Cash Management and Its Impact on Manufacturing Industry Profitability: a Case Study of PZ Industries Plc

Abstract

This study examines the impact of cash management on enhancing profitability within Nigeria's manufacturing sector, utilising PZ Industries Plc as a case study. Employing a survey-based descriptive and exploratory research design, primary data were collected from finance, treasury, and accounting personnel through structured questionnaires, resulting in 40 valid responses out of 50 distributed, which yielded an 80% response rate. Statistical analysis, including frequency distributions and chi-square tests, revealed strong associations between cash management practices and profitability outcomes. Specifically, the chi-square test results showed that cash management has a significant impact on profitability (X² = 32.4, p < 0.001) and that liquidity also has a substantial effect (X² = 10.0, p < 0.001). The findings confirm that effective cash control, liquidity planning, and internal cash flow synchronisation are essential for financial stability and improved organisational performance. The study concludes that robust cash management strategies are critical to sustaining profitability and operational efficiency in the manufacturing industry.