WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

The objective of this study is to investigate the effect of working capital management on profitability of listed consumer goods firms in Nigeria. Current ratio and quick ratio were used as the independent variables while profitability was used as the dependent variable measures by Return on Assets. The study covers a period of ten years from 2013 to 2022 using a population of twenty-one (21) consumer goods companies and sample of thirteen (13) companies. Data for the study were obtained through secondary sources using annual financial reports of the listed companies on the Nigerian Exchange Group for the period. The data was analyzed using Ordinary Least Squares Regression. Findings revealed that current ratio has positive but insignificant effect on Return on Assets while quick ratio has negative but significant effect on return on assets. It was recommended that the companies should keep optimum level of liquidity to generate more profit and reduce liquidity risks.