Any enterprise must necessarily be assessed from different perspectives and for different purposes: for the adoption of certain management decisions, determine the extent of the investment attractiveness and the like.One of the parties, the assessment of which is mandatory - it is efficiency.To this end, make the analysis of profitability and profitability.
profitable enterprises is that it is obvious from its name, its ability to be profitable.The concept of profitability, in turn, characterizes the specific level of profitability.It is clear that the fact that profitability does not allow to accurately assess the effectiveness, so decision-making is carried out calculation of profitability.
Any margins calculated by the same procedure, undergoing only minor changes.These figures are relative, therefore, they are defined as a ratio.The formula for each of them is a fraction, the numerator of which is the profit, and the denominator - the index of profitability which is subject to the study.It should be noted that the calculation of the profitability of the enterprise can be made and factors, but most often the result of calculations is increased a hundred times, to get the result as a percentage.
Perhaps we should focus on what margins are calculated frequently.It is obvious that the necessary information is taken from forms of financial statements.Earnings per present all indicators, so first consider those that can only be determined on the profit and loss account.The greatest interest in this case, will represent the return on sales and production.The first indicator is the ratio of profit to revenues.Obviously, he characterizes the share of profits in the most revenue.As for the profitability of products, in the denominator of the indicator is the cost price.The meaning of the calculation is to determine the magnitude of the profit, which brings every ruble implemented production costs.
Calculation of profitability would be incomplete without evaluating the effectiveness of the use of its property.The property of the enterprise, as you know, is presented in the balance sheet assets.The effectiveness of the use of property is determined by calculating the return on assets as a whole and for individual groups.Accordingly, to determine the level of profitability necessary to divide the profit in the amount of total assets (total balance sheet) or the value of current and non-current assets.
Considering profitability, we have not decided on what the rate of profit should be used in their determination.The most commonly used net profit, as it was she who makes the final financial result.However, in some cases resort to calculations based on other earnings.Thus, the profit margin can be calculated on the basis of return on sales, and return on assets are often calculated on profit before tax.This is due to the fact that it is necessary to choose the one indicator that most economic sense for the calculated profit ratio.In addition, some form of profit into account the influence of certain factors, but does not take account of other less significant.
Be sure to keep in mind that the calculation of the profitability of the enterprise must be supplemented by analysis.The most commonly used method of analysis are comparisons.Profitability can be seen in the dynamics, comparing with previous periods.In addition, it makes sense to make comparisons with those of other similar companies or with the average values.A more sophisticated method is to factor analysis.Its use allows us to estimate the actual quantitative effect on certain indicators of the profitability of individual factors and their combination.
