PROFITABILITY OF THE COMPANY EXPRESSED UNDER RENTABILITY RATES

Caruntu Genu Alexandru and Ecobici Mihaela Loredana
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Caruntu Genu Alexandru: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU-JIU
Ecobici Mihaela Loredana: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU-JIU

Annals - Economy Series, 2018, vol. 3, 84-89

Abstract: The goal of any firm is to make enough profit to properly capitalize its capital, maintain its technical and economic potential, and ensure rational expansion taking into account market developments and short-term trends. Two categories of indicators are used to measure profitability: profitability and profitability rates. The absolute value of profitability is reflected by profit, and the extent to which capital or use of company resources generates profit is reflected by the rate of return. as indicators of absolute profitability can be taken into account: the result of the turnover, the result of the exploitation, the financial result, the current result, the extraordinary result, the gross result of the year, the net result of the year. The following rates are typically used for expressing relative profitability: the rate of return on trade, the rate of return on consumed resources, the rate of economic profitability and the rate of financial return.

Keywords: the financial rule; rates of return; the size of the results; efficient management; invested capital (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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