Cash flow management and profitability of boutiques in Panabo City

Abstract

This study aimed to determine the significant relationship between cash flow management and the profitability of boutiques in Panabo City. A total of 42 boutique owners and employees were the respondents of this research. The statistical tools used were Mean and Pearson-r. Quantitative research utilizing the descriptive-correlation method was the research design used in this study. Results revealed that the level of cash flow management of boutiques in Panabo City in terms of cash flow planning, cash flow monitoring, and cash flow controls was very high and yielded a grand mean of 4.54. For the level of profitability of boutiques in Panabo City, it garnered a very satisfactory result in terms of the inventory holding period, accounts receivable period, accounts payable period, and cash conversion cycle, which constituted a 4.50 grand mean. Results revealed a significant relationship between cash flow management and the profitability of boutiques in Panabo City. The results yielded an r-value of 0.877 and a P-value of 0.000, which was less than a 0.05 level of significance. Therefore, the null hypothesis (Ho) was rejected.