EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF CONSUMER GOODS FIRMS IN NIGERIA A STUDY OF UNILEVER NIGERIA PLC

UJAH, ADA MERCY (2026) EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY OF CONSUMER GOODS FIRMS IN NIGERIA A STUDY OF UNILEVER NIGERIA PLC. Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

This study examined the effect of working capital management on the profitability of Unilever Nigeria Plc. The 0bjective of the study was to Assess the effect of the average collection period on the return on assets of Unilever Nigeria Plc,Determine the impact of the inventory conversion period on the return on assets of Unilever Nigeria Plc,Examine the influence of the average payment period on the return on assets of Unilever Nigeria Plc,Investigate the relationship between the current ratio and the return on assets of Unilever Nigeria Plc The study usedsecondary data from the audited annual reports of Unilever Nigeria Plc for the period 2012 to 2024. The study adopted an ex post facto design. Return on assets served as the dependent variable. Average collection period, inventory conversion period, average payment period, current ratio served as the independent variables. The analysis used descriptive statistics, correlation analysis, Augmented Dickey Fuller unit root test, Engle Granger residual cointegration test, ordinary least squares regression, post estimation diagnostics. The results showed that all variables became stationary after first difference. The residual cointegration test showed a long run link among the variables. The regression result showed that inventory conversion period had a negative significant effect on return on assets. Average collection period had a positive but not significant effect. Average payment period had a negative but not significant effect. Current ratio had a negative but not significant effect. The study concluded that inventory management is the strongest working capital route through which Unilever Nigeria Plc can improve profitability. The study recommended tighter inventory planning, balanced credit control, careful supplier payment policy, optimal liquidity control.

Item Type: Thesis (Other)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: CHIBUEZE EZE
Date Deposited: 27 Jul 2026 12:26
Last Modified: 27 Jul 2026 12:26
URI: http://eprints.gouni.edu.ng/id/eprint/6038

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