Capital structure and financial performance of small-scale grocery stores in selected cities municipalities of Cavite / by Trisha Camille R. Cueno and Bianca G. Escover.

By: Contributor(s): Material type: TextTextLanguage: English Publication details: Indang, Cavite : 2016. Cavite State University- Main Campus,Description: vi, 53 pages : 28 cm. illustrations ; Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
Subject(s): DDC classification:
  • 641.3  C89 2016
Online resources: Production credits:
  • College of Economics, Management, and Development Studies (CEMDS)
Abstract: CUENO, TRISHA CAMILLE R. and ESCOVER, GUIA BIANCA G. Capital structure and Financial Performance of Small-Scale Grocery Stores in Selected Cities/Municipalities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management, Cavite State University, Indang, Cavite. December 2016. Adviser: Prof. Cecilia T. Cayao. The study was conducted to determine the capital structure and financial performance of small-scale grocery stores in selected cities/municipalities in Cavite. Specifically, the study aimed to: determine the business profile of small-scale grocery stores; determine the capital structure of small-scale grocery stores; identify the factors affecting capital structure decisions as to business risk, business tax position, financial flexibility, and managerial aggressiveness; determine the financial performance of the small-scale grocery stores in terms of gross profit margin, net profit margin, operating profit margin, and return on asset; identify the relationship of business profile of smallscale grocery stores to capital structure; identify the relationship of business profile of small-scale grocery stores to financial performance; and ascertain the relationship of capital structure to financial performance of small-scale grocery stores. The study was conducted in selected cities/municipalities of Cavite. The participants of the study were the small-scale grocery store owners/managers who had an operating capital that ranged from P50,000 to P 1,000,000. Purposive sampling was used to identify the participants. One hundred small-scale grocery store owners/managers participated in the study. Majority of the small-scale grocery stores had only I employee (47%) and were in business operations for one to five years (41%). Almost half of the small-scale grocery stores had an operating capital that ranged from P50,000 to P 150,000 (47%) and most of them got their capital from personal sources and retained earnings (40%). Retained earnings were the main source of capital among the selected small-scale grocery stores (51.23%). The study found out that in terms of business risk, business tax position, financial flexibility, and managerial aggressiveness, the capital structure decision making was neither affected nor was not affected by these factors. The result also revealed that the business risk was affecting the capital structure decisions the most. The researchers found out that small-scale grocery stores had a good financial performance. The results showed that gross profit margin was O. 15 which means that for every peso generated in sales, the small-scale grocery stores have PO. 15. The net profit margin was 0.10 which means that small-scale grocery stores have PO. 10 of net income for every peso of sales. Operating profit margin was 0.10. This means that before interest and taxes small-scale grocery stores make PO. 10 for every peso of sales. Return on asset was 1.58. In other words, every peso that small-scale grocery stores invested in assets during the year produced PI .58 of net income. The results showed that the greater the number of employees, the higher the operating capital, retained earnings and return on asset of the business. It was also revealed that the higher the operating capital and retained earnings the better the financial performance of the small-scale grocery stores.
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Theses / Manuscripts Theses / Manuscripts Ladislao N. Diwa Memorial Library Theses Section Non-fiction 641.3 C89 2016 (Browse shelf(Opens below)) Link to resource Room use only ecr 00011094

Thesis (BS Business Management--Financial Management) Cavite State University

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

CUENO, TRISHA CAMILLE R. and ESCOVER, GUIA BIANCA G. Capital structure and Financial Performance of Small-Scale Grocery Stores in Selected Cities/Municipalities of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management, Cavite State University, Indang, Cavite. December 2016. Adviser: Prof. Cecilia T. Cayao.
The study was conducted to determine the capital structure and financial performance of small-scale grocery stores in selected cities/municipalities in Cavite. Specifically, the study aimed to: determine the business profile of small-scale grocery stores; determine the capital structure of small-scale grocery stores; identify the factors affecting capital structure decisions as to business risk, business tax position, financial flexibility, and managerial aggressiveness; determine the financial performance of the small-scale grocery stores in terms of gross profit margin, net profit margin, operating profit margin, and return on asset; identify the relationship of business profile of smallscale grocery stores to capital structure; identify the relationship of business profile of small-scale grocery stores to financial performance; and ascertain the relationship of capital structure to financial performance of small-scale grocery stores.
The study was conducted in selected cities/municipalities of Cavite. The participants of the study were the small-scale grocery store owners/managers who had an operating capital that ranged from P50,000 to P 1,000,000. Purposive sampling was used to identify the participants.
One hundred small-scale grocery store owners/managers participated in the study. Majority of the small-scale grocery stores had only I employee (47%) and were in business operations for one to five years (41%). Almost half of the small-scale grocery stores had an operating capital that ranged from P50,000 to P 150,000 (47%) and most of them got their capital from personal sources and retained earnings (40%). Retained earnings were the main source of capital among the selected small-scale grocery stores (51.23%).
The study found out that in terms of business risk, business tax position, financial flexibility, and managerial aggressiveness, the capital structure decision making was neither affected nor was not affected by these factors. The result also revealed that the business risk was affecting the capital structure decisions the most.
The researchers found out that small-scale grocery stores had a good financial performance. The results showed that gross profit margin was O. 15 which means that for every peso generated in sales, the small-scale grocery stores have PO. 15. The net profit margin was 0.10 which means that small-scale grocery stores have PO. 10 of net income for every peso of sales. Operating profit margin was 0.10. This means that before interest and taxes small-scale grocery stores make PO. 10 for every peso of sales. Return on asset was 1.58. In other words, every peso that small-scale grocery stores invested in assets during the year produced PI .58 of net income.
The results showed that the greater the number of employees, the higher the operating capital, retained earnings and return on asset of the business. It was also revealed that the higher the operating capital and retained earnings the better the financial performance of the small-scale grocery stores.

Submitted copy to the University Library. 05/25/2017 T-6652

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