Problems of ensuring the profitability of the enterprise and ways of its increase in modern conditions

Мyroslava Zabediuk

E-Forum Working Papers, 2021, vol. 11, issue 3, 59-64

Abstract: The article analyzes the theoretical foundations of the profitability of the enterprise. In particular, the essence of the concept of "profitability", functions and types of profitability is investigated. The reasons for the low profitability of enterprises in Ukraine in modern conditions are considered and the ways of its increase are proposed. Investigation of existing approaches to the interpretation of the concept of profitability allowed to summarize the main features that characterize the profitability, namely: the ratio of profits to expenses, the ability to make a profit, an economic instrument, the main criterion of economic efficiency, an indicator of the efficiency of the enterprise, etc. The main reasons for the low profitability of enterprises in Ukraine in modern conditions are the following: reducing the volumes of profits, a significant increase in production cost, insufficiency and ineffectiveness of investment and innovation activities, insufficient control by state bodies on the reliability of reporting data, cost indicators, profits, pricing, etc. The main directions that would allow to increase the profitability of business entities are proposed: the implementation of larger volumes of profitable products, works, services; optimization of assortment of products, works, services; innovative ways of reducing the cost of products, works and services; diversification of activity; activation of investment and innovation activity as a whole; improvement of labor motivation system, etc

Keywords: profitability; profit; profitability of the enterprise; efficiency of activity; types of profitability; cost (search for similar items in EconPapers)
Date: 2021
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