AN ANALYSIS OF THE ROLE OF WORKING CAPITAL ON THE PROFITABILITY OF UNITED NIGERIAN TEXTILES PLC

Abstract

This study undertakes an analysis of the role of working capital on the profitability of United Nigeria Textiles PLC. The major objective of the paper is to examine if working capital has an impact on the profitability of United Nigeria Plc. The paper adopted a one way Analysis of Variance (ANOVA) method of data analysis. The estimated ANOVA result showed that there is significant relationship between the quantum inventory and the profitability of United Nigeria Textiles Plc. This confirms that working capital has an impact on the profitability of United Textiles Plc. Suggestive from the analysis therefore is to avoid the danger associated to both excessive and inadequate inventory levels. Inventory should be effectively managed to make the best out of it.