ASSESSMENT OF RISK AND CHALLENGES OF DEBT MANAGEMENT PRACTICES IN ORGANISATIONS

ASSESSMENT OF RISK AND CHALLENGES OF DEBT MANAGEMENT PRACTICES IN ORGANISATIONS

Kofi Mintah Oware, Solomon Samanhyia, George Oppong Appiagyei Ampong

Account receivables have been a major problem for most utility service providers especially those still dealing with the post payment method where services are rendered before payment is made. This study assessed risk and debt management practices using Ghana Water Company Ltd (GWCL) as a case study. Both primary data and secondary data were used. Ratio analysis was main data analytical procedure. The study found account receivables to be fluctuating from 2010 to 2014 whereas revenue collected falls short of account receivables over the same period. The account receivable to current asset ratio indicated the existence of poor management of account receivables. Improper risk management of accounts receivables led to the inability of GWCL to initiate maintenance and expansion projects. The weakness of the law, ineffective and inefficient management of accounts receivables and poor investment in the collection of account receivable were some of the factors identified as the causes of poor

IJECM

2015

https://scholar.google.com/citations?view_op=view_citation&hl=en&user=NogL9W0AAAAJ&cstart=20&pagesize=80&citation_for_view=NogL9W0AAAAJ:kNdYIx-mwKoC

English