Financial management and business profitability in Peruvian companies

Abstract

This research aims to determine the relationship between financial management and business profitability in Peruvian companies, 2023-2024. The study is basic in nature with a quantitative approach, employing a non-experimental, cross-sectional, and correlational design. The population consisted of 260 companies. Data collection was carried out using questionnaires and data recording forms. The results show a positive and significant relationship between financial management and business profitability (r=0.787). Furthermore, the elements of financial management showed significant correlations with profitability: financing methods (r=0.840), financial tools (r=0.793), and financial indicators (r=0.747). It is concluded that proper financial management is closely linked to increased profitability, demonstrating that its improvement or decrease directly impacts the economic performance of businesses.