Profitability is the main indicator of the effectiveness of its activities. profitability Types and Functions is to assess the effectiveness of the enterprise.This relative performance, with the help of which you can see the profitability of the company with respect to all expenses, which are necessary to produce that income.Indicators often expressed as a percentage.
main types profitability conditionally divided into two groups: sales and profitability of assets.
Return on sales - the ratio of profit from the sale of the company to revenues excluding VAT.This calculation reflects the gross profit margin.This indicator expresses the share of income attributable to each earned ruble.This figure, in fact, is an indicator of enterprise policy in the field of pricing and reflects its ability to control costs.
index values vary depending on the competitive strategies, product lines.According to this indicator is often estimated operating efficiency.
Also return on sales gross margin recovered EBIT (operating profit before tax and interest on ruble of revenues), net income and return on sales for one ruble, which was embedded in the production and sale of goods.
Types profitability assets include a lot of indicators.All are calculated as the ratio of profit to the average value of certain assets of the enterprise.In other words, each component of the profit and loss account should be divided by the average value of the index form №1 "Balance".
Types profitability of assets are relative indicators of efficiency.They are calculated by dividing the net profit for a given period by the amount of assets in the same period.That is, these figures show the ability of enterprise assets to generate earnings.
There are such kinds of margins assets as profitability of products, assets, investments, assets and other debt capital.
Product profitability calculated by dividing the profits from sales to the cost of the product.The return on assets is calculated by dividing income by the average annual value of the assets.Return on capital investment - the ratio of profit from sales to the amount of capital investment.Return on assets - is the ratio of net profit to the value of fixed assets.
To assess the profitability of sales of products, it is necessary to calculate the index of the balance sheet profit per ruble of sales.Profitability of sales is the ratio of the balance sheet profit to sales.
Yield can be calculated excluding taxes.Net profit will be equal to the balance of profits, net of tax.The income equals net profit in sales.
profitability of products depends on factors such as the price and the cost price.
Product profitability is the ratio of the difference in prices and production costs to sales prices.To analyze this indicator is necessary for a number of years, given the dynamics of changes in prices and costs.
Return on assets is the ratio of profit to the average balance for the year value of fixed assets in the amount of production with material costs.These kinds of profitability analyzed and assessed on the balance sheet and earnings.The change of these parameters affect the turnover of working capital, capital productivity, sales volume.
There is a return on the staff - so-called ratio of net profit to the number (average) personnel.
