ACCOUNT RECEIVABLE MANAGEMENT AND ITS IMPACT ON THE PROFITABILITY OF LISTED MANUFACTURING FIRMS IN GHANA

Abstract

Account receivable management is very crucial in receivable management in most firms, which include PZ Cussons, Nestle Ghana ltd. Fan Milk, Unilever, Guinness Ghana, Starwin, Pioneer Kitchen Ware, Cocoa Processing Company (CPC) since credit delivery constitutes the core function that stimulates economic activities to promote wealth and improve standard of living. However, the inability to recover substantially the receivable granted over a period of time has the tendency of creating liquidity crises and solvency problem that lead to an indicted firm’s failure. These listed companies have been vulnerable to high debt recovery. It is for this reason that the current research has conducted the receivable management in the above listed companies to identify the inherent weaknesses in the credit delivery practices which contribute to recovery difficulties and to recommended measure to minimize high incidences of high receivable in the books of the companies. The researcher used secondary data as a guide to obtain the needed data for this works sample of staff selected from the companies published reports. Data obtained were analysed, using descriptive analysis. The research reveal among other issues, that there is laxity in monitoring, supervising and controlling credit facilities.