The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania
A research report for a dissertation to be submitted in partial fulfilment of the award of the Degree of Masters Science in Accounting and Finance (Msc. A&F) of Mzumbe University
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| Formato: | Thesis |
| Idioma: | inglês |
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Mzumbe Unversity
2024
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| Acesso em linha: | https://scholar.mzumbe.ac.tz/handle/123456789/1432 |
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| author | Shekalaghe, Kasimu |
| author_facet | Shekalaghe, Kasimu |
| author_sort | Shekalaghe, Kasimu |
| collection | DSpace |
| description | A research report for a dissertation to be submitted in partial fulfilment of the award of the Degree of Masters Science in Accounting and Finance (Msc. A&F) of Mzumbe University |
| format | Thesis |
| id | oai:null:123456789-1432 |
| institution | Mzumbe University |
| language | English |
| publishDate | 2024 |
| publisher | Mzumbe Unversity |
| record_format | dspace |
| spelling | oai:null:123456789-14322024-10-22T08:43:43Z The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania Shekalaghe, Kasimu Working capital management Average collection period Cash conversion cycle A research report for a dissertation to be submitted in partial fulfilment of the award of the Degree of Masters Science in Accounting and Finance (Msc. A&F) of Mzumbe University Working capital management (WCM) has effects on profitability of firms. The objective of this study is to examine the effect of WCM on the profitability of listed manufacturing companies in Dar es Salaam stock exchange Tanzania. The quantitative research design was applied on six (6) targeted listed manufacturing companies using panel data analysis for the period of ten (10) years from 2005 to 2014.Descriptive Multiple regression and correlation analysis were applied to examine the relationships between components WCM and the Gross Profit (GP). GP is used as dependent variable, while Inventory turnover in days (INVTID), Average collection period (ACP), Average payment period (APP) and cash conversion cycle (CCC) as independent variables and; Firm size and current ratio (CR) as control variables. For the purpose of understanding the result of this study the combination of all listed manufacturing companies was term as INDUSTRY. Results reveal that industry correlation between ACP, SLn, CR and GP are in right direction and highly significant, and the correlation between INVTID, CCC, APP and GP are significant but in opposite direction. Regression result showed that there is weak positive relationship between APP, CCC and GP of the industry and strong significant positive relationship between INVTID, SLn, CR and GP further more there is insignificant negative relationship between ACP and GP of the industry. The study end by concluding that further investigation is to be taken for WCM component with unexpected result. Managers have to take measures for effective and efficiency utilization of WC in order to create shareholder’s wealth and firm value. Subsequently the analysis of individual listed manufacturing campaniles was made, the correlation and regression analysis shows mixed results, except for SLn and CR reveals strong significant relationship with GP all most in all companies selected in this study. From this study it is recommended that managers should focus on reducing CCC, INVTID and collect cash from credit customers as soon as possible. Private 2024-10-09T08:57:56Z 2024-10-09T08:57:56Z 2016 Thesis APA https://scholar.mzumbe.ac.tz/handle/123456789/1432 en application/pdf Mzumbe Unversity |
| spellingShingle | Working capital management Average collection period Cash conversion cycle Shekalaghe, Kasimu The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania |
| title | The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania |
| title_full | The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania |
| title_fullStr | The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania |
| title_full_unstemmed | The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania |
| title_short | The effect of working capital management on profitability of listed manufacturing companies in Dar es salaam Stock Exchange (DSE) Tanzania |
| title_sort | effect of working capital management on profitability of listed manufacturing companies in dar es salaam stock exchange dse tanzania |
| topic | Working capital management Average collection period Cash conversion cycle |
| url | https://scholar.mzumbe.ac.tz/handle/123456789/1432 |
| work_keys_str_mv | AT shekalaghekasimu theeffectofworkingcapitalmanagementonprofitabilityoflistedmanufacturingcompaniesindaressalaamstockexchangedsetanzania AT shekalaghekasimu effectofworkingcapitalmanagementonprofitabilityoflistedmanufacturingcompaniesindaressalaamstockexchangedsetanzania |