Abstract
The main purpose of this article is to properly manage the financial activities of business entities. The main goal is to ensure sustainable development and growth by examining the role of profitability in financial performance. The profitability assessment is carried out to measure the efficiency of an enterprise and the profitability of its products. With this in mind, consider the rules for calculating the profitability of each management body working to make a profit. The assessment of profitability is the most important issue explored in this article. Given that every firm or enterprise is created to make a profit, the profitability of that company should be strictly controlled by the company's owners, investors, and the government. Protecting the profitability of the company is to ensure high returns to shareholders. The government has two primary interests in a company's high profitability: 1. Maintaining healthy competition in the country while keeping the purpose of the company intact 2. High taxes Conducting a correct financial analysis is an important indicator for the study of this issue. For this purpose, such financial ratios as liquidity ratio, portfolio management ratio, debt management ratio, profitability ratio, and market value ratio were studied in detail. The summary of the researched issues is as follows: 1. Liquidity ratio indicates the firm's ability to repay overdue debts during the year. 2. The portfolio management ratio shows how a firm uses its total assets. 3. The debt management ratio refers to a firm's ability to repay its long-term debt and how it finances its total assets. 4. The profitability ratio shows how profitable the firm is in managing and using total assets. 5. The market value ratio expresses the value of firms listed on the stock exchange and forms investors' opinions about the firm and its future. If these components are presented more broadly with a Trend (T test), a more detailed profitability analysis emerges. As a result of the above, proper financial analysis and profitability management will lead to the healthy development and growth of both the economic entity and the state.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Scientific Notes of Taurida National V.I. Vernadsky University. Series: Economy and Management
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
