Silvana Pašovska – University St. Kliment Ohridski-Bitola, Scientific Tobacco Institute, Prilep, Republic of North Macedonia




3rd International Scientific Conference on Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture – ITEMA 2019 – Bratislava, Slovakia, October 24, 2019, SELECTED PAPERS published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-24-0, ISSN 2683-5991, DOI:




The reaffirmation of the elements of the market economy system imposes the need to redefine
the motives for management and the categories for expressing the efficiency of the business entities.
Accordingly, the substance and the manner of expressing and measuring profitability undergo changes
characteristic in the standards of the market economy and thus the basic starting point for quantifying
profitability is profit. In this way, assumptions are made to understand the purpose of the principle of
profitability that should be studied through the following components and relationships:
• Global relationship between the profit and the assets engaged,
• the partial relationship between the elements of the profit and the elements of the assets engaged,
• analysis and quantification of the factors that determine the size, the structure and the dynamics
of the profit, i.e. the size and dynamics of the engaged assets on the other hand.
Starting from the conclusion that the integral part of the complex of the profitability is the engaged
assets, it is necessary to consider not only the volume of the investment and engagement of those assets,
but also the intensity of their use and spending. The amount of the average engaged and invested assets
is determined by two sizes:
• the amounts of assets engaged and invested in the individual production process cycles, and
• the duration of their engagement.



Profitability, Management, Business, Financial Analysis, Portfolio Investment.


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