Possibilities for Analysis of Business Performance based on Profit and Loss Account

Author:Univ. Prof. Victor MUNTEANU, Ph. D., Narcisa ANDREI-COMAN, Ph. D. Student, Associate Prof. Marilena ZUCA, Ph. D.

JEL:M41

DOI:

Keywords:performance, economic and financial analysis, intermediate management balances (S.I.G.), profit and loss account

Abstract:
Financial analysis of company´s activity has a key role in assessing and quantifying performance. The main source of data for evaluation of a company is profit and loss account. Profit and loss account (also called income statement) highlight the value flows that have contributed to increasing or decreasing the wealth of an enterprise for a certain period.\r\nIn this study the authors have done an analysis model of enterprise performance based on the profit and loss account, have identified the main sources of information used in analyzing the results and have made a comparative analysis of profit and loss account in Romania, with the Anglo-Saxon and French model, identifying the main advantages and disadvantages of the models analyzed.\r\nAlso, based on information provided by profit and loss account were determined the intermediate management balances (S.I.G.) which is a useful decision-making process tool for structural analysis of revenue and expenditure according to their group by nature, and a basis for assessing the level of activity and enterprise plusvalue released.\r\n\r\n\r\n

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