Author (s): Sirenko K. Yu.

Work place: 

Sirenko K. Yu.,

PhD in Economy, Associate Professor,

Associate Professor of the Department of Economics and Social Sciences,

Academy of the State Penitentiary Service, Ukraine;

ORCID: 0000-0003-2705-0924

Language: Ukrainian

Scientific Herald of Sivershchyna. Series: Education. Social and Behavioural Sciences 2021. № 2(7): 171–185


The purpose of the article is to study the stages of formation and distribution directions of enterprise profits, substantiation of proposals for improving the process of profit management in the enterprise. Profit occupies one of the main places in the general system of value instruments of a market economy. It ensures the stability of the enterprise, guarantees its full financial independence.

The methods of analysis and synthesis, comparison were used in the article. The characteristic of a role of the enterprise profit in the conditions of market economy is resulted. Some types of the enterprise profit in accordance with the given systematization on the basic signs are considered. The main stages of calculation of profit (loss) from operating activities of enterprises are determined. It is proved that the profit from the sale of products (performance of works, provision of services) is the main type of the enterprise profit, which is related to the industry specifics of its activities. An analogue of this term is the term “profit from operating activities”. Enterprises distribute the profits that remain at their disposal to meet various needs: first, it is directed to the formation of financial resources of the state, the financing of budget expenditures. For the purposes of long-term development, the proportion of the distribution of net income for consumption and accumulation is of paramount importance.

The main internal and external factors influencing the profitability of the enterprise are given. It is proved that the effectiveness of profit management processes largely depends on the quality of analysis, the reality of identifying reserves to increase it, the economic justification of plans for the formation and use of profits for the future. Thus, the factor of profit growth is the reduction of production costs. The reduction of production costs most fully reflects the savings of all types of resources available to the enterprise.

Key words: profit, formation, enterprise, distribution, use, estimation.


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