FACTOR ANALYSIS OF FIRM-LEVEL PROFIT
FACTOR ANALYSIS OF FIRM-LEVEL PROFIT

Summary/Abstract: The purpose of this article is to carry out factor analysis of profit at the firm level, in particular by following the main indicators that act directly on it, namely: factor analysis of gross profit for the year, factor analysis of operating profit and factor analysis of profit related to turnover. The company's profit reflects the company's efficiency, liquidity and solvency. Profit acts as an indicator, responding to any changes in the external environment and within the company, so it is important to be able to analyse this indicator, correctly assessing the degree of impact of all criteria. Given the main objective of an economic entity's activity, namely to make a profit, which is the reason for the establishment of an entity, the value of profit is of great importance for any entity, regardless of its activity, we conducted a case study related to profit in an economic entity.

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