ABSTRACT
The objective of this study is to evaluate and examine the adequacy or inadequacy of working capital: its importance and implication The study observed that A lot of financial institutions have failed and more may still fall due to inadequacy of working capital Because many financial institutions has quested or fallen some firms has will draw the confidence they have in putting more effort to progress while the liquidated ones find it different to off set its indebtedness. In conclusion, the following recommendation more made Firms that has excess working capital should invest their excess capital in short term investment so that they will not be forced with the adverse effect of excess working capital Corrective measures should be adopted to the consequences of inadequate or excess working capital in the economy.