily from the respondents to ensure the reliability of the data which was analyzed using frequency table and chi-square. the population of the study was twenty (20) respondent which consist of both management staff and employees of Nigeria Breweries Plc. The researcher measured working capital which is the independent variable using the average receivable collection period, average period of inventory retention and cash conversion cycle. It was also discovered that effective management of working capital has significant effect on the overall profitability of the manufacturing firm. The study recommend that there should be adequate investment in working capital in order to ensure effective and consistency in the productivity of manufacturing firm and also that organizations should work on there receivable collection period in order to enhance effective working capital management within there organization which will benefit the company by ensuring their profitability stability.