Working Capital Management and Performance of Food and Beverage Industry in Nigeria.

Working capital is a strategic management tool to ensure the success of any organization because it determines its ability to carry out its operations effectively and efficiently so as to improve its performance.This study explored the impact of working capital on the operation of an organisation particularly the food and beverage firms in Nigeria.The study aimed at determining if there is any relationship between working capital management and the performance (efficiency, liquidity and profitability) of the food and beverage industry in Nigeria.The population size used includes the all food and beverages firms quoted on the Nigeria stock exchange.Ratios were calculated from the selected companies annual reports and accounts (such as acid test ratio, current ratio, debtors collection period, creditors payment period, stock holding period, net profit margin, gross profit margin) and the data were presented and analyzed using simple regression and correlation analyses.The results of the analysis showed that a significant impact in Three hypothesis were analyzed which include testing the relationship between working capital management and efficiency; working capital management and profitability; working capital management and liquidity (p < 0.05).Positive relationship was revealed between working capital and the efficiency of management in Food and beverages industry in Nigeria (p < 0.05), improved accurate cost and profit information (p < 0.05), there is a relationship working management and the profitability of food and beverages industry.(P < 0.05)..This is evidenced by p-value of 0.000.The study concluded that working capital management affects organizations' performance in terms of their liquidity and also in the aspect of them being efficient however; it does not determine their profitability.In order to achieve its' goals firms in Food and Beverages industry should effectively manage their working capital when carrying out the company's operations since it leads to liquidity in terms of meeting the company's current obligations and efficiency in terms of the company's survival.