main activity of an enterprise in general is the labor process was to determine the impact on the subject of work, by means of labor.In enterprise-wide the property generates productive assets.It is understood that the property must be used as efficiently as possible.Assess the level of efficiency is possible by means of indicators characterizing the profitability of funds.
As already noted, the production assets of its heterogeneous composition.In this regard, they are divided into fixed and circulating.Let us discuss how to determine the return on assets.This is not difficult, since the principle of the calculation of margins is the same: determined by the ratio of profit to the value of what is necessary to determine profitability.Accordingly, in this particular case, the calculations must be used value of fixed assets.It is quite obvious that it can change over time.For a more correct account of these changes is necessary to use the average cost for the period for which the calculated return on assets.
in respect of the profits should be said that usually involved in calculating the sales profit.This choice is based on the fact that this type of profit characterizes result only from the main activity, without being affected by other expenses and income.
Return on fixed assets shows that no matter how effectively they are used.The specific numeric value of the index reflects how many units of profit brings each unit value of the property attributable to fixed assets.Obviously, the larger the figure, the better for the company.This leads to lack of profitability of normative values.
For the second part of the production assets - Working Capital - is also possible to calculate profitability.Basis completely identical, is also used profits from the sales and the average cost for the period of the property.The economic sense, and is also similar is how much profit can bring funds invested in the revolving funds.
total value of assets can also be evaluated in terms of a measure of liquidity, but to dwell on it makes no sense, since the calculation is similar to the previous figures.Greater attention should be determining the profitability of all assets, ie assets.The difference lies in the fact that commonly used net profit.This is due to the fact that the amount of assets include all property, including the one that causes the other income and expenses.In some cases, you can meet the calculation based on the profit before tax, which allows multiple inflate profitability.
As for the next calculation of the analysis, then the return on fixed assets, and all other similar indicators need to be considered in the dynamics.This gives an indication that there is increasing efficient use of resources of the enterprise, decreased or remained at the same level.Of course, such an analysis is necessary to calculate the coefficients for a few years and then determine relative and absolute change.If available, and access to information then can be compared with those of similar companies.A more complex method of analysis, but also more effective, is to conduct a factor analysis.It can help you identify what mostly affects the growth or decline in profitability.In the future, based on the results of this analysis may be taken or that management decisions.
