International Business Management

Year: 2016
Volume: 10
Issue: 26
Page No. 6068 - 6074

An Economic Analysis of Floriculture (Rose Flower) System in Pichincha Province, Ecuador

Authors : Urbano Elizabeth, Soplin Hugo, Contreras Andrea, Benitez Burbano Karol, Bangeppagari Manjunatha, Sikandar I. Mulla and Mariadoss Selvanayagam

Abstract: In the sub-basin of the Guayllabamba river, the largest numbers of rose producing farms are concentrated for export. The analysis was performed by obtaining financial-economic indicators with information from the annual reports of 58 farms associated to Expoflores from 2005-2013 year, of the superintendence of companies and technical information of the association. In addition, the categorization was made to the farms for analysis based on the number of sales. The economic analysis was developed with profitability, liquidity, solvency and productivity. According to these indicators, it was found that the sector studied, reported that midsize companies type “B” and large enterprises are stable economically because they have positive financial and economic profitability (0.293, 0.036 and 0.094, 0.045) in these indicators, it was observed that in the sector, taxation and overall farm performance are factors that determine the results of negative returns (ROE = -0.0552 and ROA = -0.050). Overall solvency rate showed that the sector lacks the ability to pay short-term debts (CR = 2.83), debt ratios explain that more than half of the assets of the companies which are engaged to the rose plantations are debts (AD = 0.626). Additionally with respect to productivity, companies are found to be efficient in its production capacity and its average productivity of factors, only in 2008 and 2011 year. Within the sustainability analysis, it was found that the farms are sustainable economically with a value of 2.65.

How to cite this article:

Urbano Elizabeth, Soplin Hugo, Contreras Andrea, Benitez Burbano Karol, Bangeppagari Manjunatha, Sikandar I. Mulla and Mariadoss Selvanayagam, 2016. An Economic Analysis of Floriculture (Rose Flower) System in Pichincha Province, Ecuador. International Business Management, 10: 6068-6074.

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