EVALUATION OF THE PROFITABILITY OF THE ENTERPRISE

Abstract

The article examines the importance of assessing the enterprise’s profitability for understanding the performance of both an individual enterprise and the country’s economy as a whole. The profitability of activities and operational activities of Ukrainian enterprises for 2021-2023 has been analyzed. A significant decrease in profitability was noted in 2022, the situation improved in 2023, but in 2023 the level of profitability of 2021 was not reached, which requires the development of specific measures to ensure the effective operation of enterprises even in war conditions. Approaches to assessing the enterprise’s profitability have been studied. Profitability is determined by a system of indicators. It is noted that it is the results of factor analysis of profitability that serve as an information base for making informed management decisions. To conduct a factor analysis, it is advisable to use the "DuPont" method, which allows to conduct a thorough study of the company’s results by decomposing the indicator of the selected type of profitability into components. Both the classic "DuPont" model and modified versions are used for analysis. According to the "DuPont" method, a model of the profitability of an enterprise is proposed as the product of the ratio of net profit and profit before taxation, the ratio of profit before taxation and profit from operating activities, the ratio of profit from operating activities and gross profit, product profitability, the ratio of the cost of goods sold and operating costs, the ratio of operating costs and activity costs. At the same time, within the framework of this model, it is possible to separately carry out a factor analysis of the profitability of activities based on profit before taxation and the profitability of operating activities. The method of absolute differences was used to identify the influence of factors on the performance indicator. A factor analysis of the profitability of the "Nova Poshta" LLC was carried out according to the proposed model, and the key factors affecting the change in the level of profitability were determined.