Kirichenko O. I., Shkil N. A., PhD Kutsenko V. Y.

Oles Honchar Dnipropetrovsk National University, Ukraine

METHODS OF PROFITABILITY ANALYSIS OF THE ENTERPRISE

The main indicator of the financial impact of the enterprise is profit. It identifies the main goal of entrepreneurship. In the current economic conditions profit is considered to be the major factor of activity of any entity that affects the possibility of funding many programs the company associates with the expansion of capacity, product quality improvement, strengthening competitiveness and gaining new segments of the market environment.

The problems in the theory, methodology for determining revenue and profitability estimation in market conditions are researched by known foreign and domestic scientists: Y. Brigham, P. Havraneko, I. Blank, M. Herasymchuk, A. Gojko, V. Grenyova, V. Metz, S. Sidnev, V. Vitlinskiy, V. Savchuk etc.

Exploring the importance of profit for the company, which operates in the market, I. Blank emphasized, in particular, that profit of an enterprise is the primary goal of business activities, the performance criterion of a particular production (operating) activities, internal sources of financial resources to ensure its development, the main source of growth in the market value of the company and the primary protective mechanism against bankruptcy [1].

The priority directions of measures development to ensure the profitability include: diagnostic tool performance, profitability factor analysis, cluster analysis to study the financial performance of enterprises, technology evaluation performance indicators, economic modeling profit management, relationship between profitability indicators and financial security enterprise [4].

For effective revenue management it is necessary to have sufficient information base for making optimal management decisions. They are the following: profit analysis, income and expenses. The source of input data for this analysis serves as the annual financial statements of the company and market research [2].

There are many methods for analyzing profitability, but the main ones can be represented by the scheme, which is shown in Fig. 1.

Figure 1. Methods of profitability analysis

To assess the overall effectiveness of business enterprises it is necessary to define the cost of effectiveness. Analysis of the profitability provides an assessment ofprofitability, determination of dynamics, causes and factors that influence its change, and the extent of their impact on the change [3]. The final step is to develop a cost-benefit analysis of measures to mobilize the reserves to increase profitability.

The list of references:

1. Blank I. О. Investment Management / I. O. Blank, N. M. Gulyaev. – By: KNTEU, 2003. – 398 p.

2. Blonskaya V. I. Profit – especially its development and use of effective management / V. I. Blonskaya, I. V. Pankiv // Scientific Bulletin of National Forestry University of Ukraine. – 2011. – № 21.5. – P. 179–185.

3. Metz V. A. Economic analysis of financial results and financial condition of the company / V. A. Metz. – By: MBK, 2009. – 132 p.

4. Pavlyshenko M. M. The value of company profits in a market economy / M. M. Pavlyshenko, L. A. Syvulya // Scientific Bulletin. – 2012. – № 17.4. – P. 133–137.