Any entity created for any purpose.Typically, this objective is to obtain a certain effect.The effect can be social, environmental, some other, but most of the effect is expected to obtain economic.Under it, in this case it refers to the profits that should bring entrepreneurship.If this effect is present, then the company may be called profitable, however, different organizations for a number of reasons for generating profits of different sizes.In order to compare them with each other as well as to study one company in terms of profitability over time, produce a calculation of profitability indicators, which characterize the relative level of profit.
structure of profitability is the same: the numerator is a certain kind of income, and the denominator - the fact that profitability is determined.Usually calculated return on any resources that allows us to estimate the degree of efficiency of their use.The final result of the operation can be represented as a percentage and as a coefficient.Consider the example of a number of indicators, which are defined more often.
profit enterprise established in the implementation of activities for which it is used, or other property owned.It is, as you know, is reflected in the asset balance sheet.Return on assets is the ratio of profit to the balance sheet.The calculations can be used either net income or profit from sales.In addition, it makes sense to evaluate the effectiveness of each of the large groups of assets, the balance sheet - non-current assets and working capital.Profitability indicators in this case will show the amount of profit per unit of value of the property.
Regardless of whether the firm produces products or provides services, it carries costs.Obviously, they should also be carried out most effectively.In order to assess the level of efficiency coefficient is calculated operating margins.He also has another name that reflects its more obvious meaning - rate of return costs.The calculation is very simple, and in respect of the profits to the amount of carried costs.Of course, if the information is limited, the calculations can be used and the net profit, but more accurate calculation would be based on profits from sales.The fact that this type of income is derived from sales of the products, the creation of which the costs were made.
Earnings are more concerned about the owner of the enterprise.In this regard, of special significance calculation of this indicator as return on equity.When dividing net income by the amount of equity you can determine the amount of profit that brings each ruble invested in the company by the owner.Based on this indicator, you can compare different companies from the point of view of the owner, for example, to assess the prospects of investment.
No rate of return is not restricted by any normative values, so their comparison is most often performed in the dynamics, that is, analyze the change for several years and identify trends.You can also compare the performance of the enterprise with those of similar companies or with the average values.
certain changes in the profitability is sometimes inadequate and may require the identification of their causes.For this purpose often use factor analysis based on the procedure of the firm DuPont.With this method, isolated and studied the combined effect of various factors, such as return on assets or equity.
