CHAPTER I
THE PROBLEM AND ITS BACKGROUND
This chapter contains the discussion of historical background of the problem, theoretical framework which is based on actual theory, conceptual framework, statement of the problem, hypotheses, contribution or significance of the study to the fund of knowledge, scope and limitation, and definition of terms.

Introduction Assets utilization needs to be evaluated which is done with its effect in firm’s profitability. In this regard, the better the utilization of assets, the higher the profitability of a firm will be. Managing assets are assessed periodically as the basis of information. Each period is to be compared to determine whether companies have to alter their management, concerning asset management during times of crisis.
Companies now days have to find another ay to gain assets because without financial resources, companies cannot survive in these turbulent times or even in normal circumstances. This study will provide a quick view of how manufacturing companies in the Philippines manage their assets during crises and non-crises period. Researchers have studied utilization of financial resources in different ways. Some authors have studied the impact of asset utilization during non-crises period only. Here, the study focus not only in non-crises period but also during crises period because there are no studies done about the relationship between utilization of financial resources and firm’s profitability during crises periods within the Philippines and also it allows a comparison between those periods which could indicate whether manufacturing companies in the Philippines have to alter their asset utilization when the economy is close to a recession.

Background of the Study The Philippine Economy is faced with several factors which could hold back the rate of having a huge return on the financial