MJAMR

The Effect Of Working Capital Management On Financial Performance Of Centenary Bank.

Namubiru Gladys


Abstract

The study aimed at the effect of working capital management on financial performance of centenary bank. The main working capital components that were analyzed included cash and cash equivalents, total loans and advances to customers, total deposits from customers, and total short-term borrowing. Cash conversion cycle was calculated as the number of days inventory was held in stock plus days sales outstanding minus days payable outstanding. Net interest margin, return on equity and return on assets were used as indicators of profitability. Descriptive statistical analysis was conducted to study the trends in working capital metrics and profitability ratios over 2013-2018. According to results, it was indicated that F= 61.453, p<000, meant the positive hypothesis that there was a significant relationship between working capital management and financial performance was accepted, hence rejecting the implied null hypothesis. The management should embrace proper cash inventory and creditors’ management so as to ensure that the institutions are able to finance their operations without financial limitations.

Keywords

working capital management and financial performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Namubiru Gladys (2024). The Effect Of Working Capital Management On Financial Performance Of Centenary Bank. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1244

More in This Issue

View full issue →
22
Increased Sand Mining And Wetlands Sustainability Around Lwera Wetland In Lwera Village, Kalungu District
Sumama Robert
Increased Sand Mining Wetlands Sustainability and Lwera Wetland
23
Interest Rate And Profitability Of Small And Medium Enterprises In Kaharo Sub-County, Kabale District, Uganda
Kiconco Josephine
Profitability interest rate small and medium sized enterprises economic development
24
Inventory Management And Organizational Performance Of Manufacturing Firms In Mbarara City, Uganda
Nuwagaba Norman
Inventory Management Employee Performance Manufacturing Firms
25
Involvement in Policy Adoption and Public policy implementation in Ntoroko District Local Government, Uganda
Mujuni Bonus
Involvement Policy adoption and Public policy implementation