Profitability- this is one of the indicators characterizing the economic efficiency of the enterprise. Profitability present It is a use of funds in which the organization not only covers its costs with income, but also makes a profit.

To calculate and analyze the profitability of an enterprise, the following formula is used:

Profitability = BP / (VOAm. + Oav.)

BP - balance sheet profit received by the company in the reporting period;

BOAm. - the average value of the cost outside current assets calculated for the reporting period;

Wed - the average value of the value of current assets, which is calculated for the reporting period.

Indicators of profitability of the enterprise

Depending on what to compare the profit indicator with, three groups of indicators can be distinguished for analyzing the profitability of the enterprise:

1. return on equity;
2. profitability of sales;
3. profitability of production.

1. Return on equity

• return on total capital.
• profitability equity capital;

The return on total equity is calculated using the following formula:

Rroa = Profit Before Tax / Total Sources of Funds

This indicator is the most interesting for investors.

To calculate the return on equity, I use the formula:

Rroe = Net Income / Equity

This ratio demonstrates the profit from each monetary unit invested by the capital owners. It is the basic coefficient that characterizes the effectiveness of investments in any activity.

2. Return on sales

If it is necessary to analyze the profitability of sales on the basis of sales proceeds and profit indicators, the profitability is calculated for individual types of product or for all its types in general.

• gross profitability of the sold product;
• operating profitability of the sold product;
• net profitability of the sold product.

The calculation of the gross profitability of the sold product is carried out as follows:

Rgpm = Gross profit / Sales revenue

Gross margin reflects efficiency production activities and the effectiveness of the enterprise's pricing policy.

For calculation operating profitability of the sold product use the following formula:

Roim = Operating profit / Sales revenue

Operating profit is the profit that remains after administrative expenses, distribution costs and other operating expenses are deducted from gross profit.

Net profitability of the sold product:

Rnpm = Net Income / Sales Revenue

If over any period of time the operating profitability indicator remains unchanged with a simultaneous decrease in the net profitability indicator, then this may indicate an increase in expenses and losses from participation in the capital of other enterprises, or an increase in the amount of tax payments. This ratio demonstrates the full impact of enterprise financing and capital structure on its profitability.

3. Production profitability

• gross profitability of production.
• net profitability of production;

These indicators reflect the profit of the enterprise from each ruble spent on the production of the product.

To calculate the gross profitability of production, use the following formula:

Rpv = Gross profit / Cost of production

Shows how many rubles of gross profit falls on the ruble of costs that form the cost of the sold product.

Net profitability of production:

Rpch = Net profit / Cost of production

Reflects how many rubles of net profit are accounted for by the ruble of the product sold.

With regard to all of the above indicators, positive dynamics is desirable.

In the process of analyzing the profitability of an enterprise, one should study the dynamics of all considered indicators, as well as compare them with the values ​​of similar indicators of competitors and for the industry as a whole.

Another term:

A vital role in the performance appraisal system, business qualities the enterprise and the degree of its reliability play indicators of profit and profitability. All incomes, expenses are accumulated in the profit, the results of the enterprise's activity are summarized.

Analysis financial results(profit) of the enterprise's activity consists in:

• determination of deviations of each indicator for the current analyzed period;
• study of the structure of the relevant indicators and their changes;
• conducting factor analysis of profit and profitability.

Let's conduct a detailed analysis of profit and profitability using the example of JSC NS". For the analysis, we will use the Balance Sheet (Form 1) and the Profit and Loss Statement (Form 2) for 2011 (the form data are presented in Appendices 1, 2).

First, we find the following indicators:

• absolute deviation of profit (∆П):

∆П = П 1 - П 0,

where P 1, P 0 - the value of profit, respectively, in the reporting and base year, thousand rubles;

• growth (decline) rate (T):

T = P 1 / P 0 x 100%;

• the level of each indicator (Y i) to the proceeds (B) from the sale of goods, products, works, services:

Have i= P i/ V i x 100%,

where i= 0 - base period;

i= 1 - reporting period;

structural change (∆ Y):

∆Y = Y 1 – Y 0 ,

where Y 1 , Y 0 - the level of the reporting and base periods, respectively.

All calculations are presented in table. 1.

Table 1. Analysis of the profit of the enterprise of JSC "X" for 2010–2011.

P / p No.	Index	Line code	2010 r.	2011 r.	Absolute deviation (+/–)	Growth (decline) rate,%	Level to revenue in the base period,%	Level to revenue in the reporting period,%	Level deviation (+/–)
1	2	3	4	5	6 = 5 – 4	7 = 5/4 x 100	8	9	10 = 9 – 8
1	Revenue (net) from the sale of goods, products, works, services (net of VAT, excise taxes and similar mandatory payments)	2110	245 900	345 897	99 997	140,7	100,0	100,0	-
2	Cost of sales of goods, products, works, services	2120	190 234	178 345	–11 889	93,8	77,4	51,6	–25,8
3	Gross profit	2100	55 666	167 552	111 886	301,0	22,6	48,4	25,8
4	Business expenses	2210
5	Administrative expenses	2220		89 123	89 123	-		25,8	25,8
6	Profit (loss) from sales	2200	55 666	78 429	22 763	140,9	22,6	22,7	0,1
7	Income from participation in other organizations	2310			-	-
8	Interest receivable	2320			-	-
9	Percentage to be paid	2330			-	-
10	Other income	2340	337	2745	2408	814,5	0,1	0,8	0,7
11	other expenses	2350	5500	16 100	10 600	292,7	2,2	4,7	2,5
12	Profit (loss) before tax	2300	50 503	65 074	14 571	128,9	20,5	18,8	–1,7
13	Current income tax	2410	12 625	16 268	3643	128,9	5,1	4,7	–0,4
14	Including permanent tax liabilities	2421		2800	2800	-	0,0	0,8	0,8
15	Change in deferred tax liabilities	2430	4	14	10	350,0	0,002	0,004	0,002
16	Change in tax assets	2450				-
17	Other	2460				-
18	Net profit	2400	37 874	48 792	10 918	128,8	15,4	14,1	–1,3

According to the table. 1 in 2011, net profit increased by 28.8% compared to 2010, which amounted to RUB 10,918 thousand. However, the level of profit in relation to revenue decreased by 1.3%.

Thus, based on the data in Table. 1, the following conclusions can be drawn:

• an increase in the indicator on page 1 indicates that more income the organization receives from the main activity;
• a decrease in the indicator on page 2 is a positive trend if the relative decrease in production costs products sold will not affect its quality;
• the growth of the indicator on page 6 is favorable. This indicator indicates an increase in product profitability and a relative decrease in production and distribution costs;
• the growth of indicators on pages 12, 18 also indicates positive trends in the organization of production at this enterprise. Different rates of change in these indicators can be caused mainly by adjustments to the taxation system;
• the indicator on page 13 characterizes the share of profits transferred to the budget in the form of income tax. The growth of this indicator in dynamics, which occurs, as a rule, with an increase in tax rates, is generally undesirable, but necessary and does not depend on the enterprise.

In the analysis of profit, an important role is played by the analysis of the influence of factors (factor analysis), which is a method of complex and systematic study and measurement of the impact of factors on the value of the effective indicator. Let's note the main types of factor analysis:

• deterministic (functional) - the effective indicator is presented in the form of a product, a quotient or an algebraic sum of factors;
• stochastic (correlation) - the relationship between the effective and factor indicators is incomplete or probabilistic;
• direct (deductive) - from general to particular;
• reverse (inductive) - from particular to general;
• single-stage and multi-stage;
• static and dynamic;
• retrospective and prospective.

It should be noted that any factor analysis consists of the following steps:

1. Selection of factors.
2. Classification and systematization of factors.
3. Modeling the relationship between performance and factor indicators.
4. Calculation of the influence of factors and assessment of the role of each of them in changing the value of the effective indicator.
5. Practical use of the factor model (calculation of reserves for the growth of the effective indicator).

It is well known that a change in profit from product sales is due to a change in the following factors:

• sales volume;
• implementation structures;
• selling prices for products sold;
• prices for raw materials, supplies, fuel, energy and transportation tariffs;
• the level of costs of material and labor resources.

Calculation of the influence of the above factors on the profit of JSC X"Is presented in table. 2-4.

Table 2. Initial data for factor analysis of profit from the sale of products of the enterprise OJSC " NS»

P / p No.

Index	2011 r.		2010 r.
	symbol	thousand roubles.	symbol	thousand roubles.
1		q 1	69	q 0	60
2	Product price, thousand rubles	p 1	5013	p 0	4098,3
3		IN 1	345 897	B 0	245 900
4	Total cost from product sales (line 2120 + line 2210 + line 2220 F2), thousand rubles	S 1	267 468	S 0	190 234
5	Cost of 1 unit products, thousand rubles / piece	S units 1	3876,35	S units 0	3170,57
6	Profit from product sales (line 2200 F2), thousand rubles	P 1	78 429	P 0	55 666

Table 3. Performance indicators of JSC NS"For 2011 in comparable prices

P / p No.	Index	2010 r.		2011 in comparable prices			2011 r.
		symbol	thousand roubles.	symbol	calculation formula	thousand roubles.	symbol	thousand roubles.
1	Proceeds from the sale of products (goods), thousand rubles	B 0	245 900	V"	q 1 x p 0	282 785	IN 1	345 897
2	Full cost price, thousand rubles	S 0	190 234	S"		218 769	S 1	267 468
3	Profit from sales marketable products, thousand roubles.	P 0	55 666	NS"		64 015,9	P 1	78 429

Table 4. Calculation of factorial influences on profit from product sales

Factor	Calculation formula	Indicator value, thousand rubles	Specific gravity,%
Change in selling prices for products	∆pР 1 = B 1 - B "	63 112,0	277,3
Change in production	∆p 2 = p 0 x ( S" / S 0) – p 0	8349,9	36,7
Change in product structure	∆p 3 = p 0 x ((V "/ V 0) - ( S? / S 0))	0,0000	0,0000
The effect on profit of savings from a reduction in production costs	∆p 4 = S" – S 1	–48 698,9	–213,9
Change in cost due to structural shifts in the composition of products	∆pP 5 = S 0 x (V "/ V 0) - S?	0,0	0,0
The cumulative influence of factors		22 763	100

According to the table. 4 methodology for calculating the influence of factors on profit from product sales consists in a sequential calculation of the influence of each factor:

1. Calculation of the total change in profit (ΔП) from product sales:

ΔP = P 1 - P 0.

2. Calculation of the effect on profit of changes in selling prices for products sold (Δ p 1):

Δ p 1 = B 1 - B "= q 1 x p 1 – q 1 x p 0 ,

where B 1 = q 1 x p 1 - revenue from sales of products in the reporting period;

B "= q 1 x p 0 - proceeds from the sale of products in comparable prices.

3. Calculation of the effect on profit of changes in the volume of production (Δ p 2):

Δ p 2 = P 0 x ( S"/ S 0) – p 0 ,

where S"- full cost in the reporting period in comparable prices;

S 0 - full cost of the base year.

4. Calculation of the effect on profit of changes in the structure of product sales (Δ p 3):

Δ p 3 = P 0 x ((V "/ V 0) - ( S" / S 0)).

5. Calculation of the effect on profit of changes in the total cost (Δ p 4):

Δ p 4 = S"– S 1 ,

where S 1 - full cost of goods sold in the reporting period.

6. Calculation of the impact on profit of changes in the cost due to structural changes in the composition of products (Δ p 5):

Δ p 5 = S 0 x (V "/ V 0) - S".

Δ p= P 1 - P 0 = Δ p 1 + Δ p 2 + Δ p 3 + Δ p 4 + Δ p 5 .

Let's make calculations for our example:

ΔП = 78 429 - 55 666 = 22 763 thousand rubles.

Δ p 1 = 69 x 5013 - 69 x 4098.3 = 63,112 thousand rubles.

Thus, the increase in prices for products in the reporting period compared to the previous period by an average of 22% ( p 1 / p 0 = 5013 / 4098.3 x 100% = 122%) led to an increase in the amount of profit from the sale of products by 63,112 thousand rubles.

Δ p 2 = 55 666 x (218 769/190 234) - 55 666 = 8349.9 thousand rubles.

Δ p 3 = 55 666 x (282 785/245 900 - 218 769/190 234) = 0.

Δ p 4 = 218 769 - 267 468 = –48 698.9 thousand rubles.

Δ p 5 = 190 234 x (282 785/245 900) - 218 769 = 0.

Δ p= 63 112 + 8349.9 + 0 + (–48 698.9) + 0 = 22 763 thousand rubles.

Now, using the data of the Profit and Loss Statement, we will carry out a factor analysis of profitability of sales, net profitability.

Note that to analyze the profitability of sales ( R) the following factorial model can be used:

where P is the profit from the sale of products;

B - proceeds from the sale of products;

S- full cost price.

In this case, the influence of the factor of change in the price of products is determined by the formula:

Δ R B = (B 1 - S 0) / B 1 - (B 0 - S 0) / B 0.

Accordingly, the influence of the factor of cost price change will be:

Δ R S= (B 1 - S 1) / B 1 - (B 1 - S 0) / B 1.

The sum of the factorial deviations will give the total change in profitability for the period:

Δ R = Δ R B + Δ R S.

Using the data in the table. 2, 3 and formulas, we will carry out a factor analysis of the profitability of the enterprise of JSC " NS».

Table 5. Initial data for factor analysis of the profitability of sales of the enterprise OJSC NS»

	Price, thousand rubles		Number of products (goods) sold, pcs.		Sales volume, thousand rubles			Cost, thousand rubles
					in the base year	in the reporting year at base year prices	in the reporting year	base year	actual in prices of the base period	reporting period
Manufactured products	P 0	p 1	q 0	q 1	B 0	V"	IN 1	S 0	S 2	S 1
	4098,3	5013	60	69	245 900	282 785	345 897	190 234	218 769	267 468

Table 6. Factor analysis of profitability of sales

	Product profitability,%		Change in profitability,%	Change in profitability due to factors,%
	base year	reporting year		price change	change in cost
	R 0	R 1		∆ R V	∆ R S
Manufactured products	22,64	22,67	0,04	22,37	–22,33

According to the table. 6 profitability of sales of the reporting period increased in comparison with the profitability of the previous period by 0.04%. This increase was influenced by the increase in prices for manufactured products (22.37%).

In the process of analyzing profitability, an assessment of the profitability of all capital, equity, permanent funds should be made. For example, the return on assets (economic profitability) is a general indicator showing how much profit is accounted for by 1 ruble. property. The value of this coefficient determines the size of dividends per shares in joint-stock companies.

Profitability ratios can be calculated not only for the entire volume of enterprise funds, but also for resources certain types(in particular, fixed assets). Necessary information for the assessment economic efficiency the use of fixed assets contains financial statements.

In domestic analytical practice, the profitability ratio of the (core) activity ( Net Profit Margin, NPM), calculated as the ratio of the profit from sales (P) to the costs of manufacturing products sold, which are made up of the cost of selling goods, products, works and services (C), commercial (KR) and management costs (SD), that is, according to the formula:

Table 7 shows a systematized list of profitability ratios.

Table 7. Indicators characterizing profitability

Index	Calculation method	Data		Explanations
		2010 r.	2011 r.
Return on sales (profit margin)	(p. 2200 F2 x 100%) / (p. 2110 F2)	22,64 %	22,67 %	Shows how much profit is accounted for per unit of products sold
Overall profitability of the reporting period	(p. 2300 Ф2 x 100%) / (p. 2110 Ф2)	20,54 %	18,81 %
Return on equity	(p. 2300 Ф2 x 100%) / (p. 1300 Ф1)	32,02 %	34,04 %	Shows the efficiency of using equity capital
Return on assets (economic return)	(p. 2300 Ф2 x 100%) / (p. 1600 Ф1)	30,10 %	31,50 %	Shows the effectiveness of the use of all property of the organization
Fund profitability	(p. 2300 Ф2 x 100%) / (p. 1100 Ф1)	409,69 %	413,80 %	Shows the efficiency of using fixed assets and other non-current assets
Profitability of core business	(p. 2200 Ф2 x 100%) / (p. 2120 + 2210 + 2220 Ф2)	29,26 %	29,32 %	Shows how much profit from sales falls on 1 ruble. costs
Return on permanent capital	(page 2300 Ф2 x 100%) / page (1300 + 1400) Ф1	32,00 %	34,87 %	Shows the effectiveness of the use of capital invested in the organization for a long time
Payback period of equity capital	(p. 1300 F1) / (p. 2300 F2)	3,12	2,87	Shows the number of years during which the investment in this organization will be fully paid off

A competently conducted analysis of the company's financial results will increase the validity of planning and the rigidity of management standards, assess the reliability of accounting and control efficiency, and will also contribute to ensuring an efficient and uninterrupted organization of activities.

Annex 1

JSC " X»Balance sheet as of 31.12.2011
Index	Code	Old code	2009 r.	2010 r.	2011 r.
1	2	3	4	5	6
Assets
I. Non-current assets
Intangible assets
Research and development results
Fixed assets
Profitable investments in material assets
Financial investments
Deferred tax assets
Other noncurrent assets
Total for Section I			11 087	12 327	15 726
II. Current assets
VAT on purchased assets
Receivables
Including:
receivables expected to be paid more than 12 months after the reporting date
receivables expected to be settled within 12 months after the reporting date
financial investments
Cash and cash equivalents
Other current assets
Total for Section II			127 556	157 658	184 996
Balance			138 643	169 985	200 722
Passive
III. Capital and reserves
Authorized capital (share capital, authorized capital)
Own shares repurchased from shareholders
Revaluation of non-current assets
Additional capital (without revaluation)
Reserve capital
Retained earnings (uncovered loss)
Total for Section III			127 857	157 734	186 490
IV. long term duties
Borrowed funds
Deferred tax liabilities
Estimated liabilities
Other liabilities
Total for Section IV			92	95	109
V. Short-term liabilities
Borrowed funds
Accounts payable
revenue of the future periods
Estimated liabilities
Other liabilities
Total for Section V			10 694	12 156	14 123
Balance			138 643	169 985	200 722

Appendix 2

Profits and Losses Report
Index	Line code	2010 r.	2011 r.
1	2	3	4
Revenue (net) from the sale of goods, products, works, services (net of VAT, excise taxes and similar mandatory payments)
Cost of sales of goods, products, works, services
Gross profit
Business expenses
Administrative expenses
Profit (loss) from sales	2200	55 666	78 429
Income from participation in other organizations
Interest receivable
Percentage to be paid
Other income
other expenses
Profit (loss) before tax	2300	50 503	65 074
Current income tax
Including permanent tax liabilities
Change in deferred tax liabilities
Change in tax assets
Net profit	2400	37 874	48 792

Profitability indicators characterize the efficiency of the enterprise as a whole, the income of various areas of activity (production, entrepreneurial, investment), cost recovery, etc. They more fully than profit characterize the final results of management, because their value shows the ratio of the effect to the available or used resources.

Profitability indicators can be grouped into several groups:

indicators characterizing the profitability (payback) of production costs and investment projects;

indicators characterizing the profitability of sales;

indicators characterizing the return on capital and its parts.

All these indicators can be calculated on the basis of balance sheet profit, profit from product sales or net profit.

Production profitability(cost recovery) is calculated by the ratio of gross ( NS) or net profit ( State of emergency) to the amount of costs for products sold or manufactured. or

It shows how much the company has profit from each hryvnia spent on the production of products and their sale. It can be calculated as a whole for the enterprise, its individual divisions and types of products.

Similarly, it is determined return on investment projects: the received or expected amount of profit from the project refers to the amount of investment in this project.

The factorial model of this indicator is as follows:

For factor analysis of profitability for each type of product, a factor model of the type is used:

The return on sales is calculated by dividing the profit from the sale of products, works and services, or net profit, by the amount of proceeds received.

This indicator shows how much profit a company has from 1 hryvnia of sales.

The return on (return) of capital is calculated by the ratio of the balance (net) profit to average annual cost all capital or its individual components: equity, debt, fixed, circulating, production, etc.

The increase in profitability is facilitated by an increase in profits, a decrease in the costs of production and sales of products, an increase in the efficiency of enterprise property management.

6.3. Analysis of the organizational and technical development of the enterprise

The purpose of the analysis is to assess the degree of implementation of the plan for technical and organizational development and to determine the impact of the measures taken on the main indicators of the enterprise (shop).

This analysis is carried out by calculating and evaluating the system of indicators:

Indicators of the scientific and technical level of production.

a) progressiveness and quality of products is determined by comparing the indicators of manufactured products with the best domestic and foreign products.

The following indicators are analyzed (plan with fact):

the number of types, types of products of the highest quality, and in% to the total titles;

the volume of sales of products of the highest quality, and in% to the total volume of sales;

the coefficient of renewal (i.e. the share of new products in the total volume);

export ratio - the share of exported products in the total volume;

obsolete and replacement products (number of items);

products mastered for the first time in the country (number of items).

b) Indicators of the degree of mechanization and automation of production and labor, the progressiveness of technical processes.

Acceleration of technological progress is forcing enterprises to renew their fixed assets faster and faster in the context of new technologies. Consequently, the assessment of the technological level of the means of production is the primary task of any economic analysis of enterprises.

Experts on this issue believe that this analysis should not abstract from the set of conditions for the global strategy of the enterprise. It is not about applying the same technique everywhere and following the need to achieve the highest level of coordination of machines and equipment, on the contrary, it is widely recognized that there is a strong interdependence between the nature of the products produced, the technology used and the form of organization of production.

The assessment of the technological level of the means of production of the enterprise should be carried out taking into account the relationship with other elements of the analysis, both the product itself and the conditions of production. This assessment is based on the calculation of the relevant indicators linked to the system.

The technical level of a group of machines and equipment can be assessed by the following indicators:

types of machines

Hence, the following indicators follow:

Machine mechanization level =	Total cost of machines type. 2-5
Automation level =	Total cost of machines type. 3-5
	Total cost of machines type. 1-5
Complex automation level =	Total cost of machines type. 4-5
	Total cost of machines type. 1-5

A similar approach is used when calculating the indicators of personnel specialization:

But the definition of the technical level is not the end of the analysis, it is also important to assess the level of complexity of the equipment and the risk associated with its operation, the level of integration, the ability to modernize.

Assessment of the difficulty level it is necessary as the process of improving equipment without it can create difficulties for the enterprise - the more complex the equipment is (in technological terms), the higher the probability of an accident and the complexity of repair. The ideal for an enterprise is simple and robust equipment, which nevertheless will meet modern technological requirements due to competition.

Assessment of the degree of flexibility of the equipment. New sales conditions force enterprises to frequently change the characteristics of their products, as well as to produce a limited number of additional products. In order to be able to produce products corresponding to the demand of consumers with further obtaining maximum profit, it is necessary to move from simple equipment specializing in one type of production to flexible equipment that can quickly adapt to the release of other products. Thus, if market needs lead to flexible equipment, then the analyst must determine if all the necessary components of this flexible system are available.

Flexibility equipment can be determined using various criteria:

According to the degree of polyvalence equipment. By the type of equipment, one can say that it is designed to solve one problem, or it is programmed to solve many problems.

Transition time. The polyvalence of machines implies that it is possible to move quickly from one operation to another on one machine, and that the transition time is reduced to a minimum.

Segmentation of equipment, when instead of one flexible equipment producing several types of products, several production lines are installed corresponding to each type of product. If there is a demand in the market for everything at the same time types of products, then it will be possible to organize the production of different products at the same time.

Availability of backup equipment... In the event of an unexpected urgent order or a breakdown of one of the lines, the availability of backup equipment is of particular interest. If we assume that such equipment is completely depreciated, but in working order, then its presence will not affect the assessment of the enterprise's ability to fully use its production capabilities.

The degree of diversity of personnel. In addition to the quality of personnel training, its versatility is an important element of flexibility. It is under this condition that it is possible to replace one line with another, quickly adapt the equipment, and replace a failed worker.

v) Indicators of the effectiveness of technical development:

the growth rate of marketable products (if there is demand);

cost reduction due to the introduction of organizational and technical measures;

increase in profits.

Specific indicators:

extraction of the main substance from raw materials;

output of by-products;

recycling.

G) Indicators of technical and energy equipment of labor:

Indicators of the organization of production and labor.

1) Coeff. concentration =	The number of workers in the workshop
	The number of workers in the plant
2) Coeff. concentration =	Cost of OPF shop
	Price OPF enterprise
3) Coeff. concentration =	Workshop production volume
	Production volume of the enterprise
Coeff. specializations =	The volume of specialized products
	Volume of all products
Coeff. control =	Management costs
	Cost realized products
Coeff. management functions =	The number of engineers and employees of the plant management
	The total number of these categories in the enterprise

ESSAY

Course work: 45 p., 0 fig., 7 table., 18 sources.

Profitability, enterprise profitability, types of profitability, factor analysis, profitability analysis.

The object of the research is the activities of the PRUE "Borisov Crystal Factory".

Purpose of writing term paper: to study the theoretical and practical aspects of the profitability of the enterprise and the ways to increase it on the example of PRUE "Borisovskiy crystal plant".

When writing a term paper, methods of analysis, comparison, and inference were used.

In the process of writing a term paper, the following studies were performed:

1. Studied the features of the profitability of the enterprise;

2. Analysis performed economic activity PRUE "Borisov Crystal Factory";

3. The ways of increasing the profitability of the PRUE "Borisovskiy crystal plant" have been studied.

INTRODUCTION ……………………………………………………………… 4

1 ECONOMIC MAINTENANCE OF PRODUCTION PROFITABILITY ……………………………………………………………… ..6

1.1 Concept of profitability ……………………………………………… 6

1.2 Types of profitability ……………………………………………… 9

1.3 System of indicators of profitability ……………………………… 12

1.4 Analysis of the profitability of the enterprise ……………………………… 15

1.5 Factor analysis of profitability indicators ………………… ..18

2 ANALYSIS OF INDICATORS OF PRODUCTION PROFITABILITY IN THE PRUE "BORISOVSKY CRYSTAL PLANT" FOR 2009-2010 …… ..21

CONCLUSION ……………………………………………………… ..31

LIST OF USED SOURCES …………………… .32

INTRODUCTION

The transition to market relations in the economy of the Republic of Belarus puts in a new way and expands the capabilities of the enterprise, as its main link. In the new conditions, legal, financial, economic and social relations have changed significantly both within the enterprise and in the external environment.

A variety of forms of ownership has developed, the relations of enterprises with the state and other market participants have changed significantly. Economic freedom, as a condition and consequence of market relations, makes higher demands on the level of management and economic activity of an enterprise.

In modern economic conditions, the activity of each economic entity is the subject of attention of a wide range of market participants interested in the results of its functioning.

To ensure the survival of the enterprise in modern conditions, management personnel must, first of all, be able to realistically assess the financial condition of both their company and existing potential competitors. Critical in determining financial condition the enterprise consists in a timely and high-quality analysis of financial and economic activities.

The result of the firm's activity is assessed by a system of indicators, the main of which is profitability, defined as the ratio of profit to one of the indicators of the functioning of a trading enterprise. This allows us to identify not only the overall economic efficiency of the enterprise, but also to evaluate other aspects of its activities.

Profitability, in a general sense, characterizes the expediency of expended resources in relation to newly acquired (profit) resources. It should be noted that profitability indicators are important elements reflecting the factor environment of the formation of enterprises' profits. Therefore, they are mandatory when conducting comparative analysis and assessing the financial condition of the enterprise. In addition, profitability indicators are used when analyzing the efficiency of enterprise management, when determining the long-term well-being of an organization, and are used as a tool for investment policy and pricing.

A high level of profitability gives an advantage to any enterprise in attracting investments, in obtaining loans, in choosing suppliers, etc., which determines its competitiveness, as well as the degree of its independence from unexpected changes in market conditions.

In this regard, the issues of economic analysis of the level of profitability in trade in order to identify reserves for its increase become extremely important.

The subject of the course work research: the profitability of an industrial enterprise.

The object of research of the course work: PRUE "Borisov Crystal Factory".

The purpose of the course work research: to analyze the profitability of the PRUE "Borisovskiy crystal plant" and to propose ways to increase the profitability of the pregshyataya.

Coursework objectives:

analyze the ways and means of increasing the profitability of production. The main factors influencing the profitability of production;

analyze production and economic activities and the effectiveness of measures to increase the profitability of production;

The structure of the course work: introduction, main part (three chapters), conclusion and list of sources used.

1 ECONOMIC MAINTENANCE OF PRODUCTION PROFITABILITY

1.1 Concept of profitability

There are several concepts of profitability in the economic literature. So, one of its definitions is as follows: profitability (from it. 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, 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 on production 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 production. With its help, it is possible to assess the efficiency of production management, since obtaining high profits and a sufficient level of profitability largely depends on the correctness and rationality of the management decisions... 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 and 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. Besides, great importance profitability has for decision-making in the field of investment, planning, in the preparation of estimates, coordination, assessment and control of the enterprise and its results.

Thus, we can conclude that profitability indicators characterize the financial results and efficiency of production. 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.

Production profitability(Rpr) shows the value of the balance (or net) profit (PB) per 1 ruble. average annual value of fixed assets and average annual value of standardized working capital enterprises:

OPF - the average annual cost of fixed assets

OS - the average annual cost of the normalized working capital of the enterprise

Actual total profitability is determined by the ratio of the balance sheet profit to the actual average annual value of production fixed assets and standardized working capital not credited by the bank. Actual balances of normalized working capital are established based on their balance sheet balance minus debts to suppliers for accepted payment requests, the payment date of which has not come, and to suppliers for non-invoiced deliveries, as well as wear and tear of low-value and wearing out items and a reserve for reimbursement of planned losses and forthcoming expenses ...

The level of profitability depends not only on the amount of profit, but also on the capital intensity of production. At enterprises, associations of heavy industry with a high capital intensity of production, the level of profitability in relation to production assets is lower than in associations, at enterprises of light and especially Food Industry... With an increase in the amount of profit and a decrease in the cost of fixed assets and normalized working capital, profitability increases, and vice versa.

Estimated profitability represents the ratio of balance sheet profit minus payments for production assets, fixed payments, interest for a bank loan, earmarked profit (profit from the sale of consumer goods, new goods household chemicals etc.), as well as the profit received for reasons not depending on the activities of the association, the enterprise, to the average annual cost of fixed assets (excluding fixed assets, for which "" benefits are provided on payment) and normalized working capital.

When analyzing the work of associations, enterprises, especially when planning to assess the profitability of products, profitability is important, defined as the ratio of the amount of profit to the total cost of goods sold. The calculation of the profitability of certain types of products is made according to the formula:

(O - C) 100

where R is the level of profitability,%

О - the wholesale price of the enterprise for products

C is the total cost of the product.

In mechanical engineering and other manufacturing industries, profitability is defined as the ratio of profit to cost less the cost of raw materials, fuel, energy, materials, semi-finished products and components used. In this case, the formula can be used:

Rm = C - M (3)

where Rm is the calculated rate of return to cost less material costs

Ф - production assets of the industry, million rubles

Rф - the rate of return to production assets

С - М - the cost of marketable products minus direct material costs, million rubles.

1.2 Types of profitability

The level of profitability of socialist associations, enterprises and industries is not determined by the law of the average rate of profit, but is established by the state in a planned manner, taking into account the level of prices and production costs, the need for funds for the development of production, economic incentives for workers in enterprises and associations.

Under socialism, the profitability of some enterprises, associations and branches of the economy does not increase to the detriment of other enterprises, associations and branches. The rate of development of industries in Belarus, in contrast to the capitalist countries, is determined not by the level of their profitability, but by the state plan of economic and social development.

The profitability of production is characterized by a system of indicators. National economic profitability is defined as the ratio of the entire amount of cash savings (profit and turnover tax) to the average annual value of fixed assets and standardized working capital or to the total cost of production. In 2003, the profitability of industry, calculated as the ratio of the total amount of cash savings to production assets, was (in prices of the corresponding years) 20.5%.

Self-supporting profitability, used in planning, assessing economic activity and economic incentives for associations, enterprises, is defined as the ratio of the amount of profit to the average annual value of fixed assets and normalized working capital. In 2003, it accounted for 12.1% in industry, including: in mechanical engineering and metalworking - 12.2%, in ferrous metallurgy - 10.7%, in oil production - 19.2, in light industry - 23.2, in the food industry - 18.5%. The profitability of the industry, calculated as the ratio of profit to the total cost of production, in 1984 was 16.2%, including: food-11.8, light industry-12.3%.

The level of profitability of industries is directly dependent on the profitability of associations and enterprises. The higher the profitability of associations, enterprises, the higher the level of profitability of industry and the entire national economy as a whole.

Overall profitability associations, enterprises is determined by the ratio of the balance sheet profit to the average annual value of fixed assets and normalized working capital and is calculated by the formula

(4)

P - profit;

- the average annual cost of fixed assets;

- the average annual cost of standardized working capital.

Actual overall profitability is determined by the ratio of the balance sheet profit to the actual average annual value of production fixed assets and normalized working capital not lent by the bank. Actual balances of normalized working capital are established based on their balance sheet balance minus debts to suppliers for accepted payment requests, the payment date of which has not come, and to suppliers for non-invoiced deliveries, as well as wear and tear of low-value and wearing out items and a reserve for reimbursement of planned losses and forthcoming expenses ...

The level of profitability depends not only on the amount of profit, but. and on the capital intensity of production. At enterprises, associations of heavy industry with a high capital intensity of production, the level of profitability in relation to production assets is lower than in associations, at enterprises of light and especially food industries. With an increase in the amount of profit and a decrease in the cost of fixed assets and normalized working capital, profitability increases, and vice versa.

Estimated profitability is the ratio of the balance sheet profit minus payments for production assets, fixed payments, interest for a bank loan, earmarked profit (profit from the sale of consumer goods, new household chemicals, etc.), as well as profit received for reasons, independent of the activities of the association, enterprise, to the average annual value of fixed assets (minus fixed assets, for which "" benefits on payment are provided) and standardized working capital.

When analyzing the work of associations, enterprises, especially when planning to assess the profitability of products, profitability is of great importance, defined as the ratio of the amount of profit to the total cost of goods sold. The calculation of the profitability of certain types of products is made according to the formula

where P is the level of profitability,%;

О is the enterprise's wholesale price for the product;

C is the total cost of the product.

The profitability indicator for products reflects the efficiency of the costs of living and materialized labor for the production of products.

In mechanical engineering and other manufacturing industries, profitability is defined as the ratio of profit to cost less the cost of raw materials, fuel, energy, materials, semi-finished products and components used. In this case, the formula can be used

(6)

where
- the estimated rate of return to cost less material costs;

- production assets of the industry (for branches) of industry;

- the rate of return to production assets;

C - M - the cost of marketable products minus direct material costs.

The use of the indicator of the normative calculated profitability in the manufacturing industries is due to the high specific weight in the cost of products of these industries of material costs, their significant fluctuations in the cost of certain types of products and the wide possibilities of technological replacement of the raw materials used.

When determining the standard of the estimated profitability to the cost of production minus the cost of used material costs, only direct cost items are excluded from the cost of production in a cost estimate. So, in mechanical engineering, cost items are deducted from the cost of production: Raw materials and materials, "Purchased components, semi-finished products and services of cooperative enterprises", "Fuel and energy for technological purposes".

The main ways of increasing the profitability of production are the development of the most progressive industries, the rational placement of associations, enterprises, an increase in the share of specialized production, the use of modern methods of organizing production and labor in accordance with the requirements of scientific and technological progress, the acceleration of the labor productivity, reducing the cost of production, improving its quality, strengthening the regime of saving in the expenditure of material, labor and financial resources and increasing the material interest of workers in the results of their work.

1.3 System of indicators of profitability

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

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

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

1) indicators of return on equity (assets),

2) indicators of product profitability;

3) indicators calculated on the basis of cash flows.

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

The discrepancy between the levels and profitability of these indicators characterizes the extent to which the company 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 the radio of an enterprise is interested in the return (profitability) of all assets (total capital); potential investors and lenders - return on invested capital; owners and founders - return on shares, etc.

Each of the listed indicators can be easily modeled according to factor dependencies. Consider the following obvious dependency:

(8)

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

Let's consider another factorial model of profitability.

As you can see, the return on equity (equity) capital depends on the change in the level of profitability of products, the rate of turnover of total capital and the ratio of equity and debt capital Study. such dependences are of great importance for assessing the influence of various factors on profitability indicators. From the given dependence. it follows that, other things being equal, the return on equity capital increases with an increase in the share of borrowed funds in total capital.

Second group indicators are formed on the basis of calculating the levels and profitability according to the indicators of profit, reflected in the reporting of enterprises. For example,

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

; (11)

; (13)

; (14)

, (15)

where -
- profit from the sale of the reporting and base periods, million rubles;

- sales 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 (using the method of chain substitutions)

(16)

Accordingly, the effect of cost price changes will be

(17)

The sum of factorial deviations gives the general change in profitability in the reporting period compared to the base period;

(18)

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

NPDS - net cash flow

These indicators give an idea of ​​the degree of the enterprise's ability to pay off creditors, borrowers and shareholders with cash in connection with the use of the existing cash inflow. The concept of profitability calculated on the basis of cash inflows 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.

1.4 Analysis of the profitability of the enterprise

The indicators of profitability and efficiency of property use characterize the profitability of the enterprise and is calculated as the ratio of the profit received to various types or items of costs

This is the most important group of indicators, since the results of their analysis will allow making decisions on investing own funds in a particular business, characterizes the expediency of the company's activities, and is its resulting price.

Return on turnover (sales ), characterizes the efficiency of the operating (production and economic) activities of the enterprise. It is designed to assess the profitability of production as a whole, but can also be used to compare the profitability of individual types of products. Calculated as the ratio of operating income to gross revenue.

The average level of return on sales fluctuates depending on the industry and therefore does not have any standard. This indicator is important when comparing it with the corresponding indicators of the same type of enterprises, in dynamics or in comparison with planned indicators.

Return on equity - the most significant indicator in the activity of an enterprise, which characterizes the efficiency of the use of property in its ownership. Based on this indicator, the owner of the assets can choose the place of their investment. The calculation takes into account not operating income, but the final, net profit, which will be distributed among the owners (shareholders) of the enterprise. It is calculated as the ratio of net profit to the average annual cost of equity capital.

Therefore, to increase the efficiency of investment, you can act in two main directions:

Increase in net profit - increase in sales volumes and profitability of sales.

Reducing equity capital - effective management of current assets and liabilities, reducing the need for additional financing

In general, to assess the feasibility of investing in a particular business, one should compare the predicted return on equity with alternative options for placing free resources (for example, a deposit), taking into account the risk factor.

In order to understand how and by what means the final indicator of the return on equity is formed, a number of intermediate indicators should be considered,

Return on net assets - an indicator of the efficiency of the company's operating activities. It is calculated as the ratio of operating income to the average annual value of net assets where:

Net assets = Equity + Loans (long - and short-term)

The return on net assets is used to assess the effectiveness of financial leverage

Financial leverage- the ratio of own and borrowed funds in the structure of net assets characterizes the impact of lending on the efficiency of the enterprise. The main criterion for assessing the effectiveness of financial leverage is the bank loan rate. If the lending rate is lower than the return on net assets, then an increase in the share of loans will increase the value of the return on equity, and vice versa.

The value of financial leverage shows how much the return on equity will increase / decrease with an increase / decrease in the return on net assets.

Leverage is calculated using the following formula: = Net assets / Equity (20)

Using the above metrics, we can get the following formula:

Return on sales * Net assets turnover * Financial leverage = (Operating income / Volume of sales) * (Sales Volume / Net Assets) * (Net assets / Equity) = (Operating income / Equity) (21)

Now, to get the final formula for the return on equity, you need to introduce an amendment so that net profit appears in the numerators.

(Operating income / Equity) *

(((OD- I ) * (I-T)) / OD) = Return on equity, (22)

where, OD - operating income;

I - the amount of interest on loans;

T - income tax rate

The main factors that form private indicators and through them affect the return on equity are:

Operating factors:

Return on sales;

The turnover of net assets.

Financial factors:

Financial leverage;

Interest and taxes.

Return on assets shows the profit brought by all means of the enterprise, without exception, regardless of their type or source of formation. It is calculated as the ratio of net profit to the total amount of actins. Serves to assess the efficiency of the business as a whole (and not just the efficiency of equity capital).

Profit reinvestment ratio - characterizes the dividend policy of the company, shows the share of net profit remaining in the enterprise, and, therefore, serving its further development. It is calculated as the ratio of retained net profit (reinvested profit) to the company's net profit.

Sometimes, to compare the reinvested profit with equity capital, a different formula for this indicator is used:

Kg = Reinvested profit / Equity at the beginning of the period

The following indicators of the company's profitability will be of interest to the shareholders of the company:

Return on equity - the volume of profit (dividends) distributed among shareholders per 1 tenge of the share capital.

Net earnings per share - the amount of net profit earned by the company, attributable to one share.

Dividend per share - profit distributed among shareholders, attributable to one share.

The financial performance of the enterprise is interrelated and the improvement in some of them may cause deterioration in others, for example:

Raising debt capital increases the return on equity, but lowers the financial stability of the company:

An increase in turnover entails a reduction in the value of current assets, and therefore worsens liquidity;

Attracting a long-term loan allows you to abandon short-term lending - liquidity improves due to a drop in long-term stability.

In general, as a rule, a higher profitability of operations implies a higher degree of risk (low liquidity and financial stability).

1.5 Factor analysis of profitability indicators

The level and dynamics of profitability indicators is influenced by the entire set of production and economic factors: the level of organization of production and management; structure of capital and its sources; the degree of use of production resources; volume, quality and structure of products; production costs and product costs; profit by type of activity and directions of its use.

The methodology of factor analysis of profitability indicators provides for the decomposition of the initial formulas for calculating the indicator for all qualitative and quantitative characteristics of intensifying production and increasing the efficiency of economic activity. For example, to analyze the overall profitability (return on assets), you can use a three-factor or five-factor model.

To simplify the model, production and sales costs are reduced to labor costs, material costs, and depreciation of fixed assets. For the practical application of the model, the cost of components and semi-finished products, works and services of a production nature (performed by third-party organizations or non-main divisions of the enterprise), fuel, purchased energy, etc. should be added to the cost of materials. Labor costs should be supplemented by social deductions. In addition, other costs should be taken into account by a separate element or distributed proportionally between the main cost elements.

All the models used are based on the following relationship:

(23)

where R- return on assets (capital);

R - profit from sales;

TO- the average value of assets for the period;

F - the average for the period cost of non-circulating assets;

E - average balances of current assets;

- costs per ruble of products at full cost;

- salary intensity of products;

material consumption of products;

- depreciation of products;

- capital intensity of production for non-current assets;

capital intensity of products for current assets (coefficient of consolidation of current assets).

The profitability of assets is the higher, the higher the profitability of products, the higher the return on non-circulating acts and the rate of turnover of circulating assets, the lower the total costs per ruble of production and the unit costs for economic elements (means of labor, materials, labor). The numerical assessment of the influence of individual factors on the level of profitability is determined by the method of chain substitutions or by integral method assessment of factorial influences.

Three-Factor Profitability Analysis Model

, (24)

where - product profit

- capital intensity (capital intensity) of products in terms of fixed capital:

; (26)

- turnover of current assets (capital intensity in terms of working capital):

. (27)

In this model, the factor of the turnover of current assets is reflected by the value , the reciprocal of the average number of revolutions.

2. ANALYSIS OF INDICATORS OF PRODUCTION PROFITABILITY IN THE PRUE "BORISOVSKY CRYSTAL PLANT" FOR 2009-2010

Profitability indicators characterize the efficiency of the enterprise PRUE "Borisovskiy crystal plant" as a whole, profitability of production, entrepreneurial, investment activities, cost recovery. They more fully than profit characterize the final results of management, because their value shows the ratio of the effect to the available or used resources.

Consider the dynamics of profitability indicators for the three analyzed years, which are presented in table 1.

Table 1. Dynamics of profitability indicators in PRUE "Borisovskiy crystal plant" for 2009 - 2010,%.

	Indicators				0 deviation
	Profit from sales, million rubles
	Cost of products sold
	Revenues from sales
	Average annual cost of capital
	Balance sheet profit
	Production profitability
	Return on sales
	Return on equity

As noted above, the profitability of economic activity characterizes the rate of compensation, or remuneration, for the entire set of sources used by the enterprise. Therefore, we will carry out the analysis of the economic activity of the PRUE "Borisovsky Crystal Factory" with the calculation of the levels of profitability of production activities.

The profitability of production activities is calculated by the ratio of gross profit to the amount of costs of goods sold.

The level of profitability of production activities is calculated as a whole for the enterprise and types of products and depends on three main factors: changes in the structure of products sold, their cost and average selling prices.

Using the method of chain substitutions, we will calculate the influence of these factors on the change in the level of profitability as a whole for the enterprise, and enter the obtained data into Table 2.

Table 2. The results of the factor analysis of the total profitability in the PRUE "Borisovskiy crystal plant" for 2007 - 2009,%.

Indicators
Share of profitable types of products
Average selling prices
Overall profitability

The data obtained indicate that the plan for the level of profitability in 2007 and 2008 was overfulfilled, and in 2009, on the contrary, it was not completed by 0.18%. The plan was overfulfilled in 2006 due to an increase in the average price level by 1.4%, in 2001 - 59.13%. The growth in the cost of goods sold caused an increase in the level of profitability in 2006 by 5.4%, in 2008 by 1.49%. And in 2009, an increase in the cost of goods sold caused a decrease in the level of profitability by 59.32%.

After analyzing the overall profitability of the production activities of the PRUE "Borisovskiy Khrystalny Zavod", we will carry out a factor analysis of the profitability for each type of product. The level of profitability of certain types of products depends on changes in average selling prices and unit costs.

The production of this enterprise is mainly aimed at the production of various types of transformers. Therefore, for this analysis, we will take three main types, since they occupy the largest share in the output of marketable products.

Having determined the influence of these factors, we will add the obtained data to Table 3.

Table 3. Profitability of certain types of products of PRUE "Borisovskiy crystal plant" for 2007 - 2009

	Unit price products			Cost price product units			Profitability,%

The data in Table 3 showed that the products manufactured by this enterprise are profitable. The highest level of profitability is in 2009. This suggests that the maximum possible amount of profit was obtained when selling these products, which was reflected in an increase in the level of profitability. The level of profitability in 2008 is higher than in 2007. This suggests that in 2007 this enterprise allowed an increase in the cost of production, which, of course, reduced the profitability of the products.

As noted above, the financial profitability characterizes the efficiency of investments of the owners of the enterprise, who provide the enterprise with resources or leave at its disposal all or part of their profit.Return to equity is calculated as the ratio of the book profit to the average annual cost of all invested capital. Balance sheet profit depends on the volume of products sold, its structure, cost, average price level and financial results from other activities.

To calculate the influence of factors on the level of profitability, it is necessary to have the following initial data, which are shown in table 4.

Table 4. Initial data for factor analysis of return on invested capital of PRUE "Borisovskiy crystal plant" for 2007 - 2009

Indicators
Profit from sales
Non-sales financial results
Balance sheet profit
Average annual amount of fixed and working capital
The volume of sales of products assessed at the planned cost
Capital turnover ratio
Estimated need for fixed and working capital

Using the data in Table 4, we will calculate the influence of factors on the level of profitability of the invested capital of the Borisovskiy Kristallniy Zavod PRUE, and enter the obtained data into Table 5.

Table 5 Results of factor analysis of return on invested capital for 2007 - 2009

Indicators
Change in profitability due to:
Sales structures
Average selling prices
Cost of products sold
Financial results
Accelerating capital turnover

These calculations in Table 5 allow us to conclude that only due to an increase in the acceleration of capital turnover in 2007, the capital plan was fulfilled. The non-commercial financial results also had a positive impact by 0.5% and the price increase by 5.54%. The increase in production costs led to a decrease in the return on equity by 2.11%. All factors positively influenced the increase in the return on capital in 2008 by 2.22% - this is the structure of sold products by 0.01%, acceleration of capital turnover by 0.26%, non-commercial financial results by 0.87%. The level of return on equity in 2009 was 1.48%, including due to the increase in the prices of commercial products by 0.16%, a decrease in the cost of commercial products by 2.62%, and the acceleration of capital turnover by 0.22%. The decrease in non-commercialization results by 1.52% had a negative impact on the return on equity.

The variety of profitability indicators determine the alternative search for ways to increase. Each of the initial indicators is decomposed into a factor system with varying degrees of detail, which sets the boundaries for identifying and assessing production reserves.

When analyzing ways to increase profitability, it is important to separate the influence of external and internal factors. Indicators such as the price of a product and resource, the amount of resources consumed and the volume of production, profit from sales and profitability of sales are closely related to each other. For a mono-product and a mono-resource, the relationship of these indicators can be reflected using the following diagram:

Ts)

Production costs in monetary terms (z C)

The profitability of production is considered as the product of the coefficient of resource productivity and the coefficient of the ratio of prices per unit of product and unit of resource. The latter ratio is usually called the financial performance (deflator) of the price, because it characterizes the measure of compensation for additional costs in the price of products sold as a result of an increase in cost (resource costs due to an increase in resource prices).

If we present the relationship of these indicators in index form, then it will be possible to quantify the impact of industrial and financial productivity on the profitability of the enterprise and profit using the usual methods of factor analysis.

(28)

or in expanded form

, (29)

where J is the growth index of the corresponding indicator;

1; 0- means that the indicators are calculated for the reporting and base periods, respectively.

The impact of changes in industrial productivity on profitability is determined by the method of chain substitutions

, (30)

The effect of changes in financial performance is calculated in a similar way.

(31)

In general, the total change in profitability for the period is balanced with factorial deviations

. (32)

Large enterprises pay main attention to the problems of control over changes in industrial productivity and try to reduce the role of external factors (financial productivity). The fact is that one of the conditions for the prosperity of the enterprise is the expansion of the sales market for products by reducing the price of the goods offered. Since this process is not accompanied by a decrease in the prices of consumed resources, the role of the price deflator in the formation of the profitability of the enterprise decreases. This naturally shifts the scope of management efforts to control changes in industrial productivity, i.e. for internal factors: a decrease in material consumption and labor intensity, an increase in the return on fixed assets (machinery, equipment, etc.)

A widely used method of enterprise management (or rather its production activities) is the break-even analysis. The purpose of the break-even analysis can be to answer the following questions:

How much sales should be ensured in order not to incur losses?

How much can prices be reduced with increasing volume so that profits remain the same?

What is the maximum material cost at which it is profitable to manufacture a product?

Break-even analysis is one of the most important areas of enterprise financial analysis. In addition, its use is also necessary in the formation of a profitable range of products at an enterprise, in setting prices and developing an effective pricing policy, which will be considered by us in relation to the practice of Belarusian enterprises in the second chapter of this work.

So, we will try to highlight the main tasks of financial analysis in relation to the activities of Belarusian enterprises:

Assessment of the current solvency of the company, the ability to timely repay short-term liabilities.

Grade financial sustainability, that is, the ability to repay long-term loans, incur losses without the risk of a complete loss of their own investments.

Assessment of the effectiveness of property and loan capital management.

Assessment of profitability from production and physical activities.

Analysis of the effectiveness of the use of property.

Assessment of the riskiness of the enterprise.

Assessment of the capabilities of the enterprise under the condition and deterioration of certain conditions of activity.

Based on the above materials, you can develop the following proposals to increase the profitability of the enterprise.

1. It is necessary to achieve a reduction in the costs of beer production (raw materials, energy resources, wages). This can be achieved in several ways:

The costs of raw materials are very significant, since a significant part of the procurement is carried out abroad. But here it is possible to hold tenders among suppliers in order to find the most attractive offers. It is also necessary to pay more attention to Russian suppliers, the quality of raw materials of which is high, and the prices are much lower than those of suppliers from Western Europe.

To reduce costs for wages need to hold V reorganization of production processes and equip the enterprise with new technological automated lines.

Retrofitting of factories / new equipment will help reduce energy costs.

2. As can be seen from the above materials, the equipment used at the enterprise is heavily worn out, technically and morally obsolete. The service life of most of the equipment is 15-25 years, which is unacceptable for a modern enterprise. An urgent modernization of production is required. The following options are possible here:

Purchase of new technological lines with financing from both the enterprise itself and from external sources. It is possible to purchase equipment on lease.

Organization joint venture... The modernization of production can be carried out at the expense of the investor.

To attract additional funds, it is possible to issue shares and distribute them both among the employees of the enterprise and outside buyers.

The above measures are quite real, since the PRUE "Borisovskiy Khrystalny Zavod" is a reliable enterprise, its products have been awarded numerous awards, and its financial position in recent years should be recognized as stable.

Modernization will allow to reduce costs both for raw materials, due to more efficient technology, energy resources, due to the introduction of energy-saving technologies, and on wages, with new equipment it is possible to significantly reduce personnel.

The main obstacle to the creation of a joint venture may be the state itself.

3. The enterprise needs to develop new sales channels for its products in order to reduce the cost of transportation and sales of products.

CONCLUSION

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

The factors that influence the profitability of production are many 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 implementation 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 selling prices is influenced, first of all, by the quantity and quality of marketable products. Currently, most enterprises are unprofitable (unprofitable) or marginal, which is a consequence of the economic crisis in the country.

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

LIST OF USED SOURCES

1. Enterprise finance. HELL. Sheremyat, R.S. Sayfullin, - M.: INFRA, 2002.

2. Enterprise finance. Edited by prof. Kolchina N.V. - M .: Publishing house of UNITI, 2001.

3. Directory of the enterprise financier.- M .: INFRA-M, 1999.

4. Bakanov MI, Sheremyat AD Theory of analysis of economic activity. - M .: Finance and Statistics, 1998.

5. Kletskiy V.I., Fear I.V. Profit in the economic mechanism - Minsk, 1986

6. Finance (textbook) edited by AM Kovalev - M .: Publishing house of Finance and Statistics 1999.

7. Sheremyat A., Sayfullin R. Methods of financial analysis of the enterprise. - M .: UNI-GLOBE, 1992.

8. Directory of the financier of the enterprise.-2nd ed. add. and revised-M.: INFRA - M, 1999.-559s.

9. Vereshchak V.V. Economic analysis financial situation enterprises // Economist.-2000.-№12.- 12s.

10. Savitskaya G.V. Analysis of the economic activity of the enterprise: 3rd ed., - Minsk: FE "Ecoperspektiva"; "New edition", 1999.-498 p.

11. Enterprise Economics: Textbook for Universities / Edited by prof. N.A.Safronova.- M .: Jurist, 1998.-584s.

12. Bakanov MI, Sheremyat AD Theory of analysis of economic activity. - M .: Finance and Statistics, 2001.

13. Kletskiy V.I., Fear I.V. Profit in the economic mechanism, - Minsk, 2004.

14. Finance (textbook) edited by AM Kovalev - Moscow: Publishing House of Finance and Statistics 2005.

15. Sheremyat A., Sayfullin R. Methods of financial analysis of the enterprise. - M .: UNI-GLOBE, 2000.

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INTRODUCTION

V economic analysis the results of the activities of enterprises can be assessed by such indicators as the volume of production, sales, profit. However, the values ​​of these indicators are not enough to form an opinion about the performance of an enterprise. This is due to the fact that these indicators are absolute characteristics of the enterprise, and their correct interpretation in assessing performance can be carried out only 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 (or profitability) indicators are calculated.

It should be noted that profitability indicators are important elements that reflect the factor environment of the formation of enterprises' profits. Therefore, they are mandatory when conducting a comparative analysis and assessing the financial condition of an enterprise.

In addition, profitability indicators are used when analyzing the efficiency of enterprise management, when determining the long-term well-being of an organization, and are used as a tool for investment policy and pricing.

The purpose of writing this work is to study the methodology for calculating profitability indicators and its application in practice, using the financial statements of JSC "Tyumen plant of medical equipment and instruments".

To achieve this goal, it is necessary to solve the following range of tasks:

Define the concept of profitability, reveal its meaning for financial analysis and characterize the main areas of its application;

Consider the system of indicators of profitability in accordance with their classification into indicators of profitability of economic activity, financial profitability and indicators of profitability of products;

Analyze the level and dynamics of profitability of economic activity of JSC "Tyumen plant of medical equipment and instruments plant";

To assess the level and dynamics of the profitability of the financial activity of the analyzed enterprise;

To characterize the efficiency of the main activity of the enterprise for the production and sale of goods, works, services;

Make the necessary conclusions on the indicators of profitability of JSC "Tyumen plant of medical equipment and instruments".

As already noted, the analysis of profitability indicators will be based on financial statements, namely, “Balance sheet”, “Profit and loss statement” and “Appendix to the balance sheet” of JSC “Tyumen plant of medical equipment and instruments”.

JSC "Tyumen Plant of Medical Equipment and Instruments" has been operating since 1962. Today the plant is one of the leading largest enterprises medical industry. The range of products manufactured by him includes medical equipment and disposable instruments, medical furniture, spare parts for medical products, packaging multilayer films, household and household goods. In addition, the plant provides services for installation, commissioning and service manufactured products.

CHAPTER 1. ANALYSIS OF THE LEVEL AND DYNAMICS OF PROFITABILITY OF THE ORGANIZATION.

1.1. The concept of profitability.

It is well known that the results of the activities of enterprises can be assessed by various indicators, such as the volume of production, the volume of sales, and profit. Describing the financial or production result, the listed indicators are not able to assess the efficiency of enterprises. This is due to the fact that these indicators are absolute characteristics of the enterprise, and their correct interpretation in assessing performance can be carried out in conjunction with other indicators characterizing the funds invested in the enterprise.

The indicators characterizing the efficiency of enterprises are indicators of profitability (or profitability).

There are several concepts of profitability in the economic literature. So, one of its definitions is as follows: profitability (from it. 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, money 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 and capital invested in creating that income. By linking return to capital invested, profitability compares the level of return of an enterprise with the alternative use of capital or the return obtained 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 and 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 decision-making 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.

1.2. The system of indicators of profitability.

Indicators of profitability of economic activity;

Financial profitability indicators;

Indicators of profitability of products.

1.2.1. Analysis of the profitability of economic activity.

The profitability of economic activity (R) characterizes the rate of compensation (remuneration) for the entire set of sources used by the enterprise, i.e. is the ratio of the amount of income of contributors and creditors (P) to the amount of their invested capital (IC):

When assessing the effectiveness of economic activity, it is necessary to use the sum of all assets as the invested capital, since their total value takes into account all the debts of the enterprise, including those related to operation.

Some economists propose to exclude idle and surplus fixed assets, equipment for installation, from the total amount of assets, cash, intangible assets, i.e. funds that do not contribute to making a profit. However, this approach is insufficiently justified, and the indicator is not widely used in practice. This is due to the fact that the management of the enterprise must not only effectively use assets in its activities, but also monitor the composition of assets, without creating unnecessary stocks of equipment, materials, etc.

When calculating profitability, it must be borne in mind that the amount of capital invested in an enterprise changes during the period of income generation, therefore it should be determined as its average value. In this case, the most correct is the calculation of the average chronological value of the invested capital.

It should be noted that when calculating profitability ratios, various indicators of an enterprise's income can be used: gross profit, net profit, profit from sales. The most justified approach in assessing the efficiency of economic activity is the use of the sum of net profit and interest paid for the use of the loan. Taking this into account, the main indicator of the profitability of economic activity can be determined as follows:

, (2)

where is the return on assets; PE - net profit; - interest paid for the use of loans; - the rate of income tax in the coefficient.

However, determining the level of profitability using this formula is complicated by the fact that interest for using loans is included in the cost of production, and is not reimbursed from profit. With an internal cost benefit analysis, such calculations become possible. In the absence of information, external subjects of analysis can only use the net profit indicator. But the net profit cannot be accurately calculated according to the current reporting data, since it does not allocate payments to the budget at the expense of the net profit remaining at the disposal of the enterprise. Net income can be determined approximately by deducting income tax from the income of the reporting period. The result obtained is overestimated, which can only be clarified in the course of an internal analysis.

To characterize the rate of reimbursement of the value of working capital, working capital is used as the invested capital (), i.e.:

In addition, to characterize the efficiency of production activities, the production profitability indicator is calculated. When calculating it, the value of production assets is used as the invested capital as the sum of fixed production assets (OF) and material working capital (MS):

. (4)

If in the calculation we use the volume of sold products as an additional value, then the formula for the profitability of production activities can be presented in the following form:

, (5)

where is the profitability of production activities; RP is the volume of products sold; - the average annual cost of fixed assets; - the average annual cost of material circulating assets; P - gross profit.

From the above formula, it follows that the profitability of production activities depends on changes in two factors:

Realizations of production assets for a ruble;

Profit per ruble of sales.

The first factor characterizes the efficiency of the use of production assets, i.e. their return on assets, expressed through the volume of products sold. The second factor characterizes the level of profitability of products sold. The influence of the listed factors can be determined by the method of chain substitutions.

The change in profitability due to the influence of capital productivity per ruble of production assets is equal to:

The change in the profitability of production activities due to the influence of the level of profitability of products sold is equal to:

It should be noted that each of the factors considered is complex, depending in turn on a number of other factors of the second order. So, for example, sales per one ruble of production assets depends on the efficiency of the use of fixed assets and material working capital. The change in the level of profit attributable to one ruble of sales depends on the level of cost and the structure of the assortment of products sold, on changes in product quality and prices, on the results of other operating and non-sales activities of the enterprise.

To determine the separate effect of capital productivity of fixed assets and the turnover of material working capital on the profitability of production, the method of equity participation is used. According to this method, the deviation of the profitability of the reporting period from the baseline due to a change in sales by one ruble of funds is distributed between the return on assets of fixed assets and the turnover of material working capital in proportion to the change in their value, taking into account the change in the volume of products sold.

The change in the second consolidated factor (profit per one ruble of sales) also depends on the action of factors of the second order. These include all factors that affect the change in gross profit, except for changes in the volume of products sold. The profit received due to the growth in sales volume does not affect the amount of profit attributable to one ruble of sales, since with an increase in volume, gross profit also changes proportionally (numerator calculation formula) and sales of products (denominator of the formula).

The influence of factors of the second order on the profitability of production is also determined by the method of equity participation. The impact on profitability is distributed among the factors in proportion to their impact on gross profit.

2.1.2. Analysis of financial profitability.

Financial profitability characterizes the efficiency of investments of the owners of the enterprise, who provide the enterprise with resources or leave at its disposal all or part of their profit. The system of indicators of financial profitability 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. Moreover

, (8)

where is the net profit; - the average annual value of all assets; - the average annual cost of the invested capital; - the average annual cost of equity capital.

The discrepancy between the levels of profitability for these indicators will characterize the degree to which the company uses financial leverage to increase profitability: long-term loans and other borrowed money.

In the economic literature, the following formula for calculating financial profitability (R F) is most often found:

where PE is the net profit; - the average annual cost of equity.

It should be noted that when calculating the profitability, the cost of equity capital should be calculated exactly as the average value for the period, since during the year the equity capital can be increased due to additional monetary contributions or due to the use of the profit generated in the reporting year.

The rate of return (net profit on equity, or return on equity) can be represented in an extended manner using the sales revenue metric as follows:

, (10)

where is the net profit; - the average annual cost of equity capital; -- revenues from sales.

The above diagram shows that the rate of return is the product of the profitability of product sales for owners and the turnover of equity capital. This relationship does not fully characterize the factors that influence the return on equity.

To increase the number of factors taken into account and determine their influence, the level of return on equity is studied in conjunction with the following factors:

Change in operational profitability;

Change in asset turnover;

Changes in the tax rate;

Change in the share of net profit received by the owners;

Change financial structure capital.

In connection with the listed factors, the rate of return on equity capital can be represented as follows:

, (11)

where is the net profit; -- equity; - asset value; -- revenues from sales; - profit before tax; - profit after tax,

where is the rate of return on equity; - financial structure of capital; - asset turnover ratio; - rate of operating profitability before tax based on results; - tax rate; - the share of net profit in current profit.

Determination of the influence of changes in factors on the generalizing indicator can be made by elimination methods according to the following scheme:

From the diagram of the relationship between the rate of return on equity capital and factors, it can be seen that the product of the asset turnover ratio, the rate of operating profit and the tax rate is the rate of operating profitability after tax (R IC), i.e.:

. (18)

The share of net profit in current profit and the financial structure of capital allow us to identify the impact of the company's debt on the return on equity. In this regard, often in the analysis, only a change in the rate of return on invested capital and the effect of a change in the level of debt are investigated on the return on equity, i.e.:

Such an analysis is more useful when studying the return on equity of an enterprise in comparison with other enterprises or competitors, since different enterprises can achieve the same level of return on equity by influencing it by various factors of the considered relationship.

1.2.3. Analysis of the profitability of products.

The efficiency of the main activity of the enterprise for the production and sale of goods, works and services is characterized by the indicator of the profitability of the product. It is determined by the ratio of profit to the total cost of production. This indicator can be widely used for analytical purposes, as it allows you to make calculations by correlating different profit indicators with different indicators of product costs. For example:

In addition, on the basis of indicators of profitability of products, it is possible to carry out intra-plant and inter-plant comparisons both in terms of the total volume of products and for their individual types.

To characterize the profitability of products sold (R RP), the profit from sales (P RP) is divided by the total cost of goods sold (C RP):

This indicator characterizes real size the profit that each ruble of the costs incurred for its production and sale brings to the enterprise. Sometimes when making calculations this indicator the numerator uses the company's net profit. But the indicator of profitability of products, calculated on the basis of net profit, is influenced by factors associated with the supply, marketing and other activities of the enterprise. In addition, the indicator is also influenced by taxation.

To control not only the cost of goods sold, but also the changes in the pricing policy, the return on sales indicator (R RP) is calculated. It is determined by the ratio of net profit (NP) or profit from sales (P RP) to the amount of proceeds from sales (In RP):

. (22)

According to the dynamics of this indicator, the enterprise can make a decision on changing the pricing policy or strengthening control over the cost of production. The indicator can be determined as a whole for the product or for its individual types.

Based on the above formula for calculating the profitability of products, it is possible to determine the effect on its change in comparison with the base period of changes in prices for products and changes in the level of cost. If we represent the profit from sales as the difference between the proceeds from sales without VAT (in the RP) and the total cost of goods sold (C RP), then the formula for calculating the profitability of sales will look like this:

. (23)

Change in profitability of sales due to changes in selling prices for products sold is determined by the formula:

(24)

The influence of the factor of cost price change on the profitability of sales will be:

(25)

The total change in profitability of sales compared to the base period should be equal to the sum of the influence of the above two factors, i.e.:

(26)

CHAPTER 2. ANALYSIS OF THE LEVEL AND DYNAMICS OF PROFITABILITY OF JSC "TYUMEN PLANT OF MEDICAL EQUIPMENT AND INSTRUMENTS".

JSC Tyumen Plant of Medical Equipment and Instruments (JSC TZMOI) has been operating since 1962.

JSC "TZMOI" is legal entity, acts on the basis of the Charter and the legislation of the Russian Federation, has an independent balance sheet, current and other accounts, a company name and a round seal. According to the legislation of the Russian Federation, in order to achieve the goals of its activities, an OJSC has the right to conclude transactions on its own behalf, acquire property rights and perform duties, be a plaintiff and defendant in court. At the same time, an OJSC is liable for its obligations with all of its property, and its shareholders bear risks for the company's obligations only within the value of the shares they own.

Today JSC "TZMOI" has branches in Samara, Kostroma, Kazan, Moscow.

According to the Expert magazine, the plant is one of the leading enterprises in the medical industry and offers its customers more than 200 items of products. The product range includes medical equipment and disposable instruments, medical furniture, spare parts for medical products, packaging multilayer films, household and household goods. In addition, the plant provides services for the installation, adjustment and maintenance of manufactured products.

The plant supplies healthcare authorities with over 800 million injection needles and over 360 million single-use syringes in one year. In addition, the specialists of the plant are constantly working to improve the manufactured products. So, in recent years, many new products have been mastered, many manufactured products have been improved, in particular, sterilizers with microprocessor control have been introduced into production, and new projects are under development.

JSC "TZMOI" participates in exhibitions in various regions of Russia. Every year the plant is an exhibitor of the exhibitions “Healthcare of Siberia” (Novosibirsk), “Healthcare” (Moscow). Since 1996 JSC "TZMOI" is a permanent participant of the prestigious world famous medical exhibition "Medica" in Germany (Dusseldorf).

As of January 1, 2002 authorized capital JSC "TZMOI" amounted to 78 thousand rubles (Appendix 1). At the same time, the volume of own funds increased by 133.37% compared to 2000, and the volume of borrowed funds increased by 138.96%. Due to the growth of sources of education of enterprise funds over the past two years, there has been an increase in non-current and circulating assets by 117.49% and 139.79%, respectively.

All this testifies to the expansion of the production activities of JSC "TZMOI" and suggests that its products are recognized not only among domestic, but also foreign consumers.

2.1. Analysis of the profitability of economic activities

JSC "TZMOI".

As noted above, the profitability of economic activity characterizes the rate of compensation, or remuneration, for the entire set of sources used by the enterprise. Therefore, the analysis of the economic activities of JSC "TZMOI" will be carried out with the calculation of the levels and dynamics of return on assets, working capital and production activities based on the indicators of the company's financial statements for 2000-2001 (Appendices 1-6). For this we will use formulas (2), (3) and (4). However, in order to make the proposed calculations of profitability indicators, we need to calculate some indicators, namely:

average annual asset value:

average annual cost of working capital:

the average annual cost of fixed assets (here it should be noted that the average annual cost of fixed assets is taken in the initial estimate according to the data of Form No. 5 "Appendix to the Balance Sheet"; however, due to the lack of data on the initial cost of fixed assets for 2000, the calculation of the average annual value will be produced according to the residual value):

average annual cost of material working capital:

So by doing necessary calculations, we can calculate the indicators of profitability of economic activity:

Table 1.

Analysis of indicators of profitability of economic activity

JSC "TZMOI".

Indicators	For the previous year	For the reporting year	Deviation	Growth rate, %
1. Net profit, thousand rubles
2. Average annual value of assets, thousand rubles.
3. Average annual cost of working capital, thousand rubles.
4. Average annual cost of fixed assets, thousand rubles.
5. Average annual cost of material circulating assets, thousand rubles.
6. Average annual cost of production assets, thousand rubles.
7. Return on assets,%
8. Return on working capital,%
9. Profitability of production activity,%

The given data table shows that the return on assets, i.e. the profitability of funds invested in the property of the enterprise, compared with the previous year, decreased by 41.52% (while its growth rate compared to last year is only 32.05%) and amounted to 19.58% in the reporting year. At the same time, there is a decrease in the levels of profitability of working capital and production activities, respectively, by 63.86% and 79.04%. Their growth rates are also quite low compared to 2000 and amount to 32.69% and 30.42%, respectively.

Changes in the levels of profitability over different periods of time occur under the influence of various factors that affect both the numerator and the denominator of the calculation formula. Let us carry out a factor analysis of the economic activities of JSC "TZMOI" based on the formula for the profitability of production activities (5).

Table 2.

Calculation of the influence of factors on the profitability of economic activity of JSC "TZMOI".

The given data of the table indicate that the level of profitability, calculated using gross profit, in the reporting year compared to the previous one also fell by 68.88% (100% -31.12%), which in absolute terms amounted to 81.74% ... This decrease was influenced by changes in sales by 1 ruble. production assets and profit by 1 rub. implementations that were calculated based on formulas (6) and (7), i.e.:

The change in profitability due to the influence of capital productivity per ruble of production assets is equal to:

Rub. or -55.88%

The change in the profitability of production activities due to the influence of the level of profitability of products sold is equal to:

rub. or -25.86%.

At the same time, the level of profitability of production activities of JSC "TZMOI" is influenced by factors of the second order. So, for example, sales per one ruble of production assets depends on the efficiency of the use of fixed assets and material working capital. To determine the separate effect of capital productivity of fixed assets and the turnover of material working capital on the profitability of production, we use the method of equity participation.

Table 3.

Calculation of the impact on the profitability of production of JSC "TZMOI"

return on assets and turnover.

where rub. or -19.01%

rub. or -36.87%.

In our example, the efficiency of using production assets decreased to a greater extent due to a decrease in the turnover of material working capital. This was the main reason for the decrease in sales per ruble of production assets and, as a result, the decrease in the level of profitability. In order to identify the reasons for the decrease in the efficiency of the use of funds and material working capital, it is necessary to study the indicators characterizing the composition and structure of production assets, the use of funds in time, in capacity, in the number of units, indicators of the use of materials in production, the presence of surplus raw materials and materials, and etc. Such a study of factors becomes possible only in the course of internal, management analysis using the entire system of information about the activities of the enterprise.

The change in the second consolidated factor (profit per one ruble of sales) also depends on the action of factors of the second order. These include all factors that affect the change in gross profit, except for changes in the volume of products sold. However, in order to find the influence of these factors, it is necessary, first of all, to find the influence of such factors as sales volume, assortment structure, production cost, the amount of selling expenses and prices for products sold, on the change in sales profit. At the same time, we will need to recalculate the actual production for the prices and prime cost of the previous year. For this, the volume of products sold in the reporting period will be divided by the price index (according to state statistics, it was 1.204 in 2001).

Table 4.

Calculation of the influence of factors on the change in profit on sales of JSC "TZMOI".

Thus, based on the data obtained, we will be able to determine the influence of the above factors on the change in profit from sales, namely:

Impact of changes in sales volume:

thousand roubles.,

where is the percentage of sales volume reduction;

Impact of changes in the assortment structure:

thousand roubles.;

Impact of changes in production costs:

thousand roubles.;

Impact of changes in selling expenses:

thousand roubles.;

Impact of price changes on products sold:

Thus, having considered the reasons for the change in factors of the second order, it is possible to calculate the influence of factors on the profit attributable to one steering wheel of sales, which, in turn, affects the level of production profitability. This influence is also determined by the way of equity participation.

Table 5.

Calculation of the influence of factors associated with a change in gross profit on the profitability indicator of the production of JSC "TZMOI".

Factors that caused the deviation of the amount of gross profit from the level of the base period	Impact on gross profit	Impact on profitability,%
1.Change in sales volume, thousand rubles
2.Changes in the assortment structure, thousand rubles
3. Change in production cost, thousand rubles.
4. Change in selling expenses, thousand rubles.
5. Change in prices for products sold, thousand rubles.
6. Interest receivable, thousand rubles.
7. Income from participation in other organizations, thousand rubles.
8. Change in the result from other sales, thousand rubles.
9. Change in non-operating results, thousand rubles.
10. Total profit, thousand rubles.
incl. volume effect
other factors

Based on the results obtained, it can be concluded that the profit per one ruble of sales, and, consequently, the profitability of production of JSC "TZMOI" was most influenced by an increase in production costs, which reduced profitability by 74.479% and an increase in prices for products sold , thanks to which the profitability of production increased by 52.640%. In order to identify the reasons for the change in the factors that caused the deviation of the amount of gross profit from the level of the base period, it is necessary to have data from the internal operational accounting, which is impossible when studying the financial condition of the enterprise by external users.

2.2 Analysis of the financial profitability of JSC "TZMOI".

As noted above, the financial profitability characterizes the efficiency of investments of the owners of the enterprise, who provide the enterprise with resources or leave at its disposal all or part of their profits.

We will start the study of the financial profitability of JSC "TZMOI" with an analysis of the ratio of net profit to various indicators of advanced funds, i.e. using formula (8). It should be noted that the invested capital in this case will be equal to the own, since long-term liabilities over the past two years, the company has not had any. Therefore, the formula will look like this:

The indicator characterizing the profitability of all property of the enterprise () was calculated by us earlier, and to calculate the indicator reflecting the return on equity (), it is necessary, first of all, to calculate the average annual cost of capital:

Thousand. rub.

Thousand. rub.

Having received the necessary data, you can analyze the levels of profitability for these indicators for the past and reporting years, respectively:

or .

Thus, we can conclude that the return on equity capital is higher than the return on all assets of the enterprise, i.e. the analyzed enterprise effectively uses its financial leverage to increase profitability.

The second indicator that most fully characterizes financial activities JSC "TZMOI" is an indicator of the return on equity, which was discussed by us above. However, for a more convenient presentation of the data involved in calculating the return on equity, we will enter them in the table.

Table 6.

Analysis of financial profitability.

These tables show that the financial profitability of the company decreased in the reporting year by 44.20% compared to the previous period. The change in the level of profitability versus last year was influenced by changes in the amount of net profit received by the company and the amount of equity capital invested in the company.

The impact of changes in net profit on the return on equity was:

rub. or 34.68%.

The impact of changes in equity capital on financial profitability was:

Rub. or 9.52%.

Thus, a decrease in net profit in the reporting period by 173,647 thousand rubles, or by 53.23% (100% -46.77%), caused a decrease in profit by 1 rubles. equity capital by 34.68 kopecks. At the same time, the growth of the average annual cost of equity capital by 227,152 thousand rubles, or 45.37%, also negatively affected the return on equity and amounted to 9.52 kopecks. profit by 1 rub. equity capital.

In addition, as noted above, the rate of return (return on equity) can be represented in an extended manner using formulas (11) and (12). However, for this, according to the calculation, we need some indicators, the calculation of which is given in the table below.

Table 7.

Analysis of the return on equity.

As the data in the table show, the return on equity fell by 44.20% in the reporting period. Moreover, this change was caused by changes in a number of factors such as changes in the financial structure of capital, the asset turnover ratio, the rate of operational profitability, and the tax rate. Let us determine the influence of changes in the named factors on the generalizing indicator, using formulas (13), (14), (15), (16), (17):

The impact of changes in the financial structure of capital:

RUB, or 0.29%

Impact of changes in asset turnover:

RUB, or -28.96%

Impact of changes in operating profit margins:

RUB, or -15.01%

Impact of changes in tax rates:

rubles, or -0.48%

Impact of changes in the share of net profit in current profit:

RUB, or 0.00%.

These calculations allow us to conclude that only due to the improvement of the financial structure by 0.42%, the return on equity of JSC "TZMOI" increased (albeit insignificantly) and amounted to 29 kopecks. per one ruble invested in equity. Other factors negatively affected the return on equity, with the greatest impact on the asset turnover: the slowdown in turnover by 44.27% (100% -55.73%) compared to the previous year resulted in a decrease in the return on equity by 28.96%. It should also be noted that due to the absence of extraordinary expenses and income from the enterprise during the analyzed period, the share of the enterprise's net profit in the current profit did not change and did not affect the return on equity.

2.2. Analysis of the profitability of the products of JSC "TZMOI".

The indicators of profitability of products characterize how efficiently the enterprise carried out its main activity in the production and sale of goods, works and services. We will begin the study of the main activity of JSC "TZMOI" by calculating the levels of profitability in terms of profit indicators, reflected in the reporting of the enterprise. Using formula (20), we get the results for 2000 and 2001, respectively:

The data obtained testify to the correctness of inequality and indicate that the level of profitability calculated on the basis of the profit from sales will be higher than the level of profitability calculated using taxable profit, due to the interest receivable in the analyzed period, income from participation in other organizations as well as operating and non-operating income and expenses. In turn, the latter indicator will also exceed the level of profitability calculated on the basis of net profit, since the difference in the numerators of the formula will be income tax and other similar mandatory payments.

To characterize the profitability of the products sold by JSC "TZMOI", we will apply the formula (21), and we will make the calculation in the table.

Table 8.

Analysis of the profitability of products sold by JSC "TZMOI".

The table shows that the real amount of profit that each ruble of costs incurred for its production and sale brings to the enterprise decreased in 2001 compared to the previous year by 28.81% (27.59% -56.40%). Moreover, this reduction was influenced by a number of factors, namely: the effect of changes in the cost of products produced reduced the level of profitability of products sold by 50.43% (5.97% -56.40%); the impact of changes in wholesale prices on sold products increased the level of profitability by 21.62% (27.59% -5.97%). It should be noted that the structure of the assortment of products at the enterprise did not practically change and did not significantly affect the level of profitability of products sold and amounted to 0% (56.40% -56.40%).

In addition, in order to control the cost of goods sold, as well as changes in the pricing policy at the studied enterprise, we will calculate the profitability of sales in the table based on formula (22).

Table 9.

Analysis of the profitability of sales of JSC "TZMOI".

As the data in the table shows, the profitability of sales for the reporting year decreased compared to the previous year by 40.03% (100% -59.97%), which in absolute terms amounted to 14.44%. Moreover, this decrease was influenced by changes in selling prices and the cost of goods sold.

The influence of changes in wholesale prices on the profitability of sales is calculated using the formula (24):

The impact of changes in the cost price on the profitability of products sold is determined by the formula (25):

Thus, from the presented calculations, it can be seen that the decrease in wholesale prices for products sold by 179664 thousand rubles. (or 18.67%) in the reporting period caused a decrease in profit for each ruble of products sold by 14.68 kopecks. At the same time, a slight reduction in the total cost of 1893 thousand rubles. (or by 0.31%) resulted in a slight increase in the level of return on sales by 0.25%. Revealing the reasons that caused the change in both the wholesale prices for the products sold and their cost price is possible only if there is access to internal information about the activities of the enterprise.

CONCLUSION.

Profitability characterizes the performance of an organization. Profitability indicators allow us to estimate what profit the 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 examined one of these classifications with the division of profitability indicators into indicators of profitability of economic activity, indicators of profitability characterizing the financial activity of an organization and indicators of product profitability.

As we found out in the course of the analysis, 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 of the owners of the enterprise, who provide him with resources or leave at his disposal all or part of their profits in order to maximize income in the future.

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

The analysis of the level and dynamics of profitability indicators was carried out by us on the example of financial statements of JSC "Tyumen plant of medical equipment and instruments" for 2000-2001.

As the results of the conducted research show, in general, the enterprise is experiencing a decrease in the profitability of economic activity. So, for example, the profitability of the funds invested by the owners of the enterprise in the property fell by 67.95% in comparison with the last year 2000; the profitability of working capital, or working capital, also decreased by 67.31%; profitability of the main production activity - by 69.58% (when calculating profitability using net profit) and by 68.88% (using gross profit as income).

The main reason for this decrease was a rather sharp decrease in gross profit from the main activity of JSC "TZMOI" by 177,747 thousand rubles. Moreover, this was greatly influenced by the change in production costs in the reporting year, which led to a decrease in the profitability of production activities by 74.48%. At the same time, the change in wholesale prices for products sold increased the level of profitability by 52.64%. The rest of the factors did not have a significant impact.

Another, no less important factor that influenced the profitability of economic activity was the slowdown in the turnover of material working capital as a result of their specific growth in relation to the entire property of the enterprise by 54.01%. This influence affected the decrease in the profitability of production activities by 36.87%. In addition, an increase in the share of fixed assets in the total value of the enterprise's property by 52,281 thousand rubles. also reduced profitability by 19.01%.

The main indicator that assesses the efficiency of investments of the owners of JSC "TZMOI" is the indicator of profitability (profitability) of equity capital. It, like the profitability indicators of economic activity, fell by 44.20% in the reporting year. Moreover, the greatest impact was exerted by the deceleration of asset turnover by 44.27%, which caused a decline in the level of return on equity by 28.96%.

As for the indicators of profitability of products, they also decreased in 2001. Thus, the indicator of profitability of sold products in the reporting year was 27.59%, which is 28.81% lower than the previous one. The profitability of sales of OJSC "TZMOI" also fell by 14.44% compared to the previous year, and its growth rate almost halved and amounted to only 59.97%.

Thus, based on the data obtained as a result of the analysis of the level and dynamics of profitability of JSC "TZMOI", it can be concluded that the enterprise has excessive production reserves to carry out its activities. Moreover, it acquires in the reporting year an unjustified amount of fixed assets and materials for the production of goods, works, services, while the volume of products sold is in a state of decline.

This enterprise it is possible to recommend to reduce the cost of manufactured products, to put into operation more technologically advanced equipment that provides less time and labor, to carry out stimulating work on the sale of products, etc. use the available reserves to increase profitability.

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