Liquidity Management and Profitability of Consumer and Industrial Goods Companies in Nigeria

This study evaluated the relationship between liquidity management and profitability of consumer and Industrial goods companies listed in Nigerian stock exchange covering the period of ten (10) years. Descriptive statistics and correlation were carried out using secondary data. The variables used in measuring liquidity management were current ratio (CR), quick ratio (QR) and growth ratio (GR) while profitability served as proxy by return on assets (ROA). Ordinary least square regression was carried out at 0.05 level of significance. From the findings of the analysis, it was observed that current ratio (CR) showed an insignificant and negative relationship with profitability while quick ratio (QR) and growth ratio (GR) revealed a significant and positive relationship with profitability. It was therefore recommended that management of sampled companies should find an optimal balance between liquidity and profitability as it helps companies achieves growth and increase in profits.