WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED CEMENT COMPANIES IN NIGERIA
Global Research Journal of Accounting and Finance · Vol. 7, Issue 2, pp. 20–40 · 2026/9/4
Ayodele, Usiola-Kuti https://orcid.org/0009-0007-3889-1995 · National Open University of Nigeria (NOUN), Department of Accounting, Faculty of Management Science
Kolawole Fijabi, Lateef · Christopher University, Mowe, Ogun State
Abstract
Research Objective: This study examined the relationship between working capital management and financial performance of listed cement companies in Nigeria.
Methodology: The study adopted an ex post facto research design, utilizing secondary data from the annual reports of selected listed cement companies in Nigeria covering the period from 2015 to 2024. Descriptive and inferential statistics were employed to analyze the data.
Findings: The results indicated that while specific working capital items have no significant effect on return on assets (ROA), working capital management as a whole has a significant positive effect on the financial performance of listed cement companies in Nigeria.
Conclusion: Effective working capital management is essential for enhancing the financial performance of cement companies in Nigeria.
Recommendations: The study recommends that companies should prioritize efficient collection management systems to improve receivable and inventory turnover, negotiate longer payment terms with suppliers to enhance cash flow, and regularly monitor working capital management metrics to identify areas for improvement.