Abstract

The study focused on the assessment of working capital on the financial performance in Private Institutions in Rwanda and Intersect Security Company was taken as a case study .The study had specific objectives that included, to identify the levels of working Capital Management within Private institutions in Rwanda, to find out working capital management practices of Private institutions and to find out the relationship between working capital management and the financial performance of Private institutions in Rwanda. The Findings revealed that inventory management in Intersect Security Company has very low knowledge of inventory management theories.  Although some review stock and keep enough stock, most of the Intersect Security Company as units were found with poor inventory management practices such as purchasing stock upon demand, were not regularly replenishing their stock and were adversely facing stock outs. Accounts payable or creditors’ management practices of Intersect Security Company. Over all, the practices are poor as portrayed in payment of interest on late payment of creditors, absence of proper records of their obligations to supplier, suppliers are not informed of the delays in payments and that the businesses keep a delay payment policy. This implies that businesses have not been able to manage their suppliers’ obligation in an efficient way. The Significant positive perception on debtors management as most respondents agreed to collecting debts before due dates , maintaining regularly updating records of their debtors, securing their debts, having a smaller percentage of irrecoverable debts and ensured debts keep payment in time.