ANALYSIS OF METHODOLOGICAL APPROACHES TO ENTERPRISE PROFIT GENERATION

Abstract

The article explores the problems of generating profits of enterprises in the context of modern economic challenges, which determines the relevance of the studied issues. Various approaches to profit generation are considered. A comparison of the proposed approaches made it possible to determine that accounting profit is a formally confirmed result of activity, and economic profit is an assessment of the profitability of the chosen course of action, taking into account possible alternatives. The increase in profitability of an enterprise is based on the identification and use of profit growth reserves, under which the identified or unused opportunities of the enterprise, which, if realized, can lead to an increase in profit in the short or long term, are determined. Systematization of the company's profit growth reserves is given. The author explores a systematic approach to the identification and implementation of reserves, which involves factor analysis in conjunction with the enterprise development strategy, assessment of possible risks, taking into account the industry specifics of doing business. Factors affecting the company's profit and the nature of their influence are updated and systematized. Basic methods of deterministic factor analysis of enterprise profit were investigated. The comprehensive application of the studied methods of profit analysis makes it possible to more reasonably identify the influence of certain factors on the value of profit, study the structure of its formation, and determine the most promising areas of business development.