Any labor activity is characterized by the fact that by means of work produced some effect on the object of labor.With regard to the production of the company a set of tools and objects of labor is the value of assets.It is that part of the property, which is directly involved in production.This reason leads to the particular importance of determining the degree of efficiency of this part of the assets.
easiest way is to use the most popular method of performance evaluation, so we look at how to calculate the return on productive assets.In general, the margins are determined by the ratio of profit to the index, the profitability of which is necessary to learn.With regard to our situation, the return on assets is determined by dividing the profit from sales on the average cost of production assets.
required to explain the choice of these indicators.Let's start with the numerator, where we used the profits from the sales.Of course, we could go in a simple way and use the net profit, as well as in most of the indicators of profitability, but it was not quite right.The fact that the net profit takes into account the financial result from other activities in which the production facilities do not participate.But the rate of profit on sales just yet characterizes the beneficial effect from the sale of pre-manufactured products.
As denominator, it is important to explain the use of it is average.This choice stems from the fact that profit is an indicator accumulated in the period, and during this period the value of the property could change.That in some way to smooth the impact of these changes in the calculations used the average cost.This calculation will be the most precise and correct, but it requires more information and additional labor costs.If you do not have these resources, you can use the value of assets at the end of the period, but it can reduce the accuracy.
As mentioned above, the profitability of assets shows the efficiency of their use.As to the meaning of specific numerical values, it is the amount of profit that is attributable to each ruble cost of this part of the assets.Obviously, the higher the value, the more effective use of resources.
production funds the organization can be divided into two fundamentally different groups: fixed and working.Each of these parts is a means and objects of labor, respectively.In respect of these parts is also possible to calculate the profitability of an identical procedure.Please note that the rate is also better to use the average of the period to make the calculations more accurate.
Return on assets is necessary not only to identify, but also to analyze.Methods of analysis in this case are similar to other indicators of profitability.Suffice it to analyze the dynamics of the index for several periods (carry out horizontal analysis) and compare the values with the average level of the enterprise or with peers.In addition, you can resort to the factor analysis, which will determine the causes of any changes.For this type of analysis is often used methodology experts from DuPont and the corresponding formulas, but nothing prevents you to use other mathematical models that, in your opinion, will more accurately reflect the current situation.
