IQ Research Journal-Open Access-ISSN:2790-4296

The Effects Of Working Capital Management On Profitability Of Mineral Water Manufacturing Firms In Heliwaa District Mogadishu-Somalia.



Authors: Ibrahim Abdullahi Guhad Hussein, Atanga Desmond Funwie. Paper Title: The Effects Of Working Capital Management On Profitability Of Mineral Water Manufacturing Firms In Heliwaa District Mogadishu-Somalia.

IQ Research Journal of IQ res. j. (2022)1(2): pp 01-8. Vol. 001, Issue 002, 02-2022, pp. 0878-0886
Received: 26 02, 2022; Accepted: 26 02, 2022; Published: 27 02, 2022


Background of study Manufacturing division in an economy remains one of the most
important Sectors for every economic growth of a country. It develops the economic
frame work of countries from simple to more industrious economies. Its productive
economic activities are obtained by technology (Amakom, 2012). This takes about
growth prospects in the economies.
Problem of statement Vast majority of companies either maintain excessive or
inadequate working capital levels both levels are inappropriate. Too much working
capital means that a firm ties up capital on unproductive assets thus reducing profit
maximization. This further means that the market share of the company is not
maximized. However,
Study design The study was be a cross sectional study because; cross sectional study is
in depth investigation of an individual, group, institution. Cross sectional study helps
the study to describe and explain study single or same entities in depth in order to gain
insight into the larger case. This design is appropriate for rich understanding of
community study on the effects of working capital management on profitability of
mineral water manufacturing firms in Heliwaa-district Mogadishu-Somalia.
Major finings the greatest number of the respondents answered for the firm has a
defined level of inventories for raw material 21(40.3%) were said Strong agree, 17(34.7%) were said agree, while 7(14.5%) were said disagree, and 5(10.5%) were said
Strong disagree.
The highest numbers of the respondents answered that The firm keeps accurate
inventory records, 20(40.5%) were said agree, 12(23.5%) were said Strong agree while
11(22.5%) were said Strong disagree and 7(13.5%) were said disagree