How is the profitability of the enterprise calculated

Profitability is a key indicator of a commercial organization. It is necessary in the preparation of a business plan, cost accounting, setting prices, as well as to understand how profitable a business is. Profitability are interested lenders and investors when making decisions about cooperation with the company. In this regard, you need to know how to calculate the profitability of the enterprise.

What is profitability?
Profitability is a relative value that shows how efficiently an enterprise manages available funds (assets, capital, fixed assets, etc.). Continue reading →