Abstract

The study focuses on the effect of working capital management on the financial performance of Cameron Development Corporation (CDC). The quantitative and the inferential statistics will be used to analyze the data which will be collected solely by the collection of annual report or financial statements from CDC.

The data will be analyzed using professional data analyses packages, precisely SPSS 25. The Pearson correlation coefficient will be used to measure the relationship between working capital management and financial performance. A 5% level of significant is stipulated in taking decision or draw conclusion about our hypothesis.

The working capital management has been used as the independent variable (cash management, inventory management and account receivables). The corporation’s financial performance has been used as dependent variable that is; return on asset (ROA), return on equity (ROE) and return on investment (ROI).

The findings reveal that there is a weak negative correlation between working capital management and financial performance of CDC, leading to the validation of the alternate hypothesis.

This study recommended that, CDC step up its working capital management efforts. Debt collection strategies could be used to collect income from accounts receivable, cash management policies could be made stricter, more marketing strategies could be engaged to sell, and avoid holding inventory for long.

Also, the government could step in with subventions and grants to save the situation of persistent losses. Finally, other factors that affect profitability could be monitored solutions developed, or adaptive measures made to macroeconomic factors.

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