Working Capital and Profitability of Listed Hotel Companies in Nigeria
This study examined the effect of working capital on the profitability of listed hotels companies in Nigeria. The design adopted was ex-post-facto. All the four (4) listed hotels firms on the NSE as at 31st December, 2018 were considered as population. An unbalanced panel data obtained from the co...
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| Format: | Article |
| Language: | English |
| Published: |
AfricaJournals
2020-09-01
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| Series: | African Journal of Hospitality, Tourism and Leisure |
| Subjects: | |
| Online Access: | https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_19_9_4__669-684.pdf |
| _version_ | 1818644952112955392 |
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| author | Ayoola O. Olagunju Appolos N. Nwaobia Grace Oyeyemi Ogundajo |
| author_facet | Ayoola O. Olagunju Appolos N. Nwaobia Grace Oyeyemi Ogundajo |
| author_sort | Ayoola O. Olagunju |
| collection | DOAJ |
| description | This study examined the effect of working capital on the profitability of listed hotels companies in Nigeria. The
design adopted was ex-post-facto. All the four (4) listed hotels firms on the NSE as at 31st December, 2018 were
considered as population. An unbalanced panel data obtained from the companies’ published financial statements for 19 years (2000 to 2018) were analyzed using descriptive and inferential statistics. It was discovered that working capital had a significant effect on return on asset of listed hotels companies in Nigeria. Inflation rate and exchange rate significantly controlled the relationship between working capital and return on assets of the companies. This study concluded that working capital affects profitability and that inflation and exchange rates control the effect of working capital on profitability. Managers should ensure bulk purchase of inventories that can be stored for long without being spoilt to hedge the effect of inflation and exchange rates fluctuations. Optimal credit policy should also be set to enhance effective liquid fund management which would contribute to boosting profitability. |
| first_indexed | 2024-12-17T00:23:01Z |
| format | Article |
| id | doaj.art-a21e9bad02d34dd9822821469dbacc1a |
| institution | Directory Open Access Journal |
| issn | 2223-814X |
| language | English |
| last_indexed | 2024-12-17T00:23:01Z |
| publishDate | 2020-09-01 |
| publisher | AfricaJournals |
| record_format | Article |
| series | African Journal of Hospitality, Tourism and Leisure |
| spelling | doaj.art-a21e9bad02d34dd9822821469dbacc1a2022-12-21T22:10:32ZengAfricaJournalsAfrican Journal of Hospitality, Tourism and Leisure2223-814X2020-09-0194669684https://doi.org/10.46222/ajhtl.19770720-44Working Capital and Profitability of Listed Hotel Companies in NigeriaAyoola O. Olagunju0Appolos N. Nwaobia1Grace Oyeyemi Ogundajo2Department of Accounting, Babcock University, NigeriaDepartment of Accounting, Babcock University, NigeriaDepartment of Accounting, Babcock University, NigeriaThis study examined the effect of working capital on the profitability of listed hotels companies in Nigeria. The design adopted was ex-post-facto. All the four (4) listed hotels firms on the NSE as at 31st December, 2018 were considered as population. An unbalanced panel data obtained from the companies’ published financial statements for 19 years (2000 to 2018) were analyzed using descriptive and inferential statistics. It was discovered that working capital had a significant effect on return on asset of listed hotels companies in Nigeria. Inflation rate and exchange rate significantly controlled the relationship between working capital and return on assets of the companies. This study concluded that working capital affects profitability and that inflation and exchange rates control the effect of working capital on profitability. Managers should ensure bulk purchase of inventories that can be stored for long without being spoilt to hedge the effect of inflation and exchange rates fluctuations. Optimal credit policy should also be set to enhance effective liquid fund management which would contribute to boosting profitability.https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_19_9_4__669-684.pdf: profitabilityinflationexchange rateworking capital |
| spellingShingle | Ayoola O. Olagunju Appolos N. Nwaobia Grace Oyeyemi Ogundajo Working Capital and Profitability of Listed Hotel Companies in Nigeria African Journal of Hospitality, Tourism and Leisure : profitability inflation exchange rate working capital |
| title | Working Capital and Profitability of Listed Hotel Companies in Nigeria |
| title_full | Working Capital and Profitability of Listed Hotel Companies in Nigeria |
| title_fullStr | Working Capital and Profitability of Listed Hotel Companies in Nigeria |
| title_full_unstemmed | Working Capital and Profitability of Listed Hotel Companies in Nigeria |
| title_short | Working Capital and Profitability of Listed Hotel Companies in Nigeria |
| title_sort | working capital and profitability of listed hotel companies in nigeria |
| topic | : profitability inflation exchange rate working capital |
| url | https://www.ajhtl.com/uploads/7/1/6/3/7163688/article_19_9_4__669-684.pdf |
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