Working Capital Management of Laundry Businesses in Makati City

Abstract

The study aimed to assess the effectiveness of the working capital management practices of laundry businesses in Makati City. It employed the descriptive method utilizing a modified survey questionnaire as a data-gathering tool. Frequency and Percentage Distributions, Weighted Mean, Rank, t-test, and ANOVA were used as statistical tools. Most of the laundry businesses were a sole proprietorship, in operation for 2 to 4 years, had 1 to 3 employees with a capitalization of ₱500,000 to ₱1,000,000, the location was rented and had no training sessions/seminars attended for the last three years. The respondents assessed their working capital management practices in terms of Planning, Cash Management, Receivables Management, and Control System as “Effective,” while the Payable Managementas “Very Effective.” When grouped according to profile, “Form of Business Organization” and “Capitalization” had no significant differences in all variables, while “Number of Years in Operation” had substantial differences on “Planning,” “Receivable” and “Payable.” As to the “Number of Employees” and “Average Annual Number of Training Sessions/Seminars Attended for the Last Three Years” both had significant differences on “Planning,” while “Location” found a significant difference on “Payable Management.”