Profitability analysis of selected resorts in Cavite / by Fe Marie Joy V. Bencito.

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

Includes bibliographical references.

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

BENCITO, FE MARIE JOY V. Profitability Analysis of Selected Resorts in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang, Cavite. April 2014. Adviser: Prof. Cecilia T. Cayao.

The study was conducted to determine the profitability of selected resorts in Cavite. Specifically, the study aimed to; 1. describe the socio-economic profile of owners/managers of selected resorts in Cavite; 2. describe the business characteristics of selected resorts in Cavite; 3. determine the profitability of resorts operation and; 4. determine the relationship between business characteristics and profitability of selected resorts in Cavite. Data were collected through personal interview with the resort owners/managers with an aid of structured interview schedule. The participants came from selected municipalities in Cavite namely; Amadeo, City of Bacoor, City of Dasmarinas City of Imus, Naic, General trias, Indang, Silang, Tagaytay City, Tanza and Ternate. The data were analyzed using frequency distributions, percentages, ranges and rank. In addition, cost and return analysis was used to determine the net profit of selected resorts in Cavite. Different profitability ratios such as net profit margin, operating profit margin and return on investment were used to determine the profitability of selected resorts in Cavite. The age of the participants ranged from 22 to 80 years old, with an average of 44 years old. Moreover, majority of the participants who were involved in resort businesses were male, married and college graduate. Likewise, 35 percent of the participants were engaged in the business from one to five years.

Most of the participants had an initial capital of more than P920, 000.00. Majority of the resort businesses were managed through a sole proprietorship form of ownership. The years of operation of resort businesses ranged from two to 30 years with an average of 12 years. In addition, most of the resort businesses experienced peak season during the month of April and lean season during the month of August. Most resort owners/managers considered their business as an additional source of income. Moreover, personal savings was the primary source of capital of most resort owners/managers. The average net profit margin of the resorts was 53 percent which implies that for every peso worth of service revenue, there was 53 centavos net profit. The average operating profit margin of the resorts was 59 percent which implies that for every peso worth of cost, there was 59 centavos operating profit. The average return on investment of selected resorts in Cavite was 73 percent which implies that for every peso invested in the business, there was 73 centavos return on investment. Based on the result of the study, the following conclusions were revealed: The major form of ownership of the resort businesses was sole proprietorship which implies that the resorts were managed by one person; The resort businesses are not a stable source of income for some owners/managers because they accumulated larger income during peak seasons and less income during lean seasons; The null hypothesis was accepted because the business characteristics showed no significant relationship to profitability; The business characteristics and profitability showed no significant relationship because some participants had net losses. Related studies must be conducted in order to extend or further improve the study by increasing on the other aspects other than profitability.

Submitted to the University Library 08/04/2020 T-5588