profitability calculation is done either on the basis of preliminary figures (estimated) or running the company, which has received income and summed up the billing period.
Profitability Return on working capital - definition of profitability or unprofitability of the enterprise.This relative indicator that determines what level of profitability.The higher the rate of return after making payments, the greater the profitability of the business.Profitability can be defined as a whole for the entire production volume of services, and for part of the money invested, for example, the profitability of industrial, commercial or investment.The amount of return - the rate determines how much the business is efficient in terms of the ratio of cash and resources consumed.
indicator of profitability as the overall assessment of the efficiency of investment, calculated by the formula:
R Seay = P / R Seay
wherein R Seay - an indicator of the profitability of certain assets and the sources.P - profit (or net income on the balance sheet).
profitability overall for the whole production.
R total.= PD / Vreal.
where PDN - Gross profit, in - revenue from sales (or sales).
profitability can be calculated as all indicators on investment and for its individual components.
1. Indicators, which is visible return on the cost of production and the projects in which investments are made.
2. Return on sales.
3. Return all or part of the capital.
1. R = Venerable / ZRP
2. R = ChPrp / ZRP
3. R = CHDP / ZRP
1. return on equity of the enterprise.Profits from the sale of products is divided into the cost.
2. net profit and operating profit divided by the cost - to calculate return on sales.
3. CHDP - net cash flow (net profit and depreciation for the period) divided by the sum of costs spent on the product.
Return on working capital shows how quickly he can "turn" in the market production of goods or services.That is how many times you can return the money invested in the business in order to put them back in the case.How much of these can be without prejudice to the primary capital to spend on the purchase of a new batch of the product or raw materials for production.
Return on working capital reveals net profit (after tax) related to the working capital of the enterprise.Both
R = PE / OA PP - a net profit of OA - the average price (cost) of working capital.
can use the coefficient for calculating the current asset turnover.In this case, the sales revenue divided by the average value of current assets over a given period.
followed by analyzing business performance with the use of derivative index: Phase turnover (days) = the number of days / turnover ratio of current assets.
Return on working capital can be difficult to calculate because of the complexity of the isolation and differentiation of tools used in the study and other activities.It would therefore be appropriate to calculate the total value of current assets, determining overall profitability.
P total.OA = (+ Pprodazh Pprochaya / OA) x 100%
where OA in the denominator - the total component of current assets.
Expanded formula:
R obsch.OA = (N sales - (S np + KR + SD) Dprochie +) / OA
where
N sales - Revenue from sales.
S, etc. - Production costs.
KR - Selling expenses.
UR - Administrative expenses.
OA - The total amount of current assets.
analysis of all the indicators for the enterprise for six months (or years) will show how effective the return on productive capital and which indicators should be adjusted to improve its profitability and turnover.
