INTRODUCTION 3

CHAPTER I. THEORETICAL FOUNDATIONS OF THE CONCEPT OF PROFITABILITY AS AN INDICATOR OF THE EFFICIENCY OF THE ORGANIZATION. 5

1.1 Profitability, as one of the most important indicators of the efficiency of the economic activity of the enterprise. 5

1.2 Profitability indicators. 7

1.3 Factors affecting the change in the level of profitability. 10

II CHAPTER. PRACTICAL CALCULATIONS OF PROFITABILITY ON THE EXAMPLE OF THE ENTERPRISE JSC BPO PROGRESS. 13

2.1 Technical and economic indicators of the enterprise BPO "Progress". 13

2.2 Calculation and analysis of profitability indicators of the enterprise JSC BPO "Progress". 16

2.3 Ways to improve profitability indicators. 21

CONCLUSION. 25

LIST OF USED LITERATURE. 27

APPS 28

INTRODUCTION

In modern conditions, in order for buyers to prefer products manufactured by this enterprise, so that the goods are in great demand, it is necessary to carefully monitor the financial situation, properly organize production activities and track economic indicators.

When an enterprise is just being created, its owner is primarily concerned with profitability, that is, that the profit of the organization covers all costs. But to assess the effectiveness and economic feasibility of the enterprise, it is not enough just to determine the absolute indicators: gross income, sales volume, the absolute amount of profit received by the enterprise. A more objective picture can be obtained through profitability indicators.

Profitability indicators are relative characteristics of the financial results and performance of the enterprise. That is, profitability is a relative indicator of economic efficiency, which comprehensively reflects the degree of efficiency in the use of material, labor and financial resources, as well as natural resources. The profitability ratio is calculated as the ratio of profit to the assets, resources or flows that form it and can be expressed both in profit not a unit of invested funds, and in the profit that each received monetary unit carries.

Based on the calculation of profitability levels, it is possible to determine which types of products and which business units provide greater profitability, this is especially important now, because at the moment the financial stability of an enterprise depends on the specialization and concentration of production.

The relevance of this topic lies in the fact that the profitability

is one of the main criteria for the effectiveness of an enterprise, its increase characterizes the goal of an enterprise in any industry in a market economy; the growth of profitability helps to increase the financial stability of the enterprise, and for entrepreneurs, the profitability indicator characterizes the attractiveness of business in this area.

The purpose of this course work is to calculate profitability indicators and identify ways to improve the profitability of the enterprise BPO "Progress".

To achieve this goal, it is necessary to perform the following tasks:

To study the concept of profitability;

Consider different types of profitability and methods for calculating them;

Investigate the factors influencing the change in the level of profitability;

To reveal the features of the technical and economic indicators of the enterprise BPO "Progress";

Evaluation of the effectiveness of the enterprise helps the entrepreneur to determine the boundaries of the ratio of the results achieved by the company and the costs required for this. Based on this analysis, the best way to increase efficiency is selected.

Evaluation of the effectiveness of an enterprise is a procedure that is carried out in order to determine the value of a business (company) or its shares. Such an event is resorted to in different cases, so the question of the need to evaluate the effectiveness of the company's activities arises before its managers from time to time.

Evaluation of the effectiveness of activities involves the solution of certain tasks:

1. The controlling interest in the company is subject to evaluation in the first place. This task is the most popular, because it can be used to make a comprehensive vision of the value of business objects.
2. A procedure for valuation of an uncontrolled block of shares is being carried out. In this situation, shares of a minority stake are valued.
3. The company's shares listed on the market are evaluated. Such a task is rare. A detailed analysis of quotes is performed, as well as the state of discount rates and the market.
4. An appraisal procedure is carried out, including all property of the company. This refers to the assets of the organization, which are represented by land property, equipment, vehicles, various structures, buildings, networks, communications, and so on. This task involves the analysis of financial flows of the organization.

The attractiveness of a business in the light of financial investment is lost if the profit from its conduct is much less than the initial investment required for the acquisition. In summary, performance evaluation involves the use of data on the present value of the future returns that the investor is likely to receive, which is the market value.

Since a business is a large system that can be marketed as a separate component, a whole complex or a subsystem, goods are elements of economic activity, and not an integral set.

The need and profitability of the enterprise depend on various constantly changing processes, of which there are a lot. They are typical both for the internal environment of the company and for the external one - for example, the low stability of the state economy, which can develop into the main reason for the precarious position in the market. If the business is characterized as unsustainable, then in the future this will lead to instability to one degree or another in a particular sector of the market. For this reason, this financial instrument must be under constant control, regulated in accordance with the data of the assessment of the company's performance.

Three principles on which the assessment of the effectiveness of the enterprise is based

No. 1. Connection of the final result and the purpose of the activity

This is the main principle of assessing the effectiveness of the company. Entrepreneurship involves the conduct of commercial, financial and industrial activities. Each of them has independent goals, which in some cases can mutually exclude each other. An example is profit maximization and cost reduction. In this case, tasks are set, which consist in finding goals of a single direction or a compromise solution. In such cases, the evaluation of the effectiveness of economic activity involves the use of the method of multi-purpose optimization.

No. 2. Presence of optimality criteria

Optimality is the achievement of minimum and maximum indicators of certain parameters in the system. Criteria are used to determine the optimality of the final results. This refers to the permissible, and not the necessary, application of the criteria. The system of criteria is used in cases where generalized and unified assessments cannot be applied. An open organizational and economic system is called a market environment in which business entities pursue mutual interests and act in accordance with the conditions of competition, that is, they occupy a specific segment, market share. The stability of the strategic position of the business is given by such performance indicators as the growth of market share and the increase in competitive advantages. For the implementation of the tasks set in order to increase profitability and profitability, additional potential is formed. The priority goals will be those that imply strengthening the position in the market, opening up new potential opportunities for the growth of a complex result of economic activity in a certain period.

Number 3. Relationship between the life cycle of the product and indicators of economic activity

It is known that at the initial stages of a product's life on the market (development and implementation), profit cannot be obtained, it is formed before the transition of the product (at the end of implementation) to the growth stage. Profit is the motivating link that forces the company to improve product quality, develop products according to market needs, and minimize research and testing costs. This reduces the duration of each stage.

What criteria for evaluating the effective operation of an enterprise are necessary for analysis

Indicators reflecting the overall effectiveness of the organization's activities are determined by comparing the volume of all funds belonging to the enterprise and the generalizing result of its functioning.

These indicators include:

• The cost per unit of output sold on the market.
• Profitability of all assets of the company.
• Profitability of the production process.
• The turnover of all assets of the company.

The profitability of all assets to the greatest extent is a general indicator that reflects the company's profit per 1 ruble of funds (all possible types of resources available to the enterprise in monetary terms from any source). Profitability is often replaced by a synonym for "return on funds".

Criteria for evaluating effectiveness

Time Criteria:

• the time spent on the coordination of decisions;
• duration of the whole process; downtime.

Cost criterion:

• different costs for specific types of classification;
• total costs for all processes;
• costs of maintaining the entire process in working order.

BP simulation quality criterion:

• interrelated and non-contradictory model;
• compliance with modeling methodology;
• compliance with the instructions of the instrumental and information complex.

BP efficiency criterion:

• level of process automation;
• the volume of production of products specified by the manufacturer of quality;
• the level of workload of personnel and equipment.

Management criterion:

• the percentage of decisions that are not implemented;
• the amount of time spent on the execution of the decision;
• frequency of control.

How to evaluate the performance of employees: the MBO method

The more efficiently the staff works, the higher the company's profit and the lower the cost of producing a product or providing a service. Evaluate the effectiveness of employees using the Management by Objectives (MBO) method, the principle of which was described by the editors of the Commercial Director magazine.

The method is suitable for all employees - from line workers to top management.

Expert opinion

Choose only informative parameters to evaluate business performance

Rail Fakhretdinov, CEO and co-founder of the Alternativa plastic products plant, Oktyabrsky (Bashkortostan)

We chose the criteria for evaluating the effectiveness of the company's activities (the work of the enterprise) on an intuitive level, and practice has shown that we did everything right. Let me explain what indicators during the assessment allowed me to come to the conclusion that production is running smoothly and without problems. I will also mention a low informative indicator.

1. The range increases annually. The company must have funds that will be sufficient to carry out not only the present activity, but also the prospects. We are expanding our assortment by 50-150 positions. Development involves the inclusion in the budget of both the cost of preparing, developing new products (including the cost of raw materials), and the purchase of the latest equipment and, as a result, the introduction of innovative methods. First of all, we carry out the launch of a new product in the production process. The marketing department is engaged in its research, economists calculate payback rates and production costs.
2. The volume of defective products is kept at a low level. When changing some colors or debugging the mold, marriage cannot be avoided. However, other inconsistencies cannot be allowed. In our company, the permissible defect is determined by a maximum of five products, subject to the operation of the machine. The task of the caster at this moment is to stop the equipment and call the adjuster. Our plans are to eliminate the possibility of marriage in the process of replacing the mold. It will remain only in cases of color change. In the absence of such restrictions, efficiency decreases, there is an empty waste of raw materials used. We immediately carry out an analysis, as a result of which the cause of all losses is clarified.
3. Increasing output of 1 employee. Here we make a simple calculation: we divide the total volume of goods produced by the number of employees in the office and production. The main thing here is the positive dynamics.

Inefficient parameter: is to develop per square. meter of area involved in production. This indicator in practice showed its low information content. Products containing many parts are produced on 4 or even 5 machines. The rest are made entirely on the same machine. The level of dispersion of values ​​depends on the type of product. If the assortment is wide, then the analysis of this parameter is not easy to perform. Evaluation of performance involves the use of indicators over which we exercise daily or weekly control; then we produce a cumulative analysis of the monthly work. I believe that the most important analysis is the daily one. Using its results, you can quickly make adjustments.

What methods for evaluating the effectiveness of an enterprise will allow you to correctly analyze

In practice, when analysis is carried out, performance evaluation most often uses traditional methods:

I. Horizontal (also called trend) analysis profit indicators is based on the study of their dynamics in a certain period of time. When applying this approach to the implementation of the analysis, the calculation of the growth rate (growth) of specific types of profit is made, the cumulative trends of possible changes become clear. The most popular are specific types of trend analysis, namely:

a) comparison of profit values ​​in the reporting period during the formation, distribution and application with the criteria of the previous period (example: indicators of the previous quarter, month, and so on);

b) comparison of profit values ​​for several past periods during the formation, distribution and application. The purpose of this type is to detect trends that characterize the changes in specific profit indicators under consideration.

c) comparison of profit values ​​for the reporting period during its formation, distribution and application with the criteria of the last year's similar period (for example, they compare the indicators of the second quarter of the reporting year with those of the second quarter of the last year). Such an analysis is usually used in enterprises selling seasonal products. The listed types of trend analysis of profit, as a rule, are supplemented by special studies, during which the influence of specific circumstances on the change in certain performance indicators is revealed. The results of the research help in the construction of factor models used at the time of planning profit values.

II. Vertical (also called structural) analysis. It is based on the structural decomposition of generalized indicators of profit at the time of its creation, subsequent distribution and application.

Evaluation of the effectiveness of the organization's activities in this approach involves taking into account the specific weight of the structural elements of the generalized indicator of profit. The most popular are the following types of structural analysis:

1. Vertical asset analysis. During the analysis, special attention is paid to the ratio of non-current and current assets, their structure, composition, investment portfolio and other structural parameters. The level of aggregation of the product range is determined by the enterprise independently.
2. Vertical profit analysis. The analysis involves the use of the calculation of the specific weight or the ratio of the amounts of profit from certain areas of activity.
3. Investment portfolio structure and other indicators. Such an analysis makes it possible to determine the company's ability to generate income from resources.
4. Vertical analysis of profit in the process of its application and distribution. Conducted in terms of ways to distribute profits.

Structural changes in earnings are identified through appropriate analysis.

III. Comparative analysis. It is based on the ratio of the values ​​of specific groups of similar profit indicators.

Performance evaluation by this method involves the calculation of relative and absolute deviations of the parameters that are compared with each other. The most popular types of comparative profit analysis are:

a) analysis of standard and reporting values ​​of profit. The comparison shows the level of deviation of the reported values ​​from the normative ones. The reasons for the deviations that have arisen are also identified. This analysis is used to control the processes of use and creation of profit. Further, amendments are made to the economic activities of the company;

b) analysis of the values ​​of the level of profit of the organization under consideration. This analysis is done to assess the position in the market in comparison with competitors. This allows you to find additional reserves in order to increase the efficiency of production. The objects of such analysis are the values ​​of operating profit;

c) analysis of the profit values ​​of competitors and the enterprise in question. This comparison is carried out in order to carry out the division of the company's position in the competitive market of a certain region of the products manufactured by the enterprise and the creation of measures to increase profits in the business.

Evaluation of the effectiveness of the organization's activities also involves the analysis of the payback of funds using economic, mathematical and statistical methods.

Step-by-step assessment of the effectiveness of the enterprise

Step #1. Evaluation of the effectiveness of the company's activities originates from a comparative assessment and calculation of profitability indicators that reflect the efficiency of production, namely:

1. The rate of return, which is determined by the ratio of net profit to revenue.
2. Profitability of sales - the ratio of profit from sales to revenue.
3. The profitability of products sold on the market is the ratio of profit from sales to the total cost (management and commercial expenses, cost of sales).

Step #2. A comparative evaluation and calculation of profitability criteria is carried out, which reflect the efficiency of the use of resources involved in production. The most important of them are:

1. Return on current assets - the ratio of profit from sales to the average amount of current assets.
2. Return on equity is the ratio of net profit to the average amount of equity.
3. Profitability of non-current assets - the ratio of net profit to the average amount of non-current assets.
4. Return on assets - the ratio of net profit to the average amount of the balance sheet currency.
5. Return on invested capital - the ratio of net profit to the average amount of equity and long-term liabilities.
6. Return on borrowed capital - the ratio of net profit to the average total borrowed capital.

All of the above indicators reflect the effectiveness of the use of own and invested capital, current and non-current assets.

Step #3. The final stage is a factor analysis of all profitability values, which determines the reasons for the deviation from the indicators with which they are compared (planned data, values ​​of past periods, information about the performance of similar enterprises, and so on).

How is the performance assessment carried out on the example of a particular enterprise

1. Reclassified balance sheet.

Index	End of the reporting period, thousand rubles	End of last year, thousand rubles	Beginning of last year, thousand rubles
Assets
Fixed assets	1 510	1 385	1 320
current assets	1 440	1 285	1 160
Balance	2 950	2 670	2 480
Passive
Equity	2 300	2 140	1 940
long term duties	100	100	100
Short-term liabilities	550	430	440
Balance	2 950	2 670	2 480

2. Report on financial results.

Let's consider the main indicators of profitability used to assess the effectiveness of the company.

3. Analysis of the main indicators of profitability, which show the effectiveness of the organization.

According to the data from the example, it is possible to identify a decrease in the efficiency of the organization's current activities in the reporting period compared to the previous year. There is a clear increase in the efficiency of economic activity, which probably means that the increase in the efficiency of other business operations has been exceeded in comparison with the lower efficiency of the current functioning.

In table. 5 we will calculate and analyze the most important profitability indicators, with the help of which the company's performance is assessed and, among other things, the expediency of using resources in production is determined.

4. Analysis of the most important indicators of profitability, reflecting the efficiency of resource use.

Index	Reporting year	Prior year	Change
Profit from sales, thousand rubles	425	365	60
Net profit, thousand rubles	330	200	130
Average balance sheet value (sum of all assets), thousand rubles	2810	2575	235
The average amount of own capital, tus. rub.	2220	2040	180
Average amount of borrowed capital, thousand rubles	590	535	55
Average amount of invested capital, thousand rubles	2320	2140	180
The average amount of current assets, thousand rubles.	1363	1223	140
Average amount of non-current assets, thousand rubles	1448	1353	95
Return on assets	0,117	0,078	0,040
Return on equity	0,149	0,098	0,051
Return on borrowed capital	0,559	0,374	0,185
Return on invested capital	0,142	0,093	0,049
Return on current assets	0,312	0,299	0,013
Profitability of non-current assets	0,228	0,148	0,080

From these calculations it can be seen that the efficiency of using own, borrowed, invested capital, non-current and current assets in the reporting period increased compared to the previous one. Without any doubt, such changes can be characterized as positive.

Next, we will calculate the impact of various factors on the change in sales profitability using the chain substitution method. To assess the economic activity of an enterprise, this indicator is very important if the current period is compared with the previous year (Table 6).

Let's check the correctness of the calculation made by adding up the results (-0.023 + 0.013 = -0.010). Next, we compare this amount with the resulting deviation of the profitability of sales (0.094 - 0.104 \u003d -0.010). The numbers are equal to each other. It follows that the calculation of the impact of factors on the deviation of the indicator is done correctly.

Conclusion: according to the results of comparing the data of the reporting period with the previous year, the profitability of sales has decreased. This is due to an increase in revenue (from 3,500 thousand rubles to 4,500 thousand rubles) by one million rubles. As a result, profitability decreased by 0.023. On the other hand, one can observe an increase in profit from sales by sixty thousand rubles (from 345 thousand rubles to 425 thousand rubles), which led to an increase in profitability by 0.013. Thus, there is a decrease in the profitability index by 0.010 points.

Further, in the process of evaluating the effectiveness of activities, using these tables as an example, we will carry out a factor analysis of the return on equity and assets, using methods for calculating the impact of factors and factor models.

7. Analysis of the impact of factors on the change in the return on equity (according to the model of three factors).

After carrying out the necessary calculations, we observe an increase in the turnover rate in the reporting period, in contrast to the previous year, by 0.242. Profitability increased by 0.014. The return on assets increased by 0.026 due to the increase in the rate of return. The mutual influence of the above factors is a consequence of an increase in profitability by 0.040.

It should also be noted that the return on equity increased by 0.0003 in the reporting period compared to the previous one. This indicator became higher due to the increase in the value of the criterion of financial dependence by 0.004. Further, the increase in profitability by 0.0175 occurred according to the increase in the value of the asset turnover parameter by 0.242, the increase in the rate of return increased its value by another 0.0328.

The mutual influence of all the above factors served to increase the profitability of the insurance company by 0.0506. We see a small difference between the deviation of the profitability of the insurance company (0.051) and the total final calculation of the impact of factors (0.506). This is due to the use of rounding. The result of calculating the profitability ratio of the IC and the impact of factors in the amount of 4 decimal places is determined by the low influence of the indicator of financial dependence.

Expert opinion

Evaluation of performance through financial indicators and losses of the enterprise

Alexey Beltyukov, Senior Vice President for Development and Commercialization of the Skolkovo Foundation, Moscow

Evaluation of performance includes an analysis of financial performance, as well as possible risks.

1. The main indicator is selected. In any industry, there is some key financial indicator that reflects the performance of a business in this area. For example, consider companies that provide mobile services. For them, the main indicator is the average monthly revenue of the company from 1 subscriber. It is called ARPU (from the English "average revenue peruser"). For automotive services, this is the development of a norm per hour for 1 lift per month. For the real estate sector, this is an indicator of profitability per 1 sq. m. All you need is to choose an indicator that characterizes your business. You can also search for information about competitors in various types of reports. Thus, you will have a holistic view of the average performance in a particular area of ​​business. Confidential information can be obtained from communication with competitors. In my experience, it's not that hard to figure them out. As a result of the analysis done, you will see the state of your company against the general background in the industry. If the performance evaluation showed the company's performance level is higher than that of competitors, there is reason to think about further growth and expansion of potential, if lower, then the main task is to find out the reasons for the losses. In this situation, I advise you to do a detailed analysis of the value chain.
2. Analysis of the value chain. I did the following: I found all the financial indicators and followed the formation of the value chain. Carried out "surveillance" of cash flows in documents, from the purchase of raw materials to the sale of products on the market. So I have walked this road myself. My experience has been that by doing this, you can find a list of unique ways to increase efficiency. There are two surest signs of poor (low) efficiency in economic activity. Firstly, this is the presence of warehouses of semi-finished products, and secondly, a large number of defects. In documents of a financial nature, indicators of losses are too high a level of working capital and costs per unit of output. If this is a service enterprise, then inefficiency can be traced on the example of the work of the staff - employees chat a lot, are distracted by things that are not related to the work process, thereby reducing the level of service.

At its core, profit is the most important financial category, reflecting the financial results of the enterprise's economic activity.

In terms of its economic content, profit is a monetary expression of a part of the value of the surplus product and, as a financial category, performs a reproductive, stimulating and control function.

In the implementation of the reproductive function, it is one of the main sources of financing for expanded reproduction. When performing a stimulating function - a source of formation of incentive funds and social development of the enterprise team. Through the control function, it shows the effectiveness of economic activity.

In the economic literature, profit is defined as part of the net income that business entities directly receive after the sale of products.

It is known from the course of economic theory that net income is a category of production associated with the process of dividing labor into necessary and surplus. A surplus product is a product created by the labor of people at enterprises, which acts as the net income of society.

Thus, profit is the most important indicator characterizing the financial result of the enterprise. An increase in this indicator implies an increase in the potential capabilities of the enterprise: expansion of core activities, the possibility of paying or increasing the amount of dividends, etc.

In accounting, the financial result is determined on the Profit and Loss account for the reporting period by calculating and balancing all profits and losses for the reporting period (cash method). Accounting profit is reflected in the form No. 2 of the financial statements "Profit and Loss Statement"

Another principle for determining financial results is the use of the accrual method, which consists in reflecting the real inflow (outflow) of funds of the enterprise. These methods give different amounts of profit, while the accrual method reflects a more realistic picture of the value of the financial result of the enterprise as an increase (decrease) in the value of its capital.

The main indicators of the company's profit are: balance sheet profit (loss); profit (loss) from the sale of products, works, services; profit from financial activities; profit from other non-operating transactions; taxable income; net profit. All profit indicators are contained in the form No. 2 of the enterprise's financial statements - "Report on financial results".

The balance sheet profit (loss) is the amount of profit (loss) from the sale of products (works, services), financial activities and income from other non-sales operations, reduced by the amount of expenses on these operations.

Profit (loss) from the sale of products (works, services) is determined as the difference between the proceeds from the sale of products (works, services) in current prices, excluding VAT and excises, and the costs of its production and sale.

Profit (loss) from financial activities and from other non-sales transactions is determined as a result of the sale of fixed assets and other assets, as the difference between the total amount received and lost: fines, penalties and forfeits and other sanctions; percent; exchange rate differences on currency accounts; profits and losses of previous years identified in the reporting year; losses from natural disasters; losses and write-offs of debts and receivables; receipts of debts previously recognized as uncollectible; other income, losses and expenses.

Taxable profit is determined by a special calculation, it is equal to the balance sheet reduced by the amount of income taxed at other rates (income from securities, from equity participation in other enterprises, etc. in accordance with applicable law) and benefits.

The net profit of the enterprise is defined as the difference between the balance sheet profit and the amount of taxes paid.

The value of net profit is most important in the analysis of the economic activity of the enterprise, because. it is she who is directed to production and social development, material incentives for workers, the creation of a reserve fund and other goals.

Other indicators of profit are necessary to assess the effectiveness of the main activity of the enterprise, determine the structure of profit and the tax burden on the enterprise.

In modern conditions, along with the main activity of the enterprise, they carry out activities that are not directly related to the main activity of the enterprise. However, they have a direct impact on the formation of the company's balance sheet profit and are reflected in Form No. 2 as results from operating and non-operating activities.

Financial results from other sales arise from operations with the property of the organization. These include profit (loss) from the sale of fixed assets, intangible assets, inventories, financial assets and other property; write-off of fixed assets due to obsolescence, leasing of premises, maintenance of mothballed production facilities and facilities, cancellation of production orders, termination of production that did not produce products. Incomes due from these operations and costs associated with obtaining these incomes are shown in Form No. 2 in detail under the items “Other operating income”, “Other operating expenses”. In addition, operating income and expenses reflect the results of the revaluation of property and liabilities, the value of which is expressed in foreign currency (exchange differences), as well as the amount of certain types of taxes and fees due at the expense of financial results.

Results from financial activity are formed at the enterprise if it has financial investments in securities of other organizations or takes part in joint activities. The amounts due in accordance with the agreements to receive dividends (interest) on bonds, deposits are reflected in the form No. 2 under the items "Interest receivable", "Interest payable". Income receivable on shares by maturity, in accordance with the constituent documents, is reflected in form No. 2 under the item “Income from participation in other organizations”

Other income from non-sales operations includes: accounts payable and depository debts for which the limitation period has expired: receipt of previously written off debts, profit of previous years revealed in the reporting year, profit received from operations with packaging, fines, fines awarded or recognized by the debtor , penalties and other types of sanctions for violation of business contracts by suppliers, the amount of insurance compensation and coverage from other sources of losses from natural disasters, fires, accidents, other emergency events, crediting to the balance of property that turned out to be in excess according to the results of the inventory.

Other expenses from non-sales operations include: losses from write-offs and shortages of material assets, identification during the inventory in excess of the norms of natural loss in cases where the perpetrators are not identified or the claim is denied by the court, the amount of write-downs of inventories, finished products and goods in accordance with the established in order, losses on operations with packaging, losses from writing off bad debts, losses on operations of previous years identified in the reporting year, losses from natural disasters; fines, penalties, forfeits and other types of sanctions awarded or recognized by the enterprise for violation of the terms of business contracts.

Thus, the main financial result of the enterprise's activity is profit, while the absolute value of profit does not allow us to judge the effectiveness of the enterprise. An indicator that characterizes the return on the funds invested by the enterprise is profitability.

Profitability is a ratio obtained as the ratio of profit to costs, where the value of balance sheet, net profit, profit from product sales, as well as profit from various types of enterprise activities can be used as profit. In the denominator, indicators of the cost of fixed and working capital, sales proceeds, cost of production of equity and borrowed capital, etc. can be used as costs.

An enterprise is considered profitable if, as a result of the sale of products, works, services, it covers all its costs and makes a profit. Therefore, in the broad sense of the word, the concept of profitability means profitability, profitability. But the definition of profitability as profitability does not accurately reveal its economic content due to the lack of identity between them, because the amount of profit and the level of profitability, as a rule, do not change in equal proportions, but often in different directions.

During the production cycle, a number of factors affect the level of profitability (Figure 1). They can be divided into external - associated with the impact on the activities of the enterprise market, state, geographical location and internal: production and non-production. Identification in the process of analysis of internal and external factors affecting profitability, makes it possible to "clear" performance indicators from external influences.

Let us first consider the factors directly related to the activities of the enterprise, which it can change and regulate depending on the goals and objectives set for the enterprise, i.e. internal factors. They can be divided into production, directly related to the main activity of the enterprise, and non-production factors that are not directly related to the production of products and the main activity of the enterprise.

Non-productive factors include supply and marketing activities, i.e. timeliness and completeness of fulfillment by suppliers and buyers of obligations to the enterprise, their remoteness from the enterprise, the cost of transportation to the destination, etc. Environmental measures that are necessary for enterprises in a number of industries, for example, chemical, engineering, etc. industries, and entail significant costs. Penalties and sanctions for late or inaccurate fulfillment of any obligations of the company, for example, fines to the tax authorities for late settlements with the budget. The financial results of the company, and hence the profitability, are indirectly affected by the social conditions of work and life of employees. The financial activity of the enterprise, i.e. management of own and borrowed capital for the enterprise, activity in the securities market, participation in other enterprises, etc.

From the course of economic theory it is known that the production process consists of three elements: means of labor, objects of labor and labor resources. In this regard, there are such production factors as the availability and use of means of labor, objects of labor and labor resources. These factors are the main factors in the growth of profits and profitability of the enterprise, it is with the increase in the efficiency of their use that the processes of intensification of production are associated.

The influence of production factors on the result of activity can be assessed from two positions: as extensive and as intensive. Extensive factors are associated with a change in the quantitative parameters of the elements of the production process, they include:

• - change in the volume and operating time of labor means, i.e., for example, the purchase of additional machines, machines, etc., the construction of new workshops and premises, or an increase in the operating time of equipment to increase the volume of products;
• - change in the number of objects of labor, unproductive use of means of labor, i.e. an increase in stocks, a large proportion of scrap and waste in the volume of products;
• - change in the number of workers, the fund of working time, unproductive costs of living labor (downtime).

A quantitative change in production factors must always be justified by a change in the volume of output, i.e. the enterprise must ensure that the rate of profit growth does not decrease relative to the growth rate of costs.

• - Intensive production factors are associated with an increase in the quality of the use of production factors, these include:
• - improving the quality characteristics and productivity of equipment, i.e. timely replacement of equipment with a more modern one with greater productivity;
• - use of progressive materials, improvement of processing technology, acceleration of material turnover;
• - improving the skills of workers, reducing the labor intensity of products, improving the organization of labor.

In addition to internal factors, the profitability of an enterprise is indirectly affected by external factors that do not depend on the activities of the enterprise, but often quite strongly affect the result of its activities. This group of factors includes:

• - geographic location of the enterprise, those. the region in which it is located, the remoteness of the enterprise from raw materials sources, from regional, republican centers, natural conditions, etc.,
• - competition and demand for the company's products, i.e. the presence on the market of solvent demand for the company's products, the presence on the market of firms - competitors that produce a product similar in consumer properties,
• - situation in adjacent markets, for example, in the financial, credit, securities market, commodity markets, etc., because a change in yield in one market entails a decrease in yield in another, for example, an increase in the yield of government securities leads to a reduction in investment in the real sector of the economy,
• - government intervention in the economy, which is manifested in a change in the legislative framework for the activity of the market, a change in the tax burden on enterprises, a change in refinancing rates, etc.

The sources for calculating profitability ratios are the data of accounting and financial statements, internal accounting registers at the enterprise. Unfortunately, the published accounting and financial statements do not allow an accurate assessment of the profitability of the enterprise, because. based on it, it is impossible to determine the structure of manufactured (sold) products, its cost and sale price, the structure of borrowed funds and expenses associated with the return of borrowed funds for each loan and loan, the composition and structure of fixed assets, the amount of their depreciation. The source for calculating profitability ratios is the balance sheet (form No. 1), income statement (form No. 2), appendix to the balance sheet (form No. 5).

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Introduction

The purpose of any commercial enterprise is to make a profit. The transition of the economy to market economic conditions necessitates changes in most of the management mechanisms that determine the operation of enterprises, and ultimately, the effectiveness of their activities.

Therefore, working in market conditions, enterprises are forced to rationally use their economic resources.

When making a managerial decision, the manager must analyze the feasibility of purchasing means of production, manufacturing products, performing work and providing services, commensurate costs with income received, and know the missed opportunities for profit. Since the main source of information for these purposes is accounting, there is a need to improve the existing accounting and reporting system in the country in accordance with market requirements and international standards.

In the conditions of active integration of production facilities, the formation of vertically and horizontally integrated corporate structures, the activation of foreign capital, the issues of strengthening and rational organization of internal control and audit are becoming the most important condition for ensuring a unified accounting methodology and reliability of accounting (financial) statements.

Strengthening the independence and self-government of economic lower levels in the sectors of the market economy brings to the fore the need to fully identify and use reserves to improve economic efficiency, save and increase own working capital, which can be carried out on the basis of a deep development of theoretical and methodological issues of internal audit with the involvement of international experience .

Profit is the most important indicator that characterizes the financial result of the enterprise. The growth of profit determines the growth of the potential of the enterprise, increases the degree of its business activity.

To manage profit, it is necessary to reveal the mechanism of its formation, to determine the share of each factor of its growth or decrease.

In this course work, profitability will be considered in more detail, as the main indicator of the efficiency of the enterprise. In modern market conditions, this issue is the most relevant, because. shows the financial result of the organization.

1. Theoretical foundations for determining the profitability of an organization

1.1 The essence of profitability indicators

To manage profit, it is necessary to conduct an objective systematic analysis of the formation, distribution and use of profit, which will reveal the reserves of its growth. Such an analysis is of interest to both internal and external entities, since profit growth determines the growth of the enterprise's potential, increases the degree of its business activity, increases the income of founders and owners, and characterizes the financial condition of the enterprise.

The following main tasks of the analysis can be distinguished:

evaluation of the profit forecast;

study of the composition and structure of profit in dynamics;

identification and quantitative measurement of the influence of factors that form profit;

identification of profit growth reserves;

The analysis of gross profit begins with a study of its dynamics, both in terms of the total amount and in the context of its constituent elements - the so-called horizontal analysis. Then a vertical analysis is carried out, which reveals structural changes in the composition of gross profit.

A deeper analysis involves the study of the composition of each element of gross profit and the factors that influenced it.

In the economic literature, several concepts of profitability are given. So, one of its definitions is as follows: profitability (from German rentabel - profitable, profitable) is an indicator of the economic efficiency of production at enterprises, which comprehensively reflects the use of material, labor and monetary resources.

According to other authors, profitability is an indicator that is the ratio of profit to the amount of production costs, monetary investments in the organization of commercial operations, or the amount of property of the company. Either way, profitability is the ratio of income to the capital invested in generating that income. By linking profit to capital invested, profitability compares the rate of return of an enterprise against alternative uses of capital or the return received by the enterprise under similar risk conditions. Riskier investments require higher returns to be profitable. Since capital always makes a profit, in order to measure the level of return, the profit, as a reward for risk, is compared with the amount of capital that was needed to generate this profit. Profitability is an indicator that comprehensively characterizes the efficiency of the enterprise. With its help, it is possible to evaluate the effectiveness of enterprise management, since obtaining high profits and a sufficient level of profitability largely depends on the correctness and rationality of the management decisions made. Therefore, profitability can be considered as one of the criteria for the quality of management.

Thus, we can conclude that profitability indicators characterize the financial results and performance of the enterprise. They measure the profitability of the enterprise from various positions and are systematized in accordance with the interests of the participants in the economic process.

1.2 The value of the analysis of profitability indicators in the activities of the organization

The first group of indicators, reflecting the level of profitability of various economic entities of society from an individual private entrepreneur without forming a legal entity, an enterprise to a country, an interstate organization, an international region and the world as a whole, shows the correlation and formation of the effectiveness of the functioning of various sectors of the economy. Its role is to ensure socio-economic orientation, the choice of directions of movement and the flow of capital from low-profit and unprofitable areas (regions, countries) to more profitable ones. The real process of investment is based on the mechanism for calculating the average rates of profitability of entrepreneurial activity, taking into account the specific specific features of the socio-economic development of a particular subject.

The second group is represented by a variety of parameters depending on the variety of resources used by the economic entity.

The third group covers the parameters of profitability of costs or production and sales costs. Indicators can be calculated in relation to individual cost elements (consumed fixed assets, materials, raw materials, etc.) and the cost as a whole. The profitability of products and products has received the greatest application.

The fourth group of indicators is formed depending on the varieties of the resulting effect - profit (loss). The latter has several types, including: profit of one product, profit of output of a product, profit of marketable products, profit of sold products, other profit, profit of the year, net profit.

A special role in financial management is played by the fifth profitability group, which reflects the various managerial phases of entrepreneurial activity: planned, current and final. The greatest importance and complexity are the calculations of planned indicators. Both the decision to implement investment projects and the final results of entrepreneurial activity depend on the degree of their validity and reliability.

The last sixth group of indicators is calculated depending on the terms of functioning of economic entities: a day, a week, a month, half a year, a year. These parameters are necessary in the financial analysis of the state and development prospects of both individual parties and business activities in general.

Having on hand the accounting financial statements for the reporting year or for a number of previous years, the shareholders of the company must evaluate the effectiveness of the use of invested capital, the profitability of the organization's assets, financial stability and development prospects for the future. Unfortunately, this is not always easy to do. For a more accurate assessment of the organization's activities, it is necessary to use the methods of economic analysis. Having a set of tools for analyzing economic activity in service, it is possible to reliably and comprehensively evaluate the results of an organization's economic activity.

The growth of any indicator of profitability depends on common economic phenomena and processes. This is, first of all, the improvement of the production management system in a market economy based on overcoming the crisis in the financial, credit and monetary systems. This is an increase in the efficiency of the use of resources by organizations based on the stabilization of mutual settlements and the system of settlement and payment relations. This is the indexation of working capital and a clear definition of the sources of their formation.

The return on capital is calculated as the ratio of the balance (gross, net) profit to the average annual value of the entire invested capital or its individual components: own (stock), borrowed, fixed, working, production capital, etc.:

Pk=BP/K; Pk=Prp/K; Рк=ЧП/К

In the process of analysis, one should study the dynamics of the listed profitability indicators, the implementation of the plan in terms of their level, and conduct inter-farm comparisons with competing enterprises.

Indicators of profitability (yield) are general economic. They reflect the final financial result and are reflected in the balance sheet and statements of profit and loss, sales, income and profitability. Profitability can be considered as a result of the impact of technical and economic factors, and therefore, as objects of technical and economic analysis, the main purpose of which is to identify the quantitative dependence of the final financial results of production and economic activities on the main technical and economic factors.

Profitability is the result of the production process, it is formed under the influence of factors associated with increasing the efficiency of working capital, reducing costs and increasing the profitability of products and individual products. The overall profitability of the enterprise must be considered as a function of a number of quantitative indicators - factors: the structure and return on assets of fixed production assets, the turnover of normalized working capital, the profitability of sales.

The main indicators of this block of analysis include the return on advanced capital and the return on equity. When calculating, you can use either balance sheet profit or net profit.

When analyzing profitability in the space-time aspect, three key features should be taken into account:

the temporary aspect, when the enterprise makes the transition to new promising technologies and types of products;

risk problem;

valuation problem, profit is estimated in dynamics, equity over a number of years.

However, not everything can be reflected in the balance sheet, for example, a brand, cutting-edge technologies, well-coordinated personnel do not have a monetary value, therefore, when choosing financial decisions, it is necessary to take into account the market price of the company.

Profit, being the most important indicator of the effectiveness of production and economic activity, does not give a complete picture of its effectiveness, since it does not take into account the amount of resources expended and the conditions under which it was achieved. It characterizes the result of the activity to a greater extent.

For a real assessment of the level of profitability, organizations use the methods of a comprehensive analysis of profits by technical and economic factors. Profitability indicators are used among the economic indicators of the effectiveness of entrepreneurial activity.

If profit is expressed in an absolute amount, then profitability is a relative indicator of the intensity of production, as it reflects the level of profitability relative to a certain base. The organization is profitable if the amount of proceeds from the sale of products is sufficient not only to cover the costs of production and sale, but also to generate profit. Profitability can be defined in different ways.

Profitability indicators characterize the efficiency of the enterprise as a whole, the profitability of various activities (production, business, investment), cost recovery, etc. They characterize the final results of management more fully than profit, because their value shows the ratio of the effect to the cash or resources used. They are used to assess the activities of the enterprise and as a tool in investment policy and pricing.

The margin of financial strength of an enterprise is the difference between the actual sales proceeds achieved and the threshold of profitability. Determined by the formula:

ZFP=VR-PR,

where ZFP is the margin of financial strength,

BP - sales proceeds,

PR - the threshold of profitability.

The margin of financial safety, or margin of safety, shows how much you can reduce production without incurring losses.

The higher the financial strength indicator, the lower the risk of losses for the enterprise.

A complete and comprehensive risk assessment is of fundamental importance when making financial decisions, therefore, in Western financial management, numerous methods have been developed that allow, using the mathematical apparatus, to calculate the consequences of the measures taken.

The main sources of reserves for increasing the level of profitability of sales are an increase in the amount of profit from the sale of products and a decrease in the cost of commercial products. The following formula can be used to calculate reserves:

where PR is the profitability growth reserve;

Rv - possible profitability; Rf - actual profitability;

RP - a reserve for the growth of profits from the sale of products; VRPvi - the possible volume of sales of products, taking into account the identified reserves of its growth; Сvi - the possible level of cost of i-th types of products, taking into account the identified reduction reserves; Pf - actual profit from the sale of products; If - the actual amount of costs for sold products.

The threshold of profitability is such a proceeds from the sale at which the company does not have a loss, but still does not have a profit. The amount of coverage is exactly enough to cover the fixed costs, and the profit is zero.

The threshold of profitability ("break-even point") is determined by the formula:

PR=Zpost/((VR-Zper)/VR),

where PR - profitability threshold, Zpost - fixed costs, Zper - variable costs, VR - sales proceeds.

There is a certain mutual influence and interdependence between costs, production volume and profit. It is known that, subject to all other equal conditions, the growth rate of profits always outstrips the growth rate of product sales. With an increase in the volume of sales of products, the share of fixed costs in the structure of the cost of production decreases and the “effect of additional profit” appears.

2. Methods for determining profitability indicators

2.1 G.V. Savitskaya

In the conditions of market relations, the role of indicators of profitability of products characterizing the level of profitability (unprofitableness) of its production is great. Profitability indicators are relative characteristics of the financial results and performance of the enterprise. They characterize the relative profitability of the enterprise, measured as a percentage of the cost of funds or capital from various positions.

Profitability indicators are the most important characteristics of the actual environment for the formation of profits and income of enterprises. For this reason, they are mandatory elements of comparative analysis and assessment of the financial condition of the enterprise. When analyzing production, profitability indicators are used as an instrument of investment policy and pricing.

The main objectives of the analysis of financial performance are:

systematic control over the implementation of plans for the sale of products and profit;

determination of the influence of both objective and subjective factors on the volume of sales of products and financial results;

identification of reserves for increasing the volume of sales of products and the amount of profit;

assessment of the enterprise's work on the use of opportunities to increase the volume of sales, profits and profitability;

development of measures for the use of identified reserves.

The main sources of information in the analysis of product sales and profits are:

waybills for the shipment of products;

analytical accounting data on account 46, 47, 48 and 80;

financial statements data f.№2 "Profit and Loss Statement";

form No. 5-f "Short report on financial results";

relevant tables of the economic and social development plan of the enterprise.

The main profitability indicators can be grouped into the following groups:

1. Profitability of products, sales (indicators for evaluating management effectiveness);

2. Profitability of production assets;

3. Profitability of investments in enterprises (profitability of economic activity).

The profitability of products shows how much profit falls on a unit of sold products. The growth of this indicator is a consequence of rising prices at constant costs for the production of sold products (works, services) or a decrease in production costs at constant prices, that is, a decrease in demand for the company's products, as well as a faster increase in prices than costs.

The product profitability indicator includes the following indicators:

Profitability of all sold products, which is the ratio of profit from the sale of products to the proceeds from its sale (excluding VAT);

Total profitability, equal to the ratio of balance sheet profit to revenue from sales of products (excluding VAT);

Profitability of sales by net profit, defined as the ratio of net profit to sales proceeds (excluding VAT);

Profitability of certain types of products. The ratio of profit from the sale of this type of product to its selling price.

Product profitability indicators reflect the efficiency of current costs (in contrast to the overall profitability indicator, which characterizes the efficiency of advanced capital) and are calculated as the ratio of profit from product sales to the full cost of sales:

Prp \u003d Prp / C * 100%,

where Ррп - product profitability;

Prp - profit from the sale of products;

C is the total cost of goods sold.

The profitability of a particular type of product depends on the prices of raw materials, product quality, labor productivity, material and other production costs.

The deterministic factor model of the return on sales indicator, calculated for the whole enterprise, has the following form:

If the enterprise produces one type of product, the level of profitability of sales depends on the average price level and the cost of the product:

The profitability of sales is calculated by dividing the profit from the sale of products, works and services or net profit by the amount of revenue received (VR). It characterizes the effectiveness of entrepreneurial activity: it shows how much profit the company has from the ruble of sales. This indicator is widely used in a market economy. It is calculated as a whole for the enterprise and for individual types of products.

The return on investment of an enterprise is the next indicator of profitability, which shows the efficiency of using all the property of an enterprise.

Among the indicators of profitability of the enterprise, five main ones are distinguished:

1. The overall return on investment, showing what part of the balance sheet profit falls on one ruble of the enterprise's property, that is, how efficiently it is used.

2. Return on investment in terms of net profit.

3. Profitability of own funds, which allows to establish the relationship between the amount of invested own resources and the amount of profit received from their use.

4. The profitability of long-term financial investments, showing the effectiveness of the enterprise's investments in the activities of other organizations.

5. Profitability of permanent capital. Shows the effectiveness of the use of capital invested in the activities of this enterprise for a long time.

2.2 Method I.P. Lyubushina

Profitability indicators characterize the financial results and efficiency of the enterprise. They measure the profitability of an enterprise from various positions and are grouped according to the interests of the participants in the economic process, market exchange.

Profitability indicators are important characteristics of the factor environment for the formation of enterprises' profits. Therefore, they are mandatory when conducting a comparative analysis and assessing the financial condition of the enterprise. When analyzing production, profitability indicators are used as an instrument of investment policy and pricing

The main profitability indicators can be combined into the following groups

1) indicators of return on capital (assets),

2) indicators of product profitability;

3) indicators calculated on the basis of cash flows.

The first group of profitability indicators is formed as the ratio of profit to various indicators of advanced funds, of which the most important are; all assets of the enterprise; investment capital (own funds + long-term liabilities); share (own) capital:

The discrepancy between the levels and profitability of these indicators characterizes the extent to which the enterprise uses financial leverage to increase profitability: long-term loans and other borrowed funds.

These indicators are specific in that they meet the interests of all participants in the business of the enterprise. For example, the administration of a walkie-talkie of an enterprise is interested in the return (profitability) of all assets (total capital); potential investors and creditors - return on invested capital; owners and founders - profitability of shares, etc.

Each of the listed indicators is easily modeled by factor dependencies. Consider the following obvious dependency:

This formula reveals the relationship between the profitability of all assets. return on sales and turnover of assets Economically, the relationship lies in the fact that the formula directly indicates ways to increase profitability with low profitability of sales, it is necessary to strive to accelerate the turnover of assets.

Consider another factorial model of profitability.

As you can see, the return on equity (equity) capital depends on changes in the level of profitability of products, the rate of turnover of total capital and the ratio of equity and borrowed capital. Study. of such dependencies is of great importance for assessing the influence of various factors on profitability indicators. from the above dependency. it follows that, other things being equal, the return on equity increases with an increase in the share of borrowed funds in the composition of total capital.

The second group of indicators is formed on the basis of the calculation of levels and profitability in terms of profit, reflected in the reporting of enterprises. For example,

These indicators characterize the profitability of products of the base () and reporting () periods. For example, the profitability of products in terms of profit from sales

where - profit from the implementation of the reporting and base periods;

Realization of products (works, services) of the reporting and base periods;

Cost of products (works, services) of the reporting and base periods;

Change in profitability in the reporting period compared to the base period.

The influence of the factor of change in the volume of sales is determined by calculation (by the method of chain substitutions)

Accordingly, the impact of the change in cost will be

The sum of factor deviations gives the total change in profitability in the reporting period compared to the base period;

The third group of profitability indicators is formed similarly to the first and second groups, but instead of profit, net cash inflow is taken into account.

NPV - net cash inflow

These indicators give an idea of ​​the degree of the company's ability to pay creditors, borrowers and shareholders in cash in connection with the use of the existing cash inflow. The concept of profitability calculated on the basis of cash inflow is widely used in countries with developed market economies. It is a priority, because operations with cash flows that ensure solvency are an essential sign of the state of the enterprise.

2.3 Methodology for factor analysis of profitability indicators according to the Dupont formula

The Dupont system of financial analysis is a system of in-depth integral financial analysis of an enterprise's activities, the basis of which is the "Dupont model". This system of financial analysis provides for the decomposition of the indicator "return on assets" into a number of private financial ratios of its formation, interconnected in a single system.

We can say that the return on assets is an indicator derived from revenue.

The return on assets can increase with a constant return on sales and an increase in sales volume that outstrips the increase in the value of assets, i.e., acceleration of asset turnover (resource return). Conversely, with a constant resource productivity, the return on assets can also grow due to an increase in accounting (before tax) profitability.

Does it matter for the assessment of the financial and economic activities of the organization, due to what factors does the return on assets increase or decrease? Certainly it has. Because different enterprises have different opportunities to increase the profitability of sales and increase the volume of sales.

Profitability of sales can be increased by increasing prices or reducing costs. However, these methods are temporary and not reliable enough in the current conditions. The most consistent policy of the organization, which meets the goals of strengthening the financial condition, is to increase the production and sale of those products (works, services) that are determined by improving market conditions.

The theory of financial analysis contains an assessment of the turnover and profitability of assets for its individual components: the turnover and profitability of tangible working capital, funds in settlements, own and borrowed sources of funds. However, in our opinion, these indicators in themselves are not very informative. Purely arithmetically, as a result of reducing the denominators in calculating these indicators compared to the denominator of the profitability or turnover of all assets, we have a higher profitability and turnover of individual elements of capital.

When analyzing economic profitability, of course, it is necessary to take into account the role of its individual elements. But dependence, in our opinion, should be built not through the turnover of elements, but through an assessment of the structure of capital in conjunction with the dynamics of its turnover and profitability.

The return on equity ratio (R5) allows you to establish the relationship between the amount of invested own resources and the amount of profit received from their use (Appendix 1).

It should be noted that the factors presented in this diagram, both in terms of the level of values ​​and the trend of change, are characterized by industry specifics, which should not be forgotten when conducting an analysis. So, the resource return indicator can have a relatively low value with high capital intensity. In this case, the profitability of sales indicator will be high. A relatively low value of the financial independence ratio can only be in organizations that have a stable and predictable cash flow for their products (works, services). The same applies to organizations with a significant share of liquid assets.

The factor model of return on equity according to the figure in Appendix 1 is as follows:

Where B is the proceeds from the sale of products; Dpr -- the sum of all other (except revenue) income of the enterprise; C -- cost of sales;

Rpr - the sum of all other (except for the cost) expenses of the enterprise;

n / a - income tax;

VnA -- average annual non-current assets;

3 -- average annual stocks;

DZ - the average annual receivables;

DS -- average annual cash and short-term financial investments;

SC -- average annual equity.

The numerator of the formula is the economic profitability (R4), and the denominator is the coefficient of financial independence (U3).

Thus, depending on the industry specifics, as well as financial and economic conditions, the organization can rely on one or another factor to increase the return on equity.

In our opinion, when analyzing profitability in the space-time aspect, it is necessary to take into account three key features of this indicator.

The first is related to the problem of choosing a strategy for managing the financial and economic activities of an organization. If you choose a strategy with high risk, then you need to get high profits. Or vice versa - a small profit, but almost no risk. One of the indicators of risk in business is the financial independence ratio (U3) - the lower its value, the less the share of equity increases due to the increase in the value of the “financial independence ratio” factor. And this provision weakens the financial stability of the organization.

The second feature is related to the estimation problem. The numerator and denominator of return on equity are expressed in monetary units of different purchasing power. The numerator, i.e. profit, is dynamic. It reflects the results of activities and the prevailing level of prices for goods and services, mainly for the past period. Denominator, i.e. The cost of equity capital is built up over a number of years. It is expressed, as a rule, in an accounting estimate, which may differ materially from the current estimate. Therefore, a high value of R5 may not be equivalent to a high return on invested equity capital.

And, finally, the third feature is connected with the time aspect of the organization's activities. The net profit ratio, which affects the return on equity, is determined by the performance of the reporting period, and it does not reflect the future effect of long-term investments. If an organization plans to transition to new technologies or other activities that require large investments, then the return on capital may decrease. However, if the costs are paid off in the future, then the decrease in profitability cannot be considered as a negative characteristic of current activities.

3. Analysis of profitability indicators of Amira LLC

3.1 Brief description of the organization

The main activity of Amira LLC is the construction of buildings and structures.

The Company is a legal entity and operates on the basis of the charter and legislation of the Russian Federation. The sole founder (participant) of the company is an individual with a 100% share in the authorized capital.

The main purpose of the company is to make a profit. The Company has civil rights and bears the obligations necessary for the implementation of any types of activities not prohibited by applicable law. The main activities of the company in accordance with the charter are:

Performance of sanitary and construction and installation works;

Design, design and survey and survey work;

Implementation of wholesale and retail trade;

Provision of intermediary services in the sale and purchase;

The enterprise independently determines the prospects and directions of its development, based on consumer demand for its products, and also determines the volume and structure of production and commercial activities, independently carries out planning and organization of trading activities.

LLC "Amira" is a small enterprise, as the number of employees is 35 people.

The executive body of the company is the director represented by the participant or a person appointed by him.

The source of formation of financial resources of Amira LLC is profit, funds received from share and other contributions of the founders, as well as other financial receipts on legal grounds.

3.2 Analysis of profitability indicators of the organization's activities

Let's determine the profitability of sales and profitability of expenses of Amira LLC using the data in Table 1.

Table 1 - Calculation of indicators of profitability of sales and costs of Amira LLC

According to the results of LLC "Amira" activity in 2009, one can make a slight improvement in the profitability of sales and costs. In 2009, 1 ruble of sales proceeds accounted for 10.85 kopecks of sales profit, in 2008 - 10.03 kopecks.

Profitability of expenses also increased in 2009 compared to the previous year by 1.02 kopecks. or 9.15%.

It is advisable to conduct a factor analysis of the profitability of sales and determine the influence of factors.

First, we determine the impact of revenue and profit from sales on the change in the profitability of sales using the chain substitution method.

KP(QP)0= P0 / QP0 * 100 = 10.03

KP(QP)1= P1 / QP0 * 100 = 11.6

KP(QP)2= P1 / QP1 * 100 = 10.85

1. the impact of changes in sales profit

CR(QP)1= CR(QP)1 - CR(QP)0= 11.6 - 10.03 = +1.57

Increase in profit from sales by 74 thousand rubles. contributed to the growth of profitability by 1.57%.

2. impact of changes in sales revenue

CR(QP)1= CR(QP)2 - CR(QP)1 = 10.85 - 11.6 = -0.75

Increase in sales revenue in 2009 by 323 thousand rubles. led to a decrease in profitability by 0.75%.

Now let's determine the impact of profitability of costs and costs per 1 rub. products sold using the absolute difference method.

1. the impact of changes in cost-effectiveness

KP (QP) \u003d KP (S) * Z0 \u003d +1.02 * 0.9 \u003d +0.918

Increase in profitability of expenses by 1.02 kopecks. contributed to the growth of profitability of sales by 0.918 kopecks.

2. the impact of changes in costs per 1 rub. products sold

KP(QP)= KP(S)1 * W = 12.17 * (-0.01) = -0.1217

Cost reduction by 1 rub. of sold products by 0.01 led to a decrease in sales profitability by 0.1217 kopecks.

To assess the activities of the enterprise, the indicator of profitability of production assets is of paramount importance, which can also serve as a guideline in studying the demand for products.

The profitability of production assets is defined as the ratio of profit before tax to the average cost of fixed production assets and tangible current assets. The same figure can be estimated in terms of net profit. Changes in the profitability of production assets are affected by changes in capital productivity, the turnover of material current assets, as well as the profitability (profitability) of products sold. To determine the quantitative influence of these factors, we will use the following formula:

where KR(PF) - profitability of production assets; KP(QP) - profitability of sales; f - return on assets; Cob - turnover of material current assets; РН - profit before taxation; F - the average annual cost of fixed assets of the main activity; EM - the average annual amount of tangible current assets (reserves).

Data for calculating the profitability of production assets are presented in table 2.

Table 2 - Initial data for calculating the profitability of the production assets of Amira LLC

	Indicators	Designation			Deviation
	Profit before taxation, thousand rubles
	Proceeds from the sale of goods, products, works, services, thousand rubles.
	Average cost of fixed production assets
	The average cost of tangible current assets, thousand rubles.
	Return on sales, % (clause 1/clause 2*100)
	Return on assets ratio, rub. (clause 2/clause 3)
	Turnover ratio of tangible current assets, times (clause 2 / clause 4)
	Profitability ratio of production assets, % (clause 1/(clause 3+clause 4))*100

As Table 2 shows, the profitability of production assets decreased by 5.2 kopecks compared to the previous year. This happened as a result of the following factors:

1) Increasing the share of profit per ruble of product sales by 1.03 kopecks. led to an increase in the level of profitability of production assets by 8.82 points:

CR (PF) \u003d 7.2 / (1 / 48.63 + 1 / 10.37) - 6.17 / (1 / 48.63 + 1 / 10.37) \u003d 61.54 - 52.72 \u003d + 8.82

2) The decrease in the return on assets of fixed production assets led to a decrease in the level of profitability by 19.24 points:

CR (PF) \u003d 7.2 / (1 / 13.55 + 1 / 10.37) - 7.2 / (1 / 48.63 + 1 / 10.37) \u003d 42.3 - 61.54 \u003d

3) The acceleration of the turnover of tangible current assets led to an increase in the level of profitability by 5.22 points:

CR (PF) \u003d 7.2 / (1 / 13.55 + 1 / 12.8) - 7.2 / (1 / 13.55 + 1 / 10.37) \u003d 47.52 - 42.3 \u003d + 5.22

Thus, the overall decrease in profitability by factors is (in percentage points): +8.82 - 19.24 + 5.22 = -5.2, which corresponds to the overall change in profitability compared to the previous year (47.52 - 52, 72).

To characterize the effectiveness of the use of financial resources in world practice, indicators of return on investment are used: in total assets, in operating assets and return on equity.

The profitability of investments in an enterprise is generally determined by the value of the assets at the disposal of the enterprise. To calculate these indicators, profit before tax is divided by the total balance sheet.

The most complete picture of the profitability of investments in the production activities of an enterprise is given by the ratio of profit to operating assets, especially when the numerator is profit from the sale of goods, products, works, services. The operating funds are equal to the value of all assets of the enterprise minus the cost of construction in progress and financial investments. For an entrepreneur, this indicator is of decisive importance, since it takes into account, on the one hand, the profit from the main activity, and on the other hand, the funds directly employed in production activities.

LLC "Amira" did not have financial investments and construction in progress in the analyzed period, so all the funds of the enterprise are functioning. To determine the effectiveness of investments, we will compile Table 3.

The data in Table 3 show that the profitability indicators of all assets of the enterprise and equity capital of Amira LLC, calculated on the amount of profit from sales, decreased compared to the previous year by 0.12 and 146.48 points, respectively. This is due to the fact that the growth rate of total assets and equity of the organization is higher than the growth rate of profit from sales of goods, products, works, services.

Table 3 - Indicators of return on investment

The decrease in the return on equity, while reducing the profitability of all investments of the enterprise, indicates an inefficient use of borrowed capital.

Conclusion

The indicator of profitability of production is especially important in today's market conditions, when the management of the enterprise needs to constantly make a number of extraordinary decisions to ensure profitability, and, consequently, the financial stability of the enterprise.

The factors influencing the profitability of production are numerous and varied. Some of them depend on the activities of specific teams, others are related to the technology and organization of production, the efficiency of the use of production resources, the introduction of the achievements of scientific and technological progress.

As practical calculations have shown, profitability indicators have more or less significant fluctuations over the years, which is a consequence of changes in sales prices and production costs. The level of sales prices is affected, first of all, by the quantity and quality of marketable products.

Profitability indicators are important characteristics of the factor environment for the formation of enterprises' profits. Therefore, they are mandatory when conducting a comparative analysis and assessing the financial condition of the enterprise. When analyzing production, profitability indicators are used as an instrument of investment policy and pricing.

By the value of the level of profitability, one can assess the long-term well-being of the enterprise, i.e. the ability of the enterprise to earn a sufficient return on investment. For long-term creditors of investors who invest in the company's own capital, this indicator is a more reliable indicator than indicators of financial stability and liquidity, which are determined on the basis of the ratio of individual balance sheet items.

By establishing a relationship between the amount of profit and the amount of invested capital, the profitability indicator can be used in the process of profit forecasting. The forecasting process compares the expected return on investment with actual and expected investment. Estimated expected profit is based on the level of profitability for previous periods, taking into account projected changes. In addition, profitability is of great importance for making decisions in the field of investment, planning, budgeting, coordinating, evaluating and monitoring the activities of the enterprise and its results.

The integrated use of the profitability parameters discussed above should become an integral part of the financial management of all economic entities. Its role is especially great at the basic level of the economy - a commercial enterprise. At the same time, an indispensable condition for a full-fledged analysis of profitability in modern conditions is the computer processing of all socio-economic and production parameters of the information regulatory system for the functioning of organizations.

Bibliography

1. Artemenko V. G., Bellendir M. V. Financial analysis. - M. : DiS, NGAE i U, 2003. - 128 p.

2. Bocharov VV Financial analysis. - St. Petersburg. : Peter, 2006.

3. Vakulenko T. G., Fomina L.F. Analysis of accounting (financial) statements for making managerial decisions. - St. Petersburg. : Gerda, 2001.

4. Vakhrushina M. A. Management analysis: educational and practical course / M. A. Vakhrushina. 3rd ed. corrected - M. : OMEGA - L, 2006.

5. Gilyarovskaya L. T. Comprehensive analysis of the financial and economic results of the bank and its branches: textbook. allowance / L. T. Gilyarovskaya, S. N. Panevina. - St. Petersburg. : Peter, 2003. - (Tutorial).

6. Efimova O. V. Financial analysis. - M.: Accounting, 2003.

7. Kovalev A.I., Privalov V.P. Analysis of financial condition. - M.: Center for Economics and Marketing, 2002.

8. Kovalev VV Financial analysis: capital management, choice of investments. Reporting analysis. - M. : Finance and statistics, 2005.

9. Krylov E. I. Analysis of the efficiency of labor resources of the enterprise and labor costs: textbook. allowance / E. I. Krylov, V. M. Vlasova, I. V. Zhuravkova. - M. : Finance and statistics, 2006.

10. Lyubushin N. P., Leshcheva V. B., Dyakova V. G. Analysis of the financial and economic activity of the enterprise: textbook. manual for universities / ed. prof. N. P. Lyubushina. - M. : UNITI-DANA, 2008.

11. Markaryan E. A., Gerasimenko G. P. Makaryan S. E. Financial analysis. - M. : Finance and statistics, 2004.

12. Pankov D. A. Financial analysis and planning of a sports organization: textbook. allowance / D. A. Pankov, S. B. Repin. - M. : New knowledge, 2005. factor profitability sale cost

13. Prykin L. V. Economic analysis of the enterprise: a textbook for universities. - M. : UNITI-DANA, 2003. - 360 p.

14. Savitskaya GV Economic analysis of economic activity of the enterprise. - Minsk: Ecoperspective, 2005.

15. Sheremet AD Analysis and diagnostics of the financial and economic activities of the enterprise: textbook. - M. : INFRA - M, 2008.

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The essence and indicators of profitability, its role in assessing the financial performance of the enterprise. Analysis and evaluation of indicators of profitability of the enterprise. Development of measures to ensure the growth of profitability of production at the enterprise.

Introduction.

In economic analysis, the performance of enterprises can be assessed by indicators such as gross income, sales, profit. However, the values ​​of the listed indicators are not enough to form an opinion about the effectiveness of an enterprise. This is due to the fact that these indicators are absolute characteristics of the enterprise, and their correct interpretation in terms of performance evaluation can only be carried out in conjunction with other indicators that reflect the funds invested in the enterprise. Therefore, to characterize the efficiency of the enterprise as a whole, the profitability of various areas of activity (economic, financial, entrepreneurial) in economic analysis, profitability indicators are calculated.

It should be noted that profitability indicators are important elements that reflect the factorial environment for the formation of enterprises' profits. Therefore, they should be in the comparative analysis and assessment of the financial condition of the enterprise.

In addition, profitability indicators are used in the analysis of the effectiveness of enterprise management, in determining the long-term well-being of the organization, are used as an instrument of investment policy and pricing.

Chapter 1. Profitability as the main synthetic indicator of the efficiency of a trading enterprise.

One of the main requirements for the successful functioning of enterprises and their associations in the conditions of the formation of a market economy is the break-even of economic and other activities, the reimbursement of expenses by their own income and the provision of certain amounts of profitability, profitability of management.

The main indicators characterizing the financial results of economic activities of trading enterprises are gross income, other income, profit and profitability. Profitability occupies one of the central places in the system of indicators and levers for managing the economy. It is a measure of the performance of the enterprise.

In the economic literature, several concepts of profitability are given. So, one of its definitions is as follows: profitability (from German rentabel - profitable, profitable) is an indicator of the economic efficiency of production at enterprises, which comprehensively reflects the use of material, labor and monetary resources.

According to other authors, profitability is an indicator that is the ratio of profit to the amount of costs, cash investments in the organization of commercial operations or the amount of the company's property used to organize its activities.

Either way, profitability is the ratio of income to the capital invested in generating that income. By linking profit to capital invested, profitability compares the rate of return of an enterprise against alternative uses of capital or the return received by the enterprise under similar risk conditions. Riskier investments require higher returns to be profitable. Since capital always makes a profit, in order to measure the level of return, the profit, as a reward for risk, is compared with the amount of capital that was needed to generate this profit. Profitability is an indicator that comprehensively characterizes the efficiency of the enterprise.

With its help, it is possible to evaluate the effectiveness of enterprise management, since obtaining high profits and a sufficient level of profitability largely depends on the correctness and rationality of the management decisions made. Therefore, profitability can be considered as one of the criteria for the quality of management.

By the value of the level of profitability, one can assess the long-term well-being of the enterprise, i.e. the ability of the enterprise to earn a sufficient return on investment. For long-term creditors, investors who invest in the company's own capital, this indicator is a more reliable indicator than indicators of financial stability and liquidity, which are determined on the basis of the ratio of individual balance sheet items.

By establishing a relationship between the amount of profit and the amount of invested capital, the profitability indicator can be used in the process of profit forecasting. The forecasting process compares the expected return on investment with actual and expected investment. Estimated expected profit is based on the level of profitability for previous periods, taking into account projected changes.

In addition, profitability is of great importance for making decisions in the field of investment, planning, budgeting, coordinating, evaluating and monitoring the activities of the enterprise and its results.

Thus, we can conclude that profitability indicators characterize the financial results and performance of the enterprise. They measure the profitability of the enterprise from various positions and are systematized in accordance with the interests of the participants in the economic process.

In practice, the level of profitability of the economic activity of trade enterprises is usually determined by the ratio of profit to retail turnover. It shows how many percent is the profit in the turnover. This level of profitability should not be calculated for the entire (balance sheet) profit, but only for profit from the sale of goods, since the financial results from the sale of fixed assets and other assets, as well as non-operating income, expenses and losses are not directly dependent on changes in the volume of trade . This indicator is called the level of profitability of sales and is considered one of the main indicators for evaluating the effectiveness of the functioning of trade enterprises. It is directly dependent on the change in the level of gross income and inversely on the increase or decrease in the levels of distribution costs and taxes levied at the expense of realized trade allowances.

It is believed that the minimum level of profitability of sales in retail trade in the conditions of the formation and development of a market mechanism should be at least 4-6% of turnover.

The level of profitability of sales for individual product groups and products is not the same. In this regard, a change in the structure of retail turnover leads to an increase or decrease in the level of profitability of sales of a trading enterprise. The influence of changes in the structure of turnover on the level of profitability of sales of a trading enterprise is manifested through the level of gross income and the level of distribution costs.

The level of profitability, calculated as the ratio of profit to turnover, has a significant drawback: it does not take into account what economic resources (assets), equity and borrowed capital will achieve the final financial result and how effectively they are used. In this regard, economists propose to define the profitability of economic resources as the ratio of the annual amount of profit to the average annual cost of long-term, intangible and current (current) assets. It shows how much interest the profit takes in the assets of the enterprise or how many kopecks of profit are received from each ruble of the total (total) capital. In foreign practice, it is called the level of return on total capital (all assets). When calculating the return on total capital, the calculation should include all production fixed assets (own, leased and donated), other long-term, intangible assets and all current assets. The actual average annual cost of long-term, intangible and current assets is calculated according to the balance sheet data.

The level of return on total capital is directly proportional to the change in the amount of profit and inversely - from the change in the balances of long-term, intangible and current assets. The impact of these factors on the return on total capital can be measured using the chain substitution method. To do this, the conditional level of return on total capital is preliminarily determined with the planned amount of profit and the actual average annual balances of long-term, intangible and current assets. Then, the planned capital is subtracted from the conditional level of profitability of the total capital, and as a result, the impact on its size of changes in the balance of economic resources (assets) is determined. If we subtract the conditional capital from the actual level of return on total capital, we determine the impact on its size of a change in the amount of profit.

The amount of profit, in turn, depends on a number of factors (changes in the volume of retail turnover, levels of gross income, distribution costs and taxes levied at the expense of realized trade margins, amounts of profit or loss from the sale of fixed assets and the sale of other assets, non-operating income, expenses and losses), the impact of which on the level of return on total capital can be determined by the equity method. To do this, it is necessary to find the share of the influence of each factor in the amount of deviation from the plan or in the dynamics of book profit and multiply the results obtained by the size of the influence of profit on the level of return on total capital.

The method of equity participation can also measure the impact on the return on total capital of a change in the average balances of certain types of assets of a commercial enterprise.

Further, it is necessary to study the causes and factors that influenced the changes in the average balances of non-current and current (current) assets, to identify reserves for increasing the efficiency of their use. The average balances of non-current assets can be mathematically represented as the ratio of the volume of trade to the level of their return on assets. The impact of capital productivity of non-current assets on the return on total capital can also be determined by the equity method.

The average balance of working capital can be represented as the product of the average daily turnover and their turnover in days. In this regard, the impact of the second qualitative indicator of the work of trade enterprises, the turnover of current assets, can be studied on the level of return on total capital. To do this, it is determined how much funds are released or additionally invested due to changes in their turnover (by multiplying the actual average daily turnover for the reporting year by the acceleration or deceleration of the turnover of current assets in days), and by the method of equity, its impact on the level of return on total capital is determined.

The formula for calculating the return on total capital can be transformed and, using chain substitutions, determine the impact on its size of a change in the profitability of sales and the return on assets of the total capital:

Chapter 2. The system of indicators of profitability of a trading enterprise.

The efficiency of the economic activity of the enterprise and the economic feasibility of its functioning are directly related to its profitability. Profitability indicators characterize the efficiency of the enterprise as a whole, the profitability of various areas of its activity (commercial, investment, etc.) in a given reporting period.

When calculating profitability in a generalized form, the formulas of financial ratios are used, which look like this:

· Turnover of funds or their sources. This indicator is equal to the ratio of sales proceeds to the average value of funds or their sources for the period;

· Profitability of sales, which is equal to the ratio of profit to sales revenue;

· Profitability of funds and their sources. This indicator is equal to the ratio of profit to the average value of funds and their sources for the period.

When analyzing the last two indicators, both profit from the sale of products, works, services, and gross or net profit remaining at the disposal of the enterprise after taxes can be taken. If the profitability of funds or their sources is calculated on the basis of profit from sales and thereby achieves comparability with the profitability of sales, then the following relationship is revealed between these coefficients:

,

R p - profitability of sales

The above formula shows that the profitability of an enterprise's funds or their sources depends both on the pricing policy and on the enterprise's business activity, measured by the turnover of funds or their sources. Using the above formula, you can also determine ways to increase the profitability of funds or their sources. So, with low profitability of sales, it is necessary to strive to accelerate the turnover of capital and its elements. Accordingly, the opposite is also true: the low business activity of the enterprise determined by one reason or another is compensated only by an increase in the profitability of sales.

Consider the indicators by which the profitability of the enterprise can be assessed.

1. Product profitability. It is calculated as the ratio of profit from the sale of products to its full cost. The use of this indicator of profitability is most rational in on-farm analytical calculations, in monitoring the profitability (unprofitability) of certain types of products, the introduction of new types of products and the removal of inefficient products. Calculated according to the formula:

where Р pr - product profitability

Pr - profit from sales, rub.;

C p is the total cost of goods sold, rub.

Considering that profit is related both to the cost of the product and to the price at which it is sold, the profitability of products can be calculated as the ratio of profit to the cost of products sold at free or regulated prices, i.e. to sales revenue.

2. Profitability of sales (turnover). Shows how much profit falls on the unit of sold products. Calculated according to the formula:

Where P p - profitability of sales;

Pr - profit from the sale of products, works, services;

B - proceeds from the sale of products, works, services.

Indicators of profitability of products and profitability of sales are interrelated and characterize the change in current costs for the sale of both all products and their individual types. Therefore, when planning a product range, it is taken into account how the profitability of individual types will affect the profitability of all products. Hence, it is very important to form the structure of products depending on the change in the proportions of products with greater or lesser profitability in order to generally increase the efficiency of the trading enterprise and obtain additional opportunities to increase profits.

3. Indicators of return on capital are calculated according to the following formulas:

a) Equity ratio:

where Р sk is an indicator of own capital

P h - net profit

K with - the average value of equity capital.

It characterizes the effectiveness of the use of equity capital. The economic meaning of this indicator is how much profit falls on a unit of the company's own capital. A change in the values ​​of the return on equity ratio can be caused, for example, by an increase or decrease in the quotes of the company's shares on the stock exchange, but it should be borne in mind that the discount price of shares does not always correspond to their market price. Therefore, a high value of the return on equity does not necessarily indicate a high return on the capital invested in the enterprise.

b) Indicator of investment (permanent) capital:

where P and - an indicator of investment (permanent) capital;

P h - net profit;

K ik - the average value of investment capital, which is equal to the sum of the average value of equity for the period and the average value of long-term loans and borrowings for the period.

It characterizes the effectiveness of the use of capital invested for a long time. The amount of investment capital is determined according to the balance sheet as the sum of own funds and long-term liabilities.

c) The indicator of the total capital of the enterprise.

where P ok - an indicator of the total capital of the enterprise;

Pr - profit;

B cf - the average net balance total for the period.

Shows the efficiency of using the entire capital of the enterprise, i.e. an increase in the value of the coefficient indicates an increase in the efficiency of the use of the enterprise's property and vice versa. A decrease in the value of the profitability of the entire capital of an enterprise may also indicate a drop in demand for the company's products or an overaccumulation of assets.

4. Return on current assets. Calculated according to the formula:

where R oa - profitability of current assets;

Pr - profit;

Ao cf - the average value of current assets.

The average value of capital, assets is determined according to the balance sheet as the arithmetic mean of the results at the beginning and end of the period.

5. Profitability of fixed assets and other non-current assets. Determined by formula 8:

where R in - Profitability of fixed assets and other non-current assets;

Pr - profit;

Av cf - the average value of fixed assets and other non-current assets for the period.

The profitability of fixed assets and other non-current assets reflects the efficiency of the use of non-current assets, measured by the amount of profit per unit cost of funds. This ratio is interconnected with the profitability ratio of the entire capital of the enterprise. With a decrease in the latter, an increase in the profitability of fixed assets and other non-current assets indicates an excessive increase in mobile funds, which may be the result of the formation of excess stocks, overstocking of products in warehouses due to a drop in demand for it, an excessive increase in receivables or cash.

In practice, not all of the listed profitability indicators are more often used, but only the main ones (Table 1). The indicators given in table 1 are studied in dynamics and the trend of their change is used to judge the efficiency of the economic activity of the enterprise.

Key indicators of profitability.

Calculation method	Explanations	Comment
1. Profitability of sales
	Pr - profit from sales B - sales proceeds	Shows how much profit falls on a unit of production.
2. Return on the total capital of the firm
	Pr - can be both gross profit and profit from sales; B cf - the average for the period total balance	The coefficient shows the efficiency of using the entire property of the enterprise. The decrease in the coefficient is a consequence of the falling demand for products.
3. Profitability of fixed assets and other non-current assets
	Av cf - the average value of non-current assets for the period	Shows the effectiveness of the use of fixed assets. The growth of the coefficient with a decrease in the profitability ratio of the total capital indicates an exaggeration of mobile means.
4. Return on equity
	K s - the average value of the sources of own funds according to the balance sheet for the period	Shows the effectiveness of the use of equity capital. The dynamics of the coefficient affects the level of share quotation on stock exchanges.
5. Return on permanent capital
	K ik - the average value of long-term loans and borrowings for the period.	Shows the effectiveness of the use of investment capital invested in the activities of the enterprise for a long time.

When analyzing profitability indicators, it is necessary to take into account the following:

· Profitability directly depends on the strategy of the organization, and more precisely on the level of risk in entrepreneurial activity, which requires a certain level of profit. The higher the risk, the more profit the organization should receive.

· Evaluation of the numerator and denominator in terms of profitability differs due to the fact that profit reflects the real result of the enterprise's activities for the reporting period, and the value of assets, which is formed over a number of years, is reflected in the accounting estimate, which can differ greatly from the market.

· Liquidity ratios may be relatively low during the reporting period due to transition to new technologies and other long-term investments. Therefore, such a decrease cannot be considered a negative point.

Let's analyze the considered indicators in relation to the activities of JSC "Trading House Vladivostok GUM".

JSC Trade House Vladivostok GUM was opened in July 1934. The history of this enterprise begins in 1893, when the Kunst and Albers trading house, and later the Churin and company". Vladivostok GUM has become the successor of the traditions of the Russian merchants and today cooperates with more than 1000 domestic and foreign partners. The total area of ​​the store is about 20 thousand square meters, including the sales area - 10 thousand square meters. The enterprise has its own automobile park, metalwork, carpentry workshops, hotel, industrial complex for tailoring and repairing clothes, hats, fur, leather products.

Accounting balance sheet of OAO Trading House Vladivostok GUM as of 01.01.2005.

	Indicator code		At the beginning of the reporting period			At the end of the reporting period
I Non-current assets "Intangible assets: (04.05)
Fixed assets. (01, 02, 03)
Construction in progress (08)
Profitable investments in material assets q
Long-term financial investments (58)
Deferred tax assets
Other noncurrent assets
TOTAL for Section I
II. CURRENT ASSETS 1 Inventories including
raw materials, supplies and other similar valuables (10)
animals for growing and fattening
costs in work in progress (44)
finished goods and goods for resale (40, 41)
goods shipped q
prepaid expenses (97)
other inventories and expenses
Value added tax on acquired valuables (19)
Accounts receivable (for which payments are expected more than 12 months after the reporting date
Accounts receivable (payments for which are expected within 12 months after the reporting date, including:
buyers and customers (62, 76)
other debtors
Short-term financial investments q
Cash
current account (51)
currency account (52)
other cash (55, 56, 57)
Other current assets
TOTAL for Section II
		Indicator code		At the beginning of the reporting period	At the end of the reporting period
III CAPITAL AND RESERVES Authorized capital (80)
Additional capital (83)
Reserve capital (82) including:
reserves formed in accordance with constituent documents
Retained earnings of previous years (84)
Uncovered loss of previous years 0
Retained earnings of the reporting year (84)
Uncovered loss of the reporting year (84)
Accumulation (84)
Consumption (84)
TOTAL for Section III
I V. LONG-TERM LIABILITIES Loans and credits
Deferred tax liabilities
Other long-term liabilities
TOTAL for section I V
V SHORT-TERM LIABILITIES Loans and credits (66) Including:
bank loans
other loans
Accounts payable including
suppliers and contractors (60, 76)
bills payable (62)
debt to subsidiaries and affiliates ()
Indebtedness to the staff of the organization
Debt to state off-budget funds (69)
debt on taxes and fees (68)
other creditors
Indebtedness to the founder income payment (75)
Revenue of the future periods ()
Reserves for future expenses and payments (96)
Other current liabilities
TOTAL for section V

Profit and Loss Statement of JSC Trading House Vladivostok GUM for 2004.

Indicators	During the reporting period	For the same period last year
Proceeds from the sale of goods, works, services
Cost of sold goods, works, services
Gross profit
Profit from sale
Other operating income
Other operating expenses
Non-operating income
non-operating expenses
Profit before tax
Current income tax
Net profit

Product profitability:

Reporting period: 22051/27537*100=80.08%

Base period: 43538 /58759*100=74.1%

During the analyzed period, the profitability of products increased by 5.98%, then the reasons for the increase in the profitability of products will be considered.

Return on sales:

Reporting period: 22051/49588*100=44.47%

Base period: 43538/102297 *100=42.56%

Return on sales for the period under review increased by 1.91%.

Return on equity:

Reporting period: 17302/18066*100=95.77%

Base period: 32433/17691*100=183.33%

The return on equity increased from 95.77% to 183.33% (by 87.56%) over the reporting period.

Return on investment capital:

The return on investment capital cannot be calculated, because the company does not have long-term loans and borrowings.

Return on total capital:

22051/0,5*(51117+55253)*100=41,46%

Return on current assets:

22051/0,5(38782+40584)*100=55,57%.

Profitability of fixed assets and other non-current assets:

22051/0,5(12335+14669)*100=163,32%.

Factor analysis of product profitability is carried out on the basis of the Profit and Loss Statement. It is carried out according to the formula:

,

where P rp - profit from the sale of products, p .;

RP - sales volume in selling prices (without VAT and other indirect taxes), rub.;

The impact of changes in cost on the dynamics of profitability

49588/27537-49588/58759= 0,95686

The impact of changes in the volume of products sold on the dynamics of product profitability

49588/58759-102297/58759= -0,897039

General change in product profitability

0,95686 - 0,897039=0,059821

Conclusion. Compared to the base period, the profitability of products increased by 0.0598 (5.98%) under the influence of the following factors:

Due to changes in the cost of goods sold, it increased by 0.95686 (95.69%);

Due to the change in the volume of sold products, it decreased by 0.897039 (89.7%).

If an enterprise keeps records of the cost and revenue for certain types of products, then in the process of analysis it is necessary to assess the impact of the sales structure on the change in the profitability of products. However, such a study is possible only according to operational financial statements, that is, it is carried out in the process of intra-company analysis.

Chapter 3. Ways to increase the profitability of commercial enterprises.

The main ways to increase the profitability of trade can be called the following:

Use of reserves for the growth of trade;

· expansion of direct relations with the industry;

· reduction of ways of links of commodity circulation;

· full receipt from suppliers of established basic and additional discounts, reimbursement from financial authorities;

introduction of new forms of organization and specialization;

· economy of distribution costs, liquidation of unplanned losses.

As already noted, ways to increase the profitability of funds or their sources can be determined using the following formula.

,

where Р ср – profitability of funds or their sources;

R p - profitability of sales

About cf - the turnover of funds or their sources.

With low sales profitability, it is necessary to strive to accelerate the turnover of capital and its elements. Accordingly, the low business activity of the enterprise determined by one reason or another is compensated only by an increase in the profitability of sales.

Measures to strengthen economic accounting and increase profitability are developed by employees of the planning department and accounting. They are widely discussed. To control the implementation of the developed measures, responsible persons are determined (as a rule, chief accountants or their deputies, heads of planning and economic departments, senior economists).

The main sources of reserves for increasing the level of profitability of products include an increase in the amount of profit from the sale of products (RP) and a decrease in the cost of commercial products (Р↓С). The following formula can be used to calculate reserves:

where PR is a reserve for profitability growth

R in - actual profitability

P f - the actual amount of profit

RP - a reserve for the growth of profit from the sale of products

VPP in - the possible volume of sales of products, taking into account the identified reserves for its growth

C i in - the possible level of cost of i-th types of products, taking into account the identified reserves to reduce

З f - the actual amount of costs for sold products

The reserve for increasing the level of return on capital can be calculated by the formula:

where BP is the balance sheet amount of profit

RBP - a reserve for increasing the balance amount of profit

KL f - the actual average annual amount of fixed and working capital

P↓KL - reserve for reducing the amount of capital due to the acceleration of its turnover

KL d - additional amount of fixed and working capital required for the development of profit growth reserves.

At the end of the analysis of financial results, specific measures for the development of the identified reserves and a monitoring system should be developed.

Conclusion.

In the financial analysis of a commercial enterprise, a special place is occupied by the problem of analysis by commodity-group cost intensity, profitability and profitability. Profitability indicators in trade are becoming increasingly important.

Profitability characterizes the performance of the organization. Profitability indicators allow you to evaluate how much profit a company has from each ruble of funds invested in the company's assets. There are various groupings of the system of indicators of profitability. We have considered one of these classifications with the subdivision of profitability indicators into profitability indicators of economic activity, profitability indicators that characterize the financial activities of the organization and product profitability indicators.

The profitability of economic activity reflects the rate of compensation (remuneration) for the entire set of sources that are used by the enterprise to carry out its activities.

Financial profitability characterizes the efficiency of investments by the owners of the enterprise, who provide it with resources or leave at its disposal all or part of their profits in order to maximize income in the future.

And, finally, indicators of product profitability can answer questions related to determining the effectiveness of the main activity of an enterprise for the production and sale of goods, works, services.

List of used literature.

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Efimova O.V. "The financial analysis". Moscow, 1997

Savitskaya G.V. Analysis of the economic activity of the enterprise: 4th ed., Revised. And extra. - Minsk: LLC "New Knowledge", 2000.

Grekhovodova M.N. The economics of a commercial enterprise. Tutorial. - Rostov n / a: "Phoenix", 2001.

Kravchenko L.I. Analysis of economic activity in trade: Textbook / L.I. Kravchenko. - 6th ed., revised. – M.: New knowledge, 2003.

Sheremet A.D., Negashev E.V. Methods of financial analysis. – M.: INFRA-M, 2000.

Skamay L. Profitability analysis of the enterprise // RISK: Resources, information, supply, competition. - 2002. - No. 1.