The role of top management in analyzing the profitability of a company

Pashovska, Silvana The role of top management in analyzing the profitability of a company. In: Third International Scientific Conference ITEMA Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture, January 2019, Slovachka.

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Abstract

The reaffirmation of the elements of the market economy system imposes the need to redefine the motives for management and the categories for expressing the efficiency of the business entities. Accordingly, the substance and the manner of expressing and measuring profitability undergo changes characteristic in the standards of the market economy and thus the basic starting point for quantifying profitability is profit. In this way, assumptions are made to understand the purpose of the principle of profitability that should be studied through the following components and relationships:
- Global relationship between the profit and the assets engaged
- the partial relationship between the elements of the profit and the elements of the assets engaged
- analysis and quantification of the factors that determine the size, the structure and the dynamics of the profit, ie the size and dynamics of the engaged assets on the other hand
Starting from the conclusion that the integral part of the complex of the profitability is the engaged assets, it is necessary to consider not only the volume of the investment and engagement of those assests, but also the intensity of their use and spending. The amount of the average engaged and invested assets is determined by two sizes:
- the amounts of assets engaged and invested in the individual production process cycles, and
- the duration of their engagement

Item Type:	Conference or Workshop Item (Paper)
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Scientific Tobacco Institute
Depositing User:	Prof. d-r. Silvana Pasoska
Date Deposited:	01 Nov 2024 11:01
Last Modified:	01 Nov 2024 11:01
URI:	https://eprints.uklo.edu.mk/id/eprint/10175

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