Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Payables/Creditors Management And It’s Impact On Financial Performance Of Ntake Manufacturing Industry
Ariyo Gracious Kazaara, Arinaitwe Julius
| 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 payables/creditors management and its impact on financial performance of Ntake manufacturing industry. Primarily, financial statements for the past 5 years were thoroughly analyzed longitudinally where crucial metrics including operating cash flows, inventory holding periods, payables days, profitability ratios and asset utilization were carefully evaluated to discern trends and how fluctuations in payables impacted overall returns. Supplementary to this quantitative phase, in-depth one-on-one interviews were also conducted with top leadership, accounts personnel as well as major suppliers using semi-structured questionnaires to garner deeper insights into prevailing vendor payment policies, challenges experienced in disbursing payment obligations on time, credit terms negotiation strategies and opportunities for improvement. From the findings, the analysis found a strong positive correlation between creditors' management and financial performance, as indicated by the R value of 0.735. This suggests financial performance was heavily influenced by creditors' management practices. The R Square value was 0.718, demonstrating that 71.8% of the variation in financial performance can be explained by creditors' management. The adjusted R square of 0.615 accounted for the number of variables in the model, confirming creditors' management strongly predicts financial performance even after correcting for additional factors. 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. A comprehensive, multi-pronged revamp of the creditors' management framework should be undertaken, spearheaded by senior leadership and closely monitored through an internal audit program.
Keywords
payables/creditors management
financial performance and Ntake manufacturing industry
Cite This Article
Ariyo Gracious Kazaara & Arinaitwe Julius (2024). Payables/Creditors Management And It’s Impact On Financial Performance Of Ntake Manufacturing Industry. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1229
More in This Issue
View full issue →
26
Lending Policy And Its Impact On Financial Performance Of Microfinance Institutions In Uganda. A Case Of Pride Microfinance Katwe Branch
Lending Policy
Financial Performance and Microfinance Institutions
27
Micro Finance Institutions and Small-Scale Businesses in Kisoro District: A Case Study of Kisoro Municipality
Micro Finance and Small – Scale Business
28
Party Governance Structure and Women Participation in Political Processes in Pakwach District Local Government, Uganda
Multiparty system
women participation
political processes
29
Receivables/Debtors Management and its impact on Financial Performance of Mukwano Manufacturing Industries in Uganda
Receivables
Management and Financial Performance
30
Relationship Between Business Growth And Entrepreneurship Development In Kisoro District
business growth and entrepreneurship development