Impact of working capital management on the profitability of spare parts business in ghana
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Date
2023
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KNUST
Abstract
This study investigates the impact of working capital management on the profitability of spare parts dealers in Ghana. The study is quantitative survey research using the ordinary least square (OLS) estimation method. Also, a correlation analysis is employed to investigate the nature and magnitude of the association between working capital management and the profitability of 100 Abossey Okai spare parts companies. The study finds that many of those who participated in the survey said better inventory management was critical to increasing their company's bottom line. Also, the respondents agreed that improving their accounts receivable management would have a significant impact on their businesses' bottom lines. Additionally, the econometric model indicates that an increase of one unit in working capital management (WCM) is positively correlated with an increase of 0.347 in the profitability of small and medium-sized enterprises (SMEs). It is strongly recommended that small and medium-sized businesses (SMEs) prioritize the implementation of efficient working capital management solutions in order to increase their overall profitability.
Description
A thesis submitted to department of accounting and finance, kwame nkrumah university of science and technology, kumasi n partial fulfillment of the requirement for the degree of master of science (accounting and finance option).