main goal of every business, from which it operates, is profit.Profit and profitability are some of the most important indicators of its activity and evidence of success or failure.From the profit growth of the enterprise depends on the emergence of new potential opportunities for him, as the profit impact on the level of business activity.That profit is conducted to determine the proportion of income that is obtained founders and owners.Profit and profitability - are inextricably linked to each other concepts.In calculating the return on debt and equity, fixed assets and capital stock accounted for just earnings.In addition, earnings, or rather it is getting a major goal of every commercial organization, it (profit) is one of the most important economic categories.
As an economic category of enterprise profit reflects net income, which is created in the sphere of material production.The company takes the form of profit net income.
profit shows the economic effect that is obtained in the course of the company.If the company is present profit, this means that the income of the enterprise exceed its costs.
gains inherent incentive function.This figure is also the financial results, as well as the main element of financial resources.In a well-functioning enterprises the share of net income, which remained at the disposal of the company after the payment of all required payments, enough to finance the expansion of the production, the development of enterprises in scientific-technical and social terms, as well as incentives for workers in material form.
It should be noted that in order to assess the effectiveness and economic feasibility, which is characterized by the activity of the company, only the absolute figures are not enough.In this aspect, profit and profitability should be considered together.Also margins make it possible to see a more objective picture.Indicators of profitability - is the relative performance characteristics of activities and financial results.
term profitability occurred from the word rent - literally "income".A broad sense of the term means the profitability margins, profitability.
profitability indicators used during the comparative evaluation of the level of efficiency that characterizes the work of some enterprises and industries engaged in production of different volumes and types of products.These parameters are characteristic of the profits in relation to the resources that have been expended in the manufacturing process and implementation.The most commonly used indicator, operated by analysts, are the profitability of products, as well as earnings and profitability.
Most businesses profit from production and business activities.Profit and profitability are directly dependent on the ability of managers to effectively use the tools of planning, analysis and marketing.
The effectiveness of any business depends on the knowledge and understanding of market conditions, and the ability to adapt the time of production to ever-changing environmental conditions.
positive value profit form the right choice of the production profile;creation of competitive conditions for the sale of products;production volumes;the ability to reduce production costs.
revenue and profit margin - the most important economic indicators!
