IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 11 NO. 2 2025
DOI: 10.56201/jafm.vol.11.no2.2025.pg52.61

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Cash Conversion Cycle Management and Financial Performance of Listed Consumer Goods Manufacturing Firms in Nigeria

Nangih Efeeloo PhD, FCA FCTI, Owunabo, Alawari ACA, Emah, Domale PhD, Adedoyin, Francis CNA

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Abstract

This study examined the nexus between cash conversion Cycle management and financial performance of consumer goods manufacturing firms in Nigeria. The study was anchored on the Pecking order theory. It specifically investigated the effect of the independent variable (Cash Conversion Cycle) on profitability (measured by Return on Assets (ROA) and Return on Equity (ROE)). It adopted the ex post facto research design. A sample of four firms were purposively selected and used for the study comprising of: Nestlé, Dangote Sugar, Bua Foods and Unilever. Data collected from their annual financial reports from the period of 2013 to 2023 were analyzed using descriptive statistics, correlation and panel multiple regression analysis. The findings indicate that there exist positive but insignificant effect of cash conversion cycle on both ROA and ROE. The study recommends that consumer goods manufacturing companies in Nigeria should prioritize and maintain a set of robust liquidity management strategies and not necessarily depend on management of cash conversion cycle; to ensure improved financial performance in their firms.

keywords:

Cash Conversion Cycle, Consumer Goods Manufacturing Firms, Financial

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