All at least once heard words such as profitability and profit.However, if that is profit, many have the idea, the profitability of the word matter is much more complicated.Profitability of production is the most effective indicator that can determine the economic picture of the enterprise.With this indicator, you can not just find their way in the definition of the enterprise, but also to analyze its economic viability.
This indicator is able to determine the efficiency of the entire enterprise, as well as the efficiency of its individual areas of production.For example, for large-scale agricultural enterprises expect not only a general indicator of profitability, but also the profitability of milk, meat and plant products, and any other areas of its activities.
Profitability index suitable for the characteristics of the financial results and analyze the efficiency of any business.Term profitability comes from the word "Rent", which translates as income.The total profitability - a measure of profitability, profitability and financial performance of the company.
It is very convenient because it allows you to show a visual assessment of the comparison of individual industries, companies and industries characterized by different trends and different volumes of production.The indicator of profitability is the ratio of the profits of the enterprise to the volume of resources expended on the production of the entire volume of output.
If the economic analysis is the most common indicators of the profitability of products, as well as profitability.The basis for the calculation of profitability is profit, which is not only an important economic indicator, and the ultimate goal of any business.Profit is thus an indicator that characterizes the success and effectiveness of any enterprise.
profit arises when the costs of the company do not exceed its revenues.If as a result of economic activity turns out that the company expenses exceed revenues, the efficiency of it is considered to be negative, in other words, the company received a loss.As a result of business profits rise, respectively, in proportion to the growing economic potential of the enterprise and increase its business activities.
also profit received as a result of the company determines its share of the income of owners, founders and shareholders.That profit is not only used to calculate the profitability of production, but also for the calculation of the profitability of its own fixed and current assets, borrowed funds, as well as the total capital advanced.You can use it to determine the profitability of each and shares of the company.
Therefore, profit is not just a goal and result of the activity of any successful organization, but also an important economic category.Profit and profitability are not only performance indicators, but also perform an important function:
-uchetnaya, as it is profit and profitability are the ultimate indicators to determine the effectiveness of the entire production and business activities;
-stimuliruyuschaya, as they provide more opportunities for economic development and expansion of production;
-byudzhetoobrazuyuschaya as profit is not only a source of development and production company, but also a real source to replenish the country's budget.
