MJAMR

Cash Management And Its Impact On Financial Performance Of Mukwano Manufacturing Company

Irumba Alex, Zikusooka Enock


Abstract

The study aimed at cash management and its impact on financial performance of Mukwano manufacturing company. Subsequently, qualitative primary data was collected to help explain and build upon the quantitative results. In-depth one-on-one interviews were conducted with senior managers, accounting personnel and production Heads using semistructured questionnaires focusing on existing cash management policies, challenges in cash budgeting and controls, systems for cash receivables and payables management as well as opportunities for improvement. The moderate to strong positive correlation between cash management and financial performance, as indicated by the R value of 0.593, demonstrating a meaningful relationship where enhancing cash management tends to lead to improved financial performance. Specifically, over one-third of the variation in financial performance was explained by cash management alone according to the R Square value of 0.354. The regression model developed was shown to be statistically significant based on the ANOVA table's p-value of 0.000, which is less than the standard 0.05 threshold. This confirmed that cash management reliably predicted financial performance and was not due to chance. It was strongly recommended that company leadership makes optimizing cash management processes and controls an utmost strategic priority going forward. Targeted efforts must be undertaken to strengthen various cash management activities such as comprehensive cash forecasting, preparation of detailed budgets, meticulous collection of receipts, careful monitoring of expenditures, and timely reconciliation of cash records. Digitalization of cash management workflows can aid efficiency and accuracy.

Keywords

Cash Management And Financial Performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Irumba Alex & Zikusooka Enock (2024). Cash Management And Its Impact On Financial Performance Of Mukwano Manufacturing Company. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1228

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