DIRECTIONS OF CRISIS TRANSFORMATION IN THE PROFITABILITY MANAGEMENT OF DOMESTIC ENTERPRISES ON POSSIBILITY

Abstract

The article is devoted to the analysis of profitability trends and production rates of domestic enterprises which are ranked by types of economic activity. Statistical data during 2018-2022 was analyzed, with an emphasis on trends in crisis conditions. A characteristic feature of enterprises is the tendency to become unprofitable under the influence of external factors and a significant increase in profits in the phase of recession. Under the influence of an unstable external environment, most Ukrainian enterprises are unstable and non-adaptive. The most adaptive branches of the Ukrainian economy were identified, which remained profitable in the crisis conditions caused at first by the COVID-19 pandemic, and later by the waging of a full-scale war on the territory of Ukraine These branches are agriculture, forestry and fishing, mining and quarrying, human health, wholesale and retail trade. Industries that have a reserve of opportunities and are promising for development at the state level have been identified. According to RCA index these industries are basic metals, food, tobacco and wood products. Metallurgical production is the most sensitive to changes in the external environment during the crisis period among all other manufacturing branches. The factors that led to the unprofitability of Ukrainian enterprises were studied. Possible ways of increasing their profitability in the long term are systematized. The recovering strategy includes approving an action plan for recovery and reconstruction, improving statistics reporting for monitoring, exemption or reduction of taxes, access to new loans, grant support and preferential loans of front-line enterprises; business modernization initiatives, increasing the relevance of Ukrainian products on the European market, providing technical assistance to support MSMEs, youth and women to promote economic empowerment and improve their technical skills. It is emphasized that there is a need to develop a profit management mechanism as a component of the overall management system at the enterprise. Directions for further research are the study of specific strategic management tools in the context of profitability management in a crisis period.