A Survey of Working Capital Management Practices among Manufacturing Companies in Ethiopia

The purpose of this study was to explore the working capital management practices of manufacturing companies in Ethiopia and make comparison with previous similar studies. The study used survey method on a sample of 144 manufacturing companies in Ethiopia that were selected using two-stage stratified random sampling. Survey analysis was employed and then results were presented using tables followed by explanation in three sections where the first section presented the working capital policy matters, followed by the overall management of working capital and finally the management of specific components of working capital. The result showed that the manufacturing companies of Ethiopia have formal and situational working capital policy that are under the responsibility of financial managers who make working capital review per year. The finding also showed that much time is dedicated towards the management of working capital through use of various managerial methods and techniques.