FINANCIAL PERFORMANCE OF THE LARGE BANANA GROWING COMPANY IN COLOMBIA DESEMPENO FINANCIERO DE LA GRAN EMPRESA CULTIVADORA DE BANANO EN COLOMBIA

Jorge Alberto Rivera Godoy

Revista Global de Negocios, 2023, vol. 14, issue 1, 45-54

Abstract: This research carries out a financial diagnosis of the large banana growing company in Colombia in theperiod 2016-2021 through the analysis and comparison of accounting and value management indicators. We measure its growth, efficiency, efficacy, and financial effectiveness to achieve accounting and residual profits. Results show the large banana growing company achieves an oscillating return on capital. Although it destroys added economic value in four years, the added economic value in the six-year term is positive. These results are similar to those found in similar companies in the global context. However, the local banana grower is less effective, due to being less efficient in the use of assets and having used less positive financial leverage. These elements were enough to offset its greater efficacy in the control of costs and expenses. In addition, the national banana grower achieves a lower EVA for the investment made because its cost of capital is higher. It would be desirable in new investigations to compare these results with companies similar in age, legal structure, and stage of their life cycle.

Keywords: Economic Value Added (EVA); Market Value Added; Efficiency; Efficacy; and Effectiveness Financial Indicators; Banana and Plantain Farming (search for similar items in EconPapers)
JEL-codes: G10 M40 Q14 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:rgnego:v:14:y:2023:i:1:p:45-54

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