Master Thesis

The study assessed the effectiveness of financial liquidity management practices and how the same affect operations at selected forwarding companies in Parañaque City. Here, the quantitative-descriptive method of research was employed; thus, a survey questionnaire-checklist was floated to eighty-eight respondents in said firms Per the findings, the researcher concludes that the selected forwarding companies always practice financial management practices in financial reporting analysis, fixed (non-current) asset management capital structure management; and working capital management and have very effective financial liquidity management practices in cash flow management collections, staffing, and expenditures. In addition financial liquidity management practices have a high impact in operations management. The forwarding companies are very concerned with issues that confront financial liquidity management practices. The most pressing issue is no proper maintenance of records of receivables and payables. Also, the respondents, when grouped according to position, that is managers; supervisors; and staff, differ on their assessment on overall effectiveness of financial liquidity management practices; they also differ on the following aspects: collections, staffing and expenditures. However, they do not differ in cash flow management. Based on the foregoing, it is recommended that the three forwarding companies should always ensure that they have strong capital structure and that all capital expenditures; thoroughly-study the same first before pursuing a capital-Intensive project; see to it that the collections aspect is strong, specifically in maintaining a working capital, which is always above zero; maintain prompt delivery of services for the satisfaction of customers; address the safekeeping and maintenance of records of receivables and payables; and to visit the policies that govern collection, staffing and expenditures practices since the workforce, comprising of managers, supervisors, and staff significantly differ on how effective these practices are. Proceeding from the above considerations, the researcher submits as output, the following practices to further strengthen financial liquidity management in the three organizations; at bottom, they are: Improvement of Cash Forecasting; Focus on Receivables and Payables toward enhancement of cash position; and on Funds Management, to have an appropriate liquidity risk tolerance on any kind of funds investment.