Effect of Working Capital Management Decisions on Financial Performance

Collapse of companies in Kenya has been on the rise recent past. Far reaching endeavors to resuscitate these liquidating and ailing firms have generally attributed their corporate financial management decisions. Multinationals KTDA managed tea performing poorly past where audited statements reports revealed a warning signal its performance. Specific objectives study were determine effect accounts receivables period, payables inventory conversion cash cycle, financing policy, investing policy moderating ownership structure The illustrated that collection period is negatively related return assets (? = -0.1299, p=0.0160), payment -0.0843, p 0.0070), (?= -0.0623, p=0.0180), cycle -0.1107, 0.0030), positively 0.1589, 0.0000), 0.0291, 0.0000).