Abstract: The poor infrastructure, unreliable electricity, skills gap, high cost of finance; the opportunity cost due to the disequilibrium in finance issues, an proper use of resources where the short term finance used for a long term projects and some manufacturing companies their short term finance are not able to cover all company’s obligations and they affect the daily activities of those manufacturing companies are the challenges faced by manufacturing companies. The main objective of this research is to assess the effect of working capital management to the performance of manufacturing companies in Rwanda. The specific objectives of this study will be: To find out the level and competent of current asset in INYANGE INDUTRIES LTD, To find out the level and competent of current liability in INYANGE INDUTRIES LTD, To examine the effectiveness of working capital management in INYANGE INDUTRIES LTD. To determine to what extent working capital management contributes to the performance of INYANGE INDUTRIES LTD? The research used both quantitative and qualitative methods. The target population was 102 employees and the sample size was 49 respondents. The tools used are the questionnaire as the main instrument in collecting data and interview after collecting data, it will be cleaned and coded. Data entry will also be done by the use of word and Excel version 2010. With qualitative data, descriptive method was used to interpret data presented to provide explanations to the facts that has been expressed by the respondents. The findings shows that the most of respondents with 24% were agreed that always they used monitor cash flow regularly to assure the better management of cash. This means that with cash flow being the lifeblood for a business’s continued existence; it has always been surprising to me that few companies take the time to monitor and project cash flow on a regular and timely basis. Projecting your cash flow, especially using a specific period to compare, will help you learn more about your business and the activities that bring cash in and take cash out. At Inyange industries , start by listing all the items in a given period of time that would put money in the business (cash sales, paid receivables, asset sales, interest earned, rental income or draws on a loan) and the items that would take cash out of your business (wages, accounts payable, owner draws, loan payments, asset purchases).The findings show that the respondents with 41% reported that the main types of inventory at Inyange Industries is finished good, 19% reported that other important types of inventory is raw materials and 20% of respondents reported that it has inventory in process. The type of inventory is depending on the nature of firm. The findings show that the respondents with 51% reported that Inventory Management Process at Inyange Industries start with supervising stock items and 49% reported that after supervising follow controlling of the stock items those are two component of Inventory Management Process at Inyange Industries.
Keywords: Working capital, Management, Performance.
Title: EFFECT OF WORKING CAPITAL MANAGEMENT ON THE PERFORMANCE OF MANUFACTURING COMPANY: CASE STUDY INYANGE INDUTRIES LTD
Author: MUGISHA GAD, Dr. Patrick MULYUNGI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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