IMPACT OF WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE EVIDENCE FROM NIGERIA

The descriptive design in this study reveals the influences of working capital management on financial performance within conglomerate firms listed in Nigeria. Inventory conversion period (ICP), debtors conversion period (DCP), creditors conversion period (CCP), and cash conversion cycle (CCC) were all included in the operationalization of working capital management, while secondary data were drawn from annual reports of four purposively selected companies (Chellarams PLC, Custodian Investment PLC, John Holt PLC, and Transnational Corporation PLC) for a period ranging from 2018 to 2024. Return on assets (ROA) served as a proxy for financial performance. The hypothesis was tested using panel regression, correlation, and descriptive statistics methods. Working capital management components (ICP, DCP, and CCC) positively and strongly relate to return on assets (ROA) as against the null hypothesis of no association (R² = 0.78, F-statistic = 2.4509, p < 0.05), implying that a very and efficient management will lead to profit maximization. In terms of the findings, the study concludes that a reduction in the holding period of inventory; speeding up collection of receivables; and selective management of payables will enhance liquidity and wealth of shareholders. Limitations include small sample size and singularity to a particular sector, providing opportunities for larger studies across sectors. Keywords: cash conversion cycle, conglomerate companies, Nigeria, financial performance, return on assets, working capital management.