FINANCIAL REASONS FOR LIQUIDITY IN BUSINESS MANAGEMENT FOR DECISION MAKING

Authors

  • Alexander Geovanny Herrera Freire Docente de la Universidad Técnica De Machala - Ecuador
  • Víctor Alberto Betancourt Gonzaga Docente de la Universidad Técnica De Machala - Ecuador
  • Alex Humberto Herrera Freire Docente de la Universidad Estatal del Milagro - Ecuador
  • Sara Raquel Vega Rodríguez Universidad Laicar Roca Fuerte de Guayaquil - Ecuador
  • Estefanía Cristina Vivanco Granda Independent Author

DOI:

https://doi.org/10.15381/quipu.v24i46.13249

Keywords:

Financial Management, Business Management, Decision Making, Financial Indicators

Abstract

Financial liquidity indicators are fundamental to assess the economic and financial situation and a company ́s performance in the short term, that is, to detect if the company has sufficient financial resources and is available to cover the present obligations. The objective of this study is to analyze the financial ratios of liquidity as a strategy in business management for decision making. It is an analytical study based on the methodology of Gitman & Chad (2012) and of scientific journals which delimit the criterion of liquidity in a company as: “The liquidity represents the agility that the company has to cover its financial obligations in the short term”, according to Linares Mustaros, Farreras Noguer, Ferrer Comalat & Rabaseda Tares (2012); Marsano Delgado (2013) Morelos Gómez, Fontalvo Herrera & Hoz Granadillo (2012); Ochoa Ramirez & Toscano Moctezuma (2012) Vasquez Tejos (2010), among others. The importance of the financial management foundations is based on the ratios to improving the financial analysis and its business management. A correct analysis of the financial statements of the organization allows us to reach its current situation and enables to predict -within certain limits- its future development for decision making.

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Published

2016-12-26

Issue

Vol. 24 No. 46 (2016)

Section

Review Articles

License

Copyright (c) 2016 Alexander Geovanny Herrera Freire, Víctor Alberto Betancourt Gonzaga, Alex Humberto Herrera Freire, Sara Raquel Vega Rodríguez, Estefanía Cristina Vivanco Granda

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

AUTHORS RETAIN THEIR RIGHTS:

a. Authors retain their trade mark rights and patent, and also on any process or procedure described in the article.

b. Authors retain their right to share, copy, distribute, perform and publicly communicate their article (eg, to place their article in an institutional repository or publish it in a book), with an acknowledgment of its initial publication in Quipukamayoc .

c. Authors retain theirs right to make a subsequent publication of their work, to use the article or any part thereof (eg a compilation of his papers, lecture notes, thesis, or a book), always indicating the source of publication (the originator of the work, journal, volume, number and date).

How to Cite

Herrera Freire, A. G., Betancourt Gonzaga, V. A., Herrera Freire, A. H., Vega Rodríguez, S. R., & Vivanco Granda, E. C. (2016). FINANCIAL REASONS FOR LIQUIDITY IN BUSINESS MANAGEMENT FOR DECISION MAKING. Quipukamayoc, 24(46), 153-162. https://doi.org/10.15381/quipu.v24i46.13249