Effects of Working Capital Management on Firm Profitability in Merchandise Companies in Mogadishu, Somalia

  • Ibrahim Jinow Hassan Jomo Kenyatta University of Agriculture and Technologly
  • Abdullah Ibrahim Ali Pwani University, Kenya 
DOI: https://doi.org/10.53555/bm.v2i9.1474
Keywords: - Working capital managemen, inventory, conversion cycle

Abstract

The purpose of the study was to establish the effects of working capital management on firm
profitability in the merchandise firms in Mogadishu, Somalia. The overall results indicated that
there was a significant linear relationship between averages collection period, inventory
management, cash conversion cycle and firm profitability of merchandise firms in Mogadishu.
But there was insignificant relationship between average payment period and the firm
profitability. The conclusions were based on the objectives of the study that working capital
management components had a significantly and positively influence on firm profitability of
merchandise firms.

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Author Biographies

Ibrahim Jinow Hassan, Jomo Kenyatta University of Agriculture and Technologly

Masters Candidate , Jomo Kenyatta University of Agriculture and Technologly

Abdullah Ibrahim Ali, Pwani University, Kenya 

Business Management and Economics/ Pwani University, Kenya 

Published
2016-09-30
How to Cite
Hassan, I. J., & Ali, A. I. (2016). Effects of Working Capital Management on Firm Profitability in Merchandise Companies in Mogadishu, Somalia. IJRDO - Journal of Business Management, 2(9), 290-300. https://doi.org/10.53555/bm.v2i9.1474
Issue
Vol. 2 No. 9 (2016): IJRDO - Journal of Business Management
Section
Articles

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