MANAGING LIQUIDITY TO ENHANCE PROFITABILITY IN NIGERIAN MANUFACTURING SECTORS: A MARKETING PERSPECTIVE

Abstract

A reasonable percentage of failures in business have been linked to inefficient planning and control of the short-term resources and liabilities by the financial managers. 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 findings reveals that Foreign Direct Investment Inflow is found to be positive at a t–ratio of 1.066 and it has a positive impact on Gross Domestic Product, having the value of its coefficient as 0.225. Total Trade is found to be positive and significant at a t– ratio of 6.179 and it has a positive impact on Gross Domestic Product, having the value of its coefficient as 10.348. 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 to manage their working capital since it is the ingredient that is required to keep the production process working continuously to generate funds, these will benefit the companies and the economic at large.