Use of financial management ratios in micro and small hardware companies

Abstract

The objective of this research is to determine the influence of the appropriate use of financial management ratios on the decision-making of hardware mypes in the Los Olivos district. There is commercial management by the owners and partners of the hardware business sector, in which they have a low application of financial metrics to be considered in their strategy and operation decision making. Empirical development and experience based on family legacies to move a business forward is not enough, but the use and applications of financial management indices professionalizes commercial management and places the company in an expectant position to meet its objectives and solid against the risks that arise. The lack of control and disorganization due to the number of items that are negotiated and that are often observed in this sector, are largely solved by the interpretation of ratios that help to propose and develop policies to follow. The incidence of the use of financial management ratios or early warning has a significant impact on decision making, being relevant and timely for those responsible for managing the company's business, in the case of hardware mypes, mainly for the owners and partners.