The relationship between account recievble managment and profitability, a research in Puntland of Somalia

The study will mean to establish the relationship between credit management and profitability of 3 selected manufacturing companies in Garowe capital city of Puntlnad State of Somalia. Our selected companies are Nugal Water Company, Farjano Mineral Water Company and Jubba Pure Mineral Water Company. This is because; trade credit is a short term source of finance and sometimes take the form of bills payable. The objective of this research study is to highlight the effects of the credit management on the profitability of the selected companies as well as to highlight the advantages of effective and efficient management of trade credit amongst others. This study covers the period between September 2014 up to 2015. Questionnaires are used as research instrument for the purpose of obtaining the desired result. In treating and analyzing the data collected, an extensive use of tabular information and percentages will be of great importance. In the light of the findings and conclusions of this work, there will be recommendations. Key Words: Credit Manangment, Accounts Receivables Manangment, Trade Credit