Analysis of the Profitability of an SME from the Perspective of Quality Management

Abstract

Profitability can be defined as the positive result obtained by an entity that operates for profit, through the efficient use of material, financial and human resources, in a way that allows it to carry out the activity in optimal conditions for financiers, employees and business partners but mainly to ensure its future performance. There is a direct correlation between the level of performance of economic entities in an economy and its well-being. The stable long-term profitability recognizes an economic entity’s value through performance and efficiency. This paper aims to study the role of quality management in obtaining profitability. In this sense, we conducted a study in a company in Arad, and we calculated specific efficiency indicators from the quality perspective.