Financial Management Practices And Financial Peformance Of Water Operators In Luzon

Abstract

 Luzon, the largest island in the Philippines, is continuously developing and economically growing. As the regions on the island improve, water demand is increasing as well. Water operators on the island must be able to address the needs of their customers, primarily domestic households. Since water operation is a business to run, good financial management practices must be adopted to ensure that the companies will sustain their financial needs to support the demands of the customers. But public utility is somewhat distinct from the goods manufactured and sold.

This study determined the impact of the financial management practices suggested by experts and adopted by different types of businesses to continuously improve their financial performance thereby sustaining the wealth of the company and supporting their requirements in the long run. From the financial performance of the water companies, this study found that there is a moderate positive correlation existed between financial management practices from financial planning, working capital management, and long-term financing practice and financial performance. The study also noted some areas where the water operators can further improve their performance since most of the practices where not maximized, adopted, or implemented fully.