An analysis of the profitability of any enterprise is the basis for its development
The results of enterprises are evaluatedon absolute and relative indicators. One of the main indicators of activity is the analysis of profitability. In general, profitability means the profitability of an enterprise. If the result from the sale of products exceeds the cost of its production, forming a certain amount of profit, the enterprise is considered profitable. Profitability has a deeper economic essence, which is revealed by a whole system of indicators. They have one common sense - the calculation of profits per ruble invested in the assets of capital. All indicators of profitability are measured in relative terms.
Each enterprise carries out an operating,investment and financial activities. Proceeding from this, the analysis of profitability is carried out with the help of such indicators as profitability of assets, products, production assets, investments and securities.
With a full analysis of profitability, the yield of the output is estimated, characterized by the following indicators:
- profitability of sales,
- Product profitability.
The analysis of profitability, in contrast to the analysisprofit, most fully reflects the final result of management. The level of profitability, which is the ratio of profit to the volume of work performed, allows you to really evaluate the activity in the reporting period and compare it with the results of activity in previous periods. Profitability analysis data are used by the enterprise to evaluate its activities and to implement investment policy and pricing.
The profitability of production (RP) is the ratio of profit to cost. It is calculated by the formula:
RP = (PP / SP) * 100%,
where SP - production costs,
PP is the profit from the sale.
One of the most effective types of analysisprofitability of the enterprise is a factor analysis of the profitability of products. With its help, the influence of various factors on the level of profit from sales is determined. The following formulas are used for calculations:
- Effect of sales revenue:
Δ Пп = Ппг × (Ив - 1),
where Δ Пп - fluctuation of profit at the expense of proceeds,
Ppg is the profit of the previous year,
Iv - the index of revenue change, calculated as the ratio of the revenue of the reporting year (B0) to the revenue of the previous year (Bp);
- influence of the cost level:
ΔPc = Cn × Iv-Co,
where Δ Пс - fluctuation of profit due to the cost price,
where Co, Cn - the cost of production of the reporting and prior periods;
- influence of the level of management costs:
ΔPur = Vpn × Iv - Yp0,
where ΔPur - fluctuation of profit due to the level of management costs,
УРо and УРп - administrative expenses of the reporting and the previous period;
- influence of the level of commercial expenses:
ΔPcr = Rpn × Iv - Rp,
where Δ Пкр - fluctuation of profit at the expense of commercial expenses,
KRo and KRP - commercial expenses of the reporting and prior period;
The result of the sums of factor changes gives the result of a general change in profit for a certain period:
Δ П = Δ Пп + Δ Пс + Δ Пур + Δ Пкр.
Analysis of profitability of capital is calculated by such indicators:
- profitability of the enterprise's capital (Rkp):
Ркп = (ЧП / КП) * 100%,
KP is the amount of capital,
PE - net profit;
The indicator reveals the efficiency of capitalenterprise and calculates the amount of profit that is accounted for by a unit of capital. The change in the coefficient of return on capital is often caused by fluctuations in stock prices on stock exchanges. Therefore, the high value of the indicator does not always indicate a high return on capital;
- profitability of investment capital (Rick):
Rick = PE / IR * 100%,
where IK - investment capital.
This indicator reveals the effectiveness of using long-term investments. Their value is determined by accounting data, as the sum of long-term liabilities and equity;
- Profitability of the total capital of the enterprise (Rockp):
Rockp = PP / B * 100%,
where B is the total of the balance for a certain period.
This coefficient reveals the effectiveness ofuse of the company's total capital. In this case, the growth of the coefficient indicates a high efficiency of the use of capital. Sometimes a decrease in the value of this coefficient may indicate a drop in consumer demand for products or about surplus assets.