Use of financial indicators for the interpretation of real estate results

Abstract

Financial indicators are quantitative tools that allow evaluating the economic situation of a company by analyzing its profitability, liquidity, indebtedness and operating efficiency. This study addressed the problem of the limited application and interpretation of these indicators in the real estate sector in Machala, Ecuador, which affects strategic decision making. The objective was to apply financial indicators to interpret the sector's results and improve its management. A mixed research method was used, with documentary analysis, application of surveys and statistical treatment of data. The results showed that, although the use of indicators is not systematic, their effectiveness is recognized by businessmen. Challenges such as access to financing and high operating costs were identified. It is concluded that the use of financial indicators strengthens business sustainability and their integration into the organizational culture improves decision making and access to new opportunities.