Tsitelashvili (წითელაშვილი), Gela (გელა)2022-06-162022-06-162021Economics and Business, №4, 2021, pp. 165-1831987-5789https://dspace.tsu.ge/handle/123456789/1675• Brigham E. & Ehrhardt, M. (2016). Financial Management: Theory & Practice. Mason : South-Western Cengage learning • Chiladze, I. (2018). Finansuri analizi, mesame gadamushavebuli gamocema. [Financial analysis 3rd edition. Tbilisi, “Meridiani”] in Georgian • Chiladze I. (2018). Theoretical and Practical Aspects of Profitability Factorial Analysis. 11th International Scientific Conference: Accounting and Finance: Science, Business and Public Sector Partnership. Journal: Science and Studies of Accounting and Finance: Problems and Perspectives, Volume 12, Number 1, pp. 12-18. 2018, http://erd.asu.lt/ssaf/article/view/269 • Hofstrand D. (2013). Cash Flow and Profitability are Not the Same. Iowa State University. Retrieved from https://www.extension.iastate.edu/agdm/wholefarm/ html/c5-213.html • Penman S.H.(2013). Financial Statements Analysis and Security Valuation (International Edition). New York : published by McGraw-Hill Companies, Inc. • Peterson P.P & Fabozzi F.J. (1999). Analysis of Financial Statements. New Jersey : Published by Frank J. Fabozzi Associates • Pinson L. (2008). Anatomy of a Business Plan: A Step-by-step Guide to Building the Business and Securing your Company’s Future. Tustin : Out of your mind..and into the marketplace. • https://beeline.ge/ka/about-us/about-company / last seen 22 October 2021/ • https://comcom.ge/ge/the-commission/about-commission / last seen 22 October 2021/ • https://corporatefinanceinstitute.com/resources/knowledge/finance/profitability- ratios/ / last seen 22 October 2021/ • shps „magtikomis“, ss „silknetis“ da shps „vioni sakartvelos“ 2016-2020 tslebis pinansuri angarishgeba [2016-2020 Years Audited Financial Statements of LLC “Magtikomi”, JSC “Silkneti” and LLC “Vioni Georgia”. (in Georgian) https://reportal. ge/ /Last seen October 22, 2021/ • https://silknet.com/?module=news&id=165&type_id=1&language=ge /Last seen October 22, 2021/ • https://www.investopedia.com/ask/answers/033015/what-difference-between- economic-profit-and-accounting-profit.asp /Last seen October 22, 2021/ • https://www.magticom.ge/ka/about-company /Last seen October 22, 2021/ • https://www.silknet.com/?module=management&language=ge /Last seen October 22, 2021/The aim of this article is to research and analyze of profitability and financial stability of leading Georgian telecomunictions companies and prepare respective conclusions and recommendations based on the given research. Given analysis is performed based on pre-Covid pandemic period and during Covid pandemic period financial information and based on given research were made respective conclusions and recommendations. We determined potential improvement steps, which should be taken by the company to improve future financial stability and profitability. Based on performed research and analysis, we identified, that pre-pandemic period financial stability of JSC “Silknet” and LLC “Vioni Georgia” was higher, than during pandemic period, when most indicators of companies’ profitability deteriorated, including gross profit margin and operating profit margin. Performed research resulted with following conclusions : Profitability is variable during the analytical period, companies sometimes suffer with loss, JSC “Silknet” and LTD “Vioni Georgia” do not have financial independence. Regarding LLC “Magticom”, its profitability during analytical period has improved significantly, which is caused due to correct cost management. To improve profitability, following recommendations were established : 1. Loss-making companies are suffering from high finance costs and foreign exchange losses. Therefore, it is vital, that companies implement methods of optimization of given expenses or seek alternative and less expensive source of financing. Nowadays, in modern financial system are used various derivatives, which helps companies to reduce foreign currency risk. Example of these derivatives is forward rate agreements, currency futures, options and so on. 2. Regarding operating expenses, companies should seek more efficient methods of management operating expenses. This will give companies more flexibility and additional opportunity to invest free cash flows more profitably. 3. Companies should use multifactorial model, when assessing profitability of enterprise. I our case, model consists of eight variables, which reviews all aspects of enterprise profitability. Adoption of given eight-factor model of profitability will help companies to identify factors, which have negative impact on profitability and resolve them timely.geProfitability, profit, factorial analysis, factorial analysis of profitabilityArticle