This study examined the impact of working capital management on firm performance using Nestle Food Nigeria\nplc as a case study. The study was anchored on Behavioural Finance Theory, Economic Order Quantity (EOQ)\nModel and Theory of Capital Movement. Secondary data was used for the study and it was obtained from the\nfinancial statement of Nestle Nigeria Plc for the period of 2004-2013. The study made use of Ordinary Least Squares\n(OLS) regression after the data was subjected to unit root test and found to be stationary at levels and are integrated\nof order zero [I(0)]. The findings revealed that a positive relationship exist between Current Ratio (CUR), Quick\nRatio (QUR) and Return on Asset (ROA) and the relationship is statistically significant (p<0.05) and in line with\na priori expectation. The coefficient of determination (R2) for the study is 85.23%. This indicates that 85.23% of\nthe variations in the model can be explained by the explanatory variables of the model. The result shows that the\nmanagement of working capital is important to business organization performance. It was recommended among\nothers that the management of the Nestle Food Nig Plc should pay more attention on the management of quick ratio\nas its management indicates the best way of measuring the amount of the most liquid current assets there are to\ncover current liabilities. Management should therefore aim at higher values of quick ratio as a higher ratio means a\nmore liquid current position of the company which is a good indicator of firm performance.
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