Effective Capital Management and Organisation Profitability, A Case of Green Power Limited

TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES viii

ABSTRACT ix

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.1 Background of the study 1

1.2 Statement of the problem 2

1.3 General objective 3

1.4 Specific Objectives 3

1.5 Research questions 3

1.6. Scope of the study 4

1.6.1 Content scope 4

1.6.2 Geographical scope 4

1.6.3 Time scope 4

1.7 Significance of the study 4

V

CHAPTER TWO .5

LITERATURE REVIEW 5

2.0 Introduction 5

2.1 Definitions of working capital management, working capital and profitability 5

2.2 The relationship between Average Collection Period (ACP) and Profitability 5

2.2 The effect of Inventory Conversion Period (ICP) on the profitability 8

2.3 The relationship between Average Payment Period (APP) and Profitability 9

2.4 Relationship between working capital management and business profitability 9

CHAPTER THREE 11

METHODOLOGY 11

3.0. Introduction 11

3.1. Research design 11

3.2. Study population 11

3.3.Sample size and sampling methods 11

3.3,1 Sample Size 12

3.4.0 Data collection methods and instructions 12

3.4.1. Questionnaire 12

3.4.2 Interview 13

3.4.3 Observation 13

3.5. Source of Data 13

3.5.1 Primary source 13

3.5.2 Secondary source 14

3.6.0. Data processing and analysis 14

3.6.1. Date processing 14

vi

3.6.2. Data analysis .14

3.7 validity and reliability of instruments 14

CHAPTER FOUR 15

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS 15

4.0 Introductions 15

4.1 Demographic Characteristics of Respondents 15

4.2 Average collection period and profitability 17

4.3 Effect of inventory conversion period on profitability 19

4.4 The relation between working capital management and profitability of Best Green power

Ltd 21

CHAPTER FIVE 24

SUMMARY CONCLUSION AND RECOMMENDATION 24

5.0 Introduction 24

5.1 Summary of the findings 24

5.1.1 Working Capital Management 24

5.1.2 Profitability 24

5.1.3 Working capital management and financial performance 25

5.2 Conclusion 25

5.3 Recommendations 25

5.4 Areas for further research 25

REFERENCE 26

APPENDICES 28

Appendix I: Questionnaire for staff members 28

ABSTRACT This study was conducted on atopic working capital management and business profitability a case study of green power ltd. The study was guided by the following research objectives. To determine the relationship between Average Collection Period (ACP) and Profitability of green power limited. To establish the effect of Inventory Conversion Period (ICP) on the Profitability of green power limited. To ascertain if there is a significant relationship between Average Payment Period (APP) and Profitability of green power limited. To establish the relationship between working capital management and business Profitability of green power limited. The research design involved across sectional study comprised of both qualitative and quantitative research. A simple random sampling was employed to determine the sample size. A sample size comprised of 30 respondents from a population of 33 people was selected. Data sources were produced from Primary data which was collected by the use of questionnaires which were developed from the research questions. The other source was the secondary data which was got from journal reports and internet in relation to the study objectives. The findings revealed that most of the debtors cleared their debts though most of them were not recorded in the books of account, most of the respondent disagreed that only one person authorizes adebt, there is no increase in the company’s turn over and the stock is not sold in a short period yet there was sales returns in the business because goods expired before they were sold. The business is recommended to ensure that complete and accurate business records are kept, advertisement of their products to increase on the turnover which will reduce goods getting expired before they are sold and this will reduce on the sales return, all receipts must be verified to mitigate fraud among others in order to improve on efficiency and productivity hence business profitability.

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APA

EMMANUEL, K (2022). Effective Capital Management and Organisation Profitability, A Case of Green Power Limited. Afribary. Retrieved from https://tracking.afribary.com/works/effective-capital-management-and-organisation-profitability-a-case-of-green-power-limited

MLA 8th

EMMANUEL, KALUBA "Effective Capital Management and Organisation Profitability, A Case of Green Power Limited" Afribary. Afribary, 24 Aug. 2022, https://tracking.afribary.com/works/effective-capital-management-and-organisation-profitability-a-case-of-green-power-limited. Accessed 19 Nov. 2024.

MLA7

EMMANUEL, KALUBA . "Effective Capital Management and Organisation Profitability, A Case of Green Power Limited". Afribary, Afribary, 24 Aug. 2022. Web. 19 Nov. 2024. < https://tracking.afribary.com/works/effective-capital-management-and-organisation-profitability-a-case-of-green-power-limited >.

Chicago

EMMANUEL, KALUBA . "Effective Capital Management and Organisation Profitability, A Case of Green Power Limited" Afribary (2022). Accessed November 19, 2024. https://tracking.afribary.com/works/effective-capital-management-and-organisation-profitability-a-case-of-green-power-limited