DOI: 10.36347/sjebm.2016.v03i09.005

Pages: 463-470

The purpose of this paper is to investigate the impact of working capital management on firms’ profitability in Nigeria. This research has been performed using a sample of 100 companies listed on the Nigeria Stock Exchange (NSE) from 2005 to 2015. The relationship between working capital management and firms’ profitability was observed. The results of the weighted least square (WLS) regression analysis were statistically significant at 0.05 levels. The research evidence revealed that there is a significant positive relationship between working capital management and firms’ profitability, measured by gross operating profit. The findings of the study confirmed that working capital management enhances firms’ profitability in Nigeria. The empirical study contributes to the existing literatures on the relationship between working capital management and profitability.