Impact of Liquidity Management on the Profitability of Listed Nigerian Food Product Companies

This study examines impact of liquidity management on the profitability of listed Nigerian food product companies. The study utilized secondary data collected from annual reports and accounts of the companies for the periods 2004 to 2013. A panel data regression technique was employed since the data has both time series and cross sectional attributes. The study finds positive and insignificant relationship between cash conversion circle and return on assets. Also size has positive and significant relationship with return on assets while growth and leverage have negative relationship with return on assets. The study concludes that Profitability is a major factor in the going concern of a business. Therefore, the study recommends that managers can increase profitability by putting in place good credit police and short cash conversion cycle. Managers should strive to achieve a reasonable level of profitability in order to maximize their shareholders wealth.