Abstract:

This article covers methodological aspects of monitoring financial stability. The purpose of the study is to justify recommendations on abnormal profitability evaluation as a key indicator for efficient growth of business. An assessment framework of abnormal profitability is proposed in the elaboration of the economic value added concept, the abnormal profitability being considered as an excess of the adjusted return on investment above the weighted average cost of capital. The framework has been tested on key industries in the Russian economy. There are reasons given for the abnormal profitability evaluation to be a much needed tool for monitoring companies' financial stability for the purposes of providing sustainable economic growth.