Working capital management efficiency and corporate profitability: Evidences from quoted firms in Nigeria.

Decisions relating to working capital involve managing relationships between a firm’s short-term assets and liabilities to ensure a firm is able to continue its operations, and have sufficient cash flows to satisfy both maturing short-term debts and upcoming operational expenses at minimal costs, increasing corporate
profitability. Research results from compared working capital costs and returns of 22 quoted firms on the Nigerian Stock Exchange evidencing improved gross
working capital positions using the difference between means show that costs of working capital exceed returns on working capital investments affecting their
profitability. To redress this anomaly and improve net returns and corporate profitability from the use of working capital, quoted firms in Nigeria should optimize working capital investments to avoid over investment with its attendant.