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Profitability As The Form Of Communication Of The Value Of An Entity That Works For Profit

Author

Listed:
  • Ana CARP

    („Artifex„ University of Bucharest)

  • Maria MIREA

    (Bucharest University of Economic Studies)

Abstract

Profitability can be defined as the positive result obtained by an entity that operates for the purpose of profit, through the efficient use of material, financial and human resources, in a manner that enables it to operate in optimal conditions for financiers, employees and Business partners but especially to ensure future performance. There is a direct correlation between the performance of economic entities in an economy and its well-being. Profit is calculated according to strict tax rules and, at least theoretically, is the expression of the minimum use of resources in order to obtain maximum results. Constant long-term profitability ensures recognition of the value of an economic entity through performance and efficiency. In this article, the authors present the main aspects regarding the use of the statistical tool in the analysis of the company’s profitability.

Suggested Citation

  • Ana CARP & Maria MIREA, 2017. "Profitability As The Form Of Communication Of The Value Of An Entity That Works For Profit," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(6), pages 192-199, June.
  • Handle: RePEc:rsr:supplm:v:65:y:2017:i:6:p:192-199
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    File URL: http://www.revistadestatistica.ro/supliment/wp-content/uploads/2017/06/RRSS_06_2017_A10_EN.pdf
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    References listed on IDEAS

    as
    1. Madalina Gabriela ANGHEL, 2014. "The System of Financial Analysis Indicators Applying to the Activity Run by an Economic Agent," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 62(7), pages 75-83, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    profitability; statistical indicators; solvency; net profit margin;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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