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Working Capital Management And Financial Performance Of Profit Organisations In Wakiso District

This study examined the impact of working capital management on financial performance
Wakiso district, in Uganda. The study objectives included: “To determine the Relationship between receivables and
financial performance;” “To establish the effect of cash conversion cycle on financial performance;” To determine the
relationship between accounts payables on financial performance. In this study working capital management
(measured by accounts receivables, cash conversion cycle and accounts payables underlying factors) was the
independent variable and financial performance (measured by business growth, reduced risks and market share factors)
was the dependent variable. Cross sectional research design were employed in this study. Quantitative approach was
used to collect and analyse data. Study samples size was 331. Primary data and secondary data sources were used.
Data was collected using questionnaire. Date was analysed using SPSS version 20. The research findings shown by
correlation analysis generally indicated that there was a significant positive linear relationship between the working
capital management measures and the financial performance measures (r>.7; p=.000 in all cases). Regression models
also indicated that independent variable was a better predictor of the variation in the financial performance (dependent
variable). Accounts payables was the most significant predictor of the variation in financial performance, followed by
cash conversion cycle (as evidenced by sig. values of .000 in both cases). The researcher recommended further
research into other factors that affect financial performance since the regression analysis indicated that only 81.4%
variation in financial performance was accounted for by the independent variable.
Keywords: Receivables, Cash conversion cycle, Accounts payables, Financial and Performance.

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