Importance of Economic and Financial Analysis in the Decision-Making Process in the State Business Sector in Mozambique – Mozambique Railway`s Case 2017-2021.

Abstract

This article addresses the Importance of Economic and Financial Analysis in the Decision-Making Process in the State Business Sector in Mozambique, brings with it a scientific approach that will contribute to the use of financial management tools in the decision-making process. The article includes the component of the Introduction where the authors bring with them a review of the characterization of the state's business sector in Mozambique, the main companies that compose it, the importance of economic and financial analysis in the period between 2017 and 2021 the Empresa Caminhos de Ferro de Moçambique. Next, the elements of literature review are presented, with a greater focus on the company's financial management ratios and indicators, disaggregated into Economic and Financial and duly monitored by the formulas for their calculation. The authors also present in this article the methodological support for the materialization of this research, and essential tools of Economic and Financial Analysis were used based on the Audited Reports and Accounts in the period between 2017 and 2021 that allowed conclusions to be reached on the importance of the Methods and Techniques of Economic and Financial Analysis for the Decision-Making Process in the State Business Sector in Mozambique. The study was based on the financial statements of audited accounts for that period that make up the balance sheet and income statements. Based on the available literature, the analysis of the economic and financial ratios was carried out, and a synchronization between the two batteries of ratios was noted. In terms of financial ratios, it was found that the company is in a favorable situation to the extent that in the last year of analysis (2021), it closed with a structure of greater financial autonomy 67%/33% and with low financial dependence. On the other hand, in terms of economic ratios, there is a good harmonization between the collection/receipts policy and the payment policy, the latter having a longer waiting time.