Corporate profitability in Ecuador fell by 22% in 2015

A less dynamic economy in 2015 was translated into lower profits for the business sector. There were companies that had revenues, but far less than in 2014. In 2015, a total of 28,252 companies registered profits by USD 5,212 million, a 22% less than the previous year, according to the Superintendency of Companies. These revenues mainly correspond to the trade, industrial, oil, financial and insurance sectors. Large companies felt the greatest impact of the economic slowdown. Profits in this segment of the economy fell by 24% in that period.

For Gonzalo Argandoña, Corporate Finance partner at Price Waterhouse Cooper, it is not a “surprise that larger companies have less profits.” This is because large companies need high levels of investment to generate profits and this tends to slow down during an economic downturn. “What you can see in these cases is a greater caution and expansion of that investment, net profits are reduced and the risk too,” he added.

Source: http://www.elcomercio.com/actualidad/utilidades-empresas-ecuador-ganancias-ventas.html