Financial Analysis of SMEs: Liquidity and Profitability

This study aimed to analyze the financial profiling of SMEs by evaluating liquidity and profitability indicators. For this purpose, the financial statements of 758 SMEs in the Ecuadorian coastal region for the fiscal year 2024 were analyzed. A quantitative, descriptive, and exploratory approach was applied, using the HJ-Biplot technique to represent the relationships between the indicators and the companies. The results showed that SMEs maintain a solvent position in the short term, with an average current ratio of 3.01 and an acid test of 1.99, demonstrating adequate capacity to cover obligations. In terms of profitability, an ROE of 22.11%, ROA of 7.34%, and net profit margin of 4.35% were determined, demonstrating moderate efficiency in the use of resources and profit generation. The analysis identified balanced financial profiles in the cities of El Guabo, Piñas, Zaruma and Manta, and in cities such as Guayaquil and El Oro they maintain liquidity and profitability balances, consolidating the financial sustainability of SMEs in the Ecuadorian context.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-11-02
DOI
https://doi.org/10.5281/zenodo.17504758
Primary Topic
Business, Education, Mathematics Research
Type
article
Field-Weighted Citation Impact
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article

Financial Analysis of SMEs: Liquidity and Profitability

Zenodo (CERN European Organization for Nuclear Research)
Business, Education, Mathematics Research
article

Financial Analysis of SMEs: Liquidity and Profitability

article en

Abstract

This study aimed to analyze the financial profiling of SMEs by evaluating liquidity and profitability indicators. For this purpose, the financial statements of 758 SMEs in the Ecuadorian coastal region for the fiscal year 2024 were analyzed. A quantitative, descriptive, and exploratory approach was applied, using the HJ-Biplot technique to represent the relationships between the indicators and the companies. The results showed that SMEs maintain a solvent position in the short term, with an average current ratio of 3.01 and an acid test of 1.99, demonstrating adequate capacity to cover obligations. In terms of profitability, an ROE of 22.11%, ROA of 7.34%, and net profit margin of 4.35% were determined, demonstrating moderate efficiency in the use of resources and profit generation. The analysis identified balanced financial profiles in the cities of El Guabo, Piñas, Zaruma and Manta, and in cities such as Guayaquil and El Oro they maintain liquidity and profitability balances, consolidating the financial sustainability of SMEs in the Ecuadorian context.

Zenodo (CERN European Organization for Nuclear Research)
Openalex Percentile: Top 33%
Business, Education, Mathematics Research
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