THE ANALYSIS OF PROFITABILITY INDICATORS

Summary The analysis of profitability indicators is an activity that should preoccupy all companies. Profitability does not mean only obtaining profit. A company is competitive if the ownership equity grows (the shareholders’ money), the company has a profit that is comparable to that of other companies from the same area of activity, has a positive cash flow and the employees are satisfied with their salaries. Multiple indicators are used to measure performance: profit, commercial, economic, financial, investment rate of return, breakeven point, economic value added, net operating result.