Financial Strategies to Optimize the Profitability of Working Capital in Agricultural Microenterprises in the Province of El Oro

Abstract

The study addresses the current situation in the province, where improving capital profitability in microenterprises is necessary to help reactivate the economy, particularly in agricultural enterprises, which represent one of the main economic activities in the local area. The objective of the study is to design financial strategies to improve the return on working capital in agricultural-sector enterprises in El Oro during the 2018–2023 period. Since the food industry is one of the essential pillars of both the local and international economy, it is imperative to understand the condition of the analyzed sector from an accounting perspective. A mixed-methods approach was applied. The quantitative component consisted of analyzing income statements and balance sheets from 10 agricultural enterprises for the 2019–2023 period, while the qualitative component involved a documentary review of their financial statements to identify operational shortcomings in accounting management. The main findings highlight overindebtedness, inadequate liquidity management, excess current and noncurrent assets, and inventory levels that restrict the resources available to finance operations or force firms to rely on loans to maintain their activities, requiring partners to contribute capital with limited or almost no returns. Selling fixed assets, implementing tax planning, and adjusting production through work orders significantly improve liquidity and sustainability, thereby contributing to the reactivation of the sector amid the current economic crisis facing the country.