Open Journal of Social Sciences, 2023, 11, 442-468
https://www.scirp.org/journal/jss
ISSN Online: 2327-5960
ISSN Print: 2327-5952
DOI: 10.4236/jss.2023.1110025 Oct. 26, 2023 442 Open Journal of Social Sciences
Working Capital Management and Performance
Metrics of Quoted Brewery Firms in Nigeria
Kolawole Fijabi
1
, Adewale E. Ogunlalu
2
, Adesemowo Morenike Modupeola
3
1
Accounting Department, Precious Cornerstone University, Ibadan, Nigeria
2
Accounting Department, Babcock University, Ilishan Remo, Nigeria
3
Department of Accounting and Finance, Chrisland University, Abeokuta, Nigeria
Abstract
The study set out to assess the effect of working capital management on the
profitability of quoted brewery firms in Nigeria. The study used an ex post
facto research design. The population consisted of 5 brewery firms quoted on
the NGX as at 31
st
December 2022. The brewery industry was chosen using
purposive and simple random sampling. A sample of 4 brewery firms with
published annual reports and accounts for the period of ten years (2013-2022)
was used. Data were analyzed using descriptive, inferential statistics and mul-
tiple regression with a significance level of 0.05. The findings showed that
working capital had a significant effect on the return on assets of quoted bre-
wery firms (Adj.R
2
= 0.311, F = 3.923, p < 0.05) and profit margin (Adj.R
2
=
0.465, F = 6.646, p < 0.05). In another vein, the result showed an insignificant
effect on the return on equity of quoted brewery firms (Adj.R
2
= -0.076, F =
0.543, p > 0.05). The study concluded that working capital impacted the prof-
itability of quoted brewery firms in Nigeria. The study recommended that the
management of quoted brewery firms in Nigeria should use the working cap-
ital to drive firm performance that will attract investors.
Keywords
Account Collection Period, Account Payment Period, Inventory Conversion
Cycle Period, Profit Margin, Return on Asset, Return on Equity, Working
Capital Management
1. Introduction
Profitability is a fundamental driver of business that shows the performance and
direction of a business entity. Without profitability, the business will not be able
to survive and thrive in the long run and this has been responsible for the clo-
How to cite this paper: Fijabi, K., Ogun-
lalu, A. E., & Modupeola, A. M. (2023).
Working Capital Management and Per-
formance Metrics of Quoted Brewery Firms
in Nigeria. Open Journal of Social Sciences,
11, 442-468.
https://doi.org/10.4236/jss.2023.1110025
Received: September 14, 2023
Accepted: October 23, 2023
Published: October 26, 2023
Copyright © 2023 by author(s) and
Scientific Research Publishing Inc.
This work is licensed under the Creative
Commons Attribution International
License (CC BY 4.0).
http://creativecommons.org/licenses/by/4.0/
Open Access