Volume : VII, Issue : VI, June - 2017

DETERMINANT FACTORS OF WORKING CAPITAL MANAGEMENT PRACTICES ON SELECTED MANUFACTURING ENTERPRISES

Bamlaku Kassie

Abstract :

 This paper is aimed at the determinant factors of working capital management practices on selected manufacturing enterprise. Objective: The general objective of this study is determinant factors of working capital management practices of the selected manufacturing enterprises in Addis Ababa depends on historical analyses of enterprises financial report. Methodology: This study makes use of descriptive nature. The study were used both primary and secondary data by using both qualitative and quantitative data types. The secondary data were collected mainly from various news papers, magazines, Internet and audited financial report. To supplement secondary data, the researcher was collected some primary data through observation and unstructured interview (discussion with managers and various departments). And finally, the collected data were analyzed by using descriptive statistical tools. Major Findings: The finding shows, in our country there is bad practical activity of managing working capital. Enterprise holding huge amount of cash or deposited the cash amount in the bank. They focused on deposited cash rather than invest in other investment area. Most firms valuated their performance based on profitability rather than financial analyses measurement, customer satisfaction, receivable management and inventory management. Finally, the finding concludes that moderate amount of working capital indicates efficient and effective management of working capital, and it leads to trade off between profitability and liquidity of firms. 

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

BAMLAKU KASSIE, DETERMINANT FACTORS OF WORKING CAPITAL MANAGEMENT PRACTICES ON SELECTED MANUFACTURING ENTERPRISES, INDIAN JOURNAL OF APPLIED RESEARCH : Volume‾7 | Issue‾6 | June‾2017

Number of Downloads : 922

References :