Impact of Working Capital Management on the Profitability of Agricultural Processing Firms in Nigeria
Business Administration — 2025, Undergraduate
This study investigated the impact of working capital management on the profitability of agricultural processing firms in Nigeria. Secondary data drawn from the financial statements of selected firms were analysed together with questionnaire responses from finance managers. The findings showed that shorter cash conversion cycles and efficient inventory management significantly improved profitability, while excessive reliance on short-term debt increased financing costs. The study also found that many firms lacked formal working capital policies. It recommends adoption of disciplined cash conversion cycle management and vigilant monitoring of receivables and inventories.
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