JEL classification: L20
The main factors that determine the level of profitability of the enterprise considered in the article: the volume of sold products; pricing strategy of the enterprise; cost of manufactured products, range; labor resources of the enterprise, markets. These factors appear in almost all methods proposed by scientists and reflect the main purpose of the implementation of a method – to reduce costs and increase revenue, which provides an increase in profitability. The main methods of increasing the profitability of the enterprise described, including increasing sales, expanding markets, reducing production costs, increasing product prices in terms of improving product quality by using better raw materials for manufacturing products. Features of increase of profitability of the enterprise through a prism of search of reserves of increase of profit of the enterprise allocated. Organizational methods of increasing profitability identified, which include improving the production process; improving the management and organizational structure; restructuring and diversification of production, etc. Technical methods of profitability growth identified: development of production technologies; mechanization of production; development of innovative products; industrial re-equipment. Economic methods of increasing competitiveness described which include improving the structure of wages; improvement of the tariff system; acceleration of money supply, etc. The mechanism of increasing the profitability of the enterprise, which includes functional, organizational, and economic elements, described. Based on the analysis of methods to increase competitiveness, a method of increasing profitability proposed, which can be adapted to the operating conditions of each domestic enterprise, based on the selection of the factor that most affects the profitability of a particular entity and taking measures to improve its impact on profitability.
Keywords: profit, profitability, methods of estimating profitability, reserves of profit increase.
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The article was received 14.04.2021