Browsing by Author "Kubana, Valerie"

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    Working Capital Management and Profitability of Sembule Steel Mills Ltd, Kampala- Uganda.
    (Kampala International University, College of Economics and Management Sciences ., 2013-05) Kubana, Valerie
    The study examined the relationship between working capital management and profitability of manufacturing firms and it was based on four specific objectives: (a) to determine the demographic characteristics of the respondents in terms of age, gender, educational qualifications, and years in the present position; (b) to determine the current level of working capital management of the firms; (c) to determine the extent of profitability; and (d) to establish if there is a significant relationship between the levels of working capital management and the extent of profitability of selected manufacturing firms. The study employed a descriptive correlation research design. SAQ were used to collect primary data from 100 out of 134 employees, using simple random sampling. Data analysis was done using SPSS's frequencies and percentages; means and PLCC.Findings revealed that majority of the respondents were male, falling in the age bracket of 20 - 30 years, with bachelor's degree, and experience between 2 - 4 years. Also means and standard deviation showed that the level of both working capital management and profitability of the manufacturing firms were satisfactory. PLCC revealed a positive and significant relationship between working capital and profitability in the selected manufacturing firms while regression analysis showed that working capital contribute 49.6% to profitability. Basing on the above findings, the researcher made the following recommendations: (i) Manufacturing firms need to install automatic methods of inventory management and use bin cards to improve their efficiency and effectiveness; (ii) internal control system be strengthened i.e authorization, physical checking, and dispatch of goods should be controlled to ensure proper management of inventory management; (iii) firms should control costs in order to minimize the losses and (iv) firms should keep the price/earnings ratio of the organization high in order to optimise the working capital high.