PROFITABILITY, GROWTH AND ECONOMIC VALUE ADDED – METHODOLOGICAL AND APPLICATION ASPECTS OF ANALYSIS Cover Image

ДОХОДНОСТ, РАСТЕЖ И ИКОНОМИЧЕСКА ДОБАВЕНА СТОЙНОСТ – МЕТОДОЛОГИЧНИ И ПРИЛОЖНИ АСПЕКТИ НА АНАЛИЗА
PROFITABILITY, GROWTH AND ECONOMIC VALUE ADDED – METHODOLOGICAL AND APPLICATION ASPECTS OF ANALYSIS

Author(s): Lyubomir Todorov
Subject(s): Economy, Business Economy / Management
Published by: Институт на дипломираните експерт-счетоводители
Keywords: Value-based management; Business growth; Business profitability; Business efficiency; Economic value added

Summary/Abstract: The article examines the relationship between efficiency, profitability and business growth and their impact on corporate value. Emphasis is placed on the fact that the need to analyze, assess and manage the value of the company poses certain tasks for business analysis, mainly related to the study of the factors on which it depends. A characterization of business profitability is made, and the organization of the analysis and the most important analysis models are schematically presented. The relationship between efficiency, profitability and growth is described, and the same is modeled as a formula. Stewart's model for Economic Added Value and Return on Invested Capital is presented, and the same is further developed. The proposed changes in the model make it possible to study the influence of changes in sales and business efficiency on the change in the value of the company for a given period. This provides an answer to a number of important questions for business management. The analysis models proposed in the article are of undeniable utility for analysts and corporate management.

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