Financial management and economic results of the Meritorious Fire Department of Quevedo during the years 2024-2025.

Abstract

The Benemérito Cuerpo de Bomberos de Quevedo faced structural dependency on public transfers (72-82%) that severely compromised fiscal sustainability during the post-pandemic period, exposing vulnerability to municipal budget cuts affecting Ecuadorian cantonal fire departments. This study analyzed institutional financial management during fiscal years 2024-2025 through four specific objectives: 2025 budget composition diagnosis via vertical analysis, patrimonial variation determination through horizontal analysis 2024-2025, liquidity-profitability-solvency ratios audit, and sustainability proposal elevating self-financing from 18% to 25-30% target range through income diversification and public-private synergies. Researchers adopted quantitative approach with non-experimental descriptive-analytical design, utilizing official institutional financial statements and GADM Quevedo reports as primary instruments, cross-verified against municipal budget execution documents ensuring statistical reliability. Vertical techniques calculated annual percentage totals, horizontal methods measured absolute/relative interannual variations, and BCE financial indicators adapted for public mission-driven non-profit entities. Results documented sustained total income growth 12% (USD 1,116,071 to 1,250,000), net profit 4% with +211% interannual increase, current liquidity ratio 1.80 equivalent to 47 days operational coverage, ROE 6.06%, and asset solvency 13.08 times, significantly surpassing local historical benchmarks of Pérez Rivera (2016) and Arcentales Torres (2014). Efficient operating costs predominated structurally at 62.4% of total while administrative expenses grew 20%, evidencing immediate financial strength despite limited self-financing. Findings positioned Quevedo as regional reference for structural optimization, recommending administrative costs reduction ≤15%, implementation of differentiated voluntary fire risk fees, formalization of public-private partnerships generating USD 60,000 additional annual revenue, and quarterly financial analysis institutionalization preserving >45 days operational coverage. This research empirically validated systematic vertical-horizontal analysis efficacy for fiscal resilience across Ecuador's 248 cantonal fire departments.