期刊名称：Ovidius University Annals: Economic Sciences Series
电子版ISSN：2393-3127
出版年度：2011
卷号：11
期号：2
语种：English
出版社：Ovidius University Press
摘要：Every company has to be concerned with its profitability due to the fact that an activity with a negative rate of return has to stop developing or to improve its malfunctions. Managers have to perform a financial analysis in order to observe the effectiveness of current economic measures and to assess the degree to which the strategic objectives are achieved. The financial analysis of a company’s activity includes a profitability analysis that reflects the economic efficiency of the activity. The performance of it has an impact on the owners and clients of the company because it will show if the activity has the necessary characteristics to be continued The article presents the importance of the profitability analysis and what indicators should be used in order to perform it. The indicators considered to be relevant in this case are included in two categories: indicators expressed in relative size and indicators expressed in absolute size. The indicators expressed in relative size are composed of the profit and margin while those expresses in absolute size refer to the profitability ratios. The profit is the indicator that characterizes the activity of the company from the qualitative and quantitative point of view. The profitability ratios show how efficient the company uses its resources.
关键词：profitability;rates of return;economic performance
