Relationship between liquidity, financial leverage and economic profitability. Exploratory analysis in micro, small and medium-sized companies in the transportation sector of the canton of Rumiñahui, Ecuador

Authors

  • Tania Yadira García Ponce Universidad Intercultural de las Nacionalidades y de los Pueblos Indígenas Amantay Wasi, Ecuador
  • Nicolas Collaguazo Suquillo Instituto Tecnológico Universitario Rumiñahui, Ecuador
  • Paul Armando Rodríguez Muñoz Instituto Tecnológico Universitario Rumiñahui, Ecuador
  • Oscar Franklin Cevallos Morillo Instituto Tecnológico Universitario Rumiñahui, Ecuador

Keywords:

liquidity, leverage, economic profitability, correlation, Rumiñahui canton

Abstract

Introduction: The relationship between liquidity indicators, financial leverage and economic profitability is a widely studied topic in business management. This work proposes a study of this relationship in the Rumiñahui canton of Ecuador, focused on micro, small and medium-sized companies in the transportation sector between 2019 and 2020. Materials and methods: It is carried out through quantitative research, with a descriptive and exploratory nature, using Pearson's parametric correlation analysis and Spearman's non-parametric correlation analysis as fundamental methods. Results: The main results show that there are significantly different behaviors of the variables studied depending on the size of the companies, and that there is no significant statistical evidence of a relationship between them. Discussion: Much has been published in the literature on the subject about what liquidity and solvency represent for the business financial context. It can be defined that financial liquidity, viewed more generally, refers to the entity's ability to have sufficient liquid assets available to meet its financial obligations in the short term. Conclusions: There are significant differences between the behavior of liquidity, leverage and economic profitability indicators depending on the size of the company. The smaller the size of the companies, the greater the dispersion, variability and associated risks within the variables studied.

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Published

2024-05-13

How to Cite

García Ponce, T. Y., Collaguazo Suquillo, N., Rodríguez Muñoz, P. A., & Cevallos Morillo, O. F. (2024). Relationship between liquidity, financial leverage and economic profitability. Exploratory analysis in micro, small and medium-sized companies in the transportation sector of the canton of Rumiñahui, Ecuador. Maestro Y Sociedad, 21(2), 553–562. Retrieved from https://maestroysociedad.uo.edu.cu/index.php/MyS/article/view/6400

Issue

Vol. 21 No. 2 (2024)

Section

Artículos

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Copyright (c) 2024 Tania Yadira García Ponce, Nicolas Collaguazo Suquillo, Paul Armando Rodríguez Muñoz, Oscar Franklin Cevallos Morillo

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