ABSTRACT

The study investigated the Effects of Working Capital Management on the profitability of manufacturing Company, A Case study of Cadbury Nigeria Plc. The specific objectives of the study are to identify the various components of working capital in Cadbury Nigeria PLC; identify the level of working capital management in Cadbury Nigeria PLC; and to evaluate the impact of working capital management on the profitability of Cadbury Nigeria PLC. Total of questionnaires was distributed to staff in Cadbury Nigeria Plc drawn from the study population was used for the analysis. Three hypotheses were formulated for the study, simple percentage and ratio analysis. Under the simple percentage and ratio analysis was analyzed by the use of tables which involved the use of simple percentages. Contrarily, the reason for using this method is to enable the researcher compare and group information and data accordingly. The computation of ratios was limited to those that have to do with working capital of the company. At the end of the study, the researcher found out that, Working Capital Management of Cadbury Nigeria PLC does not enhance its profitability and Cadbury Nigeria PLC does not have an optimum level of Working Capital Management. Based on the findings the following recommendations were made that the company should reduce the period between the time cash is paid out for raw material and the time cash is recorded from sales of the company’s product. This will provide funds for regeneration and increasing working capital of the firm there after, the company should pay more attention to its liquidity position and improve on it.

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