The impacts of receivable management on profitability of enterprises: a case study of Coca Cola Company Namanve Plant, Kampala Uganda.
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Date
2015-05
Authors
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Publisher
Kampala International University.College of Economics and Management
Abstract
Receivable management is one of the most receivable constraints and has become so rapid
especially in the last 10 to 20 years. According to this study, receivable management refers to
money which is owned to a company by a customer for products and services provided, it
becomes receivable management when it is occurring at a faster rate compared to the payables
within the company. This study focuses on the impacts of receivable management on the
profitability in Coca Cola Company by indentifying the factors leading to receivable
management in coca cola Company, determining the effects of receivable management on
profitability of the company and finding out measures being used to ensure better profitability.
This study will also determine the relationship between receivable management and profitability.
Receivable management in coca cola company has been influenced by many factors which
includes: in adequate laws regarding receivable's especially when customers get the company
product they become so relaxed to pay back the company, government policy which favors
customers than favoring the company, and many others , receivable management has lead to
various effects on profitability such as business failures, unpaid claim of firms has over it
customers , reduced recycling of funds, the effects have been discovered already and some
conservation measures are being implemented by the company and the government at large to
curb down the situation. Conservation measures being implemented include: strict laws and
policies, carrying out proper book keeping and record keeping, encouraging proper
accountability and cash management, receivable impact assessment, multidisplinary and multi
sectoral approaches should be applied as suggested by respondents. Receivable management in
Coca Cola Company is evil because it favors company reputation and customer enjoyment at the
expense of the company.
Therefore there is a negative relationship between receivable management and profitability
whereby as receivables increases profitability reduces
Description
Dissertation submitted to the College of Applied Economics and Management science in partial fulfillment for the ward of bachelors of Business Administration Accounting and Finance at Kampala International University.
Keywords
Receivable, Management, Profitability, Enterprises