Capitalization of profit – the important task of today
Abstract
The article discusses the process of finding innovative approaches to increasing profitability. This is an important task today. Approaches to the formation of the profitability of an industrial enterprise and the determination of the primary aspects of its management are an actual problem of today. Research of the processes for the formation and use of the profits of an industrial enterprise, and its capitalization have been covered in the works of many scientists. Business entities have clear pre-conditions for determining the levers of effective profit management. Profit is a reward to the owner for the risks, for his services, for the capital invested in the enterprise, as well as for the implementation of organizational and economic measures. In the historical aspect, the evolution of profit theories has been carried out in many directions. In order to manage profits efficiently, management information must be comprehensive. It should take into account both external and internal relevant data. It is also necessary to disclose the volume and scope of capitalization at the strategic stage of enterprise development. Today's concept of business economics is not based on the study of profit directly, as a static sign of company performance. Capitalization is the process by which the value of an enterprise is formed, that is, the conversion of assets into new capital. In a particular sector of the economy, “capitalization” is understood as the transformation of a part of profit or all profit into company assets. Many-sided nature determination of term "capitalization" is explained objective connection of this phenomenon with a social and economic sphere, and also attempt to cast light in his features from positions of different scientific approaches. Nowadays, tasks in the field of administrative decisions are becoming more complicated in the economy. Therefore, it is becoming increasingly difficult to meet the resource needs of enterprizes. As a result, there is a decrease in profit, which does not allow the company to fully develop. The profit of the enterprise and its capitalization is the driving force of the economy, the basis of financial resources. It is necessary to develop new innovative approaches to assessing the financial and economic results of companies.
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