Working Capital Management and Financial Performance of Private Health Facilities in Homabay County

Abstract

Working Capital facilitates daily operation of firms. The study established influence of Working Capital Management Practices on Financial Performance of Private Health Facilities in Homabay County. Correlation research design was used. Secondary data for the year 2016 to 2020 was used in the Study. The panel data for 115 health facilities-year end observations were used. Descriptive, correlation and panel data regression analysis aided by Statistical Package for Social Sciences was used. The accounts receivable turnover ratio had negative and significant affiliation with Return on Asset. Accounts payable turnover ratio, cash ratio plus inventory turnover ratio had positive and significant affiliation with Return on Asset. The study further revealed that all private health facilities in Homabay County registered positive Return on Asset across the year 2016 to 2020. The study recommend prudent deployment of Working Capital Practices and policies to enhance financial performance of Private Hospitals in Homabay County.