Design of a financial analysis model to boost the profitability of MSMEs, Sivareña case study

Authors

DOI:

https://doi.org/10.5377/rtu.v13i37.17959

Keywords:

Financial analysis, Costs, Fixed expenses, Contribution margin, Financial model, Small businesses, Break-even point, Unit price, Profitability

Abstract

This research aims to design a financial analysis model to boost the profitability of the small and medium-sized company, Sivareña, in whose development the product lines are evaluated, and the maximum growth gap as metrics to plan sales goals (gaps), associated with the financial profitability of the business. Likewise, a proposed financial model was implemented - a tool in Microsoft Excel, and the final result proposes price adjustments and strategies and adjustment of financial and market impact costs to boost the profitability of the company.

The work method has a mixed approach, combining quantitative and qualitative analysis, taking into account the variables of greatest relevance and weight to deepen the evaluation, analysis and capacity of proposals for the growth and profitability of the company. Statistical and financial metrics associated with inventories, contribution margin, unit costs, operating expenses were addressed to generate the break-even point and the associated gaps, based on the estimation of the damping coefficient and the installed capacity of the company. A multidimensional approach was granted based on the approach to the problem that is sought for a solution, with a retrospective analysis, and based on this, propose some useful suggestions for decision-making.

By way of conclusions, the Financial Model implemented helped to evaluate the product lines and growth gaps (gaps) and determines the balance point of the weighted portfolio (threshold), which facilitated the identification of strategies to plan sales goals, production and the growth of the profitability of the company based on the products with higher margins with a greater frequency of sale (more preferred by diners). In addition, it led to assuming strategies such as price adjustment, update of unit costs, and defining the working capital required for its growth.

Downloads

Download data is not yet available.

References

Alemán Castilla, M., y González Zavaleta, E. (2007). “Modelos Financieros en Excel”. México: Compañía Editorial Continente

Orellana, Liliana (2001), “Estadística Descriptiva”. Departamento de Matemática de la Facultad de Ciencias Exactas y Naturales de la Universidad de Buenos Aires. Argentina.

Pérez Peña, Rodrigo (2019). Modelación financiera: conceptos y aplicaciones. Bogotá: Universidad Piloto de Colombia.

Sánchez, Manuel (2013), Indicadores: Seguimiento de la gestión en la empresa. V Foro CERPER. España.

Published

2024-06-25

How to Cite

Martínez Alonzo, D. A., Navarrete Mendoza, E. J., & López Almendares, D. de J. (2024). Design of a financial analysis model to boost the profitability of MSMEs, Sivareña case study. Torreon Universitario Magazine, 13(37), 146–160. https://doi.org/10.5377/rtu.v13i37.17959

Issue

Section

Social sciences, Business education and Law

Most read articles by the same author(s)