results of operations are measured at their absolute and relative terms.One of the main indicators of a cost-benefit analysis.In general, the concept of profitability is profitability.If the result from sales exceed the cost of its production, creating a certain amount of profit, the company is considered to be cost-effective.Profitability has a deeper economic entity which opens the whole system performance.They have a common sense - the profit per ruble invested in capital assets.All margins are measured in relative terms.
Each company carries out operating, investing and financing activities.Accordingly, the cost-benefit analysis carried out by means of indicators such as return on assets, products, assets, and investment securities.
with the full cost-benefit analysis estimated the profitability of products, characterized by the following indicators:
- profitability of sales,
- margin products.
Profitability Analysis, in contrast to the analysis of profit, fully reflects the end result of management.The level of profitability, which is the ratio of profit to the volume of work performed, lets be realistic about the activities in the reporting period and compare it with the results of operations in prior periods.These cost-benefit analysis used to assess the company and its operations to implement the investment policy and pricing.
Profitability of production (RP) - the ratio of profit to cost.It is calculated by the formula:
RP = (PP / PO) * 100%,
Cn where the cost of production,
PP - profit from the sale.
One of the most effective types of cost-benefit analysis of the enterprise is a factor analysis of product profitability.With it is determined by the influence of various factors on the level of sales profit.For calculations using these formulas:
- the impact of sales revenue:
Δ Pp = PPG × (Eve - 1),
where Δ PP - swing profits at the expense of revenue,
PPG - the profit of the previous year,
Eve- an index of change in revenue, calculated as the ratio of earnings of the reporting year (in) to the revenue of the previous year (Bn);
- influence the level of costs:
Δ Ps = C × Ives - Over,
where Δ Ps - swing profits due to cost,
where Co, C - the cost of production and previous reporting periods;
- the effect of the level of administrative costs:
Δ = Pur ERM × Eve - Uro,
where Δ Pur - swing profits due to the level of administrative expenses,
Uro and URP - administrative costs of the reporting and the previous period;
- the effect of the level of commercial expenses:
Δ = RCC PKK × Eve - AOC,
where Δ RCC - swing profits by selling expenses,
Cros and the PKK - business expenses and previous reporting period;
result, the amount of factor gives the result of changes in the overall change in profits for a certain period:
Δ P = Δ + Δ Pp Ps + Δ + Δ Pur RCC.
analysis of return on equity is calculated by such indicators:
- return on capital of the enterprise (RCP):
RCP = (PP / CP) * 100%,
KP - the amount of capital,
PE - net profit;
Index reveals the efficiency of the company's capital and calculates the amount of profit, which falls per unit of capital.Changing the return on equity is often caused by fluctuations in the stock price on the stock exchanges.Therefore, the high value of the index does not necessarily indicate a high return of capital;
- return on invested capital (Rick):
Rick = PE / IR * 100%,
where IR - investment capital.
This figure reveals the long-term efficiency of investment.Their value is determined by the accounting data, as the sum of long-term liabilities and shareholders' equity;
- the profitability of the total capital of the enterprise (Rokp):
Rokp = PE / B * 100%,
where D - the result of the balance for the period.
This ratio reveals the efficiency of the total capital of the enterprise.In this case, the growth rate indicates a high efficiency of capital use.Sometimes reduction of the value of this ratio may indicate a fall in consumer demand for the products or of the surplus assets.
