Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Cash Flow Management And Its Impact On Financial Performance Of Petroleum Companies In Uganda
Ahumuza Audrey
| 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 the effect of cash flow management on financial performance of petroleum companies in Uganda. Extensive secondary desktop research was initially conducted, delving deeply into theoretical frameworks and empirical findings regarding the relationship between effective working capital administration and organizational productivity, liquidity, and profitability. Financial statements spanning 10 years were also meticulously analyzed for 5 major petroleum retailers to discern trends correlated between cash flow volatility containment and key performance metrics over time. The Pearson correlation coefficient between cash flow management and financial performance was 0.819. The significance value (Sig. 2-tailed) was 0.000, which was less than 0.05. This means the correlation between the two variables was statistically significant. The N value indicated that the correlation was based on 186 observations/data points for each variable. A Pearson correlation coefficient close to 1 indicated a strong positive linear relationship between the two variables. It was therefore recommended that petroleum firms in Uganda place greater strategic emphasis on cash flow management and view it as a top priority rather than just another operational metric. Senior leadership must implement robust cash flow policies, systems and controls throughout the organization to actively monitor cash inflows and outflows. Timely collection of revenue, judicious inventory levels and careful payment terms with suppliers can free up liquidity for profitable investment opportunities.
Keywords
cash flow management
financial performance and petroleum companies
Cite This Article
Ahumuza Audrey (2024). Cash Flow Management And Its Impact On Financial Performance Of Petroleum Companies In Uganda. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1230
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