EFFECTS OF CURRENT ASSETS MANAGEMENT ON THE PROFITABILITY OF LISTED MANUFACTURING FIRMS IN NIGERIA (2015-2024)

OBINALI, ANNABEL KOSISOCHUKWU (2026) EFFECTS OF CURRENT ASSETS MANAGEMENT ON THE PROFITABILITY OF LISTED MANUFACTURING FIRMS IN NIGERIA (2015-2024). Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

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Abstract

This research explores how current asset management influences the profitability of Nigerian manufacturing companies listed on the Nigerian Exchange Group from 2015-2024. The research focuses on current asset elements such as inventory turnover, receivable turnover and the cash conversion cycle, examining their effect on firm profitability, given the persistent difficulties experienced by Nigerian manufacturers, including: unstable economic conditions, escalating production expenses, inflation rates, credit accessibility, and fluctuating exchange rates. These challenges significantly affect the management of working capital and ultimately, the profitability of the enterprises. Using an ex-post facto study design and a sample population of 45 listed manufacturing companies on the Nigeria Stock Exchange, the study employed purposive sampling to select five companies. The methodology utilized was a quantitative research approach relying on secondary data, sourced from the financial statements of the selected manufacturing companies over a ten-year span (2015-2024). Return on assets (ROA) was utilized to determine profitability, and the Cash Conversion Cycle (CCC), Accounts Receivables Turnover (RTR ) and Inventory Turnover (IT) ratios were used as indicators of current asset management. The research results indicate that ITR exhibits a positive, though insignificant, correlation with ROA in listed Nigerian manufacturing firms. The results also show a positive and statistically significant correlation between RTRon ROA for these firms. Finally, the CCC demonstrated a negative and significant association with ROA among the firms. This research contributes to the body of knowledge by underscoring the significance of current asset management as a key financial factor affecting company performance. Additionally, the research provides actionable insights for financial managers, policy makers and relevant parties in enhancing operational effectiveness and profitability in the Nigerian manufacturing sector.

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: 24 Jul 2026 14:38
Last Modified: 24 Jul 2026 14:38
URI: http://eprints.gouni.edu.ng/id/eprint/6010

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