Management of working capital and financial performance in commercial companies in Chimborazo Ecuador.
DOI:
https://doi.org/10.47187/mktdescubre.27.78Keywords:
Working capital, financial performance, profitability, cash conversion cycleAbstract
Working capital management is an essential component of corporate financial management, given its impact on organizations’ liquidity, operational efficiency, and financial sustainability. In emerging economies, the management of current assets and liabilities takes on greater importance due to limited access to external financing and environments of economic uncertainty. In this context, the objective of this research was to analyze the impact of working capital management on the financial performance of commercial firms in the province of Chimborazo, Ecuador. The study adopted a quantitative approach with a correlational-explanatory scope and a non-experimental longitudinal design. The data used were derived from financial statements for the 2020–2024 period obtained from the Superintendency of Companies, Securities, and Insurance. For the empirical analysis, a multiple linear regression model was estimated, incorporating relative working capital, firm size, and cash conversion cycle as explanatory variables, while financial performance was measured using return on assets. The results showed that firm size and operational efficiency significantly influence profitability, while relative working capital was not statistically significant.
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Copyright (c) 2026 Mariana Isabel Puente Riofrío, Verónica Adriana Carrasco Salazar, Eduardo Ramiro Dávalos Mayorga, Ana Paula Villavicencio Rodriguez
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