A study on the relationship between working capital management and profitability of the sugar milling industry in the Philippines

• Main Authors: Armonia, Ena Charleen C., Bolisay, Crisha Ivett S., Chua, Kamilah Kay Y., Kho, Vincent Erick D.
• Format: text
• Published: Animo Repository 2012
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11006
• Institution: De La Salle University

Working capital management measures how efficiently the accounts receivable, inventory, and accounts payable are handled by a company, showing how many times the company's accounts receivable and accounts payable are paid over a period of time, and how quickly inventory is sold. It is said to define the operations of a manufacturing company and that working capital needs to be managed properly to earn higher profit. Sugar is one product that affects the daily lives of Filipinos and the country's affairs. Many Filipinos depend on the sugar industry since it is considered as a basic necessity. Thus, the researchers investigated and determined the relationship between the working capital management and profitability of the sugar milling industry in the Philippines. Individually, without considering other constant variables, the results of the study show that there is no significant relationship between working capital management components and profitability margins gross operating profit, gross profit margin, operating profit margin and net profit margin. However, an additional study was conducted, wherein the researchers combined the independent with the constant variables as a whole, showed that there are significant relationships for gross operating profit and net profit margin only.