Longer account payable periods linked to higher profits for Nigerian companies
Working capital management affects how well companies perform financially. A study looked at 18 manufacturing companies in Nigeria over 5 years. They found that longer payment periods for bills can lead to higher profits. But, shorter times to collect money from customers can lower profits. Also, quickly turning inventory into sales can boost profits. However, the time it takes to convert cash into sales didn't have a big impact on profits.