ASSESSMENT OF WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

This study assesses working capital management (WCW) on financial performance of listed consumer goods companies in Nigeria for the period 2015 – 2023. Key components of WCM were examined through fixed effect regression analysis while controlling for the moderating effect of the digital transformation of the component. The Nigerian Exchange Group (NGX) Report listed the 21 consumer goods companies as the study population. Their data was pulled from all companies that had those nine years of data (2015 to 2023). The researcher was able to account, by use of statistical tools such as STATA, for time specific and individual effects, which guaranteed robust findings. The results show Emergencies, accounts receivable, cash management and financial performance as statistically negatively associated with one another, suggesting a negative relationship between accounts receivable and profitability as a function of cash management. However, the study highlights impact of accounts payable and digital transformation on financial performance, which points out efficiency in payables management and the use of online technologies in increasing working capital management. The findings however posit Nigerian Consumer goods companies need to embrace digital transformation drive and efficient working capital management if they were to record improved revenue, liquidity, profitability and overall financial `health'. The study recommended that the Nigerian listed consumer goods companies ought to focus more of the improvement of accounts payable turnover, or cash management, practice.