The project research work on “The Impact of Effective Working Capital Management on Company Performance in a Depressed Economy" was embarked on to check the profitability and liquidity problems existing in some companies that lack the working capital management acumen.
It was because of this deficiency in some companies that brought about the above quoted topic. Taking Unilever Nig. Plc as a case study.
The need for working capital management cannot be overemphasized. The objective of financial decision-making is to maximize shareholder wealth. However, the objective of this study was to identify and discuss the basic determinants of working capital and to highlight areas of short-term investment of the company. It was also aimed at suggesting ways for improving insufficient cash balances to meet current obligations. Short-term survival and success of any firm is dependent on right financial management decision-making. This is because working capital is one the most important aspects of financial management.
The materials used in this research work were by means of review of related literature, personal interview and observations, issue of questionnaires. The data collected through these means were analyzed with analytical tools like percentages, descriptive tables, chi-square, and distribution tables.
All these were not achieved without hitches. The following were limitations to this research work. They include: Bureaucracy, delay in responding to questionnaires, errors in questionnaires returned, proximity, running cost, etc.
Conclusively, working capital management policies are practices that have significant influence on companies solvency and profitability. Maintaining a large size of current assets improved the liquidity position of the company.
The working capital management was aimed at striking a balance by ensuring that the right combination of current assets and liabilities were held at each point in time.
TABLE OF CONTENTS
Table of ContentsX
1.1Overview of the problem1
1.2Statement of the problem4
1.3Purpose of the study5
1.4Significance of the study7
1.5Scope of the study8
1.6Limitation of the study8
2.2Need for Effective Working Capital15
2.3Determination of Working Capital23
2.5Nature and Size of Business24
2.6Growth and Expansion Activities25
2.8Motives for Holding Cash27
2.12The Economic Order Quantity Model37
3.2Sources of Data54
3.3Data Analysis Technique55
3.4Validity of Response/Reliability of Data58
3.5Assumptions of the Study.58
4.0Presentation and Analysis of Data60
4.3Distribution and Return of Questionnaires62
4.4Analysis and Interpretation of Relevant Questionnaires
Summary of Findings, Recommendation and Conclusion
5.1Summary of Findings
5.4Suggestions for further research
THE IMPACT OF EFFECTIVE WORKING CAPITAL MANAGEMENT ON COMPANY PERFORMANCE IN DEPRESSED ECONOMY (A CASE STUDY OF UNILEVER NIGERIA PLC.)
ABSTRACT The project research work on “The Impact of Effective Working Capital Management on Company Performance in a Depressed Economy' was embarked on to check the profitability and liquidity problems existing in some companies that lack the working capital management acumen. It was because of this deficiency in some companies that brought... Continue Reading
THE IMPACT OF EFFECTIVE WORKING CAPITAL MANAGEMENT OF COMPANY’S PERFORMANCE IN A DEPRESSED ECONOMY ABSTRACT Effective working capital management is concerned with management of current accounts, the interaction between current assets and current liabilities is therefore the there of the theory of working capital management. The need fro working... Continue Reading
ABSTRACT The data for this study was collected through observation, library, research, interviews and questionnaires administered to the management staff of the course study company, using pilot survey of the management population. The data collected were analyzed using percentage approach were guard the validity and reliability of the hypothesis... Continue Reading
ABSTRACT The purpose of this study is to examine and evaluate the working capital management as a tool for cost reduction and profit maximization, a case study of Unilever Nigeria Plc, Lagos State. To this effect, working capital is current assets less current liabilities. This study covers in detail, all aspects of working capital management in a... Continue Reading
ABSTRACT This study aimed at critically analyzing the impact of working capital management to the productivity of a manufacturing company. It is aimed as finding what impact working capital management has on the profitability of manufacturing company. The highlights of this research project address such critical issue on how a proper management of... Continue Reading
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ABSTRACT The objective of this research work contains working capital management as a tool for minimization and profit maximization with particular reference to Anambra motor manufacturing company, Enugu. The research design used was the survey method and the sources of data were both primary and secondary. The primary sources were interviews... Continue Reading
The objective of this research work contains working capital management as a tool for minimization and profit maximization with particular reference to Anambra motor manufacturing company, Enugu. The research design used was the survey method and the sources of data were both primary and secondary. The primary sources were interviews granted to me... Continue Reading
ABSTRACT This study is an attempt to critically examine the reliance of working capital in manufacturing organization and to highlight its various effects. The reason for embarking on this research is therefore to probe into the problem areas, objectives etc as well as making the necessary suggestions. However, the research work is divided into... Continue Reading