Abstract:
This dissertation submitted and presented to school of Economics and Business Studies in
fulfillment of the academic requirements for the awards of Bachelor’s Degree in Accounting,
for Academic year 2023-2024 entitled “Impact of inventory management to the financial
performance of small and medium enterprises in Rwanda, case study: Librairie Caritas ltd,
period: (2021-2023)”, was done by BAMPORINEZA Emmanuel, student in ULK. The main
objective of this study is to evaluate the effect of inventory management to the financial
performance of SMEs in Rwanda. Specifically, this study intends to assess the effectiveness
of inventory management in Librairie Caritas Ltd between 2021-2023 and to find out the
contribution of inventory management on the financial performance of Librairie Caritas Ltd.
It is the reason why this study tried to respond whether inventory management implemented
in Librairie Caritas Ltd effectively and if inventory management contribute to the financial
performance of Librairie Caritas Ltd. By using questionnaires given to the employees of
Librairie Caritas Ltd taken by sampling in different departments, depending to the domain,
and considering the information given by physical documents, the researcher proved that
there is relationship between inventory management and financial performance of Librairie
Caritas Ltd. The research identified that when inventory management was effectively
implemented in Librairie Caritas Ltd, the financial performance was in good conditions but
when inventory management was not implemented perfectly in Librairie Caritas Ltd, the
financial performance was in bad conditions.
