EFFECT OF WORKING CAPITAL MANAGEMENT ON THE FINANCIAL PERFORMANCE OF LONGHORN PUBLISHERS LIMITED, KENYA

Abstract

Purpose: To examine financial deepening and inclusive growth in Kenya.

Design/ Methodology/Approach: The current study took an explanatory research design. The target population was 32 observations. The sample was 32 observations which were selected using census approach. The study used data drawn from secondary data sources. The researcher used Statistical Package for Social Sciences (SPSS) to generate the descriptive statistics and also to generate inferential results. Regression analysis was used to demonstrate the relationship between the working capital management and financial performance.

Findings: The study found that inventory conversion period, receivable conversion period, and cash conversion cycle have negative and significant effect on financial performance of Longhorn publishers limited. However, payable deferral period have positive and significant effect on financial performance of Longhorn publishers limited. The study concluded that the profit before tax for the longhorn publishers has improved over the last eight years.

Contribution to policy and practice: The research study recommends that longhorn publishers managers should be thoroughly trained on working capital management skills. The managers should undergo continuous development programme through interactive symposiums, conferences, and open forums.

Originality/Value: The findings will also be significant to policy makers in that they serve as a guide to them when making policies related to working capital. Lastly, given the limited knowledge in the same field, the findings of this study may also be used as a source of reference for other researchers. Similarly, this study will be of great significance to the academician as they seek to increase their knowledge on the effect of working capital management on the financial performance of longhorn publishers limited, Kenya