THE ANALYSIS OF PROFITABILITY INDICATORS

Abstract

The analysis of profitability indicators is an activity that should preoccupy all companies. Profitabilitydoes not mean only obtaining profit. A company is competitive if the ownership equity grows (the shareholders’money), the company has a profit that is comparable to that of other companies from the same area of activity,has a positive cash flow and the employees are satisfied with their salaries. Multiple indicators are used tomeasure performance: profit, commercial, economic, financial, investment rate of return, breakeven point,economic value added, net operating result.

Keywords

• profit
• rate of return
• breakeven point
• economic value added
• net operating result