Impact Of Working Capital Management On The Profitability Of Manufacturing Companies (A Case Study Of Nigeria Bottling Company Owerri, Imo State)

ABSTRACT

 This research project focused on the impact of working capital management in manufacturing company with a case study of the Owerri Plant of Nigeria Bottling Company Plc. Data were obtained from Secondary source. The Secondary data consist of information from annual reports, financial reports, Journals, Textbooks and also work done previously' by people. The data collected were analyzed using tables and percentage while the hypotheses were tested with statistical techniques using social statistical packages for social sciences (SPSS), pearson correlation and multiple regressions. This work attempt to find out whether the company use cash conversion cycle, debt conversion cycle and inventory to measure its profitability, performance, efficiency and also to determine if effective working capital management enhancing the profitability of the manufacturing company. From the analysis carried out using correlation analysis and multiple regression, (using 1% level of significance) which shows that the influence of cash conversion cycle, debt conversion cycle, inventory and its profitability is significant; I therefore recommend that companies should endeavor to determine the optimum level of each of the components on working capital as excess or shortage of it brings unfavourable condition to the company.