IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form

IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *
PDF Print E-mail



Uwera Alice, Dr. Mbabazi Mbabazize, Dr. Jaya Shukla,

Post Graduate student at Jomo Kenyatta University of Agriculture and Technology-Kigali Campus Rwanda

Senior Lecturer at University of Rwanda (CAVM), Department of Rural development and Agribusiness; Jomo Kenyatta University of Agriculture and Technology-Kigali Campus

Senior Lecturer at Jomo Kenyatta University of Agriculture and Technology-Kigali Campus

CITATION: Alice, U., Mbabazize, M & Shukla, J. The Effects of Working Capital On Liquidity of Beverage Companies In Rwanda; Evidence From Bralirwa Industries: A Case Study Of Migera-3 Water Supply Project. International Journal of Finance and Accounting. 4 (6), 20-41.


The purpose of this study was to examine the effects of working capital on liquidity of Beverages companies. This is because working capital management is considered to be a very important element to analyze the organizations’ performance while conducting day to day operations, by which balance can be maintained between liquidity and profitability. Maintaining liquidity on daily base operation to make sure it’s running and meets its commitment is a crucial part required in managing working capital. It is a difficult task for some managers to make sure that the business function running in well-organized and advantageous manner. There are chances of inequality of current assets and current liability. During this procedure Firm’s growth and profitability will be affected and if this occurs and firm manager wouldn’t be able to manage working capital efficiently hence effect on return on investment. The researcher studied a Beverage company called Bralirwa Industries limited located in Kicukiro district, Kigali Rwanda for the period of 2011 to 2013. The researcher used descriptive research design based on both qualitative and quantitative approach in order to come up with required report. Data was collected from both primary and secondary sources and then analyzed using SPSS computer software and interpreted in order to come up with a conclusion.

In the finding it was established that the organisation has different sources of working capital which include existing cash reserve, new equity or loans, long term loans and Return on asset and they have great impact liquidity management. The table 4.12 gave the relationship between working capital and liquidity in Bralirwa whereby the respondents N is 96 and the significant level is 0.01, the results indicate that independent variable has positive high correlation to dependent variable equal to .966** and the p-value is .000 which is less than 0.01. When p-value is less than significant level, therefore researchers conclude that variables are correlated and null hypothesis is rejected and remains with alternative hypothesis. This means that there is a significant relationship between working capital and operating cash flow in Bralirwa. In conclusion it can be stated various sources of working capital such as existing cash reserve, new equity or loans, long term loans and Return on asset has improved liquidity inform of and current ratio, inventory, return on investment, return on loan and equity and profitability.

KEY WORDS: Working capital, Operating Cash Flow/Liquidity, BRALIRWA Industries


View Full Text PDF Format


Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <