Factors explaining the profitability of microenterprises: A study applied to the commerce sector
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The present study aims to determine the factors that explain the economic profitability of microenterprises belonging to the commerce sector in the province of Guayas through a multiple linear regression model with data provided by 788 companies that reported their financial statements to the Superintendence of Companies, Securities and Insurance in 2019. The study results showed that indebtedness, liquidity level and size have a negative and significante relationship with profitability. This study also shows that asset turnover, working capital and the impact of administrative costs have a direct impact on return on assets. This research highlights the importance of accounting and financial information in explaining the behaviour of economic profitability. The conclusions of this study aim to provide guidance to companies on the strategies they should adopt to improve their performance.
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