EFFECT OF WORKING CAPITAL MANAGEMENT ON PERFORMANCE OF SUPERMARKETS IN MINNA METROPOLIS, NIGER STATE, NIGERIA.

Abstract

Supermarkets, like any other business, rely on a delicate balance between their current assets and liabilities to meet their ongoing operational needs. Hence, this study examines the Effect of Working Capital Management on Performance of Supermarkets in Minna Metropolis, Niger State. The survey research design was adopted and data was collected through structured questionnaires. The population for the study is fifty-one (51) supermarkets registered with Corporate Affairs Commission (CAC) Minna, Niger state. A census-based sampling technique was adopted. Descriptive and inferential statistical were employed for data analysis. The study revealed that receivable management has a positive but significant effect on profitability level of supermarkets as well as positive and significant effect on the supermarket’s return on equity. The study concluded that receivable management has the strongest effect on financial performance of supermarkets, which means that timely and effective cash collection from debtors will help to avoid unnecessary credit risk as well as protect supermarkets from customer defaults. It is recommended that managers of supermarkets should focus more on developing effective and efficient working capital management as a catalyst that will facilitate enough resources for day-to-day operating expenses as well as ensure the business keeps operating as a going concern