COMPARATIVE ANALYSIS OF PROFITABILITY INDICATORS OF TOURISM COMPANIES: THE CASE OF LITHUANIAN COMPANIES

Abstract

The majority of companies aim to make a profit, but at the end of the reporting year they achieve one of two results, either a profit or a loss. This is influenced by an effective analysis of financial results, which is an important tool for financial management, planning and the profitable operation of the company. A detailed analysis allows the identification of loss-making activities, the identification of the elements affecting the financial results and the assessment of the overall health of the company. The analysis of financial results is important not only for the previous accounting period but also for forecasting the future, so forecasting is an important factor to ensure long-term profitability, growth of the company, and to anticipate possible future challenges. Profitability indicators classify a company's return on sales, return on assets and return on capital. Also, a company's profitability ratios show the proportion of profit per euro of sales.