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_aBaja, Rojielyn J., Aguirre, Tracy Ann J., Argayoso, Christine Joy C., Beriso, Rexi Nicole V., Dela Rosa, Cheynna Janelle C., Feliciano, Janella Ann F.
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_aMeasuring the financial performance of selected medical equipment and supplies manufacturing entities: Basis for framework in improved financial decision-making
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_cBaja, Rojielyn J., Aguirre, Tracy Ann J., Argayoso, Christine Joy C., Beriso, Rexi Nicole V., Dela Rosa, Cheynna Janelle C., Feliciano, Janella Ann F.
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_c202346
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_a155 pages
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_aUndergraduate Thesis: (BSBA major in Financial Management) - Pamantasan ng Lungsod ng Maynila, 2023
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_aABSTRACT: This thesis entitled, Measuring the Financial Performance of Selected Medical Equipment and Supplies Manufacturing Entities: Basis for Framework in Improved Financial Decision-making was prepared by Baja, Rojielyn J., dela Rosa, Cheynna Janelle C., Argayoso, Christine Joy C., Feliciano, Janella Ann F., Aguirre, Tracy Ann J., and Beriso, Rexi Nicole V. in partial fulfillment of the requirements for the degree, Bachelor of Science in Business Administration major in Financial Management. This study aimed to determine the correlation between efficiency ratios and profitability that will be used in measuring the financial performance of the selected medical equipment and supplies manufacturing entities within Metro Manila as a framework for improving financial decision-making. This will provide the entities with an understanding of whether efficiency contributes to their profitability. In addition, these entities will be able to carefully analyze how well they are utilizing their resources and will be able to create strategies that will improve their efficiency, as well as their profitability. In order to determine the correlation between efficiency and profitability of the entity, the researchers gathered the audited financial statements of the four selected entities from the Securities and Exchange Commission spanning from the years 2017 - 2021. The audited financial statements will be used as a basis for computation of ratios, and for analysis. This study was conducted in the A.Y. 2022-2023 last semester. Descriptive and inferential analysis and descriptive and inferential statistics have been employed to complete this study. Data were analyzed using the Profitability and Efficiency Ratios, Frequency and Percentage Distribution, Ranking Distribution, and Pearson Correlation Coefficient The study's findings reveal that over the last five years (2017-2021), the selected four medical equipment and supplies entities have struggled with managing their assets, fixed assets, equity, inventories, receivables, and payables. Additionally, they've faced challenges in generating sales, making it difficult for them to turn a profit. Aside from that, the majority of the entities' efficiency ratios do not have a significant relationship with profitability. Still, this study was able to identify a correlation between equity turnover and return on equity, as well as fixed asset turnover and return on assets. This indicates that these ratios influence one another and can be utilized to measure the financial performance of the selected medical equipment and supplies manufacturing entities, forming the framework for improving financial decision-making. However, despite the majority of the variables mentioned not being significantly related, there is a relationship in all of them. The relationships determined are positive and negative, with strengths that range from weak to strong. There's no statistical correlation between efficiency and profitability ratios, except for the equity turnover and return on equity, as well as fixed asset turnover and return on assets, which show statistical relevance. Nonetheless, there is a relationship between efficiency ratios and profitability. However, the identified correlations, such as equity turnover and return on equity, fixed asset turnover and return on assets, and the relationship between efficiency ratios and profitability, are insufficient to gauge the financial performance of the selected medical equipment and supplies manufacturing entities. Keywords: Correlation, Efficiency Ratios, Profitability, Financial Performance
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