Aspects of the relationship between the weighted average cost of capital and profitability indicators of enterprises (საწარმოთა კაპიტალის საშუალო შეწონილი ღირებულებისა და მომგებიანობის მაჩვენებლების ურთიერთკავშირის ასპექტები)

Abstract

The article discusses the indicators of the weighted average cost of enterprise capital (WACC) and the profitability of enterprise activities. The weighted average cost of capital (WACC) is the average rate a business pays to finance its assets. It is calculated based on the average rate of all sources of capital (both debt and equity) of the company, weighted by the proportion of each component. The higher the weighted average cost of capital is above zero and the more stable a potential investor is, the more interested he will be in buying the company's shares. Therefore, it is very important for potential investors. In addition, the managers of the enterprise are responsible for the effective management of the resources entrusted to them, which means that the business must cover the costs and additionally receive a financial surplus or profit. It is also necessary to manage and control the asset utilization ratio. The article presents a comparative characterization of the weighted average cost of capital (WACC) and profitability. Draws relevant conclusions.