Liquidity Management and Profitability: A Study of Selected Food and Beverage Companies in Nigeria

Lyndon M. Etale and Paymaster F. Bingilar

International Journal of Management Sciences, 2016, vol. 7, issue 4, 217-225

Abstract: The study examined the impact of liquidity management on profitability of food and beverage companies in Nigeria. The study involved a sample of five (5) food and beverage companies listed in the Nigerian Stock Exchange. Secondary data were obtained from the annual reports and accounts of the selected companies under study for the period 2011-2015.The relevant data were subjected to analysis using descriptive statistical and multiple regression techniques. The results of the study revealed that Cash Ratio (CARAT) and Quick Ratio (QUIRA) have positive and significant relationship with profitability (ROCE) of companies in the food and beverage sector. It was also empirically verified that Cash Conversion Cycle (CACCY) had negative and insignificant relationship with Profitability (ROCE). The researchers recommended that efficient and effective liquidity management policies and procedures should be put in place in order to improve profitability and reduce the risk of corporate failures.

Keywords: Cash Ratio; Cash Conversion Cycle; Quick Ratio; Return on Capital Employed; Liquidity management; Profitability. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://rassweb.org/admin/pages/ResearchPapers/Paper%205_1497446639.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rss:jnljms:v7i4p5

Access Statistics for this article

More articles in International Journal of Management Sciences from Research Academy of Social Sciences
Bibliographic data for series maintained by Danish Khalil ().