Kurdish Studies

ISSN: 2051-4883 | e-ISSN: 2051-4891
Email: editor@kurdishstudies.net

Cash On Hand And Financial Performance: An Applied Investigation Of The Peruvian Construction Sector

Leydi Acuña Vasquez
Luis Martín Cabrera Arias
Victor Hugo Puican Rodriguez
Rita de Jesús Toro López
Liliana Del Carmen Suárez Santa Cruz
Keywords: cash, profitability, short-term investments, financial needs, quick cash.

Abstract

The primary objective of this study is to understand how the relationship between cash and quick cash impacts the profitability of companies within the construction sector in Peru. It is underpinned by various scientific theories and the comprehensive literature available in the academic realm, providing knowledge for future researchers through findings, conclusions, and value propositions. A quantitative methodology was employed, gathering data through surveys of 30 employees and analysing the company's financial statements between 2021 and 2022. This study has an applied, descriptive, and causal correlational orientation, aiming to comprehend the interactions between variables. Most construction companies in Peru exhibit low levels of cash, liquidity, and short-term investments. Many encounter difficulties in accessing cash swiftly. However, possessing large sums of cash does not ensure high profitability; in fact, companies with moderate levels of cash tend to achieve more balanced profitability. In the Peruvian construction context, efficient cash management is pivotal for profitability. Companies must strike a balance between the amount of cash they hold and their operational and investment needs. Excessive accumulation or scarcity of cash can be detrimental. This study underscores that, in the Peruvian construction sector, more cash does not necessarily equate to higher profitability. It offers a new perspective on how companies can better manage their finances to optimise profitability.

SCImago Journal & Country Rank

Keywords

Kurdish StudiesKurdsmigrationTurkeyKurdishKurdistangenderSyriaimmigrationIraqIraqi KurdistanrefugeesmediadiasporaMigrationfamilyAlevismRojavaYezidisautonomyUnited StatesKurdish studiestransnational migrationIranstereotypesminoritiesAlevisactivismEuropesovereigntyareal linguisticsPKKIndiaBalkans