THE ROLE OF PROFIT IN FORECASTING BUSINESS DEVELOPMENT

The article is devoted to the study of the essence of profit and profitability of production. The role of profit in modern conditions as an important driving force of the economy is determined. It is proved that business development forecasting is a set of studies of all aspects of financial and economic activities using appropriate sources of information, study and measurement of factors, reserves and causes, evaluation of work and comparison of its results with costs, analysis of evaluation results and development of all necessary measures for effective activities of the enterprise. The DuPont model was used to analyze the impact of indicators on return on equity. It is determined that the factor analysis of return on equity makes it possible to determine the influence of factors that affect the performance indicator. It is established that the return on equity depends on three factors: return on sales, asset turnover and the structure of advance capital. These factors summarize all aspects of financial and economic activities of the enterprise, their statics and dynamics. On the basis of the factor model the possibilities of quantitative and qualitative growth of the basic indicators of financial and economic activity of the enterprise which are expressed in unused, partially or irrationally used production resources are defined. Possible reserves for increasing the company's profit in modern conditions have been studied, among which the main ones may be: increasing the volume of production and sales, reducing costs for production and sales, and improving its quality.