WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF QUOTED HEALTHCARE SECTOR IN NIGERIA

Aina Grace Oluwatosin (), Lawal Babatunde Akeem and Akintola Gbenga Samson
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Aina Grace Oluwatosin: Department of Accounting and Finance,, Postal: McPherson University,, Ogun State, Nigeria., https://jted.citn.org/
Lawal Babatunde Akeem: Department of Accounting and Finance, Postal: McPherson University,, Ogun State, Nigeria., https://jted.citn.org/
Akintola Gbenga Samson: Department of Accounting and Finance,, Postal: McPherson University,, Ogun State, Nigeria., https://jted.citn.org/

Journal of Taxation and Economic Development, 2023, vol. 22, issue 1, 42-55

Abstract: The financial performance of many firms is pinned on efficient management of its current resources, given that the main business activities of firm operations are impacted by management plan and decisions on trade-off for the company working capital elements. The study investigated the relationship between working capital management and the financial performance of quoted health care sector in Nigeria. The study adopted the ex-post facto research design. The study employed secondary panel data. Data were analyzed using descriptive and panel regression. The population consisted of all listed health sectors in Nigeria and 10 healthcare sector listed on the Nigerian Exchange Group was selected purposively between 2011 and 2020. The regression analysis result shows that Inventory turnover has a significant positive effect on financial performance Average collection period has a significant positive effect on financial performance, and Average payment period has a significant positive effect on financial performance. Therefore, it was concluded that working capital has an impact on the financial performance of quoted healthcare sector in Nigeria. It was recommended that the management of firms in Nigeria can improve their financial performance by making sure that the working capital is adequate to help in boosting the reputation of the firm.

Keywords: Average Collection Period; Average Payment Period; Financial Performances; Return on Assets and Working Capital Management (search for similar items in EconPapers)
Date: 2023
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