levels of profitability used in the calculation, make it possible to characterize some profitability.There are products and profitability of the enterprise as a whole.This indicator can be used in the analysis of three factors: sales, individual products and heading as a whole.The levels of profitability of sold products can be characterized by calculating the ratio of the corresponding profit to the total cost.When calculating the profitability of the whole of heading used a similar formula, but takes into account the profits from the sale of a commodity item and its cost.
levels of profitability of individual products are calculated by taking as a basis the ratio of profits per unit of the product to the appropriate cost.Thus the profit on the product shall be calculated by finding the difference between its cost (wholesale) and cost.
level of overall profitability can be defined as the ratio of profit (balance) to the average value of fixed assets involved in the production process, as well as working capital, calculated on the basis of accepted standards.In other words, it is safe to assert that this figure is an indicator that reflects the growth of the total invested assets (capital).
analysis of the level of profitability is the basis of calculation of the prospects of a business entity, based on its economic performance.However, these calculations should be supplemented also by two key indicators such as return on capital and the number of revolutions of the total turnover.
Revolutions capital - the ratio of revenue analyzed subject to the sum of its capital.It is assumed that the greater the amount of the gross proceeds of the enterprise, the greater the number of revolutions of its capital.
profitability indicators turn affects the relationship between the total turnover of the entity and its cost (cost).It should be noted that the higher the level of profits in comparison with the total revenue of the company, the profitability of the turnover is the best indicator.
contain a basic level of profitability of the indicators - the ratio of total profit to the value of assets.
For practical and economic calculations, it should be noted a large number of factors that reflect both external and internal influence.This includes external factors that do not depend on the work of an enterprise (for example, can serve as material prices, freight rates and the depreciation rate).These activities are carried out in a general scope and have a significant impact on the overall results of the economic and financial activities of a business entity.Changes in the structure of the product range affect the volume of sales of finished products, as well as cost-effectiveness and cost of production.
main task of economic analysis is the timely detection of the negative impact of external factors, as well as the determination of the amount of profit that can be obtained as a result of the impact of internal factors.In this case, you can not do without the calculation of the efficiency of use of all production resources.
