METHODOLOGICAL APPROACHES TO ASSESSING AND FORECASTING THE PROFITABILITY OF THE ENTERPRISE

Abstract

The formation, use and growth of the company’s profit has its own characteristics in the conditions of the transformation of the economy to the market principles of management. In the modern economy of Ukraine, the issues of obtaining profit and increasing production efficiency are quite relevant. All this necessitates an in-depth study of the theoretical and methodological foundations of the growth of the company’s profitability, its impact on the rates and proportions of social reproduction. At the current stage, a qualitatively new approach to theoretical coverage and practical substantiation of recommendations regarding the activation of the role of the company’s profitability in the economic system is needed. It was determined that the main financial indicators for evaluating the efficiency of enterprises are profit and profitability. The ultimate goal of business entities of various forms of ownership under the conditions of a market economy is to obtain maximum profit. For an objective assessment of the efficiency of the enterprise, it is not enough to know only the absolute value of the obtained profit. It is necessary to have information about its profitability (profitability, profitability), that is, to study relative performance indicators. For this purpose, the received profits should be compared with the invested capital, resources, incurred expenses. Therefore, it is advisable to carry out an assessment of the profitability of its work at the enterprise. The basis of profitability indicators, their economic essence and calculation algorithms are considered. Analysis of profitability and the possibility of its forecasting occupy a leading place in the system of comprehensive economic evaluation of the enterprise’s activity. Enterprises use various methods, ways and techniques to analyze profitability. The most common methods are such as balance sheet, ratio, using ratings, comprehensive integral assessment, expert assessments and many others. It has been studied that the forecasting of financial indicators allows the enterprise to obtain scientifically based conclusions about possible financial results, the terms of achieving the desired results, or vice versa – it warns about undesirable changes and the need to make appropriate management decisions.