The profitability ratio analysis of fresh dried seaweed and processed KD foliar fertilizer in Punta Biao, Cogon Digos City, Davao del Sur

Abstract

Abstract

This study determined the profitability ratio analysis of fresh seaweed, dried seaweed, and processed KD foliar fertilizer in Punta Biao, Cogon, Digos City, Davao del Sur. Specifically, the study evaluated net profit sales, return on investment (ROI), net income profit margin, and break-even analysis of the different seaweed products. The research employed a descriptive research design and was conducted from December 2017 to February 2018 among eight identified seaweed farm sites that were beneficiaries of the Integrating Social Entrepreneurship through KD Foliar Fertilizer with Seaweed Farmer Organization (ISE-KD) Project funded by the Commission on Higher Education (CHED). Data were gathered using structured survey questionnaires and analyzed through frequency counts, percentages, and regression analysis.

Results revealed that dried seaweed processed into KD foliar fertilizer generated the highest net profit sales amounting to ₱3,371.00 compared to fresh seaweed and dried seaweed alone. It also obtained the highest return on investment at 81.6% and the highest net income profit margin of ₱10.13 per unit, indicating that value-adding activities significantly increased profitability. Break-even analysis showed that fresh seaweed required 200.67 kilograms, dried seaweed required 67.9 kilograms, and KD foliar fertilizer required 55.05 liters to recover production costs. The findings suggest that processing seaweed into value-added products such as KD foliar fertilizer provides greater economic returns for seaweed farmers. The study recommends strengthening value-adding initiatives, improving farming practices, increasing production inputs, and providing financial management training to enhance profitability and sustainability in the seaweed industry.