PROFITABILITY: BAROMETER OF FINANCIAL HEALTH OF ENTITIES

Profitability, as an expression of efficiency, represents a key indicator in the analysis of entities' financial performance, being closely linked to their viability and resilience in an ever-changing economic context. This paper explores the role of profitability as a central indicator of the financial health of entities. The first part presents the theoretical concepts of profitability and the main profitability rations, highlighting how they reflect resourse efficiency, managerial performance and the development potential of entities. The applied section illustratez the practical use of these ratios by calcualting and interpreting them for a selected entity, demonstrating their relevance in evaluating financial performance and supporting informed decizion-making.