Working Capital Management and Organizational Performance of Manufacturing Industries; A Case of Uganda Baati Limited, Tororo

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Date
2019-08
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The study was to examine the effect of working capital management on organizational profitability in Uganda Baati limited, Tororo branch. The objectives of the study were; to examine the effect of inventory management on profitability in Uganda Baati limited, Tororo branch, to establish effect of accounts receivables management on profitability in Uganda Baati limited, Tororo branch and to establish the effect of accounts payables management on profitability in Uganda Baati limited, Tororo branch. The study used a case study design in collecting data from the field. A sample of 52 respondents was involved in the study. The study employed both questionnaire and interview guide as research instruments in collecting data from the field. Findings of the study indicated that; there is a strong positive correlation between inventory management and profitability of Uganda Baati limited with (R=O.813) that gives evidence that there is a significant strong positive correlation between inventory management in terms of inventory budgeting and profitability of manufacturing companies in terms of increase in the size of equity of the firm; there is a significant relationship between accounts receivable management and profitability of manufacturing companies with (R0.725) which implies that there is a strong positive correlation between accounts receivable management and profitability of manufacturing firms; there is a significant relationship between accounts payables management and profitability of Uganda Baati limited with (R ~O.55O) which implies that there is a moderate positive correlation between having payable policies in the organization and increase in the size of equity of the firm. The study recommendations were; Management of inventory is vital, thus Uganda Baati limited should ensure that they obtain the right supplier as this will help enhance on inventory management and ensure that there is stock of right inventory in the right time when required. Also, the management of Uganda Baati limited has to handle its debtors with utmost care with specific guidelines and policies. This might reduce on the number of debtors that the business handles and hence improving on equity in the enterprise. Furthermore, the Uganda Baati limited should obtain credit at low interest rates, credit will help to finance operations and hence increase on the output of the industry.
Description
A Research Report Submitted to The College of Economics and Management in Partial Fulfillment of The Requirements for The Award of Bachelors Degree of Business Administration of Kampala International University
Keywords
Capital Management, Organizational Performance, Manufacturing Industries
Citation