Business, Management and Accounting
4 years ago

Maximizing profits: How to boost investment returns and economic value

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DOAJ (DOAJ: Directory of Open Access Journals)
FINANCIAL PERFORMANCE MEASUREMENT - PROFITABILITY OF INVESTMENT AND ADDED ECONOMIC VALUE
Vãduva Cecilia Elena, Văduva Maria

Paper Summary

The article discusses how managers can measure the profitability of their investments by comparing the profit generated with the capital invested. This helps them determine if the returns on their investments are higher than the cost of capital. By analyzing the efficiency of their invested capital, managers can focus on reducing the need for debts and stocks, leading to better financial performance.

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