Working capital management practices and profitability of microretail businesses in selected areas in Cavite amidst COVID-19 pandemic / by Shaine Mae M. Mayo, Myra P. Ramallosa and Kimberly Anne L. Ronario.

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).

MAYO, SHAINE MAE M., RAMALLOSA, MYRA P., RONARIO, KIMBERLY ANNE L.
Working Capital Management Practices and Profitability of Microretail Businesses in
Selected Areas in Cavite Amidst COVID-19 Pandemic. Undergraduate Thesis. Bachelor of
Science in Business Management major in Financial Management. Cavite State
University, Indang, Cavite. April 2022. Adviser: Ms. Mary Grace A. llagan.
This study was undertaken to determine and compare the working capital management
practices and profitability of micro retail businesses in selected areas of Cavite before and
during COVID-19 Pandemic. Moreover, the study sought to assess the effects of business
profile and working capital management practices on profitability of microdetail businesses in
selected areas of Cavite before and during COVID-19 Pandemic. The study was conducted from
August 2020 to January 2022. The total number of the participants from the study was 284
micro retail businesses from selected areas of Cavite specifically in the cities of Dasmariñas,
General Trias, and Trece Martires, which were obtained using purposive and convenience
sampling technique. Primary data were collected through online survey questionnaire or
personal interview. Secondary data were taken from articles, research journals, websites,
published theses, and other related studies. The descriptive, comparative, and
casual/explanatory research designs were used in the study. Descriptive statistical tools such as
frequency, percentage, mean and range, revealed that majority of the participants were 42 to 49
years old, mostly female, married, and high school graduates. All of them are operating the
business on their own, for 3 years or so. Furthermore, most of the participants have a
capitalization ranging from P 5,001 to P 14,000 and self-financing as source for their capital. It
was concluded that age of business and source of capital has negative effect on profitability
while capitalization has positive effect before and during COVID-19 Pandemic. Using t-test, it
was found that working capital management practices in terms of cash, accounts receivable,
inventory and accounts payable management have a significant difference before and during
COVID-19 pandemic. In addition, the result revealed that the net profit of micro retail businesses
had a highly significant difference when compared before and during COVID-19 pandemic.
Using multiple linear regression, working capital management practices in terms of cash
management, accounts receivable management, inventory management and accounts payable
management was found to have positive and negative significant effects on the profitability. It
was concluded that changes in the cash, accounts receivable, inventory, and accounts payable
management practices, caused changes in the profit of microretail businesses. However, results
revealed that there are other possible factors that may affect the change in profit of microretail
businesses. Thus, it is recommended to test other business characteristics and working capital
management practices that can have a significant effect on profitability of microretail
businesses. Future researcher is recommended to conduct a similar study but extend the
research and cover more participants or microretail businesses in larger scale to increase the
generalizations of findings.

Submitted to the University Library 08/11/2022 T-9125