Financial Factors Due To Confinement

Financial factors due to confinement

Introduction

One of the factors that affect the profitability of companies in 2020, is the Covid-19 pandemic;According to studies projected by (Marketwatch) the contraction in sales of the construction sector will be 39.3%, due to the confinement that forces companies to paralyze operations, which causes considerable economic losses that affect the financial health of companies. In the Amazon region according to the information of (El Comercio), the greatest amount of resources for roads, construction and productive promotion with pre -assignments for the Provinces of the Amazon is predestined.

Developing

According to the Organic Law for Integral Planning of the Amazon Special Territorial Circumscription approved in 2018;The value of the same in the year 2020 is 382.70 million. In the Amazon region, the companies in the construction sector constitute a reduced percentage in relation to all companies in this sector in the country, 6% companies in the construction sector in the Amazon region are microenterprises, 4% smallcompanies and 3% medium enterprises. The company subject to this research work began its commercial activities on August 8, 2004 in the city of Puyo and has as its main activity.

The "road construction, streets, roads, and other roads for vehicles or pedestrians". Registered in the Internal Revenue Service with RUC NO 1691704285001 with the corporate name “Company of Integral and Construction Electrical Services Valenharo Limitada Company” located in the city of Puyo;His legal representative is the technologist Juan Esteban Valencia Haro;Company’s assets have a value of 2,949,045.

22, Heritage 1,183,814.13. The company does not analyze the available financing options, the long -term costs and implications, the level of liquidity and the profit margin generated by the company is unknown.

Situation that represents a great limitation for the company. Problem formulation. How the absence of a financial plan in the Company Company Company and Constructions Valenharo Limitada company, affects the company’s profitability? Problem systematization. What is the importance of having a financial plan within the company? Is sufficient true information generated to carry out the financial plan in the company? The absence of a financial plan directly affects the company’s profitability? What is the contribution of the financial plan in the company’s profitability?

conclusion

Prepare a financial plan that contributes to optimize profitability in the Company Electrical and Constructions Company Valenharo Limitada company in the 2020-2022 period. Specific: Prepare the theoretical framework to support this degree work scientifically and based on previously conducted research. Diagnose the current situation of the company through financial analysis and indexes. Make projections of the financial statements for the 2020-2022 period through the linear progression method.