Methodology to Determine the Enterprise's Profitability

Caruntu Alexandru

Annals of the University of Petrosani, Economics, 2008, vol. 8, issue 1, 49-58

Abstract: The profitability represents the efficiency of operational activity, considered on it’s aggregate stages. It is a efficiency stage confirmed by obtained of some incomes higher then the afferent expenses, so the process to obtain the profit. Profitability is splitting in two major categories: a) the profitability of expenses, which illustrates the operational activity's legal competence to generate results by making expenses; b) the profitability of incomes, which illustrates the efficiency of capitalization the operational activities, through the incomes capacity to generate results. The analysis of profitability for operational activity follows the profitability of incomes and expenses of operational activity on forming steps: the exploiting activity, the current activity, the global activity.

Keywords: profitability from exploiting activity; profitability of exploiting in financial terms; current activity profitability; global activity profitability (search for similar items in EconPapers)
Date: 2008
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