WORKING CAPITAL MANAGEMENT AND FINANCING IN THE ECUADORIAN EXTRACTIVE SECTOR

Abstract

This article analyzes the variables of working capital of mining companies in Ecuador in the period 2012 - 2017 and their impact on profitability. Sixty-two companies were examined and through a panel data econometric regression, the economic and financial profitability were related to the average collection period, average payment period, cash conversion cycle, liquidity, asset indebtedness, size, sales turnover and leverage. It was evident that both the ROE and ROA of mining companies in Ecuador only depend on the average collection period, with the rest of the working capital elements being non-influential to explain the profitability of extractive companies.