SUNDAY,, Baridaamon Prosper (2025) RELEVANCE OF CURRENT ASSETS MANAGEMENT TO PROFITABILITY: (A STUDY OF SOME SELECTED FOOD AND BEVERAGE FIRMS IN NIGERIA). Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.
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Abstract
This study investigates the relevance of current assets management to profitability of consumer goods companies in Nigeria. Specifically, the study examines the effects of inventory turnover ratio, current ratio, cash conversion cycle, accounts receivable turnover, and accounts payable days on profitability. The study used secondary data from financial reports of twelve consumer goods companies listed on the Nigerian Exchange Group, covering the years 2011 to 2023. The study covered twelve firms across a thirteen-year period. It adopted an ex post facto research design. Panel regression techniques were used, including pooled OLS, fixed effects, and random effects models, with Hausman testing applied for model selection. The findings showed that the inventory turnover ratio had a positive and significant effect on profitability (β = 0.026, p = 0.015). Cash conversion cycle also had a positive and significant effect (β = 0.003, p = 0.007). Current ratio, accounts receivable turnover, and accounts payable days all had non-significant effects on profitability. The study concluded that inventory management efficiency is critical for enhancing profitability in Nigerian consumer goods firms, while longer cash conversion cycles may strategically benefit firms in Nigeria's unique business environment. The study recommended among others that companies prioritise inventory management systems and adopt balanced working capital strategies rather than aggressively minimising cash conversion cycles.
| Item Type: | Thesis (Other) |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Divisions: | Faculty of Management and Social Sciences |
| Depositing User: | Uchenna Eneogwe |
| Date Deposited: | 08 Jun 2026 11:33 |
| Last Modified: | 08 Jun 2026 11:33 |
| URI: | http://eprints.gouni.edu.ng/id/eprint/5774 |
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