ASSESSMENT OF RECEIVABLE MANAGEMENT PRACTICE IN PUBLIC ENTERPRISES:THE CASE OF ETHIOPIAN SHIPPING & LOGISTICS SERVICES ENTERPRISE

Abstract

Effective Account receivable management system can play a very crucial role in a profitable business organization to realize financial performance objectives. The main purpose of this study was to access the management of account receivable practice on Ethiopian shipping and Logistics Services Enterprises as a case studyand to suggest possible solutions that may address the problem in the area of receivable management. Sample of 83respondentswere selected using Yamani sampling model from 142 of total population. Primary & secondary data was collected using questionnaire & interview and analyzed using SPSS 20 version software, a descriptive type of research method was used in conducting the case study. The result of this study evidences that Ethiopian Shipping & Logistics Service Enterprise has no means to secure the collection of its credit services. There is a gap between the significant value of the credit services & receivable management practices. The study recommends setting clear receivable management strategy, optimal credit policies and procedures by the management is a requirement so as to manage credit services & receivables efficiently to increase the collection & follow-upto improve the liquidity problem, so; the company shall be achieve better performance.