Impact of Working Capital Management on the profitability of Manufacturing firms
| dc.contributor.author | Ignatius Kadama | |
| dc.date.accessioned | 2025-10-06T12:45:43Z | |
| dc.date.available | 2025-10-06T12:45:43Z | |
| dc.date.issued | 2025-09-24 | |
| dc.description | Under Graduate Research | |
| dc.description.abstract | Effective management of working capital is crucial for the financial sustainability of manufacturing firms, particularly in developing economies where access to finance is limited. This study examined the impact of working capital management on the profitability of manufacturing companies in Nakawa Industrial Area Uganda. Specifically the study assessed the influence of cash management, inventory management, payables management on profitability. The research was motivated by persistent challenges faced by manufacturing firms, including liquidity constraints, rising operational costs, and declining profits margins, despite their strategic importance in industrial growth and employment creation. A descriptive and correlation research design was employed using both quantitative and qualitative approaches. Data were collected through questionnaires administered to 35 respondents of which 30 were successfully returned and 10 targeted interviews of which 7 were conducted. The data where analysed using descriptive statistics, correlation analysis and regression techniques. The findings revealed that efficient cash management and receivables management had a positive and significant effect on profitability while poor inventory management was associated with reduced returns. Regression analysis confirmed that working capital components jointly explained a substantial variation in profitability of firms in Nakawa Industrial Area. The study concludes that firms that optimize their working capital cycles are more likely to remain profitable and competitive. | |
| dc.identifier.uri | https://hdl.handle.net/20.500.12311/2977 | |
| dc.language.iso | en | |
| dc.publisher | Uganda Christian University | |
| dc.title | Impact of Working Capital Management on the profitability of Manufacturing firms |