Normal view MARC view ISBD view

Financial sustainability of Local coffee shops in Cavite / by Elisa Jane S. Paragele and Kristel Mae P. Raya.

By:

Paragele, Elisa Jane S [author]

Contributor(s):

Material type: Text

TextLanguage: English Publication details: Indang, Cavite : Cavite State University- Main Campus, 2019.Description: xi, 94 pages : illustrations ; 28 cmContent type:

text

Media type:

unmediated

Carrier type:

volume

Subject(s):

DDC classification:

658.15 P21 2019

Online resources:

Click here to view abstract and table of contents

Production credits:

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

Abstract: PARAGELE, ELISA JANE S., and RAYA, KRISTEL MAE P. Financial Sustainability of Local Coffee Shop in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. May 2019, Adviser: Prof. Rowena R. Noceda. The study was conducted to determine the financial sustainability of local coffee shop in Cavite. It aimed to determine the following: (1) business profile of local coffee in Cavite; (2) financial performance of local coffee shop using activity ratio in terms of inventory turnover ratio and asset turnover ratio; (3) financial sustainability of local coffee shop in terms of current ratio, operating ratio, rent to sales ratio and debt ratio; (4) profitability of local coffee shop in terms of net profit margin, gross profit margin and operating profit margin; (5) relationship between business profile and financial sustainability of local coffee shops in Cavite; (6) relationship between business profile and profitability of local coffee shops in Cavite; and, (7) relationship between financial sustainability and profitability of local coffee shops in Cavite. The participants of the study were 46 local coffee shop in Cavite, upon conducting the study, eleven percent or 5 local coffee shops were already closed while seven percent or 3 local coffee shop expanded their business into restaurants. Twenty- one percent or 10 local coffee shops did not participate in the study while 28 local coffee shop or 61 percent participated in the study. A survey questionnaire was used to gather data from the participants. Mean, frequency and percentage were used to interpret the business profile, financial performance, financial sustainability and profitability of local coffee shop in Cavite. In determining the relationship between business profile and financial sustainability, relationship between business profile and profitability and relationship between financial sustainability and profitability, Pearson correlation was used. Based on the results of the study, 55 percent of local coffee shop had been in operation for two years; 40 percent of local coffee shop had an employee ranges from 1-6; 70 percent of the participants were sole proprietorship; 60 percent of the local coffee shop were renting their business place; and 60 percent of local coffee shop were operating for the whole week. The average inventory of local coffee shop in Cavite for the year 2017 and 2018 is considered high compare to the industry average, it shows that the inventory turnover ratio of local coffee shops in Cavite is improving and higher compare to the industry's average. Meanwhile, the average asset turnover ratio of local coffee shop is higher than the industry average it is also considered as high. Based on the results of the study, the local coffee shops in Cavite were financially sustainable in terms of current ratio, operating ratio and debt ratio. However, it showed that the local coffee shop is not financially sustainable in terms of rent to sales ratio. The local coffee shops in Cavite has an average net profit margin of -0.23 and -0.25, gross profit margin of 0.43 and 0.46 and an operating profit margin of -0.13 and -0.15 for the year 2017 and 2018. It shows that the average profitability of local coffee shop in Cavite is lower than the industry average. The study revealed that there was a significant relationship between business profile in terms of years of operation and financial sustainability in terms of debt ratio. Meanwhile, the study found out that there was no significant between business profile and profitability in terms of net profit margin, gross profit margin and operating profit margin. Furthermore, the study shows that there was a significant relationship between current ratio of 2017 and operating ratio to the profitability in terms of net profit margin and operating profit margin. Rent to sales ratio affect the overall profitability of local coffee shop, also the result shows that there was a significant relationship between debt ratio of 2017 and profitability in terms of gross profit margin.

Average rating: 0.0 (0 votes)

Holdings ( 1 )
Title notes ( 5 )

Holdings
Item type	Current library	Collection	Call number	Materials specified	URL	Status	Notes	Date due	Barcode
Theses / Manuscripts	Ladislao N. Diwa Memorial Library Theses Section	Non-fiction	658.15 P21 2019 (Browse shelf(Opens below))		Link to resource	Room use only	T-8215		00079729

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

PARAGELE, ELISA JANE S., and RAYA, KRISTEL MAE P. Financial Sustainability of Local Coffee Shop in Cavite. Undergraduate Thesis. Bachelor of Science in Business Management major in Financial Management. Cavite State University, Indang, Cavite. May 2019, Adviser: Prof. Rowena R. Noceda.

The study was conducted to determine the financial sustainability of local coffee shop in Cavite. It aimed to determine the following: (1) business profile of local coffee in Cavite; (2) financial performance of local coffee shop using activity ratio in terms of inventory turnover ratio and asset turnover ratio; (3) financial sustainability of local coffee shop in terms of current ratio, operating ratio, rent to sales ratio and debt ratio;
(4) profitability of local coffee shop in terms of net profit margin, gross profit margin and operating profit margin; (5) relationship between business profile and financial sustainability of local coffee shops in Cavite; (6) relationship between business profile and profitability of local coffee shops in Cavite; and, (7) relationship between financial sustainability and profitability of local coffee shops in Cavite.

The participants of the study were 46 local coffee shop in Cavite, upon conducting the study, eleven percent or 5 local coffee shops were already closed while seven percent or 3 local coffee shop expanded their business into restaurants. Twenty- one percent or 10 local coffee shops did not participate in the study while 28 local coffee shop or 61 percent participated in the study.

A survey questionnaire was used to gather data from the participants. Mean, frequency and percentage were used to interpret the business profile, financial performance, financial sustainability and profitability of local coffee shop in Cavite. In determining the relationship between business profile and financial sustainability, relationship between business profile and profitability and relationship between financial sustainability and profitability, Pearson correlation was used.

Based on the results of the study, 55 percent of local coffee shop had been in operation for two years; 40 percent of local coffee shop had an employee ranges from 1-6; 70 percent of the participants were sole proprietorship; 60 percent of the local coffee shop were renting their business place; and 60 percent of local coffee shop were operating for the whole week.

The average inventory of local coffee shop in Cavite for the year 2017 and 2018 is considered high compare to the industry average, it shows that the inventory turnover ratio of local coffee shops in Cavite is improving and higher compare to the industry's average. Meanwhile, the average asset turnover ratio of local coffee shop is higher than the industry average it is also considered as high.

Based on the results of the study, the local coffee shops in Cavite were financially sustainable in terms of current ratio, operating ratio and debt ratio. However, it showed that the local coffee shop is not financially sustainable in terms of rent to sales ratio.

The local coffee shops in Cavite has an average net profit margin of -0.23 and -0.25, gross profit margin of 0.43 and 0.46 and an operating profit margin of -0.13 and -0.15 for the year 2017 and 2018. It shows that the average profitability of local coffee shop in Cavite is lower than the industry average.

The study revealed that there was a significant relationship between business profile in terms of years of operation and financial sustainability in terms of debt ratio.

Meanwhile, the study found out that there was no significant between business profile and profitability in terms of net profit margin, gross profit margin and operating profit margin.

Furthermore, the study shows that there was a significant relationship between current ratio of 2017 and operating ratio to the profitability in terms of net profit margin and operating profit margin. Rent to sales ratio affect the overall profitability of local coffee shop, also the result shows that there was a significant relationship between debt ratio of 2017 and profitability in terms of gross profit margin.

Submitted to the University Library 09/02/2019 T-8215