ABSTRACT
The aim of the study is to unveil the impact of Working Capital Management on a company’s profitability using Lovonus Trust and Investment Limited as the case study of the research work. The research questions include: What is the significance of Working Capital Management to Lovonus Trust and Investment; should receivables be allowed to stay longer than payables? Should stringent policy be adopted for liquidity and profitability of the firm? In order to achieve this objective, a sample size of 200 copies of questionnaire were administered. 141 were duly completed and returned. Spearman ranking correlation and simple percentage method were used. A 5-point Likert Scale was used to collect and validate information from the respondents. It was found that; poor inventory cycle is a major problem of Working Capital Management; Working capital affects the business position of a firm and also over capitalization can deter the objective of efficient working capital management policy. On the basis of the findings, it is recommended that a define working capital management policy should be adopted, administered and strictly adhered to as well as adequate attention be given to cash management, stock management and total quality management to ensure a smooth working capital operation.
TABLE C CONTENTS
Title Page i
Certification ii
Dedication iii
Abstract iv
Acknowledgement v
Table of content vi
CHAPTER ONE: INTRODUCTION
11 Background of Study 1
1.2 Statement of problem; 3
1.3 Objective of study 3
1.4 Research Questions 4
1.5 Scope of Study 5
1.6 Significance of Study 5
1.7 Limitation of Study 6
1.8 Historical background of Lovonus Trust and
Investment Limited 6
1.9 Operation definitions of terms 7
CHAPTER TWO: LITERATURE REVIEW
2.1 Conceptual views 10
2.2 Scholars view on Working Capital Management 11
2.3 Definition of Working Capital 14
2.3.1 Definition of Working Capital Management 14
2.3.2 Key variables of Working Capital Management 15
2.3.3 Analysis Schedule of liquidity Rations (key variables) 15
2.4 Operating and cash conversion cycles 18
2.5 Working capital operating cycles diagram 18
2.6 Diagrammatical Representation and operating
and cash conversion cycles 19
2.7 Operating and cash conversion cycles tables 20
2.8 Key challenges of working capital 20
2.9 Factors affecting the amount of investment in working
capital 23
2.10 Sources of working capital finance 23
2.11 Financing of working capital 23
2.12 Management decision on working capital 24
2.13 Management of the components of working capital 24
2.14 Total Quality Management (TQM) 27
2.15 An overview Financial Statements 28
2.15.lComponents of financial statements 28
2.16 Lovonus Trust and Investment Financial Statement 29
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction 33
3.2 Research design 33
3.3 Population and Sample of the Study 33
3.4 Sources of data collection 34
3.5 Method of data collection 34
3.6 Method of data Analysis! Research instrument 35
37 Statistical tools! Analytical procedure 35
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.1 Introduction 36
4.2 Data Presentation Analysis and interpretation 36
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of findings 46
5.2 Conclusion 47
5.3 Recommendation 48
Bibliography 49
Appendices 51
Disclaimer: Note this academic material is intended as a guide for your academic research work. Do not copy word for word. Note: For Computer or Programming related works, some works might not contain source codes
CITE THIS WORK
(2016, 08). The Impact Of Working Capital Management On A Company’s Profitability (a Case Of Lovonus Trust And Investment Limited, Victoria Island Lagos).. ProjectStoc.com. Retrieved 08, 2016, from https://projectstoc.com/read/7882/the-impact-of-working-capital-management-on-a-company-rsquo-s-profitability-a-case-of-lovonus-trust-and-investment-limited-victoria-island-lagos-1727
"The Impact Of Working Capital Management On A Company’s Profitability (a Case Of Lovonus Trust And Investment Limited, Victoria Island Lagos)." ProjectStoc.com. 08 2016. 2016. 08 2016 <https://projectstoc.com/read/7882/the-impact-of-working-capital-management-on-a-company-rsquo-s-profitability-a-case-of-lovonus-trust-and-investment-limited-victoria-island-lagos-1727>.
"The Impact Of Working Capital Management On A Company’s Profitability (a Case Of Lovonus Trust And Investment Limited, Victoria Island Lagos).." ProjectStoc.com. ProjectStoc.com, 08 2016. Web. 08 2016. <https://projectstoc.com/read/7882/the-impact-of-working-capital-management-on-a-company-rsquo-s-profitability-a-case-of-lovonus-trust-and-investment-limited-victoria-island-lagos-1727>.
"The Impact Of Working Capital Management On A Company’s Profitability (a Case Of Lovonus Trust And Investment Limited, Victoria Island Lagos).." ProjectStoc.com. 08, 2016. Accessed 08, 2016. https://projectstoc.com/read/7882/the-impact-of-working-capital-management-on-a-company-rsquo-s-profitability-a-case-of-lovonus-trust-and-investment-limited-victoria-island-lagos-1727.
- Related Works
- Impact Of Small Scale Business To National Economic Growth And Development (a Case Study Of Ezinne Bakeries In Ugbene Abakpa Nike Enugu)
- Performance Appraisal Of Junior Staff In Public Organizations (a Case Study Of National Electric Power Authority (n.e.p.a) Enugu District Office)
- The Impact Of Personal Selling On The Sales Of Durable Consumer Goods
- The Role Of Office Machines In Modern Business Organization. ( A Case Study Of Anammco)
- Identifing The Root Causes Of The Problems In The Private Company “ekene Dili Chukwu
- The Impact Of News Commentaries On Radio Listeners (a Case Study Of Federal Radio Corporation Of Nigeria Enugu)
- Problems And Prospects Of Small Scale Business In Nigeria (a Case Study Of Enugu South Local Government Area)
- The Problems Of Financing A Small Scale Business In Nigeria A Case Study Of Garri Processing Industry Abakpa Nike Enugu
- The Effect Of Social Responsibility On Business Organization In Enugu State (a Case Study Of Emene Rice Milling Co.)
- Problem And Prospect Of Small Scale Enterprise In Nigeria (a Case Study Of Ezinihitte In Imo State)