Effects of the ratio of inventories, financial structure and market share to profitability ratios: An empirical study on the publicly-listed food and beverage manufacturing companies in the Philippines for the years 2004-2013

Date of Publication

2015

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Alfredo M. Santoyo

Defense Panel Chair

Tyrone Panzer L. Chan Pao

Defense Panel Member

Michael Manalang
Nilo Pacheco

Abstract/Summary

Profitability determines the financial performance of a company. It is important that a company must identify, improve and maintain the factors that affect their financial performance. This study was conducted to determine and analyze the effect of the ratios of inventories, financial structure and market share to profitability ratios of the food and beverage manufacturing industry for the time period 2004-2013. The descriptive and correlational method was used to describe and correlate the variables in this study. Furthermore, the non-probability purposive sampling was applied in gathering the necessary data.

Research data consist of proxies for profitability, the inventory, financial structure and market share calculated by using the financial statements of the publicly-listed food and beverage manufacturing companies grouped into their specific classification under the Philippines Standard Industrial Classification. This study utilized the fixed effects approach and ordinary least squares regression to acquire the desired results.

The results drawn in the study conducted showed that ratios of inventories has a significant negative effect on the profitability, the financial structure has an insignificant negative effect on the profitability and the market structure has a significant negative effect to the profitability. After a thorough analysis of the data gathered, the proponents arrived at the conclusion that the three factors affect the profitability differently. The inventories and the market share plays a significant role in determining the profitability of the company. While, the financial structure on the other hand, was insignificant. But despite being insignificant technically, the financial structure also plays a role in the modern business world.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21648

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

103 leaves : illustrations ; 29 cm.

Keywords

Profit--Philippines; Food industry and trade--Philippines; Beverage industry--Philippines

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