Working Capital Management and Profitability of Maritime Logistics Firms in Nigeria: Evidence from 2016–2025

Abstract

This study examined the effect of working capital management on the profitability of maritime logistics firms in Nigeria over the period 2016 2025. Profitability was proxied by operating cash flow, while working capital management was measured using the accounts receivable period, inventory holding period, accounts payable period, cash conversion cycle, and liquidity ratio. Secondary data were obtained from the published annual financial statements of the sampled firms. The data were analysed using multiple linear regression analysis. The findings revealed that none of the working capital management variables exerted a statistically significant influence on the profitability of the firms during the study period. However, descriptive statistics indicated unusually high values for several working capital indicators, with accounts receivable period ranging from 1.8 to 1,489 days, inventory holding period from 2.8 to 8,785 days, accounts payable period from 9.53 to 2,440 days, cash conversion cycle from 4.05 to 6,366 days, and liquidity ratio from 1.17 to 20.91. These extreme values may reflect operational inefficiencies, financial distress, industry-specific reporting practices, or the presence of influential outliers that warrant further investigation. Although the regression results indicate no statistically significant relationship between working capital management and profitability, the findings emphasise the necessity of effective management of receivables, inventories, payables, and liquidity to enhance operational efficiency and support long-term financial sustainability.