Financial management practices and profitability among selected milk tea shops

Abstract

This study aimed to recognize the significant relationship between financial management practices and profitability among selected milk tea shops. 30 staffs and owners of the milk tea shops were the research respondents of this research. The researchers use the descriptive-correlation method and sampling technique in determining the number of respondents. The statistical tools used were Mean and Person-r. The results revealed that the level of financial management practices in milk tea shops in terms of investment practices, liquidity statements, financial control, and financial reporting practices was very high. The level of profitability in milk tea shops in terms of the inventory holding period, accounts receivable period, accounts payable period, and cash conversion cycle was very high. Therefore, it was found that there a was significant relationship between financial management practices and profitability in milk tea shops with a P-value of 0.00 and an R-value of 0.743. It means that the owners and staffs of milk tea shops in Panabo City were capable of purchasing products from their suppliers.