Impact Of Inventory Management On Liquidity Of Firms In Nigeria (Study Of 7up Bottling Company):- Akomas Peace A.

ABSTRACT

This study examined the impact ofinventory management on liquidity offirms in Nigeria. The specific objectives were to determine the effect ofinventory management on acid test ratio of firms in Nigeria and to ascertain the effect ofinventory management on the cash conversion period offirms in Nigeria. The data was sourcedfrom annual financial statement of 7UP Nigeria pic from 2005 to 2016. The two stated hypotheses were analyzed with simple. The simple regression analysis results revealed that inventory has significant effect on acid test ratio offirms in Nigeria and that inventory has no significant effect on cash collection period offirms in Nigeria. It was recommended that the study organization should also diversify their inventory system to suit specific needs of production and that management should closely monitor and manipulate their inventory system to maintain production consistency for organizationalprofitability and effectiveness since inventory has no significant effect on cash collection period offirms in Nigeria.