BUSINESS ANALYSIS AS A TOOL FOR MANAGING BUSINESS EFFICIENCY AND PROFITABILITY
BUSINESS ANALYSIS AS A TOOL FOR MANAGING BUSINESS EFFICIENCY AND PROFITABILITY

Summary/Abstract: The report presents the main indicators for measuring the efficiency and profitability of the business. The organization of the analysis on the topic is schematically presented. Models for analyzing the operating profit, efficiency and profitability of the business are proposed, which reveal the reasons for changes in the indicators for a given period of time. On their basis, the efficiency and profitability of the business can be measured, analyzed, controlled and managed. Management decisions in this case are of two types:•Decisions aimed at achieving and maintaining sustainable sales growth in the long term;•Decisions related to the optimization of business processes and operating costs.Both types of decisions affect the product, marketing and investment policy of the company, the goal being to achieve the maximum possible profitability of the business, which would provide opportunities for paying high dividends. At the same time, increasing the profitability of the business also has a positive effect on the value of the company.

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