main index, which characterizes the economic activity of the enterprise is profit.The concept of profitability is due to the relative expression of these indicators.Profitability shows the efficiency of the enterprise.It
margins give information to draw conclusions about the level of the state of development of production and efficiency of the business entity.Production management require a comparison of economic performance (in the form of profit) to the costs, which made it possible to achieve these results.
concept of profitability due to the self-financing of enterprises.This is one of the indicators characterizing profitability or, conversely, the loss-making enterprises in the industrial activity for any time period (year, quarter).
concept of profitability and its types can be defined as follows.It includes such major groups: the profitability of production, capital and production itself.
Profitability of allocate general and calculated.Total - meaning the ratio of profit to the cost of the balance sheet (annual average) of fixed assets and working capital.Settlement - is the ratio of the balance sheet profit net of fixed payments, payments for capital and bank loans to the value of (average) of fixed assets and working capital.
Product profitability is calculated as the profit earned from sales to production costs, as well as to the cost of the exception of direct material costs.
Return on equity is the ratio of the current results of operations for a certain period of time (book profit) to your existing enterprise fixed and circulating assets (funds).
Every company interested in increasing profitability.The main factors for this are improving the quality of products, reducing costs and loss of labor and material resources, more efficient use of equipment and others. In order to increase the profitability necessary to improve self-supporting relationships in the enterprise, to respect the reasonable economy.This is especially important when translated into terms of self-financing.
To improve the profitability of the enterprise resorted to such measures as an increase in the production and marketing of products, improve product quality, implementation of scientific and technical developments, improved pricing and process control systems, improving efficiency of resource use on the basis of improving the system of payment and settlement relations and mutualcalculations.The feasibility of these areas must be constantly analyzed by specialists of the enterprise.
concept of profitability determines the quality indicators of production, it shows the level of impact implemented cost and shows the degree of utilization of investment in production and in sales.
Calculation of profitability is performed using a system of indicators: product profitability, sales, production, own funds, long-term investments, investments, assets.These indicators are used in the analysis of business activity to identify ways to improve the efficiency of the main activities of the company.Some indicators are used to determine the creditworthiness of borrowers.
level of profitability - the ratio of gross profit to the amount of fixed and current assets that are at the disposal of the enterprise.
