profitability, in contrast to the absolute earnings, is a relative measure of profitability of the enterprise.It reflects the state of the company, in which the amount of revenue received from the sale of goods cover all production costs, and its further implementation.In other words, the margin indicates the profitability of the enterprise.
profitability is any entity that receives at least some profit.All margins, which are used in the calculation of the economy, characterized by the relative profitability as a percentage for each type of resource.
There are such types as the overall index and the net margin of the products and the company itself.This product is considered in three variants: implement commodity and individual items.
margin calculated as the ratio of profits to its costs or expenditures of resources.As a relative figure, all the results of the calculation must be multiplied by 100%.
The main indicators of profitability is total and net return on assets;sources of their formation;sales;goods (products, services, works).Objective reflection pattern is able to give a complete set of these indicators.
general profitability of current and non-current assets are defined as the ratio of earnings before interest, tax payments to the average value of all the assets over a given period.The resulting value shows how much money was raised by the company for each ruble of profit.
net return on assets is defined as the ratio of net profit for the one period to the average value of the assets.The result of the calculation shows the impact on the profitability of a business, provide tax deductions and other payments from the resulting profits.
total return on the sources of assets is calculated as the ratio of profit before taxation to the average cost of borrowed assets in the period.This indicator shows the efficiency with which the company disposes of the means at its disposal, regardless of the form of their sources.
Net margin sources of assets is the ratio of the entire net profit for the period of interest to all sources of formation of assets.The resulting figure shows the degree of effective use of resources, depending on the sources of their formation (borrowed, in fact, working, fixed assets).
Profitability of products (goods, works) calculated the ratio of profits to costs of production.This value shows how effective is the production and sale of manufactured goods (services).
total return on sales is a result of the relationship of the sales profit before tax to net revenue received from these sales.The indicator reveals the share of the balance sheet profit in the total income of the enterprise.
net return on sales is equal to the ratio of net profit to turnover and sales revenue (sales revenue).The indicator reflects the pressure of tax payments on the main income of the enterprise in all areas of work.Of particular importance are these figures to the shareholders and creditors of the company.
Net margin shows the degree of effectiveness with which those or other resources or assets of the company.
the performance of the Company are affected by numerous factors.By understanding all the factors of profitability of such circumstances that can influence the formation of profit.They can wear the extensive nature (affect profits by changing the volume of sales) or intensive (impact on profitability by reducing production costs or increase sales prices).
