Profitability as a key characteristic of ensuring the financial and economic security of the enterprise
Keywords:
profit, profitability, financial and economic security of the enterprise, challenges, threats, strengthening policyAbstract
The article pays attention to the problem of ensuring the appropriate level of profitability of the enterprise as one of the leading factors of guaranteeing the financial and economic security of business. It is shown that profit is a condition of investment capacity, a means of improving debt security, strengthening the financial and economic condition and stability, the possibility of forming reserve and insurance funds to guarantee the stability of the functioning and development of the economic entity. Based on these principles, the purpose of the study is defined as the generalization of methodological and applied principles of increasing the level of profitability in the policy system of strengthening the financial and economic security of the enterprise. It is shown that a number of opinions have been formed in the economic literature regarding the economic nature of profitability, the process of ensuring it and taking it into account when determining the degree of financial and economic security of an enterprise. From the point of view of the essential characteristics of profitability, the processes of its increase are correlated with the amount of income and expenses, and the corresponding improvement of profitability determines the effective formation of resources necessary to ensure the financial and economic security of the enterprise. The key signs and characteristics of profitability in the context of ensuring the financial and economic security of the enterprise are determined. Profitability acts as a catalyst for increased business activity. It is argued that increasing profitability is a precursor to improving investment attractiveness. It is indicated that profitability is a key competitive advantage and a condition for ensuring the competitiveness of a business entity. The directions and tools for increasing the level of profitability of domestic enterprises in the conditions of challenges and uncertainty, high risks and threats, and, therefore, the need to ensure their financial and economic security, have been determined.
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