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.