Table 9 shows that the cooperatives almost implemented WCM along net working capital management. The result means that the cooperatives gives importance on having adequate net working capital balance after deducting current liabilities from their current assets. This would ensure their business continuity even after paying all of their short-term obligations.
As shown in table 10, the cooperatives almost implemented their investment policies. Apparently, the cooperatives adopt a conservative approach in terms of net working capital management wherein they ensure that they always have enough capacity to meet their current liabilities. They fully implement having a desirable net working capital balance wherein their current assets should always be able to meet their current liabilities. Moreover, the cooperatives gives importance on have investment policies related to their managing their net working capital and day-to-day operations. In setting up and implementing these policies, the employees and their leaders are involved.
Table 11 shows that the cooperatives almost implement liquidity management. This means that the cooperatives give importance on ensuring that they can convert their assets into cash and they can meet their obligations. Similar to the prior findings in Table 10, the cooperatives fully implement a strategy where they always maintain sufficient amount of current assets in order to pay their current liabilities on time. It can be also observed that the cooperatives almost implement policies on liquidity management, setting appropriate liquidity ratios, and setting appropriate turnovers for each type of their current assets and current liabilities. This would manifest that they are tracking and monitoring the convertibility of their current assets into cash so that they can meet their maturing obligations.
Conclusion
Cooperatives greatly contribute to the overall development of societies in the Philippines. Indeed, they are contemporary socio-economic-political catalyst (Kanli, 2016) that embodies philosophically driven idea in doing business. It is therefore necessary for them to integrate well-woven policies and procedures in their business operation and in WCM. They cannot thrive without adequate amount of working capital and control systems that would ensure accountability and accuracy. Thus, the concept of WCM is still relevant in the current environment of cooperatives and the members and the management team must not ignore it.
The study has shown the importance of working capital management (WCM) to cooperatives. As shown by the cooperatives who participated as a case study, they almost implemented WCM in terms of current asset management, current liabilities and net working capital management. It manifests that the leaders and officers of these cooperatives are concern about their business flow and they are ensuring that the resources entrusted by the members are properly managed. Indeed, the cooperatives manifested good WCM practices in which they ensure that the have enough capacity and liquidity to meet their maturing obligations. They give importance on the convertibility and turnover of their current assets in order to pay their obligations on time. To them, meeting their obligations is important so that they can continuously use credit facilities to support their inventory needs and in order to maintain their good relationships to their creditors. This gives a favorable prospect that cooperatives are continuously improving in the area of business and their leaders and managers are becoming more proficient in management.
The result however reveals that there are areas in WCM that cooperatives should improve further in order to fully implement WCM. Hence, the following are hereby proposed:
Cooperatives must have a complete written policies and procedure on WCM and ensure and they have to ensure full and consistent implementation; and
All officers and employees involve in specific areas of WCM must have the appropriate training and education for them to effectively handle and perform their custodial responsibilities.