Analysis of Ukraine’s construction companies profitability as a tool for achieving the SDG

The volumes of completed construction works in Ukraine over the past eight years are analyzed. The factors influencing the profit formation of construction companies are highlighted and presented. Subjects of institutional influence on the formation of construction companies profit are defined. In the process of profitability analysis of the main activity of Ukraine’s three construction companies the dynamics of individual indicators for five years are determined. Conclusions regarding the trends of the gross profitability of assets, the gross profitability of invested capital, the profitability of products, the gross profitability of sales and the gross profitability of equity capital are formed. Interrelationship between operational, production and financial cycles is established and presented. The expediency of calculating of three profitability indicators by construction companies, in particular profitability of the operating cycle, profitability of the financial cycle, profitability of the financial cycle is proven. Appropriate formulas for such calculations are developed. The dynamics of the proposed profitability indicators of operational activity are determined and analyzed (three construction companies of Ukraine are taken as examples). The main ways for increasing profitability of construction companies are defined.


Introduction
The effectiveness of any economy directly depends on the stable development of all its branches, and, in particular, the construction sector, the subjects of which are especially keenly aware of the need to attract additional resources and improve the investment climate.Increasing of construction volumes will contribute to achieving the SDG.For example, if the volume of construction increases, a larger number of workers will be involved, which will make it possible to reduce the number of the unemployed population.Their high-quality performance of their work will allow them to receive decent wages and ensure a decent existence.In this case it is about achieving SDG 8. Also, the increase in buildings will allow refugees to return to Ukraine.There are about 5 million of them by the end of 2022.The invaders destroyed the houses of many residents of Ukraine, some of whom went abroad, so the active construction of new houses is timely.People will return to Ukraine if they know that they will be provided with housing conditions.It is meant to achieve SDG 11.An increase in construction volumes is possible when the construction company has high-quality management staff, able to make economically justified decisions.Such decisions must be based on a reliable information that can be obtained from the accounting and economic analysis system.As a rule, effective management solutions are based on operational data, in particular regarding the financial results and profitability of the activity and prospects for the construction business implementation.Therefore, it can be confidently stated that the effective and high-quality performance of analytical work at the construction company will make it possible to increase the level of its profitability and contribute to the expansion of the scope of construction works.The above will in turn affect the achievement of the SDG, declared on the world stage.
Currently, in the conditions of the war in Ukraine, extremely complex crisis processes are observed in economy.Thus, it is extremely important to look for available reserves to increase profitability, which would allow economic entities, in particular, construction companies, to conduct uninterrupted activities, to carry out simple and extended reproduction.The high cost of borrowed funds, the rapid depreciation of the national currency value, the small domestic marketall these factors contribute to increasing the relevance of the study concerning aspects of profitability managing of the company to ensure its effective operation.Profitability is an indicator that characterizes the effectiveness of the financial and economic mechanism of the company in conditions of tough market competition as well as the global economic crisis.This is also an integral indicator that reflects the efficiency of the company, which is aimed at obtaining profit in the short term and which indicates the quality of management decisions related to the financial, operational and investment activities of the company.
According to the State Statistics Service of Ukraine, during 2014-2022 the volumes of construction increased.However, the war made its adjustments (table 1).Source: compiled by the authors based on the data of the State Statistics Service of Ukraine [1] Therefore, in 2022 the profitability of operational activity of construction companies was -2,4%, profitability of all activity was -6,6% [1].The construction industry has not experienced such low profitability for many years.The presence of martial law in the country is the unequivocal reason for this.The specificity of economic activity by construction entities is determined by its features, various organizational forms and scope of construction works.This actualizes the need to solve problems related to the management of construction companies from the standpoint of ensuring their sustainable development and recognition by subjects of increased public interest.With such an approach comprehensive information produced by the analytical system and related to all aspects of construction companies activities, in particular, profitability, acquires special importance.

Literature review
Profitability as a relative indicator characterizing the efficiency of economic and financial activity of the company was and still remains the subject of attention of many scientists.
The study of the profitability essence involves a retrospective analysis of the interpretation of the profit essence.Even in Ancient India increasing treasury revenues at the expense of the royal economy's profits was declared the goal of state administration.Profit was considered the motive for trade activity and was fixed at the level of 5% for local goods and 10% for imported goods.In ancient Greece the excess of received income over invested resources was interpreted as a way of enrichment and accumulation of money for the expansion of natural production.According to one of the approaches to the interpretation of value, proposed by A. Smith, profit, wages and rent form exchange (natural) value.Profit was interpreted by scientists as income on capital.Adam Smith's ideas were further reflected in the writings of D. Ricardo, who understood profit as an excess of value over wages, and believed that profit depends on its size.The English neoclassical economist A. Marshall identified two independent types of remuneration as part of profit: entrepreneurial income (reward for entrepreneurial activity, compensation for negative emotions) and interest.The English economist J. Hicks did not support this position, according to which the demand for a product does not depend on the consumer's income, but proclaimed the "income effect" (the dependence of the demand for a product on the amount of an individual's income).A. Marshal understood profit as a fee for monitoring and managing production, considering it a type of salary and labor income, which does not fully reveal the essence of this concept.The American economist E. Chamberlain argued that the maximization of monopoly profitthe main goal of the market strategy of the manufactureris achieved by reducing production volumes and increasing prices.Systematic obtaining of monopolistically high profits is possible in conditions of monopolistic competition.The need to calculate the financial result of activity arose during the period of capitalist production and led to such five theories of profit (of productive capital, of containment, Labor theory, Functional theory, Psychological theory).
Currently, scientists also actively research the categories of profit and profitability in their works, in particular in terms of accounting, analysis, distribution and management.Individual scientists not only analyze profitability but also develop mechanisms for its forecasting.This makes it possible to provide high reference value to users at various levels, including management and investment groups.For instance, the paper [2] studies the activities of Chinese construction companies and predicts their profit level.This starts with selecting individual profitability measures from different perspectives and then constructing a composite index to more fully capture a company's profitability.
The construction industry is traditionally considered very complex due to the long duration of the construction process and the involvement of a significant number of participants in the construction process (developers, customers, contractors, subcontractors, etc.) [3].Actually, the presence of such a large number of diverse participants is the reason for the emergence of various risks [4].Therefore, there are many problems in estimating profit due to various risk factors that arise at numerous stages of the construction process.Construction projects are generally not cost-effective due to time, cost, and scope issues [5].Profitability is the ultimate business goal of most construction companies and an important element in meeting the demands of construction project stakeholders.Therefore, it is important to highlight the risk factors that affect profitability and the problems that lead to project complexity, increased impact and, ultimately, reduced profitability [6].An attempt to develop NNM and MRM models in order to forecast the profit of construction companies was made in article by H. H. Mohamad, A. H. Ibrahim, H. H. Massoud.23 factors influencing the profit of construction companies were identified: business size, sales growth, operating cash flow, return on assets, leverage firm debt ratio, firm market power, cash conversion cycle, working capital policy, inventory turnover rate, inventory management efficiency, receivables management efficiency, liabilities management efficiency, tangible assets ratio, average collection period average payment period, level of economic activity, market performance, inflation rate, financial distress, demand on construction, competition, cost of external financing [7].The study by S.Jahan, K.I.A. Khan etc. identified rising material costs, supply chain issues, payment issues, planning and scheduling issues, financial difficulties, and ineffective control of human and equipment resources as the most critical factors affecting construction profitability [8].For the proper calculation of profit, it is very important to keep records of income and expenses correctly, especially innovative ones, which is emphasized in work: [9].
Mehdi Khazaei believes that identifying of factors which affect profitability is very important.It is the analysis of profitability that allows users of accounting information to analyze the factors affecting the profit, performance of the firm and various aspects of its activity.They can make important strategic decisions based on this information.The author investigated the influence of some factors of competitiveness, entrepreneurship and indicators of the business environment on the profitability of 1269 (2023) 012033 IOP Publishing doi:10.1088/1755-1315/1269/1/0120334 176 leading companies in the world.Annual reports of the World Bank, Global Competitiveness Index, Global Entrepreneurship Monitor and Fortune website were used to collect all needed data.The results of the conducted research confirmed the existence of a positive relationship between the indicators of competitiveness, entrepreneurship and the business environment with the financial indicators of the world's leading companies [10].The article by E. Vítková, J. Chovancová defines the impact of income and its changes on operating profit.Sensitivity analysis was used to assess exposure.The analysis was conducted on the basis of the financial statements of the SKANSKA construction company operating in the Czech Republic.It was found that a 5% increase in revenue resulted in a higher absolute value of the impact on the operating result than a 5% decrease in sales volumes [11].
C. Figueroa, G. Iberti, R. Wagner considered refinancing problems.They used both parametric and non-parametric methods and perform various robustness checks.They found that unknowns of financial constraints were fully correlated with reinvestment of earnings.At the same time, since smaller firms in terms of sales per employee usually reinvest a larger share of profits [12].Jesus T. Pastor, José Luis Zofío, D. Pastor attempted to decompose profit inefficiency using alternative measures of technical inefficiency in their study.They proposed a new equality-based decomposition that starts with input and output slacks connecting the company to a marginal benchmark derived from a predefined measure of technical inefficiency [13].Profitability, inefficiency of profit distribution and changes in labor productivity are investigated in the publication by M. Mocholi-Arce, R.Sala-Garrido, A. Maziotis [14].The aim was to evaluate the profit efficiency and establish the change in the productivity of a sample of companies in a unified way.In separate studies attention is drawn to the need to diversify incomes in order to increase the level of profitability of a business entity [15].A firm's level of profitability directly affects future stock returns.The study of the profitability effect was carried out in the works: [16,17].Development of multi-factor asset pricing models taking into account the factor built on the basis of profit information is covered in works: [18,19].Sustainable development criteria for construction companies are proposed in the work: [20].Nevertheless, the problems of analyzing the profitability of construction companies from the point of view of achieving the goals of sustainable development remain understudied.

Material and Methods
Theoretical generalizations and arguments of the author's conclusions are based on the use of such general scientific methods as: induction and deduction; synthesis and analysis; generalization; modeling; interviews and retrospective analysis.In this study we will analyze the dynamics of profitability indicators of the main activity of three construction companies.For this purpose we will use the financial statements of these construction companies.We will also suggest the use of formulas to determine the profitability of cycles.We will try to make their practical use on the example of three construction companies and analyze the obtaibed results.The official statistical data of the State Statistics Service of Ukraine, regulatory and legal documents, scientific articles on the problems of financial results analysis, financial and statistical reporting of construction companies of Ukraine, as well as the authors' own developments are the information base of the research.

Results
The profitability of any company primarily depends on the amount of profit.The activity of each business entity is aimed at financial results maximizing in the present time as well as in strategic perspective.A positive financial result illustrates stable development, efficient management and is the main factor in formation of the company's financial resources.Financial results are one of the key objects of scientific research in the field of economics and determining their essence in the general economic aspect involves harmonizing the nature of the ratio of revenues of the reporting period to incurred expenses.Analysis of numerous definitions of profit indicates the existence of various definitions of it.In particular profit is defined as excess of income over expenses; the portion of net income that remains with the company after reimbursement of expenses equity growth; reward for entrepreneurial activity in the form of economic effect; a component of the company's own capital; 1269 (2023) 012033 IOP Publishing doi:10.1088/1755-1315/1269/1/0120335 part of the proceeds; the difference between the total amount of income and expenses; part of the cost of a profitable product; transformed derivative form of surplus value; system of relations between entrepreneurs; monetary expression of part of the value of the additional product.
The profit of construction enterprises is formed as an excess of income over expenses.At the same time it is taken into account that there is entrepreneurial potential (object and subject), there are economic risks (operational, financial, investment and innovation), and competitive advantages are also available (internal and external).Factors influencing the profit of construction companies can be divided into the following groups: external and internal factors (Fig. 1).  the method of creating a reserve of doubtful debts; methods of assessing the degree of completion of works; methods of accounting for production costs; the mechanism of distribution of general production costs; cost calculation procedure; accounting policy changes.The company's accounting policy is rather important internal factor.Criteria for including the facility in fixed assets and low-value non-current assets; creation of a reserve of doubtful debts; methods of assessing the degree of completion of works; method of accounting for production costs; the mechanism of distribution of general production costs; the procedure for calculating the cost price, etc. are defined precisely in the Order on the accounting policy of the construction company.
According to the results of a study regarding the indicators of the economic activity of 80 construction companies of G.B., carried out by English scientists S. Akintola, R. Martin using elements of economic modeling, it was established that there is a positive correlation between the level of profitability and such factors as: the size of the economic entity, diversification of types of construction.It was also found that residential construction itself is characterized by a higher level of profitability.On the other hand, scientists have not confirmed the dependence of profit dynamics on the volume of completed construction works [21].However, the construction companies of Ukraine operate under different economic conditions, accordingly, the amount of their profit is significantly affected by the volume of construction work.Taking into account the fact that the amount of profit depends on external factors, it is advisable to focus on taking into account the influence of the institutional economy on the accounting of financial results.Factors affecting the profit of construction companies in the context of institutional changes are shown in fig. 2. Institutional changes (economic, political, social, psychological, accounting, intra-firm) Factors affecting the size of profit (external, internal (accounting, production, non-production, extensive, intensive)) The The institutional environment shapes institutional changes, and vice versa: changes affect the institutional environment.The main factors of the external institutional environment are tax policy; regulatory framework, including that regulating the methodology for determining financial results; informational and consulting support; the scale of the shadow economy; scientific and technical progress; globalization.There are formal and informal institutions in institutional environment.Formal are those rules and mechanisms that are provided by normative legal acts; informalare generally accepted norms of human behavior (traditions, customs, moral values).
It is advisable to divide the factors of the institutional environment that affect the accounting system into factors of an objective (exist objectively) and subjective nature (depend on the actions of specific people who belong to individual institutions).Therefore, the factors have an impact on institutional changes, which depend on the institutional environment, under the influence of which the factors influencing the amount of various types of profit are formed.These factors also affect the amount of transaction costs, in particular such as: license costs, permit documentation, demand study, construction market research, search for potential investors, clients and customers, information on prices, quality of construction structures and materials, business reputation of counterparties, fees for insurance services, notarization of documents, calculations, quality control of erected buildings and structures, court costs, losses from unsuccessfully concluded contracts and construction contracts.The implementation of transaction costs negatively affects the financial results of construction companies, which are interested, first of all, in their maximization.
According to the classical theory of the firm the global strategic goal of the company's activity is determined by the maximization of its profit.The company should focus its activities on achieving the set goal both in the short-term and in the long-term, depending on the horizon of developing a strategy.However, pure profit maximization as an company goal is rarely outlined in strategic plans.Most often, the main purpose of activity is to obtain profit, which the company considers sufficient to satisfy the economic interests of all participants in economic relations (target profit).Information about the level and behavior of financial results is important for decision-making at the strategic and tactical levels.Construction is characterized by a very high level of competition.This external factor creates significant threats to the functioning of most construction companies.Therefore, it is vital for them to have a sufficient amount of analytical information, the use of which will enable the acquisition of competitive advantages.While ensuring competitiveness, the construction company must at the same time assess threats to its economic security, relevant economic risks, and, if necessary, take operational measures to strengthen it through the elimination or neutralization of business risks.
On the basis of a comprehensive approach an analysis of both absolute and relative indicators of financial results, including various types of profitability, is carried out.The list of relative indicators of profitability is significant.The following profitability indicators are most often analyzed: profitability on assets, profitability on capital, profitability on product (individual types of products), profitability on labor costs, profitability on production capital, profitability on equity, profitability on cash flow, profitability on activity (return on costs), profitability on investment (of invested capital), profitability on operating activity, profitability on operating capital, profitability on working capital (current assets), profitability on non-current assets, profitability on fixed capital, profitability on main activity, profitability on borrowed capital, profitability on positive cash flow, profitability on production staff, profitability on main staff, profitability on total capital, profitability on financial investments, profitability on working capital, profitability on net assets, profitability on net cash flow etc.The indicators of the profitability of assets, current assets, equity, investments, individual types of products, activities (return on costs), operational activities, sales are the most important and those that form a general idea about the effectiveness of the main activity of construction companies.
The results of the analysis of the essence of the listed indicators make it possible to draw conclusions about profit maximization.Using the example of three construction companies in Rivne city we have determined the dynamics of individual indicators, namely, such as: gross profitability on assets, gross profitability on capital employed, profitability on production (product profitability), gross profitability on sales and gross profitability on equity.Since the financial result of the main activity is gross profit (loss), the calculation of the declared indicators was performed using the gross profit (loss) indicator, and not the net profit or profit of operating activities (table 2).

Source: calculated by the authors
The results of the analysis give reasons to state that the PC "Rivnespetsbud" is characterized by the highest indicators of profitability of the main activity, which is explained, first of all, by the dynamics of gross profit.However, in recent years the values of the indicators have significantly decreased.Only the value of Gross profitability on equity still remains high.LLC "Renome-Eurobud" is characterized by lower gross profit growth rates in almost all years.Gross profitability on equity has the highest value of all profitability indicators.On the other hand, the values of other indicators of profitability are quite low.PJSC "Rivnebud" operated with a gross loss in all but three years during the research period and profitability indicators have negative values.In the last two years all profitability indicators have acquired positive values.The results of the analysis of profitability are very valuable and can become the basis for making important management decisions.
The profitability of construction companies is affected by many factors, which we have considered above.The position stated in study: [22] is also rather interesting.The authors concluded that managing working capital investments and digitally communicating with customers through a company's social media accounts has a positive impact on a company's profitability.Individual companies actively use the indicator of return on invested capital (return on investment) (ROI) as a share of the division of the operating profit of the unit and the value of the assets at its disposal.It indicates the actual income from invested capital.Despite the long-term use of this indicator, evaluating the work of managers of a separate division using it is not always rational, because often the tasks of a separate division may not coincide with the general strategy of the company.Using ROI to evaluate the performance of divisions can lead managers to abandon investments that, although profitable for the company, reduce the ROI for the division.To overcome certain dysfunctional consequences from the application of ROI, it is proposed to use the indicator "residual income", which is defined as the controlled contribution to profit minus the cost of capital accrued on investments in assets involved in the division.Difficulties in calculating the absolute indicators needed to calculate the residual income often make it impossible to compare the efficiency of one division with others.
Therefore, the indicator also has certain shortcomings, which intensified the search for new simplified methods of calculating profitability indicators.This indicator is used frequently in construction.
The peculiarity of construction is that it is characterized by a relatively long technological process, so it is advisable to analyze the dynamics of financial results after the end of the reporting period.It is quite difficult to conduct it in relation to a specific construction object.Therefore, for a comprehensive assessment of the operational efficiency of construction companies, we suggest using profitability indicators of cycles, in particular operational, production and financial.Their method of calculation is influenced by the mechanism of calculating the actual duration of the listed cycles.Thus, the duration of the operating cycle is traditionally calculated as the sum of the duration of the production cycle and the period of turnover of receivables; productionthe sum of the turnover periods of production stocks, work-in-progress and finished products; financialthe difference between the duration of the operating cycle and the period of turnover of accounts payable (Fig. 3).

Fig. 3. The interrelationship between operational, production and financial cycles Source: developed by the authors
Reducing the duration of operational, production and financial cycles enables the construction company to work more efficiently, improve business activity, speed up turnover, and increase profitability.The existence of an inverse relationship between the duration of the financial cycle and the profitability of the firm is also indicated by foreign scientists P.D. Hutchison, M.T. Farris and S.B. Anders [23].Shortening the length of cycles can be achieved by optimizing the production process as a whole and reducing the collection period of receivables.
The operating cycle is the period of time between the purchase of stocks for carrying out activities and the receipt of money and their equivalents from the sale of products or goods and services produced from them.This is the period of turnover of current assets, during which there is a change in their individual types.Since construction usually begins with the receipt of advances, when calculating the profitability of the operating cycle, the balance of funds in the current account and in the cash register of the construction company should be taken into account.During the operational cycle, advances are received from customers, construction materials are purchased from suppliers, funds are transferred from the current account, construction materials are written off to work in progress, they are transformed into construction products, which are subsequently sold to customers, which until the moment of final settlements are accounts receivable.Thus, the calculation of the profitability of the operating cycle in construction should be carried out on the basis of taking into account the average annual cost of money, production stocks, work in progress (if any) and accounts receivable (1): POC -profitability of the operating cycle; POAprofit from operating activities; M -average annual amount of money and their equivalents; PS -average annual cost of production stocks; W -average annual cost of work in progress; R -average annual receivables for goods, works, services.
Production cycle (the sum of the turnover periods of production stocks, work-in-progress and finished products)

Operating cycle
Payables turnover period Financial cycle (1) Consequently, the denominator of the proposed indicator does not reflect the indicator of the average annual cost of finished products, taking into account the that erected buildings or structures for construction companies are not finished products.Accordingly, if specific amounts are recorded under the line "Finished products" in the balance sheet (statement of financial position) for the reporting period, then this refers to other types of activity (which is observed extremely rarely), and not to the main onethe actual execution of construction works.Therefore, the use of this indicator is impractical for calculating the profitability of the operating cycle in construction.The profitability of the operational cycle in construction shows the profitability produced by the processes of operational activity, starting with the purchase of construction materials and other material circulating assets, and ending with the receipt of funds from debtors (customers and buyers) for the sale of construction products.
The production cycle in construction begins with the arrival of construction materials and other material current assets in the warehouse of the construction companies and ends with the transfer of construction products to the buyer or customer, that is, it characterizes the period of complete turnover of material components of current assets.The production cycle in construction is the sum of the turnover periods of production stocks, work-in-progress and finished products.Since construction companies do not record balances on account 26 "Finished products", the calculation of the profitability of the production cycle in construction should be carried out according to formula (2): РPC -profitability of the production cycle; GP -gross profit; PS -average annual cost of production stocks; W -average annual cost of work in progress.
Profitability of the production cycle in construction should be calculated on the basis of gross profit, not operating profit.This indicator illustrates the profitability produced by the processes, starting with the purchase of raw materials and construction materials used to service the construction process, and ending with the transfer of construction objects to customers or customers.The financial cycle is a time interval during which own working capital completes one turnover, starting from the moment of payment for construction materials and other tangible current assets purchased from suppliers (repayment of payables) and ending at the moment of collection of receivables, i.e. when settlements with buyers are made and customers.Thus, the calculation of the profitability of the financial cycle in construction should be based on taking into account the indicators of the average annual cost of money, production stocks, work in progress, receivables minus average annual value of accounts payable (3): PFC -profitability of the financial cycle; POA-profit from operating activities; M -average annual amount of money and their equivalents; PS -average annual cost of production stocks; R -average annual value of receivables for goods, works, services; W -average annual cost of work in progress.AP -average annual value of accounts payable.
The profitability of the financial cycle in construction reflects the profitability generated in this cycle.At the same time, the financial cycle should not be identified or connected with the financial activities of companies.It should be noted that the duration of the financial cycle and, accordingly, the profitability of the financial cycle, the duration of the operating cycle and the profitability of the operating cycle in construction are significantly affected by the turnover period of receivables and (2) (3) payables and the ratio of the average annual receivables and payables.The calculation of the proposed indicators for the studied construction companies of Rivne is presented table 3.For LLC "Renome-Evrobud" and PC "Rivnespetsbud" the indicators of the profitability of the production cycle are the highest compared to the profitability of the operational and financial cycle, which is explained by the method of calculating these indicators.Construction companies are characterized by a significant excess of the average annual receivables over the amount of the average annual payables for goods, works, and services.This is explained by the fact that construction companies can sell construction products and receive money for them in a timely manner.One construction enterprise can simultaneously work with a significant number of customers, contractors, subcontractors, developers etc. PJSC "Rivnebud" has indicators of unprofitability of the production cycle in 2018-2019, which is explained by the corresponding dynamics of gross profit (loss).In other years PJSC "Rivnebud" received a gross profit, accordingly, the profitability of the production cycle is observed.The presence of positive values of operating profit made it possible to calculate the profitability of operating and financial cycles.By analogy with other construction companies of Rivne, it is the profitability of the production cycle of PJSC "Rivnebud" that is of the highest importance, which is explained by the fact that the companies have insignificant remaining production stocks.On the other hand, not all construction companies under investigation show unfinished production on the balance sheet.Thus, tracking the dynamics of the proposed indicators significantly increases the informativeness of the data and, undoubtedly, affects the adoption of management decisions.In addition to these indicators, evaluation indicators closely related to construction should be taken into account, which reflect its effectiveness in various ways.
Profitability, as an indicator characterizing the profitability of the business, forms an idea of the sufficiency or insufficiency of profit compared to other selected values that affect production, sales and economic activity in general.In conditions of fierce competition, profitability illustrates the adequacy of the management system, the degree of return on the costs incurred, the expediency of management decisions and their effectiveness, the level of use of invested funds.The necessary level of profitability can influence the solution of a number of tasks that determine the efficiency of management.The content of analytical support of profitability management operational activity of construction companies consists of formation, generalization, accumulation and analysis of information about the factors influencing the level of profitability, in particular about the results and costs of activities.It is the systematization and structuring process of information generated by accounting and economic analysis systems in order to satisfy the information requests of managers in making decisions adequate to the situation regarding the improvement of the construction company operational efficiency.

Conclusions
Since profitability reflects the level of the management efficiency of the company, the tasks of it's managing should be directed, first of all, on profit indicators.Undoubtedly, profit is an important and main driving force market-type economy, a certain guarantor of socio-economic progress systems.Factors influencing the profit of construction companies are traditionally divided into the following groups: external and internal factors.External factors do not depend on the activity of the company.Internal factors are classified into production and non-production factors.This is explained by the fact that construction company in addition to the main activity can be engaged in other activities where non-production fixed assets are used.The listed factors are closely connected and interdependent in the process of conducting activities.
Ensuring high-quality management decisions requires taking into account the specifics of construction companies.The long duration of the construction process is the main one.It is proposed to use indicators of profitability of cycles: in particular, profitability of the operating cycle, profitability of the financial cycle, profitability of the financial cycle in order to evaluate the effectiveness of the operational activity of construction companies.The developed algorithm for their calculation will provide justification for measures to improve the performance.The calculation of the proposed indicators for the studied construction companies of Rivne city is presented in tabular form.It was established that for LLC "Renome-Evrobud" and PC "Rivnespetsbud" the indicators of the profitability of the production cycle are higher compared to the profitability of the operational and financial cycle.It is affected by the methodology of their calculation.
The main ways for increasing profitability are as follows: reduction of production costs due to increased labor productivity, economical use of raw materials, fuel, electricity, equipment; increase of construction volumes; application of the most modern means and technologies for construction; reduction of the cost of construction products; increasing the efficiency of construction products sales, expanding markets; improvement of advertising activities, implementing an effective pricing policy; elimination of the cause of overspending of financial resources on managerial and commercial goals, its situational adjustment; effective marketing policy.
Qualitative analytical information about the profitability of construction companies can become the basis for making decisions of a tactical, operational and strategic nature.Such decisions are usually aimed at ensuring an increase in volumes of completed construction works.Moreover, the income increase directly affects the level of profitability.In turn, an increase in construction volumes will contribute to the achievement of the SDG if the construction company will attract new employees to expand the volumes.This will definitely improve the level of employment of the population.Their high-quality performance of work will allow them to receive a decent salary.If the volume of construction, in particular residential, increases in Ukraine, it will make it possible to provide housing for refugees who are gradually returning from abroad.Some of them lost their homes due to the aggression of the invader.People will return to Ukraine if they know that they will be provided with housing.Therefore, high-quality and timely analytical support regarding the level of profitability of construction companies affects the adoption of rational management decisions.The consequences of them can influence the level of SDG achievement.

Fig. 1 .
Fig. 1.Factors influencing the formation of profit of construction companies Source: developed by the authors External factors do not depend on the activity of the company.Internal factors are classified into production and non-production, since construction company, in addition to the main activity, can be engaged in other activities, in conduct of which non-production fixed assets are used.Extensive factors affect the amount of profit through quantitative changes, intensivethrough qualitative

Fig. 2 .
Fig. 2. Subjects of institutional influence on the formation of construction company's profit Source: developed by the authors

Table 1
Volumes of completed construction works in Ukraine

Table 2
Dynamics of profitability indicators of the main activity of construction companies