business in a market economy is aimed at making a profit, which is the main indicator, responsible for enterprise performance.In fact, it comes to profitability, which is the ratio between profit and cost expended per unit of production.Profitability can be calculated for different areas of business, for example, the profitability of the staff, which indicates the performance of the employee in relation to the resources expended on it in the form of uniforms, social package, workplace organization, and others.
profitability and efficiency are interrelated, since the latter can serve as a means of raising the first and point to the company's problems.In addition, profits allows for a variety of promotional activities to develop business, etc.
profitability in the retail environment, its total value is defined by the amount of profit to the turnover for a certain period of time.But in this case it takes into account the profits derived solely from the sale of goods, excluding other costs, that is, we are talking about the level of profitability of sales.European economists for a more accurate assessment of its use ratio of annual profits.
In world practice profitability - a whole system of indicators to give a description of the financial and economic operation of the enterprise.In this system, the numerator is the balance and the net profit or the profit from the sale of goods.
profitability and efficiency play an important role in the analysis of return on sales, which assesses the cost-effectiveness of a particular product or range of products.It is necessary to more accurately determine the effectiveness of the particular area of the enterprise and determination of margins on such grounds.The analysis identified product having a low, high and unprofitable competitiveness of each product, which allows the result to take measures to improve profitability and increase the production of highly competitive product.
efficiency of the business can not be determined then that, what was the profitability of the transaction, according to her idea or the degree of profitability.For these purposes such measure as the level of profitability.In this case, the profitability of a combination of two concepts:
- the profitability of both qualitative and kolichesvtenny index,
- profitability - the economic category.
The value of the level of profitability is important not only for management, but also for workers.For them it is an indicator of stability and confidence in the future.That is why it is advisable to carry out the payment of additional bonuses and awards to employees.This in turn promotes positive motivation for further work.
No less important indicator for management, especially equity.In this case, the profitability of the transaction (that is, the money contributed to the development of enterprises from one owner) for each shareholder or owner, as they factor is the guarantor of the correct investment funds.The profitability of the transaction involves not only getting good dividends, which is beneficial for the owners, but also for leadership, which wants to harmonize the introduction of new financial costs for the purchase of equipment, the creation of new jobs and so on.
One of the very important area of work is to determine the profitability of the company staff.According to statistical estimates, only 20% of workers bring the basic income, and all other participants in the process, though, and perform their functions, but are less important.It is from this peripheral unit must be disposed of in a crisis.In general, the profitability of personnel should include an assessment of the effectiveness of the employee in relation to the costs of its content.
Summarizing, we can say with confidence that the margin - a crucial component in charge of the performance of individual elements of the business.
