Financial planning of domestic enterprises by profitability indicators

Abstract

Introduction. Actuality of this topic is caused by the effectiveness of any organization and is determined by the existing level of financial planning. Planning has to identify trends of various aspects of business and to consider the calculation and selection of the most favorable conditions for its activities.

There are many methods by which you can effectively determine the financial position of the company. However, in order to effectively reflect and plan the financial activities of the company you should consider those factors and indicators that show the maximum amount of profits which can be earned by one enterprise and the effectiveness of investing in the company (rational use of these investments and and company’sability to compete should also be considered). Thus, it should reflect the financial position of the company in terms of profitability.

Goal. The aim of the article is to systematize the approach to financial planning of the company in terms of profitability.

The objective of this article is to determine the nature of profit and profitability,to analyse the need and nature of financial planning profitability.

The method (methodology). With the help of abstract logical analysis the essence of financial planning at the enterprise is investigated. A systematic analysis of the results provides the opportunity to identify common trends and the need for financial planning of company’s profitability.

Results. The article deals with methods of planning of enterprise financial state in terms of profitability.

The methods make it possible to create a more flexible means for evaluation of  the financial conditions of the company and reflect the ability of the company to release some high value products and opportunities to compete.