Global Journal of Economic and Finance Research

This study looks at how working capital management affects the survival of Nigerian industrial goods companies that publicly trade on the Nigerian Exchange Group, paying particular emphasis on inventory days (INVD), Receivables Days (RECD), and Payables Days (PAYD). The study employs both descriptive and ex post facto research designs and utilizes panel data for its analysis. It centres on thirteen industrial goods firms that were listed on the Nigerian Exchange Group spanning the period 2014 –2023. From this population, ten firms were purposefully selected as the sample. The study relies on secondary data obtained from the financial statements of these firms over a ten-year period (2014–2023). Regression analysis was used to assess the impact of the selected working capital indicators on firm survival. The findings show that Inventory Days have a significant negative effect on a firm's ability to survive, implying that prolonged inventory holding may heighten the risk of financial instability, while Payables Days has negative and insignificant effect on firm survival indicating delay supplier payments increases the risk of financial distress. On the other hand, firm survival is positively and significantly influence by Receivables Days, implying that, when efficiently administered, the provision of trade credit can contribute to enhanced performance and survival. Firms are encouraged to adopt inventory control strategies, improve receivables collection policies, and manage payables efficiently to reduce financial risks.

Firm Survival, Inventory Days, Payables Days, Receivables Days, Working Capital Management.

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