Mountain Top University Library

Working Capital Management has a pivotal role to play in the performance of a business
enterprise or firm. In recent years working capital management has become quite a necessity to
manufacturing companies especially in Nigeria because of how it caters for both profitability and
liquidity of these companies, which is actually what working capital management is all about.
The study adopted a descriptive study using ex-post facto research design. The population of the
study comprises of 40 listed manufacturing companies from the consumer goods sector,
industrial goods sector and agricultural sector that were quoted in the Nigeria stock Exchange as
at the date of the research study. A sample size of 25 manufacturing companies from the
population was selected using simple random and stratified sampling technique The Data were
analyzed using descriptive and inferential statistics making use of Regression analysis to test the
hypothesis. The findings revealed that Inventory Conversion Period, Debtors Collection Period
and Cash Conversion Cycle has a negative significant effect on the financial performance of
listed manufacturing firms in Nigeria with p-value of 0.006, 0.001 and 0.002 respectively. It was
also discovered that Creditors Payment Period has a positive insignificant effect on financial
performance of the listed manufacturing firms in Nigeria with p-value of 0.433. The study
concluded that Working Capital Management has a significant effect on the financial performance of listed manufacturing firms and it was recommended that firms in the
manufacturing sector should to give due relevance and attention to working capital management
in order to improve their financial performance which is profitability and liquidity