Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 13 ISSUE 4
Written by Daniela SIMTION, Roxana LUCA
Profitability of an economic unit is expressed through a system of indicators, because "no index or economic category can reflect the total, perfect, complex reality of economic phenomena or processes. Each expresses a side of concrete, essential details (indexes), but a full one (economic category). This system of indexes for profitability is characterized by a higher degree of consolidation, of reflection of the economic-financial results. They must be correlated to the other indexes of economic efficiency from the various subsystems that constitute the factors which determine the actual amount of profit and the rate of return. Each indicator has a certain form of expression according to the phenomena to which it refers. Thus, they can be expressed in relative sizes as medium sizes or indexes. They can also be expressed in physical, conventional or value units. The ability to develop monetary results can not be judged independently to the employed means for achieving them. Therefore, the profitability analysis is not limited to investigating its absolute indexes but also the relative ones, obtained by comparing the results to the means employed or consumed for developing the specific activity
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