Working capital management and financial performance in selected private secondary schools in Wakiso District, Uganda
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Date
2013-12
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Publisher
Kampala International University, College of Economics and Management
Abstract
The general objective was to establish the relationship between working capital management and Financial Performance in Selected Private Secondary Schools in Wakiso District. It was based on the following specific objectives: i) To determine the level of working capital management in terms of cash management, accounts receivables management, accounts payables management and inventory management; ii) To investigate the level of financial performance in terms of profitability, liquidity and efficiency of the selected secondary schools; iii) To establish the relationship between working capital management and financial performance of those selected secondary schools. The research study was based on descriptive approach with co-relational design as well as quantitative methodology. The population was 134 employees of the selected private secondary schools. The sample of 100 was drawn and purposive samplings in form of questionnaires and interviews were used as research instruments. The findings indicated that majority of respondents were male (54%) between 20-39 years (54%) of age, over 72% had completed their undergraduate degree, 46% had experience of five and above years and 67% were teachers. Data analysis using means showed that the overall average of the level of working capital management was high (mean = 2.98). The level of financial performance of selected private secondary schools had the overall average of financial performance in terms of profitability, liquidity and efficiency of the selected private secondary schools in Wakiso District was high (mean = 2.97). Finally, the findings indicated a positive relationship between the level of working capital management and financial performance in selected private secondary schools in Wakiso District. Regression analysis results indicated that the level of financial performance that is not affected by working capital management is (Beta = 0.958) and a unit increase in the level of working capital management influences financial performance by 0.678. On the whole analysis finds out that change in working capital management accounts for only 25.5% of the variations in financial performance (Adjusted R2 = 0.255). The recommendations for this study are; there is a need for these schools to regularly inform the suppliers of the delays to avoid charges on late payment and also there is a need to work on registering expenses as they are incurred. This is because there is still a gap between what expenses are and the best. The school administrators should priotise expenses so as to reduce on expenditures
Description
A thesis presented to the College of Higher Degrees and Research in partial fulfillment of the requirements for the award of a degree of Master of Business Administration of Kampala International University
Keywords
Working capital management, Financial performance, Private secondary Schools, Wakiso district, Uganda