MJAMR

Working Capital Management And Financial Performance Of Mukwano Manufacturing Industry In Uganda

Kiiza Acrobert Moses


Abstract

The study aimed at working capital management and financial performance of Mukwano manufacturing industry in Uganda and it was guided by the following objectives; To examine the relationship between debtors’ management and financial performance of manufacturing companies in Uganda, to determine the relationship between creditors management and financial performance of manufacturing companies in Uganda and to determine the relationship between cash management and financial performance of manufacturing companies. This study was mainly quantitative in approach. Cross-sectional survey design was used to collect data at only one point and then inferences was drawn from it after processing, analyzing it on the population. Descriptive statistics was used to present data particularly the characteristics of the respondents and the organisations under the study. Correlational research design was used to describe and measure the degree or association between working capital management and financial performance of manufacturing firms in Uganda. From the findings, the data shown that 7.1% of respondents strongly agreed, 5.3% disagreed, 26.5% strongly agreed, 41.6% strongly disagreed, and 19.5% are not sure about the evaluation of the debtor's character before extending credit in their company. The mean rating for this statement was 3.61, indicating a moderate agreement overall. Based on this data, it was recommended for companies to assess the character and creditworthiness of debtors before extending credit to mitigate potential credit risks. The statistical analysis revealed a remarkably strong positive correlation between creditors' management practices and overall financial performance. Given over 70% of the variation in results could be attributed to creditors' management alone, it is imperative that the organization urgently prioritizes optimizing processes and controls pertaining to this important function.

Keywords

Working Capital Management Financial Performance and Mukwano Manufacturing Industry
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Kiiza Acrobert Moses (2024). Working Capital Management And Financial Performance Of Mukwano Manufacturing Industry In Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1212

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