Debt Collection Practices and Cash Flow Management among Retail Businesses in Davao City

Ann Gloghienette Orais Perez; Victor Paul Jungco dela Cruz

doi:10.21834/e-bpj.v10iSI26.6802

Authors

Ann Gloghienette Orais Perez Alfonso T. Yuchengco College of Business Dept., Mapua Malayan Colleges Mindanao, ATYCB, Matina,Davao City, Philippines
Victor Paul Jungco dela Cruz Mathematics and Statistics Dept., University of Southeastern Philippines, CAS, Obrero, Davao City, Philippines

DOI:

https://doi.org/10.21834/e-bpj.v10iSI26.6802

Keywords:

Cash Flow Management, Debt Collection, Retail Business, Appliance Centers

Abstract

This study examines the debt collection practices (DCP) and cash flow management (CFM) of retail businesses in Davao City. The study utilizes quantitative random sampling involving one hundred twelve appliance centers. The results indicated a high level of DCP and CFM with an average mean of 3.937 and 3.956, respectively, with a significant relationship. The subdomains Days Sale Outstanding and Bad Debt Ratio have a moderate positive correlation, with a coefficient of multiple correlation of 0.769. Recommendations are to enhance debt collection, accounts receivable administration, and working capital management with staff education, technology, regular reviews, and financial awareness.

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