Key Aspects of Analysis of Profit and Profitability of Georgian Winemaking on the Example of JSC “Badagoni”

Profit is the main goal and the ultimate financial result of the business. Profit is an absolute indicator of the business operations of an enterprise and the main source of formation of its financial resources. Profit provides a characterization of the economic result obtained by enterprise as a result of its activities and, as a key indicator for assessing the activities of the enterprise, profit contributes to an increase in production, sales and product quality. The analysis of profit indicators allows us to draw important conclusions, but does not show the level of use of economic resources by the company. It is noteworthy that the starting point of a company's financial conditions and its stable business development largely depends on the efficient use of the economic resources. For these purposes, the relative rate of return – profitability - is used, which is calculated on different bases, for example: indicators of operating expenses, total expenses, average annual value of assets, capital employed, etc. The profitability analysis improves the results of the performance analysis, since it is the profitability ratios that characterize the level of efficiency of the resources used. Considering all the above, we can say that profitability is also a strong indicator of the quality of the assessment of the management of enterprise, since it determines how purposefully the management uses the economic resources of the company. Thus, the main task of management is to guide and control the indicators of the profit and profitability. In this article, a study of the main issues of the analysis of profit and profitability was carried out on the basis of the audited financial statements of the JSC “Badagoni” for the production of Georgian wine for 2018-2019. The document outlines the directions for improving the company's financial results and outlines measures for increasing profitability. Keywords: Profit; Earnings, Operating Profit; Advanced Capital; Profitability, Profitability Factor Analysis