Relationship between efficient management of working capital and profitability (EBIT) of the prepared food and beverage industry in Ecuador

Working capital is made up of current assets and current liabilities with a higher degree of liquidity (inventory, accounts receivable and accounts payable), adequate management allows companies to have the resources to carry out the operations of the company and reduces the need for financing with banks, which leads to a lower financial cost. The objective of this essay is determine and analyse the importance of proper management of working capital in the prepared food and beverage industry in Ecuador, proposing a regression model that allows determining the relationship between and the independent variables: cash conversion cycle , days inventory oustanding , days receivable oustanding , days inventory oustanding . Additionally, the following are considered as control variables: performance index, and efficiency index.