Financial management practices and profitability of surplus and secondhand retailers in selected areas of Cavite / by Harvee Jay S. Aceron and Leal Maynard B. Sarne.

Thesis (Bachelor of Science in Business Management Major in Financial Management) Cavite State University.

Includes bibliographical references.

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

ACERON, HARVEE JAY S. & SARNE, LEAL MAYNARD B. Financial Management Practices and Profitability of Surplus and Secondhand Retailers in Selected Areas of Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. June 2019. Adviser: Prof. Cecilia T. Cayao.
This study was undertaken to determine the financial management practices and profitability of surplus and secondhand retailers in selected areas of Cavite. Specifically, this study aimed to: (1) describe the socio-demographic characteristics of surplus and secondhand retailers in terms of age, sex, marital status, and educational attainment; (2) describe the business profile of surplus and secondhand retail shops in terms of years in operation, numbers of workers, current operating capital, and products or merchandise offered; (3) determine the level of implementation of financial management practices of surplus and secondhand retailers in terms of accounting information, financial reporting, cash management, receivable management, inventory management, and financial planning; (4) determine the profitability of surplus and secondhand retailers in terms of current ratio, return on sales, net profit margin, and return on investment; (5) examine whether there is a relationship between business profile and profitability of surplus and secondhand retailers; and (6) assess whether there is a relationship between level of implementation of financial management practices and profitability of surplus and secondhand retailers. Descriptive and correlational research designs were employed in this study. Primary data were collected through interviews with 31 owners or operators of surplus and secondhand retail stores in selected areas in Cavite using an interview schedule. Secondary data were gathered from journals, books, periodicals, other published materials, and the web to provide support to findings of the study. Pearson product-moment correlation and Spearman rank correlation were used.
Results revealed that surplus and secondhand retailers were generally married, female, and with at least a high school education. They were typically younger than 41 years old. The surplus and secondhand retail shops in selected areas of Cavite were new in the business with many of the shops operating for only 1 to 2 years. The retail owners hired at least two workers to assist them in their business. The current operating capital for their business was highly varied ranging from P 50,000 to as high as P 18,800,000. The most common products or merchandise offered by these shops were furniture and fixtures, dinnerware, and cookware. Except for accounting information, surplus and secondhand retailers in selected areas of Cavite highly employed financial management practices relating to financial reporting, cash management, receivable management, inventory management, and financial planning. Meanwhile, the retail owners only modestly or reasonably employed accounting information in their business. Evidence suggests that operating a surplus and secondhand retail shop in Cavite has the potential to become highly profitable as evidenced by 25 out of 31 or 81 percent of the retail owners reporting high profitability ratios. Only five surplus and secondhand retail shops recorded negative financial ratios while majority were highly profitable. No significant relationships were found between all business profile variables and the profitability of surplus and secondhand retailers in selected areas of Cavite. This indicates that the profile of surplus and secondhand retail shops such as years in operation, number of workers, and current operating capital did not influence the profitability of the business. And test statistics further revealed that the level of implementation of financial management practices of surplus and secondhand retailers such as accounting information, financial reporting, cash management, receivable management, inventory management, and financial planning were not significant related to the profitability of the business.

Submitted to the University Library 08-07-2019 T-8418