PROFITABILITY AS THE FORM OF COMMUNICATION OF THE VALUE OF AN ENTITY THAT WORKS FOR PROFIT

Ana Carp and Maria Mirea
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Maria Mirea: Bucharest University of Economic Studies

Romanian Statistical Review Supplement, 2017, vol. 65, issue 6, 192-199

Abstract: Profitability can be defined as the positive result obtained by an entity that operates for the purpose of profit, through the efficient use of material, financial and human resources, in a manner that enables it to operate in optimal conditions for financiers, employees and Business partners but especially to ensure future performance. There is a direct correlation between the performance of economic entities in an economy and its well-being. Profit is calculated according to strict tax rules and, at least theoretically, is the expression of the minimum use of resources in order to obtain maximum results. Constant long-term profitability ensures recognition of the value of an economic entity through performance and efficiency. In this article, the authors present the main aspects regarding the use of the statistical tool in the analysis of the company’s profitability.

Keywords: profitability; statistical indicators; solvency; net profit margin (search for similar items in EconPapers)
JEL-codes: C10 O12 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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