Possibilities for improvement of profitability of enterprises in tourism industry in the Republic of Macedonia
Possibilities for improvement of profitability of enterprises in tourism industry in the Republic of Macedonia

Summary/Abstract: This paper treats issues related to profitability of enterprises in tourism industry in the Republic of Macedonia. The aim is to calculate financial ratios for assessment of profitability level in tourism industry and to analyze them. Profitability is very important in determining the success or failure of a business for enterprises at whole, as well as for the enterprises in tourism industry. Higher values of profitability ratios indicates that operation of the enterprise is more efficient. It is obvious that profitability depends on many factors as: size of the enterprise, experience in the business, it’s debts, leverage level, working capital utilization, inventory etc. The trend of these factors can serve as a guideline for planning of the increased workload or additional capital investment. Financial analyze from theoretical and practical aspect identifies many indicators for measurement of enterprise profitability. In that context, for the aim of this paper key ratios of profitability are estimated for enterprises in Macedonian tourism industry.

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