Vol. 12(3), pp. 86-98, May 2024 , 2024.

ISSN: 2384-6151

https://doi.org/10.14662/ijebm2024120

 

 

Full Length Research

 

Effect of Liquidity Management on the Financial Performance of Dangote Sugar Nigeria Plc

 

1ENADEGHE Best Iyobor, 2ABDULLAHI, Abubakar Sadiq, 3YAHAYA Mahmud B., and 4LAWAL Olaniyi Babatunde

 

1,2,3Department of Banking and Finance, Federal Polytechnic Bida, Niger state 4Department of Accountancy, Federal Polytechnic Bida, Niger state  

Corresponding author: Enadeghe Best Iyobor, enadeghebestiy@gmail.com, Phone Number: +2348032112269  

 

 

Accepted 14 May 2024

Abstract

 

The study is on the effect of liquidity management on the financial performance of Dangote Sugar Nigeria Plc. An ex-post factors research design was adopted and quantitative data were sourced from the company’s annual reports and account for 2013-2022. Ordinary least square regression, descriptive statistics and correlation matrix were employed in the data analysis. Findings show that cash conversion ratio (CCR), plays a significant role in influencing the financial performance, current (CR) and quick ratio (QR) have notable but smaller effects. These findings suggest that effective liquidity management is essential for enhancing the company's financial performance. However the study recommends that Dangote Sugar Nigeria Plc improves its financial performance by optimizing its cash conversion ratio (CCR). This involves streamlining account receivable accounts payable and inventory turnover processes. Efficient working capital management is crucial for enhancing cash flow, and continuous monitoring and analysis of CCR can help identify areas for improvement. While prioritizing CCR, the company should also balance maintaining healthy current and quick ratios

 

Keywords: Ordinary least square regression, cash conversion ratio (CCR), current ratio (CR), quick ratio (QR)

 

Cite This Article As: ENADEGHE, B.I., ABDULLAHI, A.S., YAHAYA, M.B., LAWAL, O.B.(2024).Effect of Liquidity Management on the Financial Performance of Dangote Sugar Nigeria Plc. Inter. J. Econ. Bus. Manage. Vol. 12(3), pp. 86-98, May 2024