Profitability as an indicator of the effectiveness of the organization. Summary: Profitability as the main indicator of the efficiency of the enterprise. Profitability as the main indicator of the efficiency of work

Evaluation of the efficiency of the enterprise helps the entrepreneur to determine the boundaries of the ratio of the results achieved by the company and the necessary costs 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, therefore, the question of the need to assess 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. A controlling stake in a company is evaluated first. Such a task is the most popular, since it can be used to form a comprehensive vision of the value of economic objects.
2. The procedure for evaluating the uncontrolled block of shares is being carried out. In this situation, minority shares are valued.
3. Evaluation of the company's shares listed on the market is carried out. Such a task is rare. A detailed analysis of quotes, as well as the state of discount rates and the market is carried out.
4. An appraisal procedure is carried out that includes all the property of the company. This refers to the assets of the organization, which are represented by land ownership, equipment, vehicles, various structures, buildings, networks, communications, and so on. This task involves the analysis of the organization's financial flows.

The attractiveness of a business in the light of financial investment is lost if the profit from doing it is much less in comparison with the initial investment that was required for the acquisition. As a result, the performance assessment involves the use of data on the present value of future income, which is likely to receive the investor and which is the market value.

Since a business is a large system that can be sold on the market as an isolated component, a whole complex or a subsystem, goods are elements of economic activity, and not an integral totality.

The need and profitability of the enterprise depend on various constantly changing processes, of which there are a lot. They are characteristic of both the internal environment of the company and 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 a business is characterized as unstable, then in the future this will lead to instability to one degree or another in a particular industry of the market. For this reason, this financial instrument should be under constant control, regulated in accordance with the data of the company's performance assessment.

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

# 1. Relationship between the final result and the goals of the activity

This is the main principle for evaluating the effectiveness of a company. Entrepreneurship involves the conduct of commercial, financial and industrial activities. Each of them has independent goals, which in some cases can be mutually exclusive. Examples include maximizing profits and reducing costs. In this case, the tasks are set, which consist in the search for goals of a single focus or a compromise solution. In such cases, the assessment of the effectiveness of economic activities involves the use of the method of multi-purpose optimization.

No. 2. The presence of optimality criteria

Optimality is the achievement of the minimum and maximum indicators of certain parameters in the system. With the help of the criteria, the optimality of the final results is determined. This refers to the permissible rather than the necessary application of the criteria. The system of criteria is used in cases where generalized and uniform 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. Strengthening the strategic position of the business is given by such performance indicators as the growth of market share and the increase in advantages in the framework of competition. Additional potential is created for the implementation of the tasks in order to increase the indicators of profitability and profitability. The priority goals will be those that imply strengthening the position in the market, opening up new potential opportunities for the growth of a comprehensive result of economic activity in a certain period.

No. 3. The relationship between life cycle (product life cycle) 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 a motivating link that forces a company to improve product quality, develop products according to market needs, and minimize research and testing costs. This shortens the duration of each stage.

What are the criteria for assessing the efficiency of the enterprise are needed for the analysis

The indicators reflecting the total efficiency of the organization's activities are determined by comparing the volume of all funds belonging to the enterprise and the summarizing result of its functioning.

These indicators include:

• Cost per unit of product sold to the market.
• The profitability of all assets of the company.
• Production process profitability.
• The turnover of all assets of the company.

The profitability of all assets to the greatest extent is a generalizing indicator reflecting 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 ROI.

Performance Evaluation Criteria

Time criterion:

• time spent on agreeing decisions;
• the duration of the entire process; downtime.

Cost criterion:

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

The criterion for the quality of BP modeling:

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

Power supply efficiency criterion:

• the 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:

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

How to measure employee performance: the MBO method

The more efficiently the personnel work, the higher the profit of the company 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 editorial board of the Commercial Director magazine.

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

Expert opinion

Choose only informative parameters for assessing business performance

Rail Fakhretdinov, General Director and Co-founder of the Alternative Plastic Products Plant, Oktyabrsky (Bashkortostan)

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

1. The assortment is increasing annually. The company must have the means, which will be sufficient to carry out not only the present activity, but also the prospects. We are expanding our assortment by 50–150 items. Development involves the inclusion in the budget of both preparation costs, the development of new products (including the cost of raw materials), and the acquisition of the latest equipment and, as a result, the introduction of innovative techniques. First of all, we launch a new product into the production process. The marketing department is engaged in his research, economists calculate the indicators of payback and production costs.
2. The volume of defective products is kept at a low level. When some colors are changed or the mold is debugged, defects cannot be avoided. However, other inconsistencies should not be allowed. In our company, a maximum of five products determines the permissible rejects, subject to the operation of the machine. The task of the caster at this moment is to stop the equipment and call the adjuster. We plan to eliminate the possibility of defects in the process of replacing the mold. It will remain only in cases of color change. In the absence of such restrictions, efficiency decreases, and waste overruns of the raw materials used occur. We immediately carry out an analysis, as a result of which the cause of all losses is found out.
3. Increasing output of 1 employee. Here we make a simple calculation: we divide the entire volume of goods produced by the number of staff in the office and production. The main thing here is positive dynamics.

Ineffective parameter: consists in the production of one square meter. meter of area involved in production. In practice, this indicator has shown its low information content. Products containing many parts are produced on 4 or even 5 machines. The rest are done entirely on one machine. The level of variation in values ​​depends on the type of product. If the assortment is wide, then the analysis of this parameter is not easy to perform. Performance assessment involves the use of indicators over which we exercise daily or weekly control; then we make a cumulative analysis of monthly work. I believe that the most important analysis is the shift-by-shift. Using its results, you can quickly make corrections.

What methods of assessing the effectiveness of the enterprise will allow you to competently conduct an analysis

In practice, when the analysis is carried out, the performance assessment 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 rates (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 last 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 changes in the specific indicators of profit under consideration.

c) comparison of the values ​​of profit for the reporting period during its formation, distribution and application with the criteria of the same period last year (for example, compare the indicators of the second quarter of the reporting year with the indicators of the second quarter of last year). This analysis is usually used in enterprises that sell 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 building 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 profit indicators at the time of its creation, subsequent distribution and application.

Evaluation of the effectiveness of the organization in this approach involves taking into account the proportion of structural elements of the generalized profit indicator. 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 circulating assets, their structure, composition, investment portfolio and other structural parameters. The level of aggregation of the nomenclature of manufactured products is determined by the enterprise independently.
2. Vertical analysis of profit. 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 analysis allows to determine the company's ability to generate profit from resources.
4. Vertical analysis of profit in the process of its application and distribution. It is carried out from the point of view of the ways of distribution of profits.

Structural changes in profits are identified through appropriate analysis.

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

Evaluating the effectiveness of this method involves calculating the relative and absolute deviations of the parameters, which are compared with each other. The most popular are such types of comparative profit analysis as:

a) analysis of normative 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 in order to control the processes of use and profit creation. Further, amendments are made to the economic activities of the company;

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

c) analysis of the values ​​of the profit 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 to create measures to increase profits in business.

Evaluating the effectiveness of the organization also involves analyzing the return on funds using economic, mathematical and statistical methods.

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

Step # 1. Evaluation of the company's performance begins with a comparative assessment and calculation of profitability indicators, which reflect the efficiency of production, namely:

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

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

1. Profitability of 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. Return on non-working assets - the ratio of net profit to the average amount of non-working assets.
4. Return on assets is the ratio of net profit to the average amount of the balance sheet currency.
5. Return on invested capital is 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 amount of borrowed capital.

All of these indicators reflect the efficiency of the use of equity and invested capital, current and non-current assets.

Step # 3. The final stage is a factor analysis of all profitability values, with the help of which the reasons for deviations from the indicators with which they are compared are determined (planned data, historical values, information about the results of activities of similar enterprises, and so on).

How is the performance assessment carried out on the example of a specific 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. Statement of financial results.

Let's consider the main indicators of profitability used to assess the effectiveness of a 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 operations of the economy has been exceeded in comparison with the lower efficiency of the current operation.

Table 5 we will calculate and analyze the most important profitability indicators, with the help of which the efficiency of the company is assessed and, in particular, 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	Last year	Change
Profit from sales, thousand rubles	425	365	60
Net profit, thousand rubles	330	200	130
Average balance sheet currency (sum of all assets), thousand rubles	2810	2575	235
Average amount of equity 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
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
Profitability of current assets	0,312	0,299	0,013
Return on 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, fixed and circulating assets in the reporting period increased in comparison with the previous one. There is no doubt that such changes can be characterized as positive.

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

Let's check the correctness of the calculation made by adding the totals (-0.023 + 0.013 = -0.010). Next, we compare this amount with the resulting deviation in the profitability of sales (0.094 - 0.104 = -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 was made 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, the profitability decreased by 0.023. On the other hand, one can observe an increase in sales profit 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 indicator by 0.010 points.

Further, in the process of assessing the effectiveness of activities on the example of these tables, we will carry out a factor analysis of the profitability of 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 indicator in the reporting period, in contrast to last year, by 0.242. Profitability increased by 0.014. The return on assets was up 0.026 on the back of an 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 an increase in the value of the criterion of financial dependence by 0.004. Further, an increase in profitability by 0.0175 occurred in accordance with an increase in the value of the asset turnover parameter by 0.242, an increase in the rate of profit increased its value by another 0.0328.

The mutual influence of all the above factors served to increase the profitability of the IC by 0.0506. We see a small difference between the deviation of the profitability of the IC (0.051) and the cumulative final calculation of the impact of the 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 financial dependence indicator.

Expert opinion

Evaluation of the effectiveness of activities through financial indicators and losses of the enterprise

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

Performance assessment includes an analysis of financial indicators, as well as possible risks.

1. The main indicator is selected. Every industry has some kind of key financial metric that reflects the performance of a business in that area. For example, you can take 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 car services, this is the development of a rate per hour for 1 lift per month. For the real estate industry, this is an indicator of profitability per sq. m. All you need to do is 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 in a particular area of ​​the business. Confidential information can be obtained from communication with competitors. In my experience, they are not that hard to figure out. As a result of the analysis performed, you will see the state of your company against the general background in the industry. If the performance assessment showed the company's performance level is higher than that of competitors, there is a reason to think about further growth and expansion of potential, if it is lower, then the main task is to find out the reasons for the losses. I advise in this situation to make a detailed analysis of the value chain.
2. Value chain analysis. 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 walked this road myself. My experience has shown that by acting in this way, you can find out a list of unique ways to increase efficiency. In economic activity, there are two sure signs of poor (low) efficiency. Firstly, this is the presence of warehouses for semi-finished products, and secondly, a large number of rejects. In documents of a financial nature, indicators of losses are too high level of working capital and costs per unit of production. If this is a service company, then inefficiency can be traced to the example of the work of staff - employees talk a lot, are distracted by things that are not related to the work process, thereby reducing the level of service.

The efficiency of the economic activity of an enterprise and the economic feasibility of its functioning are directly related to its profitability, which can be judged by the profitability or profitability of capital, resources or products of an entrepreneurial firm. Profitability is a relative indicator of the level of profitability of an enterprise, it characterizes the efficiency of the enterprise as a whole, the profitability of various areas of activity (production, commercial, investment, etc.).

Profitability, in contrast to profit, more fully reflects the final results of management, since it shows the ratio of the effect to the available or consumed resources. The indicator of the absolute amount of profit when analyzing the results of the enterprise's activity cannot fully characterize whether it worked well or badly, since the amount of work performed is unknown. Only the ratio of profit and volume of work performed, characterized by the level of profitability, makes it possible to assess the production and economic activity of the enterprise in the reporting year, compare with the results of the reporting periods, and also determine the place of the analyzed enterprise among other enterprises in the industry. Profitability indicators are used to assess the performance of an enterprise and as a tool in investment policy and pricing.

An assessment of the profitability of an enterprise can be made using the following indicators.

1. Profitability of products ( R np) - is calculated as the ratio of profit from product sales to the total cost of this product. The use of this indicator is most rational for on-farm analytical calculations, monitoring the profitability (loss ratio) of certain types of products, introducing new types of products into production and removing ineffective products from production.

Product profitability is calculated using the formula

where P p - profit from sales of products, works, services, rubles; С п - the total cost of goods sold, rubles.

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

2. Return on sales (turnover) - R n:

where B is the proceeds from the sale of products, works, services.

This ratio shows how much profit falls on a unit of products sold. An increase in the indicator is evidence of either an increase in product prices at constant production costs of sold products, or a decrease in production costs at constant prices. Accordingly, a decrease in the profitability of sales indicates an increase in production costs at constant prices for products or a decrease in prices for sold products of the enterprise in question, i.e. about the fall in demand for it.

The indicators of profitability of products and profitability of sales are interrelated and characterize the change in the current costs of production and sale of both all products and their individual types. In this regard, when planning the assortment of products, it is taken into account how the profitability of individual types will affect the profitability of all products. Therefore, it is very important to form the structure of manufactured products, depending on changes in the specific weights of products with greater or lesser profitability, in order to generally increase production efficiency and get additional opportunities to increase profits.

• 3. Return on equity indicators:
  • but) return on equity (R CK):

where P h - net profit; K c - the average value of equity capital.

This indicator characterizes the efficiency of using equity capital and shows how much profit falls on a unit of the company's equity capital. A change in the values ​​of the return on equity ratio may be caused, for example, by a rise or fall in the quotations of the company's shares on the stock exchange, but it should be borne in mind that the book price of shares does not always correspond to their market price. Therefore, a high value of the return on equity ratio does not necessarily indicate a high return on the capital invested in the company;

• b) return on investment (permanent) capital
• (*„):

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

The indicator characterizes the efficiency of using capital invested for a long time. The amount of investment capital is determined according to the balance sheet data as the amount of own funds and long-term liabilities;

in) profitability of the entire capital of the enterprise (R QK):

where B cf is the average net balance for the period.

This coefficient 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 using the property of the enterprise and vice versa. A decrease in the value of the profitability of the total capital of an enterprise may also indicate a drop in demand for the company's products or an overaccumulation of assets.

4. Profitability of current assets (R o6):

where AO cf is the average value of current assets, rubles.

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

5. Profitability of fixed assets and other non-current assets ( R B):

where AB av is 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 of the cost of funds. This ratio is interconnected with the profitability ratio of the entire capital of the enterprise. So, with a decrease in the return on total capital ratio, an increase in the profitability of fixed assets and other non-current assets indicates an excessive increase in mobile assets, which may be a consequence of the formation of excessive stocks, overstocking of finished products in warehouses due to a drop in demand for it, excessive growth of accounts receivable or cash funds.

Key profitability indicators

Table 10.1

	Explanations	A comment
/. Return on sales (R n)
R= P p / V	B - revenue from sales, P p - profit from sales	Shows how much profit is accounted for per unit of production. The growth of the coefficient is a consequence of the increase in prices at constant production costs or a decrease in production costs at constant prices
2. Return on total capital of the enterprise (R 0K)
* ok = P / B sr	B cf - the average balance sheet total for the period P - can act as gross profit (P B) and as profit from sales	Shows the efficiency of using all the property of the enterprise. A decrease in the coefficient is a consequence of a drop in demand for products
3. Profitability of fixed assets and other non-current assets(/? Lv)
/? lv = P / AV cf	AB cf - the average value of non-current assets for the period	Shows the efficiency of using fixed assets. An increase in the ratio with a decrease in the return on total capital ratio indicates an increase in mobile assets
4. Return on equity (R CK)
* ek = P / K ss	K ss - the average value of the sources of own funds on the balance sheet for the period	Shows the efficiency of using equity capital. The dynamics of the coefficient affects the level of quotations of shares on stock exchanges
5. Return on investment (permanent) capital (RJ
*„ = n / a and	K and - the average value of long-term loans and borrowings and the average value of equity capital for the period	Shows the effectiveness of the use of investment capital invested in the activities of the enterprise for a long time

However, it should be noted that of the listed profitability indicators in practice, not all are more often used, but only their main ones, given in table. 10.1.

These indicators are studied in dynamics, and the tendency of their change is judged on the efficiency of the enterprise's business.

The growth of any indicator of profitability depends on common economic phenomena and processes. First of all, this is the improvement of the production management system in a market economy, an increase in the efficiency of resource use by enterprises based on the stabilization of mutual settlements and the system of settlement and payment relations, the indexation of working capital and a clear definition of the sources of their formation.

An important factor in the growth of profitability in modern conditions is the work of enterprises to save resources, which leads to a decrease in cost, and, consequently, to an increase in profits. The fact is that the development of production by saving resources at this stage is much cheaper than the development of new deposits and the involvement of new resources in production. Reducing the cost should become the main condition for the growth of profitability and profitability of production.

In conclusion, it should be added that when analyzing profitability indicators, the following points must be taken into account:

• 1) profitability directly depends on the organization's strategy, or rather, on the level of risk in business, which “requires” a certain level of profit. The higher the risk, the more profit the entrepreneurial organization should receive;
• 2) the assessment of the numerator and denominator in the profitability indicators differs due to the fact that the profit reflects the real result of the enterprise for the reporting period, and the value of assets, formed over a number of years, is reflected in the accounting estimate, which may differ greatly from the market;
• 3) the influence of the temporary aspect is manifested as follows: liquidity indicators can be relatively low in the reporting period due to the transition to new technologies and other long-term investments; therefore, this decline can no longer be regarded as a negative factor.

Let's calculate the dynamics of profitability indicators for the analyzed and previous periods for OJSC "Company".

1. Profitability of products (7? Pr):

During the analyzed period, product profitability increased by 0.18%, i.e. hardly changed. All factors affecting the change in profit from sales and total costs affect the change in product profitability. They were analyzed earlier.

2. Return on sales (i? N):

Profitability of sales in the reporting period increased by the same amount as the profitability of products, but its level is lower. In general, the level of profitability of both indicators is low, in which the influence of the crisis phenomena is manifested. The factors influencing the change in sales revenue were analyzed in clause 9.1, as well as the factors that form the sales profit. When calculating all other profitability indicators, the numerators of the formula take profit before tax of the corresponding period from the income statement, and the denominator uses the balance sheet data as the average values ​​of a particular indicator for the period.

3. Return on equity (R CK) "-

The return on equity increased from 12.4% to 12.8%, i.e. by 0.4%.

4. Return on investment capital (R M):

The return on investment capital remained essentially unchanged, remaining slightly above 9%, but below the return on equity.

5. The return on total capital of the firm ( R qk):

In the reporting period, the return on total equity decreased from 7 to 6.7%, i.e. by 0.3%.

6. Profitability of fixed assets and other non-current assets (L av):

The return on non-current assets, in contrast to the total capital, increased from 10.8% to 11.5%, i.e. by 0.7%.

7. Return on current assets (/? OR):

The profitability of current assets decreases from 20.2 to 16%, and since the share of circulating assets in the total amount of capital increases to 42% against 35% in the base period, this naturally leads to a decrease in profitability and total capital (Table 10.2) ...

Changes in the capital structure

PROFIT AND PROFITABILITY AS PERFORMANCE INDICATORS

ACTIVITIES OF THE ORGANIZATION

E.V. Vylegzhanina, Cand. econom. Sciences, Associate Professor K.A. Fashmukhova, student of the Kuban State University (Russia, Krasnodar)

DOI: 10.24411 / 2500-1000-2018-10365

Annotation. The article analyzes such economic categories as "profit" and "profitability". The factors that can affect the state of profit and profitability of the enterprise are characterized. The main sources of profit for the enterprise are considered. Possible mechanisms of formation of the financial results of the enterprise are investigated. The analysis of the calculation of the profitability of the enterprise is carried out and its main types are determined.

Key words: enterprise, organization, profit, profitability, efficiency of the organization, the mechanism for the formation of the financial results of the enterprise.

In modern conditions of market relations, one of the most important indicators of the performance of all organizations are profitability and profitability. The achievement of a high level of these indicators is facilitated by a thorough economic study of the formation of the financial results of the organization's activity. Every enterprise strives to improve efficiency.

Demchuk O.V. writes that, as an economic category, profit is a net income expressed in monetary form.

the entrepreneur's move on invested capital, which characterizes his reward for the risk of carrying out entrepreneurial activities, which is the difference between the total income received and the total costs incurred in the process of this activity.

According to M.M. Shadurskaya, the profit received by the enterprise from production and economic activities has the following characteristics, presented in Figure 1.

effective performance criterion

organization

the purpose of the entrepreneur

atelier's activities and

shows the degree of business activity

Figure 1. Characteristics of profit from production and economic activities

enterprises

Not only the company itself, but also the state is interested in the growth of profits. ON THE. Buzaeva believes that there are external and internal factors that can affect the gross profit indicators. External factors include the location of the enterprise and the climatic conditions of the area, indications of ecology, economics, politics, as well as the legislation adopted in the country, etc .; to internal factors - the pace and capacity of production, measures to reduce costs, marketing strategies, measures to improve the quality of goods and services.

According to A.S. Medunov, the amount of the organization's profit depends on several indicators:

The fidelity of the choice of the production orientation of the organization for the production of products (products that are in consistently high demand);

Formation of competitive conditions for the sale of products (price policy, delivery times of products, level of service in customer service, after-sales support);

Production volumes (direct dependence of the volume on the mass of profit);

Range of products.

Loseva Yu.Yu. notes that in the conditions of market relations, there are two main sources of profit for the enterprise.

The first source is the monopoly position of the enterprise in terms of the volume and uniqueness of its products.

The second source is knowledge of the market conditions and the ability to adapt the efficiency of their production to it.

V.F. Protasov writes that the mechanism for forming the financial results of an enterprise includes:

Proceeds from the sale of an enterprise's products or services;

Gross profit;

Revenue from sales;

Profit before tax;

Net profit.

The base indicator is revenue, as it reflects the primary income of the enterprise. Further, in terms of decrease, there is the marginal (minus variable costs), gross (minus the cost of technological), from sales (minus the cost of full), operating (minus other expenses with the addition of other income and interest payable), balance sheet (minus other expenses with the addition of other income), net (net of taxes).

Profit reflects the absolute result of the organization's activities without taking into account the resources invested by the enterprise for its life, therefore it should be supplemented with profitability values, which show the degree of enterprise efficiency.

Each type of profit is needed to solve certain problems. Without taking them into account, a full-fledged analysis of activities is impossible. Profit is a financial result and an absolute measure. In other words, it can only be used for internal needs. The development of a strategy is based precisely on the types of profit. If it is necessary to compare with the activities of other organizations, then profit indicators cannot be used; instead, efficiency indicators are used, for example, profitability.

Vorobiev I.P. believes that the financial results of the organization are characterized by the amount of profit and the level of profitability.

Demchuk O.V. determines that profit, revenues and sales are absolute indicators or economic effect and it is incorrect to compare these data from several enterprises, because such a comparison will not show the true state of affairs.

Profitability, as opposed to profit, is a relative indicator, therefore the profitability of several enterprises can be compared with each other.

Profitability is a general indicator of the economic efficiency of an enterprise or the use of capital

tala / resources (material, financial, etc.). This indicator is necessary for the analysis of economic activity and for comparison with other enterprises.

Shadurskaya M.M. suggests that a group of interrelated factors forms the profitability of an enterprise. These factors in their composition show a heterogeneous impact on the results of the organization's work (both positively and negatively), in accordance with this they are systematized according to various criteria (by type of activity, sources of formation, the order of formation).

Factors affecting the amount of financial results of the reporting period are divided into external and internal.

External factors include: market factors and administrative and legal factors. Internal factors include material and technical, organizational and

managerial, economic incentive factors and social factors of working conditions.

According to V.F. Protasov, perhaps an enterprise with a lower sales volume will be more efficient and stable, that is, it will bypass another enterprise in terms of relative indicators, which is more important. Profitability is also compared to efficiency (efficiency). In general terms, profitability shows how many rubles (kopecks) of profit one ruble invested in assets or resources will bring. For profitability of sales, the formula reads as follows: how many kopecks of profit are contained in one ruble of revenue. Measured as a percentage, this indicator reflects the effectiveness of activities.

There are several main types of profitability:

Product / sales profitability;

Cost effectiveness;

Return on assets;

Return on investment;

Staff profitability.

The universal formula for calculating profitability is as follows:

RO = (Type of profit / Indicator, the profitability of which needs to be calculated) * 100%

In the numerator, the type of profit - most often the profit from sales (from sales) and net profit are used, but it is possible to calculate on the basis of gross profit, balance sheet profit and operating profit. All types of profit can be found in the income statement (profit and loss).

Thus, we can say that profit is the economic difference between total income and expenses for the production and sale of products, taking into account the losses in various business transactions during the reporting periods. To track the ratio of consumed resources to invested capital help indicators of profitability, which can determine the final results of the organization's activities.

In a developed market economy, the decisive incentive for entrepreneurial activity is to obtain and increase a positive financial result, which is characterized by the amount of profit received and the level of profitability. The greater the amount of profit and the higher the level of profitability, the more efficiently the business entity functions, the more stable its financial condition. Therefore, the search for reserves to increase profits and profitability is one of the most important tasks in any area of ​​business.

Bibliographic list

1. Analysis of the financial and economic activity of the enterprise / V.F. Protasov. - M .: Jurist. 2014 .-- 422 p.

2. Buzaeva N.A. Analysis of the profitability and profitability of the enterprise // Research publications. - 2014. - No. 11 (78). - S. 90-99.

3. Demchuk OV Profit and profitability of the enterprise: essence, indicators and ways of increasing // Problems of Economics and Management. - 2015. - No. 8 (48). - S. 6-15.

4. Loseva Yu.Yu. Profit and profitability as factors of strengthening the financial condition of the organization // Corporate governance and innovation. - 2017. - No. 9 (18). - S. 367-369.

5. Medunov A.S. Indicators of profit and profitability of the enterprise and their analysis // Questions of economic structuring. - 2016. - No. 11 (31). - S. 77-83.

6. Shadurskaya M.M. Profit and profitability of the enterprise // Materials of the XI International conference "Russian regions in the focus of changes". - 2016 .-- S. 978-985.

7. Economics and management of the organization (enterprise): textbook / I.P. Vorobiev, E.I. Sidorova, A.T. Eye. - Minsk: Kviloria V.T., 2014 .-- 422 p.

PROFIT AND PROFITABILITY AS EFFICIENCY INDICATORS ORGANIZATION ACTIVITIES

E.V. Vylegzhanina, candidate of economic sciences, associate professor K.A. Fashmukhova, student Kuban state university (Russia, Krasnodar)

Abstract. The analysis of such economic categories as "profit" and "profitability" is conducted In the article. Factors influencing on the state of profit and profitability of enterprise are characterized. The basic sources of receipt of profit an enterprise are examined. The possible mechanisms of forming of financial results of enterprise are investigated. The analysis of calculation ofprofitability of enterprise is conducted and its basic kinds are determined.

Keywords: enterprise, organization, profit, profitability, efficiency of activity of organization, mechanism of forming of financial results of enterprise.

There are several concepts of profitability in the economic literature. So, one of its definitions sounds 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. Finances of enterprises.

According to other authors, profitability is an indicator that is the ratio of profit to the amount of production costs, money investments in the organization of commercial operations or the amount of the firm's property. Either way, profitability is the ratio of income and capital invested in creating that income. By linking return to capital invested, profitability allows you to compare the level of return of an enterprise with the alternative use of capital or the return received by the enterprise under similar risk conditions. Risky investments require higher returns in order for them to be profitable. Since capital is always profitable, to measure the rate of return, profit as a reward for risk is compared with the amount of capital that was required to generate this profit. Profitability is an indicator that comprehensively characterizes the efficiency of an enterprise. With its help, it is possible to assess the efficiency of enterprise management, since obtaining high profits and a sufficient level of profitability largely depends on the correctness and rationality of the management decisions taken. Therefore, profitability can be considered as one of the criteria for the quality of management.

The value of the level of profitability can be used to assess the long-term well-being of the enterprise, i.e. the ability of the enterprise to generate sufficient return on investment. For long-term lenders of investors investing money in the company's equity 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 the relationship between the amount of profit and the amount of invested capital, the profitability indicator can be used in the process of forecasting profit. In the process of forecasting, the profit that is expected to be obtained on these investments is compared with the actual and expected investments. Estimation of the estimated profit is based on the level of profitability for the previous periods, taking into account the projected changes. In addition, profitability is of great importance for making decisions in the field of investment, planning, in the preparation of estimates, coordination, assessment and control of the enterprise's activities and its results.

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

Profitability indicators are the most important characteristics of the actual environment for the formation of profit and income of enterprises. For this reason, they are indispensable elements of comparative analysis and assessment of the financial condition of the enterprise. When analyzing production, profitability indicators are used as a tool for 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 product sales 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 of products, profits and profitability;

development of measures for the use of identified reserves.

The main sources of information when analyzing product sales and profits are:

waybills for the shipment of products;

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

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

form No. 5-f "Brief statement of financial results";

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

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

• 1. Profitability of products, sales (indicators for assessing management efficiency);
• 2. Profitability of production assets;
• 3. Profitability of investments in enterprises (profitability of economic activity).

The profitability of products can be calculated for all products sold and for individual types. It is calculated as the ratio of profit to the cost of its production and sale. The indicators of profitability of products give an idea of ​​the effectiveness of the current costs of the enterprise and the profitability of the products sold. The profitability of an individual product is taken into account when determining the price for it. The minimum profitability is considered to be a profitability equal to 1-5%. The maximum profitability is 80-100% and more. According to Western canons, it is considered to be quite satisfactory profitability of 25%. Based on this profitability, the company predicts financial results.

The profitability of a certain product (Ppr) is usually determined by the ratio of the profit from the production of the product (P) to its cost price (C), multiplied by 100%. Less commonly used is the profit-to-price ratio multiplied by 100%:

Return on sales (sales) (Rr) is the ratio of profit from the sale of products (Pr) to revenue (B):

The profitability of production (production assets) (Рпф) shows how effectively the property of the enterprise is used. It is determined as the percentage of the annual profit (balance sheet) to the average annual value of fixed assets and the amount of working capital. It is calculated as the ratio of profit (P) to the sum of basic production and circulating production assets (Fosn + Fob):

The profitability of the company's own funds (Rcc) is determined by the ratio of the company's net profit (PE) to its own funds, determined by the balance sheet (SK):

The profitability of long-term financial investments is calculated as the ratio of the amount of income from securities and equity participation in other enterprises to the total volume of long-term financial investments. It is interesting to compare the obtained result with the profitability of production assets. In some cases, it can be higher than the profitability of production assets.

Return on investment (Ri) is the ratio of the profit of the reporting year (P) to the amount of equity (SK) and long-term liabilities (DO):

Return on assets characterizes the profit received from each ruble invested in property and is calculated as the ratio of profit to the amount of assets.

Profitability can be calculated using different types of profit:

• 1) gross profit / costs * 100%;
• 2) profit from sales / costs * 100%;
• 3) profit from financial and economic activities / costs * 100%;
• 4) profit of the reporting year / costs * 100%;
• 5) net profit / costs * 100%.

Comparison of indicators of profitability calculated through gross profit and profit from sales, allows you to assess the impact of selling and administrative expenses.

Comparison of profitability indicators calculated through profit from financial and economic activities and profit from sales allows assessing the impact on profitability of results from other activities.

Comparison of indicators of profitability from financial and economic activities and profit of the reporting year allows you to assess the impact on profitability of unrealized results.

Comparison of profitability indicators, calculated through net profit and profit of the reporting year, allows you to assess the impact of tax payments.

The period of formation of a person as a professional is

Prolonged training period results in

A) mental development;

B) to infantilism;

C) to the development of thinking;

D) to excessive fantasy.

A) for late adolescence;

B) adolescence;

B) for senior school age;

D) for primary school age.

15. Do you think that in the Middle Ages, the transfer of accumulated experience was passed on through the inclusion of the child in the activities of adults?

C) the experience was not passed on.

Problem number 1: Determine the efficiency of the enterprise in terms of product profitability, if it is known that in the first quarter the volume of production was 100 products, in the second quarter. it increased by 5%, and in the III quarter. it decreased by 2% compared to the 1st quarter. Fixed costs did not change and their total amount is equal to 1000 rubles, which is 12% of the cost of production in the first quarter, 14% of the cost of production in the second quarter. and 10% of the cost of production in the III quarter. The price of products in the 1st quarter. - 104 rubles, in II - 112 rubles, in III quarter. - 100 rubles.

The solution to the problem is presented in the form of a table:

P / p No.	Indicators	Quarter
I	II	III
	Production volume, pcs.
	price, rub.
	Revenue, rub. (1 * 2)
	Fixed costs, rub.
	Variable costs, rub. 1000 - 12% X - 88%, X = 7333
	Production cost, rub. 1000 - 12% X - 100%, X = 8333			10 000
	Profit, rub. (3-6)			-200
	Profitability,% (7/3)	19,88	39,26	-

Problem number 2: Compare product profitability over three quarters based on the following data:

Solution:

Problem number 3: The cost of marketable products of the enterprise in the base period amounted to 380,500 rubles. In the reporting period, it is planned to increase labor productivity by 6% and average wages by 4%. The volume of production increases by 8% at the same fixed costs. The share of wages in the cost of production is 23%, and fixed costs 20%. Determine the percentage of cost reduction and the resulting savings under the influence of these factors.

Solution:

1. Determine the% of cost reduction due to the growth of labor productivity and wages: (1− I w.p. / Etc.) * Y w.p. = (1 - 104: 100/106: 100) * 23% = 0.43%

2. Determine the% of cost reduction due to changes in production volumes and fixed costs: (1− I post.z. / And ob.pr.) * Y post.z. = (1 - 1, since they did not change / 108: 100) * 20% = 1.48%

3. Percentage of cost reduction: 0.43% + 1.48% = 1.91%;

4. Savings: 1.91%: 100% * 380,500 rubles. = RUB 7,267.55

Problem number 4: In the reporting year, the cost of marketable products amounted to 450,200 rubles, which determined the cost per 1 ruble of marketable products - 0.89 rubles. In the planned year, the cost per 1 ruble of marketable output is set at 0.85 rubles. The volume of production will be increased by 8%. Determine the cost of marketable products for the planned year.

Solution:

1. The volume of marketable products of the reporting year: Q ex = s / s ex: W = 450200 / 0.89 = 505,842.70 rubles.

2. The volume of marketable production of the planned year: Q pl = Q report * 1.08 = 546 310.12 rubles.

3.s / s pl = Q pl * W pl = 546 310.12 * 0.85 = 464 363.6 rubles.