RECEIVABLES MANAGEMENT AND PROFITABILITY OF MANUFACTURING COMPANIES IN NIGERIA: EVIDENCE OF DANGOTE CEMENT PLC

ABSTRACT The study is concerned with Receivables Management and Profitability of Manufacturing Companies in Nigeria: Evidence of Dangote Cement Plc. Three hypotheses were formulated in line with the objectives of the study. Ex-post facto research design was adopted in the study. The population was made up of the 27 staff of Dangote Cement Plc. Sample size of 25 was determined using Taro Yamane’s formula. Primary and Secondary methods of data collection were used in gathering relevant data for this research work. The secondary source adopted was the use of financial summary from Dangote Cement Plc. The researcher adopted survey and ex-post facto designs. Data were collected, coded and analyzed using data processing using SPSS to test the hypothesis. Finding reveals that receivable management insignificantly and positive influence on profitability of manufacturing companies in Nigeria. The finding also reveals that account receivables ratio insignificantly and positive influence on return on asset of manufacturing companies in Nigeria. The finding also reveals that debt ratio insignificantly and positive influence on return on asset of manufacturing companies in Nigeria. The finding also reveals that sales growth rate insignificantly and positive influence on return on asset of manufacturing companies in Nigeria. It was recommended that financial managers should spend more in account receivables in order to increase liquidity while also reducing the number of days of the account receivables period to an acceptable minimum in order to increase profitability, management should pay attention to the ongoing calibration between liquidity and performance in order to meet the operational and expansion process requirements as well as to achieve the aspirations of the shareholders through enhancing their wealth and proper analysis of receivables management components should be constantly carried out to ensure that those critical areas for decision making process as it related to each of the performance measurement variables are identified and properly examined.