Working Capital Management and Organizational Performance of Manufacturing Industries; A Case of Uganda Baati Limited, Tororo

TABLE OF CONTENT

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENT v

LIST OF ABBREVIATIONS ix

ABSTRACT X

CHAPTER ONE 1

GENERAL INTRODUCTION 1

1 .0 Introduction

1.1 Back ground of the study 1

1.2 Statement of the problem 3

1 .3 Objectives of the study 5

1.3.1 General objective 5

1.4 Research questions 5

1 .5 Scope of the Study 5

1.5.1 Content scope 5

1 .5.2 Geographical Scope 6

1 .5.3 Time Scope 6

1.6 Significance of the Study 6

1.7 Justification 7

1.8 Definitions of key terms 7

1.9 Fig. 1.1: Conceptual frame work 8

CHAPTER TWO 10

LITERATURE REVIEW 10

2.0 Introduction 10

V

2.1 Theoretical review .10

2.1.1 Baumol Model by Baumol (1952) 10

2.1.2 Keynesian Theory of Money by Keynes (1956) 11

2.2 Review of main concepts of the study 12

2.2.1 Working Capital Management 12

2.2.2 Organizational Profitability 13

2.3 Empirical literature review 14

2.3.1 Effect of inventory management on Organizational profitability 14

2.3.2 Effect of accounts receivables management on Organizational profitability 18

2.3.3 Effect of accounts payables management on Organizational profitability 22

2.4 Conclusion 24

METHODOLOGY 25

3.0 Introduction 25

3.1 Research Design 25

3.2 Area of the study 25

3.3 Study population 26

3.4 Sampling procedures 26

3.4.1 Sample size and Selection 26

3.4.2 Sampling techniques 27

3.5 Data Collection Methods and Instruments 27

3.5.1 Data Collection Methods 28

3.5.3 Data collection instruments 29

3.6 Validity and Reliability of Instruments 29

3.6.1 Validity 29

3.6.2 Reliability of the Instrument 30

3.7 Analysis of Data 30

3.7.1 Quantitative Data analysis 30

3.7.2 Qualitative Data analysis 31

3.8 Ethical Considerations 31

3.9 Limitations of the Study 32

CHAPTER FOUR 33

vi

DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF THE RESEARCH

FINDINGS 33

4.0 Introduction 33

4.1 Descriptive analysis RATHER call it Background information 33

4.2 Inventory management and profitability at Uganda Baati 36

4.3 Accounts receivable management and profitability of manufacturing companies 39

4.3 Accounts payable management and profitability of manufacturing companies 42

4.4 Profitability in Uganda Baati Limited 44

CHAPTER FIVE 47

SUMMARY OF THE FINDINGS, CONCLUSIONS, RECOMMENDATIONS AND

AREA OF FURTHER STUDIES 47

5.0 Introduction 47

5.lSummary of the findings 47

5.1.1 Effect of inventory management on profitability in manufacturing industries9 47

5.1.2 Effect of account receivables management on profitability in manufacturing industries? ..48

5.1.3 Effect of accounts payables management on profitability in manufacturing industries9 49

5.1.4 Profitability performance of Uganda Baati limited 50

5.2.2What is the effect of account receivables management on profitability in manufacturing

industries9 51

5.2.3 What is the effect of accounts payables management on profitability in manufacturing

industries9 51

5.2.4 Profitability performance of Uganda Baati limited 51

5.3 Recommendations 52

5.3.lWhat is the effect of inventory management on profitability in manufacturing industries? .52

5.3.2 What is the effect of account receivables management on profitability in manufacturing

industries9 52

5.3.3 What is the effect of accounts payables management on profitability in manufacturing

industries9 52

5.4 Areas of further study 52

REFERENCES

APPENDICES 57