Working capital management and financial performance of listed cement companies in Nigeria

Abstract

The article examines the effect of working capital management on the financial performance of Nigeria's
listed cement companies. The study's population consists of all listed cement companies in Nigeria, with
two companies chosen as the sample. The data was analyzed using ordinary least squares regression
(OLS) and correlation. The study's findings show that the inventory turnover period (ITP) has no
significant effect on return on assets (ROA), while the average collection period (ACP) has significant
effects on return on asset (ROA). The average payment period (APP) has significant impact on return on
assets (ROA). The study recommends that to improve the returns gained by cement companies in Nigeria,
less emphasis should be placed on inventory turnover, which contributes little to such companies'
profitability. However, much more focus should be given to average collection duration and average
payment period because they have more impact on the success of listed cement firms in Nigeria.
Keywords:  Financial performance, Inventory turnover period, Average
collection period, Average payment period.