MONITORING THE STATE OF PROFITABILITY AND ASSESSING THE RISKS OF FINANCIAL ACTIVITY OF THE ENTITY USING FINANCIAL DIAGNOSIS

Hada Izabela Diana and Mihalcea Mihaela Maria
Additional contact information
Hada Izabela Diana: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA
Mihalcea Mihaela Maria: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA

Annals - Economy Series, 2019, vol. 3, 253-262

Abstract: Being essential in the conditions of a dynamic economic environment, assailed by numerous changes, profitability is the expression of any entity earnings, and obtaining the profit as a measure of profitability (income increase in relation to the reduction of costs) represents the main objective of the activity of an economic entity. The purpose of this article is evaluation the state of profitability and assessing the risks using the financial diagnosis of profitability, as a measure of monitoring the financial health of the entity. Research shows that the financial diagnosis of profitability gives us a realistic view of the entity's financial health by identifying risks, strengths and weaknesses, vulnerabilities, of any threats that may arise in relation to business efficiency. The diagnosis of the state of profitability represents a measure of prevention of risks that threaten the development of the business entity, which allows the formulation of financial recovery paths of activity, to be used by stakeholders to justification of opinions.

Keywords: profitability; diagnosis of profitability; risk; financial health status; business efficiency (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.utgjiu.ro/revista/ec/pdf/2019-03/33_hada2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2019:v:3:p:253-262

Access Statistics for this article

More articles in Annals - Economy Series from Constantin Brancusi University, Faculty of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ecobici Nicolae ( this e-mail address is bad, please contact ).