CASH CONVERSION CYCLE AND OPERATING CASH FLOW IN NIGERIAN MANUFACTURING FIRMS

Authors

  • Oranefo, Patricia C. Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
  • Ofurum, Darlington I. Department of Accountancy, Alex Ekwueme Federal University, Ndufu-Alike, Nigeria

Keywords:

Cash conversion cycle, Average collection period, operating cash flow

Abstract

The objective of the study was to ascertain the effect of Cash conversion cycle on operating cash flow of consumer goods manufacturing firms in Nigeria. The study used the ex-post facto research design. The population for the study comprised quoted manufacturing firms on the Nigerian Exchange Group (NGX).. The sample size of the study was twenty quoted consumer goods firms purposively drawn from all the manufacturing firms. Data were obtained from annual financial reports and accounts of the sampled firms. The data analysed using panel data regression. The study results showed that average collection period had a negative insignificant effect on operating cash flow. The study recommends that Managers can also ensure speedy collection of trade receivables from debtors; and, ensure that payments for credit purchases are such that do not jeopardise the cash position of the firm.

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Published

2023-01-23

How to Cite

Oranefo, P. C., & Ofurum, D. I. (2023). CASH CONVERSION CYCLE AND OPERATING CASH FLOW IN NIGERIAN MANUFACTURING FIRMS . Advance Journal of Management, Accounting and Finance, 8(1). Retrieved from https://aspjournals.org/ajmaf/index.php/ajmaf/article/view/42

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