EFFECT OF WORKING CAPITAL MANAGEMENT ON PROFITABILITY: EVIDENCE FROM NON-MANUFACTURING FIRMS IN NIGERIA

This study determined the impact of operating capital control at the profitability of non-manufacturing companies in Nigeria. The have a look at followed the ex post facto research design; information was extracted from listed non-manufacturing companies on the floor of the Nigeria exchange institution (NGX). The sample consisted of one hundred-twenty-one (121) listed non-manufacturing corporations from the Nigeria exchange institution (NGX) for a length of 6 years (2016-2022). Descriptive analysis used to analyze data while the multiple regressions were used to test the hypotheses. The end result from the inferential facts discovered that modern-day ratio has no significant effect at the profitability of non-manufacturing corporations in Nigeria. Secondly, it found that income to working capital ratio have negative and significant impact on profitability of non-production firms in Nigeria. Ultimately, stock turnover ratio has effective and enormous influence on profitability of non-production firms in Nigeria. The study concluded that operating capital management has massive effect at the profitability of decided on non-production companies in Nigeria. The study encouraged the need for corporations to enhance on their potential to pay short-term debt that matures inside a year on the way to enhance profitability.