The Types Of Profitability

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2020-07-03 03:06:07

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The company's Profitability is the main indicator of its effectiveness. the Views of profitability and their purpose is to assess the performance of the enterprise. This relative performance, with the help of which you can see the profitability of the enterprise with respect to all costs that are necessary to obtain this income. The indicators are expressed most often in percent.

The Basic Types of profitability share conditionally on two big groups: profitability, sales and assets.

ROS – the ratio of profit of the enterprise from sales to the net without VAT. This calculation reflects gross profit margin. This indicator expresses the share of profit per each earned ruble. This figure is, in fact, is an indicator of company policy in the field of pricing and reflects its ability to control costs.

Values of this indicator vary depending on competitive strategies, product lines. This indicator is often estimated operating efficiency of the companies.

In addition to the profitability of sales based on gross distinguish the profitability at the EBIT (profit from sales before taxes and interest on a ruble of revenues), net income and profitability from sales of one ruble, which was invested in the production and sale of goods.

Types of profitability assets Include a lot of indicators. They are calculated as the ratio of profit to the average cost of the specific assets of the company. In other words, each indicator of the report on profits and losses should be a section on the average value of the index form №1 "Accounting balance".

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Types of profitability on assets are relative indicators characterizing the efficiency. They are calculated by dividing net profit for a given period by the total assets for the same period. That is, these figures show the ability of the enterprise's assets to generate profit.

There are such Types of profitability assets as the profitability of production, production assets, capital investments, assets, borrowed capital, etc.

Product Profitability is calculated by dividing the profit from sales to the cost of the product. The ROA is calculated by dividing net profit by the average annual value of assets. The profitability of capital investments - the ratio of profit from sales to the amount of capital investment. The profitability of fixed assets — it is the ratio of net profit to the value of fixed assets.

To evaluate the profitability from sales of products, it is necessary to calculate an indicator of the balance sheet profit per one ruble of sales. The profitability of sales of products equal to the ratio of retained earnings to sales.

Return can be calculated without taxes. The net profit is equal to net profit balance after deduction of income tax. Income is the net profit of sales.

Return the types of products depends on such factors as price and cost.

Product Profitability is the ratio of the difference of prices and of production costs to prices. Analyze this indicator for a number of years, given the dynamics of changes in prices and costs.

The Profitability of production assets is the ratio of profit to the average balance for the year value of fixed assets of production in the amount of material costs. These types of profitability analyses and are measured at carrying amounts and net profit. The change of these parameters affect the turnover of working capital, capital productivity, sales volume.

There is an indicator of profitability of the personnel —  call the ratio of net profit to the number (average) personnel.

 

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