Effect of Cash Management Practices on the Profitability of Selected Restaurants in Tagaytay City, Cavite
Year: 2025
Type: article
Abstract: The study aimed to assess the effects of cash management practices on the profitability of casual dining restaurants operating for at least five years in Tagaytay City, Cavite. Using a quantitative approach, the researchers collected data from 64 respondents, including business owners, managers, and accountants, through a survey via a validated questionnaire. Results showed that cash management practices such as cash maintenance, controlling cash flows, floats on cash payments, cash collection systems, and safeguarding of cash were commonly practiced and had a significant influence on profitability, particularly on liquidity, return on investment (ROI), and return on equity (ROE). The researchers found significant differences in cash management practices based on age and educational attainment. Age had a highly significant effect on the cash collection system and safeguarding of cash, and it significantly affected the control of cash flow and floats on cash payments. Educational attainment significantly impacted all practices except cash maintenance. Moreover, the effects of cash management practices on profitability varied with age, particularly in terms of liquidity and ROI. The study concluded that consistent and effective cash management was essential to the profitability of casual dining restaurants in Tagaytay City’s tourism-driven market.
Authors: Lizz Adelaine Cubol, Gilbert Calinga, Queency Contreras, Dimple Manalo, Ace Joshua Zamora, Krisma Joyce Salazar
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7077078576
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