Working Capital Management of Veterinary Pharmaceutical Companies in the Province of Batangas
Keywords:accounts payable, accounts receivable, cash, liquidity, Polytechnic University of the Philippines, working capital management
The study aimed to assess the effectiveness of Working Capital Management Practices of selected veterinary pharmaceutical companies in the province of Batangas. The researcher gathered, organized, tabulated, and interpreted relevant data and utilized frequency, ranking, percentage distribution, weighted mean, one-way analysis of variance (ANOVA) and t-test as statistical tools. Respondents are mostly Single Proprietor, have less than ten employees, have been operating for more than six years, operated with capitalization between P1,000,000.00 and P3,000,000.00, and earns less than P2,000,000.00 annually. The respondents from selected veterinary pharmaceutical companies in the province of Batangas assessed the effectiveness of Working Capital Management Practices with regards to Planning activities as "Very Effective." On the other hand, Cash Management, Receivables Management, Payables Management, and Control Systems are deemed as "Effective." The respondents from selected veterinary pharmaceutical companies in the province of Batangas had significant differences in most of the respondents' assessments when grouped according to their forms of business organization, number of employees, number of years in operation, capitalization, and estimated annual profit. The Working Capital Management practices of the companies involved can be improved by improving policies that affect the profitability-risk trade-offs in decision making, fully utilizing loans from lending institutions, providing and improving credit policies to customers, delaying payments to other parties involved in the business to an acceptable extent, and effective analysis of Economic Order Quantity.