Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie (Jun 2018)
PROFITABILITY OF THE COMPANY EXPRESSED UNDER RENTABILITY RATES
Abstract
The goal of any firm is to make enough profit to properly capitalize its capital, maintain its technical and economic potential, and ensure rational expansion taking into account market developments and short-term trends. Two categories of indicators are used to measure profitability: profitability and profitability rates. the absolute value of profitability is reflected by profit, and the extent to which capital or use of company resources generates profit is reflected by the rate of return. as indicators of absolute profitability can be taken into account: the result of the turnover, the result of the exploitation, the financial result, the current result, the extraordinary result, the gross result of the year, the net result of the year. The following rates are typically used for expressing relative profitability: the rate of return on trade, the rate of return on consumed resources, the rate of economic profitability and the rate of financial return.