Working Capital Management of Cooperatives in Selected Municipalities in Benguet

The study aimed to examine working capital management practices among cooperatives, focusing on cash management, accounts receivable management, and inventory management. Additionally, it sought to assess the financial position and performance of these cooperatives through liquidity, solvency, and profitability metrics, and to explore the relationship between working capital management and financial outcomes. Respondents included managers from multi-purpose and consumer cooperatives in Bokod, La Trinidad, and Tublay in Benguet Province. Employing a descriptive-correlational design, the study analyzed how various working capital strategies influenced financial performance using multiple linear regression. Findings revealed that while cash management strategies—like holding cash for specific purposes and implementing cash controls—were strongly applied, inventory management controls were the least utilized. Notably, there was no significant positive relationship between overall working capital management and the cooperatives' financial position. However, positive correlations were found between cash management and accounts receivable management with the debt-to-equity ratio. Conversely, inventory management displayed an inverse relationship with this ratio. Additionally, all working capital strategies exhibited an inverse relationship with return on equity. Recommendations include investing idle cash to enhance profitability and adopting consignment strategies to minimize stockouts.