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The impact of working capital management on the profitablity of the manufacturing companies (a study of PZ-Cussons industries PLC), Nigeria

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Abstract

The topic of this research is the”Impact of working capital management or the profitability of a manufacturing company (A study of PZ-Cussons Industries Plc)”. The statement of the study states that efficient working capital management can make a difference between the survival and death of business endeavor. Hence the problem before the research work aims at addressing the misappropriation of the working capital, the ill quality and insolvency in working capital financing and the inability to meet the required production and sales level by the manufacturing company. The research methodology of the work aims at collecting data for the study. The data collected were analyzed by using chi-square statistical techniques for analysis. The following findings were made that effective working capital management increases profitability, there is a high degree of relationship between working capital and profitability and that working capital management enhances the growth of a manufacturing company. There exist some elements of inventory mismanagement  in the company. It also recommended that the working capital position and profitability of the company should be maintained and the trend through which it increase in satisfactory.

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