The study examines the effect of working capital management on the profitability of consumer goods companies listed on the Nigerian Stock Exchange. Specifically, the study sought to determine the extent to which number of days account receivables, inventory, and number of day of account payable affects return on asset (ROA) of consumer goods companies on the NSE. The populations for the study consist of consumer goods companies listed on Nigerian Stock Exchange. The study covers a period of 5 years from 2014-2018. Data collected were analyzed using multiple regression analysis via the Statistical Package for Social Science (SPSS) version 20. The study reports a negative and insignificant influence of trade receivable collection period and trade payable payment period on ROA while inventory conversion period has a positive insignificant effect on ROA of consumer goods companies. Therefore, it is concluded that working capital management has insignificant effect on companies’ profitability in consumer goods companies in Nigeria. The study recommends that companies should adopt a policy of prompt collection of debts, ensure adequate liquidity by ensuring current assets exceed current liabilities.
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