Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Cash Management And Its Impact On Financial Performance Of Mukwano Manufacturing Company
Irumba Alex, Zikusooka Enock
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 3, No. 1 |
| Published | 31 January 2024 |
| ISSN | 3006-4384 |
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
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
More in This Issue
View full issue →
41
Stakeholder Engagement In Planning And Electronic Waste Management In Uganda. A Case Of Nansana Municipal Council
Waste management
stakeholder
planning
42
Stakeholder Involvement And Public Policy Implementation In Local Governments: A Case Of Prohibition Of Counterfeit Agriculture Inputs, Ntoroko District, Uganda
policy adoption
policy analysis
stakeholder involvement
counterfeit
43
Taxation And Performance of Small-Scale Businesses in Kisoro District: A Case Study of Kisoro Municipality
Taxation
Performance and Businesses
44
The effect of assets management and financial performance of Centenary Bank.
assets management and financial performance
45
The effect of brand associations on the marketing performance of Uganda Breweries Limited
brand associations
marketing
performance and Uganda Breweries Limited