THE MODERN PARADIGM OF THE PROFIT MANAGEMENT

Abstract

The article is devoted to determining the essence of profit and finding ways to form an effective mechanism for managing profitability. The purpose of any business entity is to maximize profits over the long term. Effective management of benefits at the enterprise serves as a platform for its maximization, increasing the level of competitiveness of the company. The purpose of the study is to determine the nature of profits and mechanisms of effective management of the profitability of economic entities in the context of transformational transformations. In the process of research used general scientific and unique methods of scientific cognition: abstract-logical (in disclosing the essence of profit, in generalizing and formulating conclusions); synthesis and system analysis (to substantiate the essential characteristics of advantage and profitability as a method of managing it); systematic analysis and theoretical generalization (to formulate the feasibility of introducing CVP analysis into profitability management techniques); logical generalization (to substantiate approaches and suggestions for improving the efficiency of enterprise profitability management). According to the results of the study, the factors of influence on profit has systematized. The ways and directions of management of the process of receiving and distribution of benefit have outlined, the mechanism of profitability management has represented. Profitability has determined to be a relative indicator that characterizes an entity's performance in the context of its ability to generate revenue through the efficient allocation and reproduction of productive resources. The dominant factors for ensuring the active strategic development of the enterprise in the context of ensuring its profitability are sufficiency of own capital, functioning of the system of active management, availability of qualified personnel, availability of the latest technologies, use of innovative developments to produce high-quality, competitive products. One of the most effective methods of managing a company's profitability is the introduction of CVP-analysis, which through the system of indicators optimizes the relationship between fixed and variable costs, controls the pricing mechanism, minimizes the level of entrepreneurial risk, monitors financial results (fact-forecast), justifies the device of optimization of financial and economic activity of the enterprise.