The Working Capital Management Practices of Construction Companies in the City of Manila

Abstract

This study aimed to assess the application of the implemented working capital management practices of construction companies primarily classified as general buildings in the City of Manila, as evaluated by the representatives of the selected construction companies. The respondents of the study were forty two (42) accounting officers and staff of selected construction companies in the City of Manila as determined using the Slovin’s formula. The study applied the descriptive method of research using simple random sampling as the sampling technique. The instrument used was the survey questionnaire and the statistical tools were Frequency, Percentage, RankingandAnalysis of Variance. The findings revealed that the perception of the respondents on the level of effectiveness of working capital management practices differed when grouped according to age and civil status both in terms of cash management and short-term payables management. On the other hand, the perception of the respondents on the level of effectiveness of working capital management practices do not differ when grouped according to profile with the corresponding aspects not mentioned. Based on the results, the respondents assessed the working capital management practices of selected construction companies in Manila as somewhat effective, in terms of cash, short-term receivables, inventory, and short-term payables management. In light of the conclusions drawn, the researchers recommend that the construction companies, primarily classified as general buildings, must adhere to the implementation of effective working capital management practices that are applicable in their business.