Working Capital Management and the Financial Performance of Basic Materials Manufacturing Companies in Nigeria

The management of working capital involves managing inventories, accounts receivable and payable, and cash. Based on this assertion, this dissertation is to examine working capital management and the financial performance of basic materials manufacturing companies in Nigeria. The objective of the study is to examine the relationship between working capital management and financial performance of basic material manufacturing companies in Nigeria, The study is anchored with Fisher's separation theory. The study used ex post facto research design which also known as after the effect research, data analyses of financial information were extracted from the manufacturing companies Financial Statements for the years 2001 to 2015. These statements used to examine how an independent variable, present prior to the study, affects a dependent variable. In order to arrive at the testable conclusion, stratified random sampling techniques were adopted. Ordinary Least Square OLS regression model were used in this research work with the model findings, which revealed that debtors, creditors and inventory has no significant relationship with return on investment of manufacturing companies in Nigeria. The study therefore recommended that managers of basic material manufacturing companies in Nigeria should intensify effort on how to improve the management of debtor as a component of working capital components than creditors and inventories in their industry. Olaniyi, Ayo R | Nzewi, Ugochukwu C ""Working Capital Management and the Financial Performance of Basic Materials Manufacturing Companies in Nigeria"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30225.pdf Paper Url : https://www.ijtsrd.com/management/accounting-and-finance/30225/working-capital-management-and-the-financial-performance-of-basic-materials-manufacturing-companies-in-nigeria/olaniyi-ayo-r