Working capital management and profitability among lending institutions in Panabo City

Abstract

This study aimed to determine the significant relationship between working capital management and profitability among lending institutions in Panabo City. The respondents of this research were 15 lending institutions consisting of 45 employees. The researchers used a random sampling technique to gather the data. The study adopted a quantitative non-experimental and correlational method. Mean and Pearson-r were used to analyze the effectiveness of working capital management and profitability among lending Institutions in Panabo City. The study revealed that the lending institutions in Panabo City in terms of working capital management garnered a high result in terms of cash management, debtor management, creditor management, and stock management constituting a 4.55 overall mean. The level of profitability among lending institutions in Panabo City, is high and yielded an overall mean of 4.46. Furthermore, it reveals that there is a significant relationship between working capital management and profitability. The results showed a p-value of 0.000, which is less than 0.05 level of significance, indicating that the null hypothesis is rejected.