Account credit management and profitability of manufacturing companies a survey of three companies in Mogadishu Somalia
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Date
2011-08
Authors
Ayan, Ali
Aden
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management
Abstract
Managing credit particularly accounts receivable effectively and efficiency way is one of
the most difficult tasks under the managers, because accounts receivable is the second
broadest part of company's assets after Cash. While on the IV Accounts receivable are
amounts owed by a customer on account. They are from the sale of goods and
services. These receivables generally are expected to be collected within 30 to 60 days,
and they are the most significant type of claim held by a company.
To identify the level of managing accounts receivable in selected manufacturing
companies in Mogadishu, Somalia in terms of:
• Determining the effect of credit risk management on profitability in selected
manufacturing companies.
To determine the level of profitability in selected manufactured companies in
Mogadishu, Somalia.
The study was primarily focusing on 3 manufactured companies namely Ilatango
Factory, Raxo Factory, and ZamZam water Purification Company. All those
manufactured companies are located at Mogadishu, Somalia. The target populations of
this study were finance manager, and customers. Those manufacturing firms were
chosen because around 60% and above of their sales are credit based; secondly, they
are one of the largest manufacturing sectors in Somalia.
Credit management is the process of planning and controlling credit accounts and it
plays great roll the profitability of the firm. Effective controlling is characterized to
increase sales, to Reduces bad debts, to Increases profits, to build customer loyalty, to
build confidence of financial industry, to Increase company capitalization and to
Increase the customer relationship.
Description
A research project submitted in partial fulfillment of the requirements for the Award of Degree of Bachelor of Business Administration Of Kampala International University
Keywords
Management, Credit, Profitability