Global perspective of cash management for profitability of Nigerian manufacturing sectors

Abstract

Excessive investment in short term assets is capable of making a company realize low return on investment while insufficient investment in short-term assets may lead to stoppage in the production cycle, lost of customers and low inflow of cash. The study looked at cash management of Nigeria manufacturing sectors in relation to profitability. The study used historical data source from CBN statistical bulletin. The analysis was done using regression. The study concluded and recommended that companies need to remain their inflow above their outflow for them to remain in business for a long time. They also need o manage their working capital since it is the ingredient that is required to keep the production process working continuously to generate profit.