Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model

The present research aimed to determine the economic-financial performance and working capital for capital management of manufacturing SMEs in Zone 3 during the period 2017-2020. So, using a descriptive-explanatory approach, secondary data from the Superintendence of Companies were analyzed. In the...

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Main Authors: Karla Estefanía Morales-Ramos, Edison Roberto Valencia-Nuñez, Annette Solange Ocaña-Ortiz, Freddy Marco Armijos-Arcos
Format: Article
Language:English
Published: Research and Development Academy 2025-08-01
Series:Heritage and Sustainable Development
Online Access:https://hsd.ardascience.com/index.php/journal/article/view/1144
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author Karla Estefanía Morales-Ramos
Edison Roberto Valencia-Nuñez
Annette Solange Ocaña-Ortiz
Freddy Marco Armijos-Arcos
author_facet Karla Estefanía Morales-Ramos
Edison Roberto Valencia-Nuñez
Annette Solange Ocaña-Ortiz
Freddy Marco Armijos-Arcos
author_sort Karla Estefanía Morales-Ramos
collection DOAJ
description The present research aimed to determine the economic-financial performance and working capital for capital management of manufacturing SMEs in Zone 3 during the period 2017-2020. So, using a descriptive-explanatory approach, secondary data from the Superintendence of Companies were analyzed. In the first instance, an initial sample of 112 companies was considered; however, they did not meet the requirements to carry out this study. Therefore, under purely appropriate criteria, the sample was reduced to 92 companies. In addition, the study incorporated three control variables, which were the components of the ROE indicator, such as net margin, asset turnover, and financial leverage, essential to carry out the panel data methodology. Therefore, using SPSS software, frequency tables, measures of central tendency, and dispersion were generated, which made it possible to evaluate the behavior of the DuPont index and working capital during the aforementioned period. In addition, a panel data model was incorporated, where the results showed that the approach that best suited the conditions of this research was by fixed effects, demonstrating that the control variables were significant, except for the main variable contemplated as working capital, concluding that it does not have a major impact on the profitability of a company.
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spelling doaj-art-7007e6630f814d55a23ecff498f9c9f22025-08-20T03:02:47ZengResearch and Development AcademyHeritage and Sustainable Development2712-05542025-08-017210.37868/hsd.v7i2.1144Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical modelKarla Estefanía Morales-Ramos0Edison Roberto Valencia-Nuñez1Annette Solange Ocaña-Ortiz2Freddy Marco Armijos-Arcos3Universidad Tecnológica Indoamérica, EcuadorUniversidad Técnica de Ambato, EcuadorUniversidad Técnica de Ambato, EcuadorEscuela Superior Politécnica de Chimborazo, Ecuador The present research aimed to determine the economic-financial performance and working capital for capital management of manufacturing SMEs in Zone 3 during the period 2017-2020. So, using a descriptive-explanatory approach, secondary data from the Superintendence of Companies were analyzed. In the first instance, an initial sample of 112 companies was considered; however, they did not meet the requirements to carry out this study. Therefore, under purely appropriate criteria, the sample was reduced to 92 companies. In addition, the study incorporated three control variables, which were the components of the ROE indicator, such as net margin, asset turnover, and financial leverage, essential to carry out the panel data methodology. Therefore, using SPSS software, frequency tables, measures of central tendency, and dispersion were generated, which made it possible to evaluate the behavior of the DuPont index and working capital during the aforementioned period. In addition, a panel data model was incorporated, where the results showed that the approach that best suited the conditions of this research was by fixed effects, demonstrating that the control variables were significant, except for the main variable contemplated as working capital, concluding that it does not have a major impact on the profitability of a company. https://hsd.ardascience.com/index.php/journal/article/view/1144
spellingShingle Karla Estefanía Morales-Ramos
Edison Roberto Valencia-Nuñez
Annette Solange Ocaña-Ortiz
Freddy Marco Armijos-Arcos
Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model
Heritage and Sustainable Development
title Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model
title_full Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model
title_fullStr Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model
title_full_unstemmed Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model
title_short Working capital management and financial economic performance of manufacturing SMEs: A PanelMix statistical model
title_sort working capital management and financial economic performance of manufacturing smes a panelmix statistical model
url https://hsd.ardascience.com/index.php/journal/article/view/1144
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