Working Capital Policies and Profitability of Listed Consumers Goods Manufacturing Companies in Nigeria

The influence of working capital policies and profitability of listed consumer’s goods manufacturing companies in Nigeria was examined in this study. Ex-post facto research design was adopted. The population of the study consisted of twenty-four (24) listed consumer’s goods manufacturing companies in Nigeria. Taro Yamane’s statistical formula was used at estimated error term of 0.14 to determine sample size of sixteen (16). Purposive sampling technique was used to select the samples. The data obtained were from secondary sources and analysed using descriptive and inferential statistics. The finding revealed that there is significant positive influence of working capital policies on the profitability of listed consumer’s goods manufacturing companies in Nigeria. It was concluded in the study that working capital investment policy and financing policy have significant positive influence on the profitability of selected listed companies in Nigeria. Thus, it was recommended that aggressive, conservative or moderate working capital investment and financing policies adoption should be aligned with the nature of the firm’s internal operations, cash flow volatility and external market condition, mode of operations and not only on high returns or risks involved.