Corporate indebtedness and profitability of a private school listed on the Lima Stock Exchange (LSE)

Abstract

Indebtedness is important for companies to have the necessary resources for an investment needed to increase their market share. The main objective was considered to analyze the connection of indebtedness with the profitability of a school listed on the LSE, 2017-2021. The methodology considered was quantitative, basic, longitudinal, descriptive and correlational, the documentary analysis was applied to the financial statements of a school listed on the BVL for the periods 2017-2021. The data achieved showed that indebtedness reached a non-parametric test with profitability and return on equity since the p-value was less than 0.05, consenting to accept the alternate hypothesis, and a Pearson is -0.781 and -0.955. On the other hand, indebtedness with return on net sales and return on assets, the data were parametric since the p-value was higher than 0.05, allowing in this part to accept the null hypothesis, and a Pearson was 0.738 and 0.684. It is concluded that by not carrying out an exhaustive analysis, considering the true needs of the company and the demands of the target public, the financial decision making will always be wrong, leading to short-term indebtedness affecting the financial structure of the company, since its assets will not be able to meet the monetary obligation acquired, since its current liabilities considerably exceed the company's capacity to meet its financial obligations.