CASH MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED AGRICULTURAL FIRMS IN NIGERIA

This study investigated the impact of cash management on the financial performance of listed agricultural firms in Nigeria, focusing on the relationship between cash management variables and financial performance (return on assets [ROA]). A correlational research design was adopted to explore how cash and cash equivalents, cash turnover ratio, and the operating cash flow ratio influenced profitability within the sector. The study utilized secondary data collected from financial statements of listed agricultural firms from 2010 to 2023. The data was analyzed using panel least squares regression technique, and correlation analysis. Findings from the study revealed that cash and cash equivalents have a positive and statistically significant impact on ROA, with a coefficient of 0.062105 and a p-value of 0.0000. Similarly, the operating cash flow ratio was found to have a positive and significant relationship with ROA, with a coefficient of 0.067690 and a p-value of 0.0000. Furthermore, the cash turnover ratio also exhibited a positive and statistically significant impact on ROA (p-value = 0.000. In conclusion, the study underscored the importance of effective cash management strategies, particularly the accumulation of adequate cash reserves and operational efficiency in generating cash flow, as key drivers of profitability in agricultural firms. Based on these findings, it was recommended that agricultural firms maintain sufficient cash reserves, improve cash flow efficiency, and adopt comprehensive cash management policies to enhance profitability.