Browsing by Author "RANNIE ASHABA"

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    CREDIT TERMS AND FINANCIAL PERFORMANCE OF ROOFINGS
    (UCU, 2024-09-18) RANNIE ASHABA
    This study investigated the effect of credit terms on the financial performance of manufacturing companies located in Nakawa division, it being a major home to most of Uganda’s manufacturing firm, focusing specifically on Roofings Group. The major objectives that were examined in this study included the effect of interest rates, to examine the influence of collateral security and to establish the relationship between credit terms and/on the financial performance of Roofings. Literature review from different sources were acknowledged and used as references in this report. A cross-section research design approach was used during the research study and both qualitative and quantitative approaches of research design were adopted. Questionnaires were issued out to the different respondents that made up the study population. The study population consisted of employees of Roofings Group with a target population of52 respondents. From these, using both Yamane and Krejcie and Morgan formulae, a sample size of 46 respondents were obtained and these actively took part in filing out the questionnaires given to them. Both simple random and purposive sampling methods were used to obtain unbiased and precise information on credit terms and financial performance of Roofings and data collected was to the best of the respondents’ knowledge as far as the two variables were concerned. It was discovered that interest rates negatively impact the firm’s profitability, and that high interest rates result into high borrowing costs to the firm hence affecting its general financial performance. It was also mentioned that interest rate fluctuations create uncertainty making it difficultto manage finances. To mitigate this, firms should negotiate credit terms that are favorable to both the firms and financing institutions and also firms should monitor interest rate trends to help anticipate changes and make adjustments in their financial strategies accordingly.