Cash flow management as predictor of financial performance of micro-enterprises in Tagum City

Abstract

This study assessed the financial performance of micro-enterprises according to the level of their cash flow management. It also sought to determine the significant relationship between cash flow management and financial performance of micro-enterprises in Tagum City. The study utilized a quantitative non-experimental research design using a correlational technique. The data collected through online surveys was subjected to analysis and interpretation. The mean, Pearson (r), and multiple regression analysis were used in the interpretation. By employing a partly adopted pre-existing survey questionnaire, this study ascertained that micro-enterprises in Tagum City have a high level of cash flow management in terms of cash control, cash planning, and liquidity management. It was also revealed that the respondents have a high level of financial performance, measured in terms of profitability and sales growth. Furthermore, there is a significant relationship between cash flow management and financial performance, and micro-enterprises cash flow management significantly predicts their financial performance.