Unlike profit, which shows the absolute effect of activity, there is a relative indicator of the efficiency of an enterprise - profitability. In general, it is calculated as the ratio of profits to costs and is expressed as a percentage.

The following types of profitability are distinguished:

1) profitability of production (production assets) (R p), calculated by the formula:

R p = P in / (GPP + NOS),

where P in is the total (gross) profit for the year (or other period);

GPP - average annual cost of fixed production assets;

NOS - average annual balance of standardized working capital.

2) return on equity(R s.k), which is characterized by the size of the authorized capital (share capital), it interests all shareholders, because determines the upper limit of dividends:

R s.k = P h / K s,

where P h - net profit (including interest payments on the loan);

Kc is equity capital, the value of which is taken according to the balance sheet and is equal to the amount of assets minus debt obligations.

3) return on permanent capital(R p.k) - reflects the efficiency of using long-term (permanent) capital in the organization’s activities (both own and borrowed):

R p.k = P h / K p,

where K p is permanent capital.

4) return on total assets(P a) - characterizes the efficiency of using all available assets of the enterprise:

R a = P h / K a,

where K a is the average amount of assets on the enterprise’s balance sheet;

5) product profitability(P pr) characterizes the cost efficiency of its production and sales:

R pr = P r / S r,

where Pr is profit from sales of products (works, services);

Wed - full cost products sold;

6) profitability of certain types of products(R v.pr):

R v.pr = P unit / S unit,

where P ed - profit per unit of production;

C unit - the total cost of a unit of a certain type of product;

7) profitability of sales (sales or turnover)Р р - shows the share of profit per one monetary unit of sales (cost of products sold):

P r = P r /V r,

where P r – profit from sales;

V r – sales revenue.

Profitability stands out the most important indicator in assessing the activities of an enterprise.

It is characterized by a state where the use of funds leads not only to the enterprise covering expenses, but also to generating income.

The profitability of an enterprise is assessed by both absolute and relative indicators.

Absolute indicators are expressed in profit and are determined by value, that is, the national currency.

Relative indicators are measured as percentages and characterize profitability.

Profitability indicators are influenced by inflation processes to a lesser extent in relation to the amount of profit.

This is due to the fact that profitability is determined by different ratios of profit and capital or profit received and production costs.

Profitability is calculated regardless of the type of activity of the enterprise. Profitability indicators are the assets of the enterprise, whose profitability represents the remaining income of the enterprise.

It is divided by the average value of assets over the past period. The number obtained after division must be multiplied by 100%.

Product profitability formula: return on assets = enterprise profit: the amount of assets in the average annual indicator X 100%.

The resulting number characterizes the income received from each ruble used to create the assets of the enterprise. The assets of an enterprise and their profitability show the profitability of the enterprise for a specific time.

Thus, the profitability of products is determined by a formula abbreviated as follows: RP = P/PZ x 100%

From the above it follows that RP is an indicator of production profitability, PZ-production costs, P-profit, calculated based on production volume.

Product profitability is determined by existing calculation limitations, let's look at them:

1. Only quantities that correspond to each other can be correlated;
   That is, only those costs that are incurred to obtain profit in a specific volume are subject to accounting.
2. The profitability of products sold is calculated in a similar way: the calculation includes indicators of expenses that are written off for sale and reduce profit from sales;
3. Before calculating the profitability of production using the formula, it is necessary to sum up all the costs incurred during the production process;
4. Profitability of production can be calculated after taxation of enterprises or before it.

Examples of calculations from practice

For example: an enterprise produces diapers and diapers for children. Total revenue for last month amounted to 400 million rubles.

The cost of products sold, including costs of commerce and staffing of the enterprise, is 240 million rubles.

The main indicators have been indicated, now the question arises of how to calculate the profitability of goods produced by a particular enterprise?

First you need to find the income for the previous month. The full cost is subtracted from all revenue, resulting in 160 million rubles. We apply the basic formula: 160/240x100 = 66.66%.

It turns out that the profit received from the enterprise from each ruble of production is in this case 66 rubles 66 kopecks. This is a good return on goods.

Why is it necessary to evaluate the profitability of goods? The presence of the following factors plays a role here:

• Competitiveness of the enterprise in the sphere of consumption;
• Production efficiency at the enterprise.

A decrease in the profitability of goods directly indicates a decrease in consumer demand for the products of a particular manufacturer, or low production efficiency at the enterprise.

Profitability can be calculated for several products belonging to a specific product group. And here we need to give another example:

The company produces three types of products with an average profitability of 30%. To calculate the profitability for each product, you need to use the basic formula, but in relation to each product separately.

In the system of enterprise performance indicators, the most important place belongs to profitability.

Profitability represents a use of funds in which the organization not only covers its costs with income, but also makes a profit.

Profitability, i.e. enterprise profitability, can be assessed using both absolute and relative indicators. Absolute indicators express profit and are measured in monetary terms, i.e. in rubles. Relative indicators characterize profitability and are measured as percentages or as coefficients. Profitability indicators are much less influenced than by profit levels, since they are expressed by different ratios of profit and advanced funds(capital), or profits and expenses incurred(costs).

When analyzing, the calculated profitability indicators should be compared with the planned ones, with the corresponding indicators of previous periods, as well as with data from other organizations.

Return on assets

The most important indicator here is return on assets (otherwise known as return on property). This indicator can be determined using the following formula:

Return on assets- this is the profit remaining at the disposal of the enterprise, divided by the average amount of assets; multiply the result by 100%.

Return on assets = (net profit / average annual assets) * 100%

This indicator characterizes the profit received by the enterprise from each ruble, advanced for the formation of assets. Return on assets expresses a measure of profitability in a given period. Let us illustrate the procedure for studying the return on assets indicator according to the data of the analyzed organization.

As can be seen from the table, the actual level of return on assets exceeded the planned level by 0.16 points. This was directly influenced by two factors:

• above-plan increase in net profit in the amount of 124 thousand rubles. increased the level of return on assets by: 124 / 21620 * 100% = + 0.57 points;
• an above-plan increase in the enterprise's assets in the amount of 993 thousand rubles. decreased the level of return on assets by: + 0.16 - (+ 0.57) = - 0.41 points.

The total influence of two factors (balance of factors) is: +0.57+(-0.41) =+0.16.

So, the increase in the level of return on assets compared to the plan took place solely due to an increase in the amount of net profit of the enterprise. At the same time, the increase in average cost, others, also reduced the level return on assets.

For analytical purposes, in addition to indicators of profitability of the entire set of assets, indicators of profitability of fixed assets (funds) and profitability of working capital (assets) are also determined.

Let us present the profitability indicator of fixed production assets (otherwise called the capital profitability indicator) in the form of the following formula:

The profit remaining at the disposal of the enterprise multiplied by 100% and divided by the average cost of fixed assets.

Profit remaining at the disposal of the enterprise multiplied by 100% and divided by the average value of current assets.

Return on Investment

Profitability indicator invested capital(return on investment) expresses the efficiency of using funds invested in the development of a given organization. Return on investment is expressed by the following formula:

Profit (before income tax) 100% divided by the currency (total) of the balance sheet minus the amount of short-term liabilities (total of the fifth section of the balance sheet liabilities).

Return on equity

In order to obtain an increase through the use of a loan, it is necessary that the return on assets minus interest on the use of a loan is greater than zero. In this situation economic effect, obtained as a result of using the loan, will exceed the costs of attracting borrowed sources of funds, that is, interest on the loan.

There is also such a thing as financial leverage, which represents specific gravity(share) of borrowed sources of funds in the total amount of financial sources for the formation of the organization’s property.

The ratio of the sources of formation of the organization's assets will be optimal if it provides the maximum increase in return on equity capital in combination with an acceptable amount of financial risk.

In some cases, it is advisable for an enterprise to obtain loans even in conditions where there is a sufficient amount of equity capital, since the return on equity capital increases due to the fact that the effect of investing additional funds can be significantly higher than the interest rate for using a loan.

Creditors of this enterprise just as its owners (shareholders) expect to receive certain amounts of income from the provision of funds to this enterprise. From the point of view of creditors, the profitability indicator (price) borrowed money will be expressed by the following formula:

The fee for using borrowed funds (this is the profit for lenders) multiplied by 100% divided by the amount of long-term and short-term borrowed funds.

Return on total capital investment

A general indicator expressing the efficiency of using the total amount of capital available to the enterprise is return on total capital investment.

This indicator can be determined by the formula:

Expenses associated with attracting borrowed funds plus profit remaining at the disposal of the enterprise multiplied by 100% divided by the amount of total capital used (balance sheet currency).

Product profitability

Product profitability (profitability production activities) can be expressed by the formula:

Profit remaining at the disposal of the enterprise multiplied by 100% divided by full cost sold products.

The numerator of this formula can also use the profit indicator from sales of products. This formula shows how much profit an enterprise has from each ruble spent on the production and sale of products. This profitability indicator can be determined both for the organization as a whole and for its individual divisions, as well as for certain species products.

In some cases, product profitability can be calculated as the ratio of the profit remaining at the disposal of the enterprise (profit from product sales) to the amount of revenue from product sales.

• from changes in the structure of sold products. Increase in specific gravity more than profitable types products in the total amount of production helps to increase the level of profitability of products.;
• changes in product costs have an inverse effect on the level of product profitability;
• change in the average level of selling prices. This factor has a direct impact on the level of profitability of products.

Return on sales

One of the most common profitability indicators is return on sales. This indicator is determined by the following formula:

Profit from sales of products (works, services) multiplied by 100% divided by revenue from sales of products (works, services).

Return on sales characterizes the share of profit in revenue from product sales. This indicator is also called the rate of profitability.

If the profitability of sales tends to decrease, then this indicates a decrease in the competitiveness of the product in the market, as it indicates a reduction in demand for the product.

Let's consider the procedure for factor analysis of the return on sales indicator. Assuming that the product structure remains unchanged, we will determine the impact on the profitability of sales of two factors:

• changes in product prices;
• change in product costs.

Let us denote the profitability of sales of the base and reporting period, respectively, as and .

Then we obtain the following formulas expressing the profitability of sales:

Having presented profit as the difference between revenue from sales of products and its cost, we obtained the same formulas in a transformed form:

Legend:

∆K— change (increment) in profitability of sales for the analyzed period.

Using the method (method) of chain substitutions, we will determine in a generalized form the influence of the first factor - changes in product prices - on the return on sales indicator.

Then we will calculate the impact on the profitability of sales of the second factor - changes in product costs.

Where ∆K N— change in profitability due to changes in product prices;

∆K S— change in profitability due to changes in . The total influence of two factors (balance of factors) is equal to the change in profitability compared to its base value:

∆К = ∆К N + ∆К S,

So, increasing the profitability of sales is achieved by increasing prices for products sold, as well as reducing the cost of products sold. If the share of more profitable types of products in the structure of products sold increases, then this circumstance also increases the level of profitability of sales.

To increase the level of profitability of sales, the organization must focus on changes in market conditions, monitor changes in product prices, constantly monitor the level of costs for production and sales of products, as well as implement flexible and reasonable assortment policy in the field of production and sales of products.

The basis for the profitability of product production, in general, is the efficiency of production and sales of its products. Regardless of the company's field of activity, profitability is determined by the ratio of the profit received from the sale of the final product to the costs of its production. The formula will help calculate the current state of the company.

How to calculate?

Tracking the current state of an enterprise and monitoring the profitability of its activities is a common practice throughout the world.

For successful development For a business, it is not enough just to have an intuitive understanding that a project will bring profit; it is also necessary to conduct a mathematical analysis of the objective state of the market, calculating the return on implementation of the project (product) and its payback period.

The current level of product profitability is calculated based on real data, which is reflected every month in the accounting documentation of the enterprise, as well as quarterly reports.

Calculating profitability is of interest to a wide range of people:

• business owners who evaluate the correctness of the “laid course”;
• creditors who monitor the economic situation of the enterprise.

The profitability of an enterprise is considered as an absolute value, so it can be easily represented in the form Money(in the accounting report).

When using relative profitability indicators (ratios of absolute values ​​that are expressed as a percentage of each other), it is necessary to give some explanations. Relative indicators are not so demonstrative.

The product profitability ratio (in its general form) demonstrates how many units of profit a businessman will receive from a unit of production costs.

The profitability ratio is written as a fraction, where the numerator is the profit earned in the process of selling the product, and the denominator is the total costs related to both commercial promotion and the technological production cycle.

The calculated coefficient must be multiplied by 100. Thus, the proportion shows the ratio of profit to total cost (full production costs).

It is important to understand that a single calculation of product profitability cannot reflect the real state of the enterprise. When conducting a comprehensive analysis, the following points should be taken into account:

• the difference between the actual and planned profitability of products sold;
• comparison of the data obtained during profitability calculations with competing firms for similar products;
• analysis of the company's product ratings over the past few years.

There are two main concepts in searching for the profitability of an enterprise's products.

Very often, profitability is calculated only for a unit of a product, then the costs of its production and the profit received from sales from the general structure are separated.

This concept is used primarily by analysts to make forecasts. The second concept for calculating profitability is to analyze the global situation. A study of the total amounts for the reporting period is carried out.

The profitability of goods production is always considered as a percentage. This makes it possible to simplify the further use of calculated indicators for conducting a comprehensive analysis of the enterprise in the long term.

Profitability of products sold (ROM - from English Return on Margin) is an indicator that shows the efficiency of product sales in the form of the ratio between income and costs for the production of goods and their sale.

Business with minimal investment it is quite possible to open. Here you will find information about proven ideas for men and women. Profitability in practice.

Formula for profitability of products sold

In order to calculate the profitability indicator from sales specific product, sales profit or net income received is applied.

Two can also be used various types production costs – full (including commercial costs) and production costs (production costs).

When calculating product profitability, the following formulas are used:

1. Profitability in terms of total sales profit and total cost = PR/TS*100%, where PR is the total profit; TC – total production costs;
2. Profitability based on profit from sales and cost of direct (production) costs = PR/TS prod. , where PR is the total profit; TS manufactured – total production costs;
3. Product profitability based on net profit and total cost of production cost = PE/TC, where PE is net profit (total profit minus taxes and other payments); TC – total production costs;
4. Product profitability, which was calculated based on net profit and cost of production of goods = PE/TC prod. , where PE is net profit; TS manufactured – total production costs.

Profit from sales is taken from the income statement financial results(value in line 050). Profit can also be calculated using the following formula: PR=TR-TS, where PR is profit from sales; TR – sales revenue; TC – production cost (full). Revenue can be viewed in the income statement in line 010. The full cost can be easily calculated using the proposed formula: TC = line 020 + line 030 + line 040, where line 020, 030 and 040 are respectively the costs of production, commerce and administration.

Net profit (NP), as a rule, is taken from the income statement (line value 190).

Other expenses and income are those costs that are not directly related to production costs.

Product profitability, as mentioned earlier, can be calculated both for an individual product item and for an entire group of products.

Product profitability is traditionally calculated as a percentage. The information obtained during the calculations is not of immediate interest, however, it is used to draw up an enterprise strategy for the near future.

When calculating product profitability, you should not lose sight of some important details, namely:

• Factors influencing the forecast of enterprise profitability (dictation of sales figures).
• The cost of goods does not always decrease. Especially when it comes to knowledge-intensive areas where modernization is necessary. Replacing equipment at the initial stage will cost a pretty penny.
• Preference (if the list of goods is heterogeneous) must be given to those whose profitability is the highest.

Standard product profitability is usually calculated over time, using sampling over several months or years.

As a result, information users receive an illustrated picture of the effectiveness of management at the enterprise.

The formula for calculating product profitability shows a reliable result, however, the correctness of the calculations is largely influenced by the tax system that operates in the country.

Calculation examples

To understand the process of calculating the profitability indicator, let's look at a few simple real-life examples.

Let’s say the total revenue received from the sale of goods from an enterprise producing baby diapers over the past month amounted to 500 million rubles. The cost of production of sold products (including costs of commerce and administrative personnel) is 265 million rubles. Determine the profitability of the products that the enterprise produces.

First, let's find the profit from the sale of goods for the past month.

To do this, we subtract the full cost from the total revenue: 500-265 = 235 million rubles.

We will find the profitability of products using the calculation formula: PR/TS*100, where PR is the profit from sales, TS is the total cost of production costs.

Let's substitute the values: 235/265*100%=88.68%. Profitability of product sales shows how much profit the company receives from each ruble of products sold. In our case, the profit is 88.68 kopecks. This is a fairly high profitability of the product. By analyzing the product profitability indicator, you can assess the competitiveness of the company in the market for promotion new products. If the profitability of a product falls, this indicates a decrease in demand for the company's products or low production efficiency at the plant.

The profitability indicator can also be calculated for several products that form a certain product group, simultaneously.

Let's look at the second example.

The company produces three types of products with an average profitability of 26%. Sales revenue and cost for each product are presented in Table 1. It is necessary to find the profitability for each product and give recommendations to the company regarding the further production of products.

To calculate the profitability of products, we will use the formula from the first example.

Profitability commercial products. Formula: “A” = 9/27*100%=33.3%;

Profitability of product “B” = 8/22*100%=36.36%;

Profitability of product “B” = -1.89%.

If we analyze the absolute value, then production “A” brings more profit than "B". However, in reality, “B” is 3 kopecks more profitable (3.06%). Thus, the company needs to focus on producing product “B”. Regarding product “B”, it should be said that this product is unprofitable, i.e. brings a loss. Accordingly, the production of product “B” must be stopped immediately. The loss for each ruble of costs is 1.89 kopecks.

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Business, whatever it is, requires costs. Businesswoman investing in new project, expects a return in the form of high profits and its constant growth. To assess the investment efficiency indicator, business profitability is calculated. We will tell you in the article what it gives and how it is determined.

Each entrepreneur determines the need to calculate profitability for himself. Large companies have an economist on staff, whose responsibilities include regularly calculating the efficiency of activities and planning further work taking into account the obtained values. In addition to the total profitability, an indicator is calculated for this purpose net profitability assets, profitability of fixed assets, investments, sales, personnel, equity and other ratios.

How is profitability determined?

Calculating the profitability of a business is not so difficult if you have ready-made financial statements at hand. For individual entrepreneurs Those who do not keep accounting records or are just planning to open their own business will have to put everything together “by eye.” Profitability is calculated mainly as a percentage. The calculation formula is as follows:

Profitability of production = (Profit on balance / Costs of production and sales) x 100

This calculation will allow you to determine how much profit before taxes falls on 1 ruble of funds spent. For convenience, you can find a convenient online calculator online or download a special program. On average, the normal coefficient is 15-35%, but highly depends on the specifics commercial activities. For retail 10-15% is a decent result, but for the beauty or construction industry this figure will be small. For these directions you need to proceed from 50-100%, for legal services, trading intangible assets – from 100%.

The above calculation shows the nominal value of profitability. There is also real profitability - the one that is determined taking into account inflation. To assess the purchasing power of an enterprise. When the indicator turns out to be low or even negative, this indicates a lack of operational efficiency and impending bankruptcy. A business with high profitability is considered promising, fully receiving a return on investment.

Factors influencing the level of profitability

Since profitability is a relative indicator, its value largely depends on internal changes in the company and external market conditions. The main ones:

• Labor productivity.
• Technical issues in production.
• Fluctuating prices for resources purchased by the enterprise, materials, third-party services, and labor.
• Changes in the assortment and prices of products sold due to changing demand and crisis.
• Seasonality, temporary equipment downtime or product defects.

The level of profitability can be increased by accelerating trade turnover, reducing costs, and rationally increasing prices. In any case, to stabilize the situation, a number of other factors should be calculated and taken into account. economic indicators and moments: labor productivity, product quality, situation with competitors.

Example of profitability calculation

For better understanding, let us show a simple example of calculating the level of profitability using the above formula.

Initial data:

• Total expenses (purchase of raw materials, wages, rent, materials for work, fuels and lubricants, etc.) – 18 million rubles.
• Total income (revenue) – 22 million rubles.

First, let's calculate the profit: income - expenses = 4 million rubles.

Profitability = (4 million rubles/18 million rubles) x 100 = 22.2%

Calculations can be made per month, year, quarter. For convenience, profitability for each type of product or production department is often calculated separately.

It is important to compare indicators over time and take measures to improve them. Return on capital, personnel, assets and other things is also calculated separately. TO economic analysis needs to be taken seriously. This is an opportunity to find out weak spots company and improve its overall profitability.