ISSN: 2559-5059

 

The relative indicators of profitability measurement in economic organizations

 

Cătălina Motofei1,2

1Academy of Economic Studies, Bucharest, Romania

2ISMB, Bucharest, Romania

Corresponding author, e-mail: cmotofei@yahoo.com


Running title: Relative indicators of profitability measurement

Keywords: relative indicators, profitability, measurement, economic organizations

J Appl Econ Stat. 2017; 1(1): 25-36; Date of submission: 2017-02-22, Date of acceptance: 2017-03-24


Abstract

In the traditional analysis of a company’s performance, profitability rates are very important and can be used both to delimit the profitable area of companies in a certain field of activity and to make comparisons with both companies in the same field of activity and with past or expected budgeted performance. At the level of tobacco companies, and especially medium and large, these rates are used to provide managers, shareholders, creditors, the public and financial analysts with an eye-catching picture of the performance of these companies.

Regardless of the field in which the enterprise operates, its major objective is to increase both the wealth of the participants in its life (shareholders, employees, creditors, and the state) and increase the value of the enterprise in order to ensure its own development.

The purpose of this paper is to identify and test the existence of a link between the different information that can be extracted from various levels of the enterprise and the level of profitability under its various forms of expression in relative or abstracted sizes.


Editor in Chief

Mihai Paunica

J Appl Econ Stat.

 

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