Working Capital Management and Financial Performance in Bakeries: A Case Study of Ntake Bakery Mbale Branch

Abstract

This research report was undertaken investigate on working capital management and financial performance in bakeries. It was guided by three objectives; to assess the effect of Credit control on financial performance of Ntake Bakery Mbale branch, to determine the effect of cash management on financial performance of Ntake Bakery Mbale branch, to find out the effect of cash reserves on financial performance of Ntake Bakery Mbale branch. This research used a sample size of 45 respondents, questionnaires and interview guide were used to collect data which was later analyzed using the statistical package for social sciences. Results of the first objective shows that credit control affects financial performance of Ntake Bakery Mbale branch by 9.6%, Results of the second objective reveals that cash management affects financial performance of Ntake Bakery Mbale branch by 7.7% while results of the third objective show that cash reserves affects financial performance of Ntake Bakery Mbale branch by 2.1%. It can be concluded that credit control has the greatest effect on financial performance, followed by cash management and lastly cash reserves. There is need for Ntake bakery to establish specific guidelines for granting credit, including credit limits, payment terms, and consequences for late or non-payment.