Impact of cost structure on profitability in the sanitary sector
DOI:
https://doi.org/10.56563/costosygestion.110.e1Keywords:
cost structure, fixed costs, operating margin, COVID-19, utility companiesAbstract
Cost structure is a determining factor in the financial and strategic management of companies, as it directly influences their ability to generate profitability and remain competitive in the dynamic markets that organizations face today. This study analyzes the relationship between fixed cost structure and operating profitability in utility companies in Chile. It uses a database with financial information from 13 companies during the period 2015-2024. The objective is to determine whether a higher proportion of fixed costs negatively influences the operating margin and whether this relationship changes in periods of crisis such as the COVID-19 pandemic. Linear regression models and statistical tests such as ANOVA and chi-square are applied. The results indicate a negative and significant correlation between the proportion of fixed costs and the operating margin, which is more pronounced in the pre-pandemic period. During and after the pandemic, although the negative relationship remains, its intensity decreases. This study provides relevant empirical evidence for strategic decision-making in sectors with high-cost rigidity, suggesting that more flexible structures can improve financial resilience.
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Copyright (c) 2024 Estela Irene Rodriguez Quezada, José Antonio Tello Ávila, Pablo González-Álbornoz, Cecilia del Pilar Gallegos Muñoz
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