Effective capital management and organization profitability, a case of green power limited:

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Kampala International University, College of Economics and Management.
This study was conducted on a topic working capital management and business profitability a case study of green power ltd. The study was guided by the following research objectives. To determine the relationship between Average Collection Period (ACP) and Profitability of green power limited. To establish the effect of Inventory Conversion Period (ICP) on the Profitability of green power limited. To ascertain if there is a significant relationship between Average Payment Period (APP) and Profitability of green power limited. To establish the relationship between working capital management and business Profitability of green power limited. The research design involved across sectional study comprised of both qualitative and quantitative research. A simple random sampling was employed to determine the sample size. A sample size comprised of 30 respondents from a population of 33 people was selected. Data sources were produced from Primary data which was collected by the use of questionnaires which were developed from the research questions. The other source was the secondary data which was got from journal reports and internet in relation to the study objectives. The findings revealed that most of the debtors cleared their debts though most of them were not recorded in the books of account, most of the respondent disagreed that only one person authorizes adebt, there is no increase in the company’s turn over and the stock is not sold in a short period yet there was sales returns in the business because goods expired before they were sold. The business is recommended to ensure that complete and accurate business records are kept, advertisement of their products to increase on the turnover which will reduce goods getting expired before they are sold and this will reduce on the sales return, all receipts must be verified to mitigate fraud among others in order to improve on efficiency and productivity hence business profitability.
a research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of a bachelor’s degree in business administration of Kampala international university.
capital management, organization profitability, green power limited