THE EFFECT OF WORKING CAPITAL ON THE OPERATIONAL EFFICIENCY OF AN ORGANIZATION (A STUDY OF CADBURY NIGERIA PLC)

THE EFFECT OF WORKING CAPITAL ON THE OPERATIONAL EFFICIENCY OF AN ORGANIZATION (A STUDY OF CADBURY NIGERIA PLC)

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

1.2       Statement of the Problem

1.3       Objectives of the Study

1.4       Research Questions

1.5       Research Hypotheses

1.6       Significance of the Study

1.7       Scope of the Study

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1       Concept of Working Capital

2.2       Working Capital Management

2.3       Components of Working Capital

2.4       Working Capital Ratios

2.5       Dangers of Excess Working Capital

2.6       Determinants of Working Capital

2.7       Relationship between Working Capital and Profitability

2.8       The Nigerian Economy and Working Capital Management of Quoted Firms in Nigeria.

2.9       Historical Background of Cadbury Nigeria Plc

2.10     Theoretical Framework

2.11     CONCLUSION

CHAPTER THREE

METHODOLOGY

3.1       Description of the Study Area

3.2       Method of Investigation

3.3       Methods of Data Collection

3.4       Research Instrument

3.5       Validation of Research Instrument and Testing

3.6       Method of Data Analysis

CHAPTER FOUR

            PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1       Components Of Working Capital In Cadbury Nigeria Plc

4.2       Data Analysis (Secondary Data)

4.3       Data Analysis (Primary Data)

4.4       Hypotheses Testing

4.5       Discussion of Findings

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary

5.2       Conclusion

5.3       Recommendations

REFERENCE

APPENDIX

CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

The current scarcity of cash and credit is threatening the survival of many businesses in all over the world primarily in Nigeria as its considered the sources of company’s working assets and liabilities referred to as working capital. it is a fact that corporations could not exist without working capital and this is undeniable. Eventually, the management of working capital (WCM) necessitates short term decisions in working capital (WC) and financing of all aspects of both firms short term assets and liabilities.

This explains the fact that firms with inadequate working capital are in financial strait jacket. As the name implies, working capital refers to the funds that are required for the day to day running of the activities of a firm. it is the excess of current assets over current liabilities. Working capital management involves the relationship between a firms short term assets and its short term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short term debt and upcoming operational expenses. In view of that, working capital management has become one of the most important issues in the organizations where many financial executives strive to identify the basic working capital drivers and the appropriate level of working capital (Lamberson 1995).

THE EFFECT OF WORKING CAPITAL ON THE OPERATIONAL EFFICIENCY OF AN ORGANIZATION (A STUDY OF CADBURY NIGERIA PLC)