An assessment of working capital management practices in Ghana. A case study of selected supermarkets in Kumasi Metropolis

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August, 2015
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The study seeks to add to existing literature the working capital management practices of selected supermarkets in Ghana. Problem: This was motivated by the fact that businesses have been noted to rely on banks, the stock market and equity capital. They give less attention to efficient working capital as a viable means of raising capital. They seem not to appreciate the feasibility of raising capital through efficient working capital management. Nonetheless, efficient working capital management is one of the major sources of raising capital, according to Nyamao et al (2012). Methodology: To achieve this, survey instrument was administered on 20 Accountants of leading supermarkets in Kumasi with a response rate of 80%. The data collected was processed by the capability of survey gizmo and Microsoft excel. Findings: The results showed that the supermarkets face liquidity challenges, low profitability, worse competitive position, increased funds tied up in working capital and finally lack of ability to unlock capital to finance growth. Recommendations: It is therefore recommended that the supermarkets reexamine the factors that determine their working capital so that they come up with best practices of working capital that can mitigate against the challenges. The working capital management policy need to be changed from informal to formal to enhance the chances of the supermarkets to be successful in their WCM
A Thesis submitted to the Department of Accounting and Finance, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirements for the degree of Master of Business Administration (Finance Option)