Financial results - fundamental factor of economic development (a case study at Kosarom joint-stock company of Paşcani-Romania)

Abstract

The authors of numerous studies, specialists from Romania and abroad, agree that in the complex process of economic development, the financial results have a fundamental role. Among the various indicators reflecting the financial results, authors have established a larger space to the profit. Therefore, they showed detailed information on the content and total profit, which has two components (normal profit and economic profit), monopoly profit and unexpected profit, legal profit (legitimate) and unlawful gain (illegitimate). In addition to the analysis of balance-sheet indicators, a special place was occupied by the analysis of the following indicators: indicators of liquidity and solvency, financial balance (risk) indicators, indicators of yield and profitability, indicators of activity (management) and revolving fund indicators. To highlight the relationship between economic development and the above-mentioned indicators, the authors conducted a case study at “Kosarom” Joint- Stock Company of Paşcani - regional leader in the production, processing and valorisation of meat and meat preparations.