Cash Management and Financial Performance of Hotels

This study sought to determine on an empirical basis, whether cash management influences the financial performance of hotels in Uganda.The objectives of the study were to examine the effect of cash planning, cash flow management and cash surplus management on the financial performance of IGH. A survey was conducted on a sample of respondents drawn from IGH in order to consider statistically significant relationships between financial performance and components of cash management at length. The data were analyzed using SPSS. Empirical findings of the study reveal a significant positive relationship between cash management and financial performance with cash planning predicting 64.2%, cash flow management 69.7% and cash surplus management 76.9% of the variance in financial performance in IGH respectively. However when considering the sub components of these variables, were not significant predictors of financial performance in IGH. The study concluded that there was a need for IGH to improve policies on cash budgeting,cash cycle planning, cash surplus investment as well as deficit cash financing since these were found to have a significant effect on its financial performance.

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