Comparative study on capital structure and profi-tability of broiler and egg production in selected Areas of Cavite /
by Marjorie M. Loraņa.
- Indang, Cavite : Cavite State University- Main Campus, 2013.
- xii, 59 pages : illustrations ; 28 cm.
Thesis ( BS Business Management--Financial Management ) Cavite State University.
Includes bibliographical references.
College of Economics, Management, and Development Studies (CEMDS) College of Economics, Management, and Development Studies (CEMDS)
LORANA, MARJORIE MOJICA. Comparative Study on Capital Structure and Profitability of Broiler and Egg Production in Selected Areas of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management, Financial Management. Cavite State University. Indang, Cavite. October 2013. Adviser: Prof. Ludivinia F. Victorino.
The study was conducted to assess the capital structure and profitability of broiler and egg production business. It aimed to: (1) determine the socio-demographic characteristics of broiler and egg producers; (2) determine the business characteristics of broiler and egg production; (3) determine the composition of capital structure of the broiler and egg production; (4) determine the factors influencing the capital structure decision of the broiler and egg producers; (5) determine the profitability of the poultry business; (6) determine the significant difference between the capital structure of broiler and egg production and; (7) determine the significant difference between the profitability of broiler and egg production.
The participants of the study were 48 managers/owners of the broiler and egg farms, with ages 25-70 years old in selected areas of Cavite, namely: Alfonso, Dasmarinas City, General Emilio Aguinaldo, General Mariano Alvarez, Indang, Magallanes, Mendez, Silang, and Trece Martires City. A questionnaire was used to gather data from the participants.
The percentage, ranges, means and standard deviation were used in presenting the socio-demographic characteristics of the producers, business characteristics of the poultry businesses and; mean, frequency count and standard deviation were used in determining the capital, and capital structure. Profitability ratios were used to determine the profitability of the poultry business. Ratios included were net profit margin, operating profit margin, and gross profit margin. T-test was used to determine the significant differences of the profitability of broiler and egg production.
The number of chicken harvested per cycle ranged from 1,395 - 59,520 heads with an average of 16,009 heads. Meanwhile, the number of eggs harvested per cycle ranged from 146,000-76,766,580 with an average of 9,702,847.
In terms of capital structure, most of the broiler producers (87%) and egg producers (89%) reported that their capital structure was purely from savings.
Business risk, financial flexibility and managerial aggressiveness had moderate influences on capital decisions of both broiler and egg producers. The business tax position had very little influence on the capital structure decision of the broiler and egg producers
The average net profit of broiler production per farm per 1000 heads amounted to P26,987, while the average net profit of egg production per farm per 1000 heads amounted to P64,818. The broiler production in Cavite was profitable with the net profit margin of 2.9 percent, an operating profit margin of 2.9 percent, and gross profit margin of 8.7 percent; and the egg production with 3.5 percent, 3.8 percent and 15.2 percent respectively.
The computed t-value of 6.04, 4.37, and 3.80 for gross profit, operating profit, and net profit, respectively, were higher than the t-tabular of 2.02 at five percent level using 46 degrees of freedom. Therefore, this suggested that there is significant difference between the profitability of broiler and egg production. The null hypothesis stating that there is no significant difference between broiler and egg production was rejected