Measurement of the financial situation through the application of financial indicators.

Nowadays business organizations are dealing with an economic environment that is characterized by a market that is very changing and unpredictable, technological and globalized, and affects any company regardless of its size, causing them to look for the need to use very frequently the important and very efficient financial management indicators as a tool that helps them to know the performance of their organization, as well as the results of their economic activity.

The management of the companies, as well as the internal and external stakeholders must be able to understand the complex and useful financial information reflected in the financial reports, since these indicators are the ones that show in an abbreviated form the real numbers and help them to make decisions in a timely manner, as well as to identify the diversity of opportunities and risks that they may have in the performance of the organization.

In the country, the use and treatment of financial indicators is widely used, even more so by Small and Medium Industries (SMEs), since they are a determining and fundamental element of the productive apparatus. Therefore, financial ratios or indicators are the product of establishing results based on analyzing accounts and figures from financial statements such as the Statement of Position and/or the Statement of Profit and Loss.

It is of utmost importance that financial analysis should be applied by all types of companies, whether small or large, and regardless of their productive activity, since it constitutes an operational efficiency that allows them to review and evaluate the performance of a company.

Consequently, the results of these indicators are very significant when they are evaluated and compared with previous years, as well as with other companies in the same industry, in such a way that it allows them to have a broader view of the market situation and to know the company's operation in depth.

The financial ratios have been classified and represent a better interpretation for the analysis, since there are a great variety of ways, however some managers or administrators prefer to give greater importance to a few indicators such as the profitability of the company and begin their study by the components that make up this variable, and then depending on their interest apply the following ones.

Other owners or shareholders first analyze solvency and then profitability, considering the latter in the same category as efficiency. In the same way, based on the financial statements of an economic entity, all are important when diagnosing a situation or evaluating a result.