to evaluate the comparative performance of individual industries and enterprises that produce different kinds of products in different volumes, use margins.These figures show the ratio of profits to the resources used for production.Of all the indicators most commonly used such as the profitability of production and profitability.
profitability or profitability of the enterprise is usually assessed using both absolute and relative performance.Thus the absolute figures usually reflect a profit, which is measured in terms of value.If we consider the relative indicators characterizing profitability, they are measured as a percentage or recognized in the form of coefficients.Profitability ratios are less than the profit margin depends on the inflation rate, as they are relative values related to profit and expenses of the enterprise.
most important of these indicators is return on assets , which is also called return on assets.To define it is necessary to remain at the disposal of the enterprise income divided by average assets of the enterprise.This indicator shows the profits that company receives from each ruble, referred to the cost of formation of its assets.It expresses a measure of profitability of the enterprise in a particular period.It takes into account not only the profit margin, but also the change in the value of fixed assets, working capital and fixed assets.In general, this is an important indicator includes the profitability of fixed assets and current assets.
Considering other and profitability necessary to note such an important figure as ROI .With it is determined by the efficiency of the use of those funds, which are directed at the development of the enterprise.
Another important indicator for the economic analysis is product profitability .To define it remains at the disposal of the enterprise profit share for the full amount of cost of sales.Also can be used to calculate the overall profit, not all, but only the profits derived from the sale of products.The value of this indicator reflects the amount of profit that the company has with each ruble invested in the production and spent on sales.It can be calculated as across the enterprise and by individual departments of the enterprise and certain types of products.In some cases, this indicator is used for the remaining available profits of the enterprise to the total amount of proceeds received from the sale of products.
last important factor characterizing the profitability, return on sales is .To calculate this indicator, the need to obtain from the sales profit divided by total revenue from product sales.With it is determined what is the proportion of income in total revenues from sales of enterprise products.This figure is also known as rate of return.If before it can be seen that when the profit margin starts to decrease, then this factor indicates the lack of competitiveness of products on the market, therefore, the demand for products is shrinking.To increase the level of profitability of sales, you need to focus on changing market conditions, to track changes in product prices, constantly monitor the level of production costs, the cost of sales of products and to implement a flexible policy on the range of production and sales of products.
