THE EFFECT OF WORKING CAPITAL MANAGEMENT ON THE PROFITABILITY OF AN ORGANIZATION ( A CASE STUDY OF SKY BANK)

ABSTRACT

Working capital, as the name implied comprises capital that are not used for long-term investment. Thus, the instrument used for collecting the data are questionnaire and official document of the bank (Bank PHB), the researcher used mean statistic, method to analyze the data and extract the findings. However, emphasis should be directed towards systematic introduction of appropriate technology for control and management information system purpose. Indeed a financial data is relevant in banking industries. The introduction of the method in the banks to take care of the determination of cash balances for different periods in as much as experience is a good teacher, a scientific forecasting method should be introduced. The study would be of benefits to students, banking and institution i.e. it would enable students carryout research and persuade learning on issues that has to do with working capital management. The majority of the documents shows how working capital management had made it possible on the operational exercise and providing services of the banks in Nigeria.

TABLE OF CONTENTS

Title Page                                                                                 i

Declaration                                                                              ii

Approval page                                                                          iii

Dedication                                                                               iv

Acknowledgement                                                                    v

Abstract                                                                                   vi

Table of contents                                                                     vii

CHAPTER ONE

1.0   Introduction                                                                     1

1.1      Background of the Study                                                 1

1.2      Statement of the Problem                                                3

1.3      Objectives of the Study                                                    4

1.4      Significance of the Study                                                 5

1.5      Research Questions                                                         6

1.6      Scope of the Study                                                           7

1.7      Limitation of the Study                                                    7

CHAPTER TWO - Literature Review

2.0   Introduction                                                                     11

2.1      Concept of Working Capital Management                                11

2.2      Characteristics of Working Capital Management             15

2.3      Working Capital Component in Banking Sector                      

2.4      The Meaning and Importance of Cash Management

in the Bank                                                                     

2.5      Approaches to Working Capital Management                  18

2.6      Determinant of Working Capital                                      21

2.7      Financial Working Capital                                                       22

2.8      Management for Cash and Marketable Securities            23

2.9      Summary of the Review                                                  

CHAPTER THREE

Research Methodology

3.1      Introduction                                                                     26

3.2      Research Design                                                              26

3.3      Area of Study                                                                   27

3.4      Population of Study                                                         27

3.5      Sampling Size and Sampling Techniques                                28

3.6      Instrument of Data Collection                                          28

3.7      Validation of Instrument                                                  28

3.8      Reliability of Instrument                                                  29

3.9      Method of Data Collection                                                       30

3.10  Method of Data Analysis                                                  31

CHAPTER FOUR - Data Presentation and Analysis

4.0      Introduction                                                                     33

4.1   Characteristics of Respondents                                               34

4.2   Presentation of Data and Analysis                                   36

4.3   Summary of Findings                                                     

4.4   Discussion of Findings                                                   

CHAPTER FIVE

Summary, Conclusion and Recommendation

5.0      Introduction                                                                     49

5.1   Summary                                                                         49

5.2      Conclusion                                                                      50

5.3   Recommendations                                                           51

Reference                                                                                54

Appendix I                                                                              55