A Method For Analyzing Net Product Sales Income In Relation To Sales Profitability And The Degree Of Business Risk For The Enterprise
Abstract
The issue of net revenue from product sales is relevant at all phases and stages of the development of industrial enterprises. The relevance of this question is also strengthened due to the following circumstances, characteristic of the current stage of the country's development:
1) The health crisis caused by the Covid-19 pandemic from the beginning of 2020 and the following years directly affected the Bulgarian economy and caused a deterioration in the values of the indicators characterizing the financial results, financial condition and financial stability of the enterprises.
2) At the beginning of 2022, hostilities began between Russia and Ukraine near the country's territory. A number of sanctions were imposed by the European Union against Russia, which Bulgaria must comply with. At the same time, the contraction of the markets, the deteriorating financial condition of the enterprises and the difficulties in paying off their obligations led to a decrease in the net sales revenue and a deterioration in their financial results, solvency and liquidity.
3) The increased level of inflation in Bulgaria has an adverse effect on the business of enterprises and the country's economy.
4) The political instability in the country, the permanently held parliamentary elections, the lack of a regular government and a working Parliament in the long term also have a negative impact on the activities of enterprises as the main units of the national economy.
The above highlights the importance of issues of net revenue from product sales, efficiency and the level of business risk for enterprises, methodologies for their analysis and forecasts for their future development.
The results of the analysis of the net revenue from sales of production, profitability of sales and the level of business risk are useful for the management of enterprises, especially in the conditions of various types of crises acting simultaneously.
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