Factor analysis of the profitability of total income. Profitability analysis of the main activity of a trade organization

Everyone knows that the main and immediate result of the activity of any commercial enterprise is profit, but it can not always give a clear and complete picture of the efficiency and profitability of entrepreneurial activity. Therefore, in order to characterize the work of the enterprise, not only the absolute amounts of profit are most fully calculated, but also relative indicators are used, such as the level of profitability.

Profitability acts not only as a calculated value and a static indicator, but as a criterion that gives a comprehensive assessment of the socio-economic position of the organization in the market. The amount of profit received for different enterprises may be the same, but received under different conditions. Therefore, this determines the use of profitability indicators, because. they give an assessment of the economic entity regardless of the size and nature of the activity.

Accounting considers profitability as a two-component component:

the profitability of economic activities presented as a result of operating activities (in this case, the provisions of the accounting policy affect the profitability);

potential profitability, which is represented by income from holding securities, liabilities on a long-term basis and inventory items.

An enterprise can be called profitable if the proceeds from the sale of products cover the costs of production and, in addition, generate the necessary mass of profit for the smooth operation of the organization. The distorting effect of inflation on profitability indicators is manifested to a much lesser extent than on profit indicators. profitability shows the ratio of result to resources.

Therefore, profitability indicators characterize the formation of the amount of profit and income of the organization in the actual environment. They evaluate the financial results of the enterprise and, of course, its efficiency in the use of funds in order to make a profit. Therefore, the analysis of profitability at the enterprise in modern conditions is becoming relevant. Also, relevance provides diversity in determining profitability, i.e. there is no common terminology and different methods of its calculation are used.

During the analysis of profitability of sales for a comprehensive assessment of the effectiveness of the results obtained, several types of profit can be considered. The ratio of gross profit to revenue shows the proceeds from the sale of products that the organization can use to cover selling and administrative expenses. If we take the ratio of profit from sales to revenue, then the output is “purity of the analytical experiment”, i.e. this indicator is not affected by indicators such as other income and expenses. This indicator evaluates the effectiveness of sales managementproducts. The ratio of profit before tax to revenue allows you to take into account the influence of other factors and identify the impact of tax. The “quality” of profit will also decrease, with the increasing influence of other expenses. The ratio of net profit to revenue is the final indicator in the system of indicators of return on sales and reflects the impact of the totality of income and expenses.

The enterprise under study is Diana K LLC, the main activity of which is the production of cakes, pastries and cookies.
The company "Diana K" has long existed in the market of the Republic of Mari El, its products are known and in demand, both within the republic and abroad.

To calculate the level of profitability of Diana K LLC, the values ​​of indicators of profit, costs, revenue, assets and equity are required. In our case, the profit from sales will be used to calculate all profitability indicators. The choice of this indicator is determined by the need for comparability of calculations and generalization of the results obtained.

In the course of studying various types of profitability, it will be necessary to model profitability indicators by factor dependencies and determine the impact of each factor on the result. This will provide an opportunity to carefully study the influence of various factors on financial results, to determine the dependencies and development trends.

Any profitability indicators are a multiple model consisting of two factors and are presented in the following form -

F(x) = x/y. Thus, this model expresses the ratio of profit to quantitative indicator on which the amount of profit depends, at the same time, profit has a directly proportional dependence, and the indicator has an inversely proportional dependence.

When conducting a cost-benefit analysis, the following indicators will be considered:profitability of sales;return on assets;return on equity.

Each of the presented indicators in its own way characterizes the financial condition of the organization.

Since the area of ​​research and analysis is financial results, let's start the calculation with the indicator return on sales . Profitability of sales - an indicator of the financial performance of the organization, showing how much profit the company receives from one ruble received from the sale of products. Return on sales is considered an indicator of an enterprise's pricing policy and its ability to control costs.

Factor analysis of profitability will be carried out using the following initial model:

where, - profitability of sales;

- revenue from sales;

- sales revenue.

Let's use the lengthening method and transform the original model by decomposing the sales profit into components:

where, - cost of sales;

Business expenses;

Management expenses;

- coefficient of production costs;

– coefficient of commercial costs;

Management cost ratio.

The third factorial model of sales profitability makes it possible to assess the impact of two factors on the performance indicator - the price and the cost of a kilogram of confectionery products:

where, - the cost of 1 kg of products;

The price of 1 kg of products;

- the number of products sold.

To conduct a factor analysis, we will enter the calculated and initial data in Table 1.

Table 1 - Dynamics of indicators of profitability of profit from sales for 2010-2012

Index	years			Absolute change			Growth rate
	2010	2011	2012	2011 to 2010	2012 to 2011	2012 to 2010	2011 to 2010	2012 to 2011	2012 to 2010
thousand roubles.
Sales revenue	152842	181650	182512	28808		29670	118,85	100,47	119,41
Cost price	102085	122415	115408	20330	7007	13323	119,91	94,28	113,05
Selling expenses	28457	39284	50281	10827	10997	21824	138,05	127,99	176,69
Management expenses	8161	11984	13328	3823	1344	5167	146,84	111,21	163,31
Revenue from sales	14139	7967	3495	6172	4472	10644	56,35	43,87	24,72
	0,67	0,67	0,63	0,01	0,04	0,04	100,00	93,83	94,67
	0,19	0,22	0,28	0,03	0,06	0,09	116,15	127,39	147,97
	0,05	0,07	0,07	0,01	0,01	0,02	123,56	100,00	136,76
Return on sales, %	9,25	4,39	1,91	4,86	2,47	7,34	47,41	43,66	20,70
per unit products, rub.
Price	125,09	143,43	161,90	18,34	18,47	36,81	114,66	112,88	129,43
Cost price	113,52	137,14	158,00	23,62	20,86	44,48	120,81	115,21	139,18

The data presented in Table 1 indicate that the proceeds from the sale of confectionery products of Diana K LLC increased in 2011 compared to 2010 by 1.2 times or by 19%, but did not have the desired effect on the dynamics of profit from sales. Compared to 2011, growth in 2012 was insignificant, only 0.5%, i.e. revenue in 2011-2012 was almost on the same level. This aspect is also indicated by the indicator of revenue growth for the period 2012-2012. - only 119%.

The cost of goods sold changed over the period 2010-2012. wavelike, it reached its peak in 2011, and in 2012 it decreased by 1.1% compared to 2011.

At the same time, there was a significant increase in commercial and administrative expenses, the growth of which in 2012 compared to 2012 amounted to 77% and 63%, respectively. The growth of these types of expenses significantly affected the profit from sales and, as a result, the profitability of sales.

The initial indicator in the profitability formula - profit from sales has also undergone significant changes. The value of this indicator year after year only decreased, as evidenced by the growth rate indicator - 56% - 2011, 44% - 2012 and 25% - for the period.

In the course of interpreting the baseline, it is also necessary to analyze the calculated values. Production cost ratio in 2010-2011 remained at the same level, and in 2012 even decreased. This trend indicates an increase in efficiency in the production sector, due to a decrease in resource intensity. The selling cost ratio has been changing, increasing year on year, indicating an increase in distribution costs - an increase of 48% over the period 2010-2012. This dynamics is associated with the entry of Diana K LLC into new markets. The managerial cost ratio increased in 2011 and remained at this level in 2012, despite this, it was not only significantly lower than the other coefficients, but also did not exceed the threshold values ​​(threshold value 0.1-0.15).

When studying the dynamics of the cost price and the price of a kilogram of confectionery products, it is clearly seen that the cost price is growing at a faster pace than the price.

The detailed influence of factors after the analysis is presented in Table 2.

Table 2 - Assessment of the influence of factors on the performance indicator - return on sales

	Factor action, %
	2011 (comparing '11 to '10)	2012 . (comparing '12 to '11)	For the period 2010 -2012.
the first model is decomposition into factors
Sales proceeds
Cost price
Selling expenses
Management expenses
Cumulative Impact
the second model is the use of coefficients
Production cost ratio
Selling cost ratio
Management Cost Ratio
Cumulative Impact
the third model is the use of specific indicators
Price (per kg)
Cost price (per kg)
Cumulative Impact

The first two models presented in the table are similar, because a single original model was used, but decomposed in different ways. As can be seen from the table, they give the same only the final result - the cumulative effect. You can also notice that the first model describes in more detail the factors that affect the profitability of sales.

According to the first model, profitability was formed under the influence of an increase in sales volumes - in 2011 the size of the influence was 14.39%, and in 2012 this factor was the cost price - the influence was 3.84%. That. cost reduction led to an increase in profitability in 2012. In addition, profitability was also positively affected in 2012 by sales growth, albeit insignificant – 0.45%. As you can see, the influence of management expenses has weakened, while commercial expenses have slightly increased. The effect of factors on the studied indicator for the period 2010-2012. had the following trend - the growth in sales had a positive effect on profitability, while other factors only contributed to its decline, which is explained by its downward line on the graph.

The second model generates the following results: in 2011 all cost factors had a negative value. Selling cost ratio had the strongest impact, and production cost ratio had the least effect. In 2012, the situation changed a little - the production cost ratio not only became positive, but also began to have a significant impact on the growth of the effective indicator. However, its growth could not cover the negative impact of other ratios, so there was not an increase in sales profitability, but its decrease. Values ​​for the period 2010-2012 similar to the first method.

The third model has the following results. For all the studied periods, the profitability of sales decreased due to an increase in the cost, and the positive effect of the price per 1 kg. products did not cover the negative impact.

In order to have a comprehensive picture of the financial performance of the company and the sustainability of profits in the future, it is not enough only the indicator of profitability of sales. Since the return on sales shows whether the enterprise is profitable or unprofitable, but does not answer the question of how profitable investments in this enterprise are. To answer this question, calculate the return on assets and equity.

Return on assets enterprises is one of the indicators of the efficiency of economic activity. This indicator characterizes the return on the use of all assets of the organization. It reflects the company's ability to generate profit without taking into account the structure of its capital (financial leverage), as well as the quality of asset management. Return on assets shows the profit that the company received from 1 ruble aimed at the formation of assets.
The measure of profitability of the enterprise in the study period is expressed by this performance indicator. In other words, the return on assets is a kind of indicator of the efficiency and profitability of the organization's work, without being affected by the amount of borrowing.

The modeling of the return on assets is carried out according to the following initial formula:

where, - total assets.

The first model looks like this:

where, is the asset turnover ratio.

The second model of return on assets comprehensively reflects the degree of efficiency in the use of costs, stocks and current assets:

where, - current assets;

Average annual reserves;

- full cost;

Revenue per 1 ruble of full cost;

- the share of current assets in the formation of assets;

The share of reserves in the formation of current assets;

- inventory turnover.

As can be seen from the data in table 3 below, sales revenue in 2011 increased significantly compared to 2010, and in 2012 the growth was no longer so significant. Compared to revenue, sales profit, on the other hand, has been declining consistently for three years, thus. the total decrease was 10644 tr. The rate of growth of full cost over the three years was the highest among the presented baseline indicators and amounted to 129%. Inventories grew during 2010-2011, and in 2012 they sharply decreased by 1.5 times compared to 2011. The value of the company's assets increased in absolute terms, but the growth rate of the indicator relative to the previous year was insufficient, i.e. in 2011 the growth was 117%, and in 2012 only 103%. In general, during the period, assets increased by 7579 thousand rubles, which is 121% of growth. Against their background, the indicator of average annual current assets looked a little better - an increase over three years amounted to 127%.

The results of the calculations made allow us to say that the sales proceeds exceed the cost, although only slightly. In the dynamics of this indicator, its gradual decrease is observed, this trend also indicates a decrease in the amount of profit. The dynamics of the indicator of the share of reserves in the formation of current assets suggests that it remained unchanged for two years, and in 2012 there was a decrease by 1.6 times, which can be described as a positive moment, because. because there is no freezing of working capital in stocks. The fourth indicator of our model is the inventory turnover ratio. Its change can be assessed as a positive moment in the efficiency of the use of working capital. The dynamics of this indicator speaks for itself - the growth for 3 years amounted to 73%.

If we compare indicators in terms of relative stability, then such an indicator is the asset turnover ratio - 4 full turnovers are made by assets per calendar year. Return on assets and sales show a gradual decline as evidenced by a growth rate of only 20%, which is a negative trend.

Table 3 - Analysis of the structure and dynamics of indicators that form the profitability of assets

Index	years			Absolute change			Growth rate, %
	2010	2011	2012	2011 to 2010	2012 to 2011	2012 to 2010	2011 to 2010	2012 to 2011	2012 to 2010
Initial data, thousand rubles
Revenue from sales	14139,00	7967,00	3495,00	6172,00	4472,00	10644,00	56,35	43,87	24,72
Sales revenue	152842,00	181650,00	182512,00	28808,00	862,00	29670,00	118,85	100,47	119,41
Full cost	138703,00	173683,00	179017,00	34980,00	5334,00	40314,00	125,22	103,07	129,06
Average annual stocks (including VAT)	3312,00	3737,00	2466,00	425,00	1271,00	846,00	112,83	65,99	74,46
Average value of current assets	29542,50	35313,00	37439,50	5770,50	2126,50	7897,00	119,53	106,02	126,73
Average asset value	36102,00	42229,00	43681,50	6127,00	1452,50	7579,50	116,97	103,44	120,99
Estimated data
	1,10	1,05	1,02	0,06	0,03	0,08	94,91	97,48	92,52
	0,82	0,84	0,86	0,02	0,02	0,04	102,19	102,50	104,74
	0,11	0,11	0,07	0,01	0,04	0,05		62,24	58,75
Inventory turnover ratio, turnover	41,88	46,48	72,59	4,60	26,12	30,72	110,98	156,19	173,34
Asset turnover ratio, turnover	4,23	4,30	4,18	0,07	0,12	0,06	101,60	97,13	98,69
Return on sales, %	9,25	4,39	1,91	4,86	2,47	7,34	47,41	43,66	20,70
Return on assets, %	39,16	18,87	8,00	20,30	10,87	31,16	48,17	42,41	20,43

In order to assess in more detail the impact of each factor separately on the return on assets, they are summarized in Table 4.

Table 4 - Assessment of the influence of factors on the performance indicator - return on assets

Name of the influencing factor	Factor action, %
	2011 (comparing '11 to '10)	2012 . (comparing '12 to '11)	For the period 2010 -2012.
the first model - expansion with the introduction of the sales revenue indicator
Profitability of sales
Cumulative Impact
the second model is resource efficiency
Revenue per 1 rub. prime cost
The share of current assets in the formation of assets
The share of reserves in the formation of current assets
Inventory turnover ratio
Cumulative Impact

According to the first model, the main factor was the indicator of profitability of sales. The influence of the asset turnover ratio was an order of magnitude smaller and did not significantly change the result. However, it should be noted that the asset turnover positively affected the return on assets only in 2011 compared to 2010.

Examining the results of the second model, we can say that in 2011, compared to 2010, the decisive factor that influenced the performance indicator was the price - the share of revenue per 1 ruble of cost. As a result of his action, the return on assets fell by 21.54%. The share of stocks in the formation of current assets also had a negative impact. Inventory turnover ratio of 1.87% had a not quite significant, but still positive impact on the profitability of assets. In 2012, the factor of the share of revenue per 1 ruble of cost continues to play a decisive role in the impact of the resulting indicator, even despite its 2-fold decrease. In 2012, compared to 2011, such factors as the share of stocks in the formation of current assets increase their influence - the negative impact increased by 3 times, and asset turnover also has a positive effect of almost 3 times on the performance indicator. When considering the impact of indicators for the period on the decrease in the profitability of assets, the price factor had a significant effect - 31.66%, and the factor - the share of stocks in the formation of current assets - had a not so, but also negative impact. The influence of the remaining two factors is positive, but they cannot cover the negative influence of the valuable factor.

Return on equity shows the effectiveness of the capital invested in business. It is important for both the owner and the investor. .

To calculate the return on equity, we use a model developed by DuPont analysts:

where, is the coefficient of financial dependence;

Equity.

The selected factors summarize almost all aspects of the financial and economic activities of the organization: the first factor summarizes the report on financial results; the second factor is the assets of the balance, the third is the liabilities of the balance, those. generalize its statics and dynamics.

Table 5 - Analysis of the structure and dynamics of indicators that form the return on equity

Index	years			Absolute change			Growth rate, %
	2010	2011	2012	2011 to 2010	2012 to 2011	2012 to 2010	2011 to 2010	2012 to 2011	2012 to 2010
Profit from sales, thousand rubles	14139	7967	3495	6172	4472	10644	56,35	43,87	24,72
Average value of own capital, thousand rubles.	20179,00	19889,00	18590,00	290,00	1299,00	1589,00	98,56	93,47	92,13
Asset turnover ratio	4,23	4,30	4,18	0,07	0,12	0,06	101,60	97,13	98,69
	1,79	2,12	2,35	0,33	0,23	0,56	118,68	110,67	131,34
Return on sales, %	9,25	4,39	1,91	4,86	2,47	7,34	47,41	43,66	20,70
Return on equity, %	70,07	40,06	18,80	30,01	21,26	51,27	57,17	46,93	26,83

The data presented in the table indicate that the rate of return on equity is declining. This is due to the fact that the rate of decline in profit from sales is higher than the rate of decline in equity throughout the entire period under review. The asset turnover ratio is insignificant, but it decreases, remaining at the level of 4 turnovers per year.

The coefficient of financial dependence in dynamics increases, which indicates that the organization of fat is more dependent on borrowed funds - a growth rate of 131% for the period 2010-2012.

Table 6 - Assessment of the influence of factors on the performance indicator - profitability equity

Name of the influencing factor	Factor action, %
	2011 (comparing '11 to '10)	2012 . (comparing '12 to '11)	For the period 2010 -2012.
Profitability of sales
Asset turnover ratio
Financial dependency ratio
Cumulative Impact

The return on equity in 2011 compared to 2010 is negatively affected by return on sales – 37%. The coefficient of financial dependence has a positive impact on the resulting indicator in the amount of 6.30%. The asset turnover ratio has a positive effect as a factor, but not significantly. In 2012, compared to 2011, the profitability of sales (23%) also plays the leading role in reducing profitability. This factor is joined by the asset turnover ratio, which in this period changed the sign "plus" to "minus". Since the dependence of the enterprise on borrowed funds increases, the influence of the financial dependence coefficient decreases by almost 3.5 times and amounts to 1.81%. During the period, the resulting indicator was negatively affected by the profitability of sales and the asset turnover ratio.

In conclusion, we will show the change in the main calculated indicators - profitability indicators for clarity in diagram 1.

Diagram 1 - Dynamics of profitability indicators for 2010-2012

The diagram shows that none of the profitability indicators show growth. The negative trend in the profitability of sales indicates a decrease in the effectiveness of the main activity. The change in the profitability of total assets indicates an observed decrease in the efficiency of the use of enterprise resources. The return on equity has also been reduced, therefore, we can conclude that the return on invested capital has decreased.

Bibliographic list

1. Savitskaya, G.V. Analysis of the economic activity of the enterprise /G.V. Savitskaya. – M.; Infra-M, 2008. - 512 p.
2. Sheremet, A.D. Analysis and diagnostics of the financial and economic activity of the enterprise / A.D. Sheremet. – M.: Infra-M, 2009. – 367 p.
3. Klimova, N.V. Evaluation of the influence of factors on profitability indicators // Economic analysis: theory and practice. - 2011. - No. 20 (227). - With. 50-54.

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The efficiency of the economic activity of the enterprise and the economic feasibility of its operation are directly related to its profitability, which can be judged by the profitability or return on capital, resources or products of the entrepreneurial firm. Profitability is a relative indicator of the level of profitability of the enterprise, it characterizes the efficiency of the enterprise as a whole.

Profitability, in contrast to profit, more fully reflects the final results of management, as it shows the ratio of the effect to cash or consumed resources.

Only the ratio of profit and the volume of work performed, characterized by the level of profitability, allows you to evaluate the production and economic activities of the enterprise in the reporting year, compare it with the results of the reporting periods, and also determine the place of the analyzed enterprise among others in the industry.

Profitability indicators

Profitability indicators are used to assess the activities of the enterprise and as a tool in investment policy and pricing. Evaluation of the profitability of the enterprise can be made using the following indicators.

1. Profitability of products (Рpr) - is calculated as the ratio of profit from sales of products to the total cost of this product:

Rpr \u003d Pp / Sp * 100%,

where Pp - profit from sales of products, goods, works, services;

Cn is the total cost of goods sold.

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

Therefore, the next indicator of profitability is called the return on sales.

2. Profitability of sales (turnover) - Rp:

Rp \u003d Pp / V * 100%,

accounting financial profit

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

This ratio shows how much profit falls on a unit of sold products.

The growth of the indicator is evidence of either an increase in product prices at constant costs for the production of sold products, or a decrease in production costs at constant prices.

Indicators of profitability of products and profitability of sales are interrelated and characterize the change in current costs for the production and sale of both all products and their individual types.

In this regard, when planning the range of products, it is taken into account how the profitability of individual types will affect the profitability of all products.

• 3. Indicators of return on capital:
  • a) return on equity (Rsk):

Rsk \u003d Pch / Ks * 100%,

where Pch - net profit;

Кс - the average value of own capital.

This indicator characterizes the effectiveness of the use of equity capital and shows how much profit falls on a unit of equity capital of the enterprise.

b) return on investment (permanent) capital (Ri):

Ri \u003d Pch / Kik * 100%,

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

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

c) profitability of the entire capital of the enterprise (Rock):

Rock \u003d Pp / Bsr * 100%,

where Bsr is the average net balance total for the period.

This coefficient shows the efficiency of using the entire capital of the enterprise, i.e. an increase in the value of the coefficient indicates an increase in the efficiency of the use of the enterprise's property and vice versa.

A decrease in the value of the profitability of the entire capital of an enterprise may also be the result of a fall in demand for the enterprise's products or an overaccumulation of assets.

4. Return on current assets (Rob):

Rob \u003d Pp / AOav * 100%,

where AOav is the average value of current assets.

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

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

Pv \u003d Pp / AVsr * 100%,

where АВср is the average value of fixed assets and other non-current assets for the period.

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

However, it should be noted that not all of the listed indicators of profitability are used in practice, but only the main ones: return on sales, return on the entire capital of the enterprise, return on fixed assets and other non-current assets, return on equity, return on investment capital.

These indicators are studied in dynamics, and the trend of their change is used to judge the effectiveness of the business activities of the enterprise.

Let's analyze the profitability indicators for Nadezhda LLC, for which, using appendices 2, 4, we will compile the following table.

Table 15 Profitability indicators of Nadezhda LLC for 2007 - 2008

Let's calculate the profitability indicators for Nadezhda LLC:

1. Profitability of products:

Rpr \u003d Pp / Sp * 100%

• 2007: Рpr = 125/7732*100% = 1.62%;
• 2008: Рpr = 116/7576*100% = 1.53%.
• 2. Profitability of sales:

Rp \u003d Pp / V * 100%

• 2007: Rp = 125/7857*100% = 1.59%;
• 2008: Rp = 116/7692*100% = 1.51%.
• 3. Return on equity:

Rsk \u003d Pch / Sk * 100%

• 2007: Рsk = 404/8976*100% = 4.50%;
• 2008: Rsk = 487/7421*100% = 6.56%.

From the calculations made it follows that the decrease in profit by 9 thousand rubles. led to a decrease in product profitability by 0.09%. Return on sales in 2008 also decreased by 0.08% compared to 2007, which indicates an increase in production costs at constant product prices. The rate of return on equity in 2008 increased by 2.06% compared to 2007, which indicates the effectiveness of the use of equity capital by the enterprise.

In order to increase profitability indicators, the management of Nadezhda LLC needs to concentrate its work on resource saving, which will lead to an increase in profits.

In conclusion, it should be added that when analyzing profitability indicators, the following must be taken into account: profitability directly depends on the organization's strategy, or rather, on the level of risk in entrepreneurial activity, which "requires" a certain level of profit. The higher the risk, the more profit the business organization must receive.

Factor analysis of product profitability

Factor analysis of profitability indicators in the process of financial analysis is carried out on the basis of the income statement (form No. 2).

Factor analysis of product profitability is carried out on the basis of the following model:

rs \u003d Pp / Cpp \u003d (RP - Cpp) / Cp,

where Pp - profit from sales of products, rub;

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

CRP - full cost of goods sold, rub.

For factor analysis, the method of chain substitutions is used. At the same time, the volume of products sold will be a quantitative indicator, and its cost price will be a qualitative one. Then the increase in profitability in the reporting period compared to the base period will be determined as follows:

Рс = P№p/С№rp - Пєp/Сєрп = (РП№ - С№rp)/ С№rp - (Рє - Сєрп)/ Сєрп = Р№/С№rp - Рє/Сєрп = (РП№/ S№rp - RP№ / Sєrp) + (RP№ / Sєrp - RPє / Sєrp) \u003d DrsS -? rsRP.

Component?RSC characterizes the impact of changes in the cost of goods sold on the dynamics of product profitability, and the component?RSRP - the impact of changes in sales volume. They are defined respectively as

• ?pcS = RP#/S#rp - RP#/Sєrp;
• ?RSRP = RP#/Sєrp - RPє/Sєrp.
• 1. Total cost of goods sold by Nadezhda LLC:

Снрп = 7576;

Serp = 7732.

• 2. The impact of changes in cost on the dynamics of product profitability:
  • ?pcC = 7692/7576 - 7692/7732 = 1.015 - 0.995 = 0.02.
• 3. The impact of changes in the volume of products sold on the dynamics of product profitability:
  • ?pcRP = 7692/7732 - 7857/7732 = 0.995 - 1.016 = -0.021.
• 4. General change in product profitability:
  • ?rs = 0.02+ (-0.021) = -0.001.

Conclusion: according to the calculations, the profitability of products compared to 2007 decreased by 0.01 (1.015 - 1.016) under the influence of the following factors:

• 1) due to changes in the cost of goods sold increased by 0.02;
• 2) decreased by 0.021 due to changes in the volume of sold products in selling prices.

The reason for the deterioration in the profitability of products is the decrease in sales revenue. To solve this problem, the management of Nadezhda LLC needs to identify reserves for increasing the volume of sales of products and the amount of profit.

In order to ensure stable profit growth, it is necessary to constantly look for reserves to increase it. They are identified both at the planning stage and in the process of implementing plans. Determination of profit growth reserves is based on a reasonable methodology for their calculation, mobilization and implementation. There are three stages of this work: analytical, organizational and functional. At the first stage, reserves for increasing profits and profitability are identified and quantified; at the second stage, a set of organizational, economic and social measures are evaluated that ensure the use of the identified reserves. At the third stage, activities are practically implemented and control over their implementation is carried out.

In addition, the development of profit growth reserves without increasing production capacity (without additional capital investments) increases not only the profitability of work, but also the reserves of its financial strength. The margin of financial strength or safety zone (Zf.u) is determined by the formula:

Zf.y \u003d (Vv - Vb) / Vv;

Вв = Вф + identified growth reserve,

where Вв is the possible volume of sales (sales) taking into account the reserves of its growth;

Vb - breakeven sales volume;

Vf - actual revenue (sales volume).

The third component of the concept of "efficiency" are indicators of profitability and profitability.

According to the "Profit and Loss Statement" (Form No. 2), it is possible to analyze the dynamics of sales profitability, net profitability of the reporting period, as well as the influence of factors on the change in these indicators.

Return on sales (R P) is the ratio of the amount of profit from sales to the volume of products sold:

R P \u003d (P P / V) * 100% (24)

From this factorial model, it follows that the profitability of sales is affected by the same factors that affect the profit from the sale. To determine how each factor affected the profitability of sales, it is necessary to carry out the following calculations.

1. Effect of changes in sales proceeds on Rp:

DR P (B) \u003d (((B1 - C0 - KR0 - UR0) / B1) -

((B0 - C0 - KP0 - UR0) / B0))) * 100% (25)

where B1 and B0 - reporting and basic revenue;

C1 and C2 - reporting and basic cost;

КР1 and КР0 - reporting and basic selling expenses;

UR1 and UR0 - administrative expenses in the reporting and base periods.

DR P (V) \u003d (((9595 - 8587 - 1226 - 0) / 9595) - ((9736 - 8587 - 1226 - 0) / 9736))) * 100% \u003d - 2.27% - (- 0, 79%) = - 1.48%

2. The impact of changes in the cost of sale on Rp:

DR P (S) \u003d (((B1 - C1 - KR0 - UR0) / B1) -

((B1 - C0 - KR0 - UR0) / B1))) * 100% (26)

DR P (S) \u003d (((9595 - 8210 - 1226 - 0) / 9595) - ((9595 - 8587 - 1226 - 0) / 9595))) * 100% \u003d 1.66% - (-2.27 %) = + 3.93%

3. Impact of changes in selling expenses on Rp:

DR P (KR) \u003d (((B1 - C1 - KR1 - UR0) / B1) -

((B1 - C1 - CR0 - UR0) / B1))) * 100% (27)

DR P (KR) \u003d (((9595 - 8210 - 1348 - 0) / 9595) - ((9595 - 8210 - 1226 - 0) / 9595))) * 100% \u003d 0.39% - 1.66% \u003d - 1.27%

The cumulative influence of factors is:

DR P = ± DR B ± DR S ± DR CR ± DR UR (28)

DR P \u003d - 1.48 +3.93 - 1.27 \u003d 1.18%

The profitability of sales of the reporting period increased by 1.18% compared to the profitability of the previous period.

The net profitability of the organization is calculated as the ratio of the amount of net profit to the proceeds from the sale:

R H = (P H / V) * 100% (29)

P1 H \u003d (-138/9595) * 100% \u003d - 1.44%

P0 H \u003d (-217/9736) * 100% \u003d - 2.23%

In addition to the analyzed profitability ratios, the profitability of all capital, equity, production assets, and financial investments is distinguished.

In order to assess the performance of the organization as a whole and analyze its strengths and weaknesses, it is necessary to synthesize indicators, and in such a way as to identify cause-and-effect relationships that affect the financial position and its components. Consider the following indicators characterizing the profitability of the enterprise:

1. Profitability of sales - shows how much profit falls on a unit of sold products:

P1 = (sales profit / sales revenue) * 100% (30)

P1 \u003d (s.050 (form No. 2) / s.010 (form No. 2)) * 100% (31)

P1 \u003d (37/9595) * 100% \u003d 0.39% (for the reporting period)

Р1 = (-77/9736) * 100% = - 0.79% (for the base period)

2. Accounting profitability from ordinary activities - shows the level of profit after tax:

P2 \u003d (profit from ordinary activities / sales revenue) * 100% (32)

Р2 = (p. 160 (f. No. 2) / p. 010 (f. No. 2)) * 100% (33)

Р2 = (-138/9595) * 100% = - 1.4% (for the reporting period)

Р2 = (-217/9736) * 100% = - 2.23% (for the base period)

3. Net profitability - shows how much net profit falls on a unit of revenue:

P3 \u003d (net profit / sales revenue) * 100% (34)

P3 \u003d (p. 190 (f. No. 2) / p. 010 (f. No. 2)) * 100% (35)

Р3 = (-138/9595) * 100% = - 1.4% (for the reporting period)

Р3 = (-217/9736) * 100% = - 2.23% (for the base period)

4. Economic profitability - shows the effectiveness of the use of all property of the organization:

P4 = (net profit / average asset value) * 100% (36)

Р4 = (p. 190 (f. No. 2) / p. 300 (f. No. 1)) * 100% (37)

Р4 = (-138/2827) * 100% = - 4.88% (for the reporting period)

Р4 = (-217/3770.5) * 100% = - 5.76% (for the base period)

5. Return on equity - shows the effectiveness of the use of equity capital. Dynamics of P5 has an impact on the quote level.

P5 = (net income / average cost of equity) * 100% (38)

Р5 = (p. 190 (f. No. 2) / p. 490 (f. No. 1)) * 100% (39)

Р5 = (-138/1749) * 100% = - 7.89% (for the reporting period)

Р5 = (-217/1902) * 100% = - 11.41% (for the base period)

6. Gross margin - shows how much gross profit falls on a unit of revenue:

P6 \u003d (gross profit / sales revenue) * 100% (40)

P6 \u003d (s.029 (form No. 2) / s.010 (form No. 2)) * 100% (41)

P6 \u003d (1385/9595) * 100% \u003d 14.43% (for the reporting period)

P6 \u003d (1149/9736) * 100% \u003d 11.8% (for the base period)

7. Cost-effectiveness - shows how much profit from the sale falls on 1 thousand rubles. costs

P7 \u003d (sales profit / production and sales costs) * 100% (42)

P7 = (p.050 (f. No. 2) / (p.020 + p.030 + p.040)) * 100% (43)

P7 \u003d (37 / (8210 + 1348)) * 100% \u003d 0.39% (for the reporting period)

P7 = (-77 / (8587 + 1226)) * 100% = - 0.78% (for the base period)

Gross margin (P6) reflects the amount of gross profit in each ruble of sold products. This indicator for the reporting year increased by 2.63%, therefore, the gross profit per unit of the organization's revenue increased.

Of particular interest for an external assessment of the effectiveness of the financial and economic activities of an organization is the analysis of non-traditional profitability indicators such as cost-benefit (P7), which shows how much profit from the sale falls on 1 ruble of costs. More informative is the analysis of return on assets (P4) and return on equity (P5).

One of the synthetic indicators of the economic activity of the organization as a whole is the economic profitability (P4), it is also commonly called the return on assets.

According to the calculations, it can be seen that the organization received from this type of activity for the reporting period 1.4% loss per rub. of their property, for the period last year, the loss was 2.23% for this indicator. The P4 formula clearly shows possible ways to increase economic profitability - ways to increase the profitability of capital.

The return on equity ratio (P5) allows you to establish the relationship between the amount of invested own resources and the amount of profit received from their use.

Profitability of sales can be increased by increasing prices or reducing costs. The organization's policy should be to increase the production and sale of those products (works, services), the need for which is determined by improving market conditions.

Identification and quantitative measurement of the degree of identification of individual factors to change the effective indicators of the economic and financial activities of an enterprise is one of the most important tasks of economic analysis.

If the study of a specific set of indicators leads to the identification of a general pattern, then an assumption is made about the presence of relationships between the indicators. The source of occurrence "may be a causal relationship between indicators, the dependence of a number of indicators on a common factor, a random coincidence

The influence of factors affects the change in the effective indicators of economic activity in different ways. To understand the reasons for the change in the phenomena under study, to more accurately assess the place and role of each factor in the formation of the value of effective indicators, the classification of factors will allow.

The factors studied in the analysis can be classified according to different criteria.

The purpose of writing this paper is to study the methodology for calculating profitability indicators and its application in practice. To achieve this goal, it is necessary to solve the following range of tasks:

- define the concept of profitability, reveal its significance for financial analysis and characterize the main areas of its application;

- consider the system of profitability indicators in accordance with their classification into economic activity profitability indicators, financial profitability and product profitability indicators;

-  consider the general method of factor analysis of profitability indicators of the organization.

1. The economic content of the profitability of the enterprise

1.1 Determination of profitability

In order to conduct a factor analysis of the profitability of an organization, it is first necessary to determine what exactly is included in the concept of the profitability of an organization.

Profitability- this is the degree of profitability, profitability, profitability of the business. If a company makes a profit, it is considered profitable. Profitability indicators used in economic calculations characterize relative profitability.

Profit- this is the monetary expression of the main part of the monetary savings created by enterprises of any form of ownership. As an economic category, it characterizes the financial result of entrepreneurial activity and is an indicator that most fully reflects the efficiency of production, the volume and quality of industrial products, the state of labor productivity, and the level of cost.

Profit is one of the main financial indicators of the plan and assessment of the economic activities of organizations. At the expense of profit, measures are financed for their scientific, technical and socio-economic development, an increase in the wage fund of their employees. Profit is not only a source of internal needs of the organization, but is becoming increasingly important in the formation of budgetary resources, non-budgetary and charitable funds.

1.2 Profitability indicators

Profitability of the organization is characterized by absolute and relative indicators. The absolute indicator of profitability is the amount of profit (income). The relative indicator is the level of profitability.

Absolute indicators allow us to analyze the dynamics of various profit indicators over a number of years. At the same time, it should be noted that in order to obtain more objective results, indicators should be calculated taking into account inflationary processes.

Relative indicators are less affected by inflation, because represent various ratios of profit and invested capital, or profit and production costs.

By the absolute amount of profit, it is not always possible to judge the level of profitability of an enterprise, since its size is affected not only by the quality of work, but also by the scale of activity. Therefore, to characterize the efficiency of the enterprise, along with the absolute amount of profit, relative indicators are used that characterize the final results of management more fully than profit, because. their value reflects the ratio of the effect to the invested capital or consumed resources. They are used to evaluate the activities of the enterprise and as a tool in investment policy and pricing.

Profitability indicators used in economic calculations characterize relative profitability.

1.3 Groups of profitability indicators

Profitability indicators can be combined into several groups:

* indicators based on the cost approach (profitability of products, profitability of activities);

* indicators characterizing the profitability of sales (profitability of sales);

* indicators based on the resource approach (return on total assets, return on fixed capital, return on working capital, return on equity).

Overall profitability(enterprise profitability) - is defined as the ratio of balance sheet profit to the average cost of fixed production assets and normalized working capital. The ratio of the fund to material and equivalent costs reflects the profitability of the enterprise.

The overall profitability is determined by the formula:

R o \u003d P b / F * 100%,

where R o - total profitability,

P b - the total amount of balance sheet profit,

Ф - the average annual cost of fixed assets, intangible assets and tangible working capital.

The level of overall profitability is a key indicator when analyzing the profitability of an enterprise. But if you want to more accurately determine the development of the organization, based on the level of its overall profitability, you need to additionally calculate two more key indicators: profitability of turnover and the number of capital turnover.

The overall profitability of the enterprise must be considered as a function of a number of quantitative indicators - factors: the structure and return on assets of fixed production assets, the turnover of normalized working capital, the profitability of sales (see diagram 1.2).

Scheme 1.2. General profitability of the enterprise

Profitability of turnover reflects the relationship between the gross revenue (turnover) of the enterprise and its costs and is calculated by the formula:

R about. = P n.p. *100 / V,

where R vol. - profitability of turnover,

P n.p. - earnings before interest,

B is gross revenue.

The greater the profit compared to the gross revenue of the enterprise, the greater the profitability of the turnover. This indicator is widely used in a market economy. It is calculated as a whole for the enterprise and for individual types of products.

Number of turnovers of capital reflects the ratio of the gross proceeds (turnover) of the enterprise to the value of its capital and is calculated by the formula:

H ob.k. = B / A,

where H ob.k. - the number of turnovers of capital,

B - gross revenue,

A are assets.

The higher the gross revenue of the firm, the greater the number of turnovers of its capital. As a result, the level of overall profitability is determined by the following formula:

At o.r. \u003d R about * H about. ,

where U o.r. - the level of overall profitability,

R about. - profitability of turnover,

H ob.k. - the number of turnovers of capital.

In other words, the level of overall profitability, that is, an indicator that reflects the growth of all invested capital (assets), equals earnings before interest, multiplied by 100% and divided by assets.

The relationship between the three key indicators is presented in the following diagram:

Diagram 1.1 Relationship between the three key indicators.

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

P rp \u003d P rp / C * 100%,

where P rp - profitability of products;

P rp - profit from the sale of products;

C is the total cost of goods sold.

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

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

Return on investment of the enterprise- This is an indicator of profitability, which shows the effectiveness of the use of all property of the enterprise.

Among the indicators of profitability of investments of the enterprise, there are 5 main ones:

1 The total return on investment, showing what part of the balance sheet profit falls on 1 rub. property of the enterprise, that is, how effectively it is used.

2. Return on investment in terms of net profit;

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

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

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

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

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

P to =BP/SK; P to = P rp / SK; P to \u003d CHP / SK

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

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

Profitability is the result of the production process, it is formed under the influence of factors associated with increasing the efficiency of working capital, reducing costs and increasing the profitability of products and individual products.

2. Types and tasks of factor analysis

The functioning of any socio-economic system (which includes an operating enterprise) occurs in a complex interaction of a complex of internal and external factors.

Factor- this is the reason, the driving force of any process or phenomenon, which determines its nature or one of the main features.

Identification of the relationship between the indicators, its direction and intensity, as well as the form of dependence between the indicators is necessary for understanding the patterns of formation of the results of the activity of a business entity. If the study of a specific set of indicators leads to the identification of a general pattern, then an assumption is made about the presence of relationships between the indicators. The source of occurrence can be a causal relationship between indicators, the dependence of a number of indicators on a common factor, a random coincidence. Factor analysis consists in identifying the relationship between indicators: in measuring the quantitative impact of individual indicators on the change in another, aggregate indicator.

Factor analysis technique- a methodology for a comprehensive and systematic study and measurement of the impact of factors on the value of effective indicators.

2.1 Main tasks of factor analysis

1. Selection of factors determining the studied performance indicators.

2. Classification and systematization of factors in order to provide an integrated and systematic approach to the study of their impact on the results of economic activity.

3. Determination of the form of dependence between factors and performance indicators.

4. Modeling the relationship between factors and performance indicators.

5. Calculation of the influence of factors and assessment of the role of each of them in changing the performance indicator.

6. Working with the factor model. Method of factor analysis.

The selection of factors for the analysis of a particular indicator is carried out on the basis of theoretical and practical knowledge in a particular industry. In this case, they usually proceed from the principle: the larger the complex of factors studied, the more accurate the results of the analysis will be. At the same time, it must be borne in mind that if this complex of factors is considered as a mechanical sum, without taking into account their interaction, without highlighting the main determining ones, then the conclusions may be erroneous. In the analysis of economic activity (AHA), an interconnected study of the influence of factors on the value of effective indicators is achieved through their systematization, which is one of the main methodological issues of this science.

An important methodological issue in factor analysis is to determine the form of the relationship between factors and performance indicators: functional or stochastic, direct or inverse, rectilinear or curvilinear. It uses theoretical and practical experience, as well as methods for comparing parallel and dynamic series, analytical groupings of initial information, graphical, etc.

Modeling economic indicators is also a complex problem in factor analysis, the solution of which requires special knowledge and skills.

The calculation of the influence of factors is the main methodological aspect in AHD. To determine the influence of factors on the final indicators, many methods are used, which will be discussed in more detail below.

The last stage of factor analysis is the practical use of the factor model for calculating the reserves for the growth of the effective indicator, for planning and predicting its value when the situation changes.

2.2 Types of factor analysis

Depending on the type of factor model, there are two main types of factor analysis - deterministic and stochastic.

Deterministic factor analysis is a methodology for studying the influence of factors whose relationship with the performance indicator is functional, i.e. when the performance indicator of the factor model is presented as a product, private or algebraic sum of factors.

This type of factor analysis is the most common, because, being quite simple to use (compared to stochastic analysis), it allows you to understand the logic of the main factors of enterprise development, quantify their influence, understand which factors and in what proportion it is possible and expedient to change to increase production efficiency. Deterministic factor analysis will be discussed in detail in a separate chapter.

Stochastic analysis is a methodology for studying factors whose relationship with the performance indicator, in contrast to the functional one, is incomplete, probabilistic (correlation). If with a functional (full) dependence, a corresponding change in the function always occurs with a change in the argument, then with a correlation relationship, a change in the argument can give several values ​​of the increase in the function, depending on the combination of other factors that determine this indicator. For example, labor productivity at the same level of capital-labor ratio may not be the same in different enterprises. It depends on the optimal combination of other factors affecting this indicator.

Stochastic modeling is, to a certain extent, an addition and extension of deterministic factor analysis. In factor analysis, these models are used for three main reasons:

· it is necessary to study the influence of factors on which it is impossible to build a rigidly determined factorial model (for example, the level of financial leverage);

It is necessary to study the influence of complex factors that cannot be combined in the same rigidly deterministic model;

· it is necessary to study the influence of complex factors that cannot be expressed in one quantitative indicator (for example, the level of scientific and technological progress).

In addition to dividing into deterministic and stochastic, the following types of factor analysis are distinguished:

o direct and reverse;

o single-stage and multi-stage;

o static and dynamic;

o retrospective and prospective (forecast).

At direct factor analysis research is conducted in a deductive way - from the general to the particular. Reverse factor analysis carries out the study of cause-and-effect relationships by the method of logical induction - from private, individual factors to general ones.

Factor analysis can be single-stage and multi-stage. The first type is used to study the factors of only one level (one stage) of subordination without detailing them into their constituent parts. For example, . In multistage factor analysis, the factors a and b are detailed into their constituent elements in order to study their behavior. Detailing the factors can be continued further. In this case, the influence of factors of different levels of subordination is studied.

It is also necessary to distinguish static and dynamic factorial analysis. The first type is used when studying the influence of factors on performance indicators for the corresponding date. Another type is a methodology for studying cause-and-effect relationships in dynamics.

Finally, factor analysis can be retrospective, which studies the reasons for the increase in performance indicators for past periods, and promising, which examines the behavior of factors and performance indicators in the future.

3. Methodology for factor analysis of profitability indicators of the organization

The level of profitability of certain types of products depends on the change in average selling prices (C) and cost (C) of a unit of production:

Ri \u003d (Ci - Ci) / Ci \u003d Ci / Ci - 1

Factor analysis of the profitability of certain types of products is performed on the basis of the data presented. The form of such data is given in Table 3.1.

Tab. 3.1 Factor analysis of the profitability of certain types of products

It is also necessary to study in more detail the reasons for the change in the average price level and, by means of proportional division, calculate their impact on the level of profitability. Such a calculation is made according to the following table (table 3.2.):

Tab. 3.2 Calculation of the influence of second-order factors on the change in the level of profitability

Next, it is necessary to establish, due to which factors the unit cost of production has changed and, in a similar way, determine their impact on the level of profitability. Such calculations are made for each type of product, which makes it possible to more accurately assess the work of a business entity and more fully identify on-farm reserves for profitability growth at the analyzed enterprise.

Approximately also the factor analysis of profitability of sales is made. The deterministic factorial model of this indicator, calculated for the whole enterprise, has the following form:

Rp = Pp / V, where

Rp - profitability of sales;

Pp - profit from sales.

The influence of individual factors is also calculated using the chain substitution method.

The level of profitability of sales of certain types of products depends on the average price level and the cost of the product:

Rp = Pi / Вi = (Цi - Сi) / Цi

Similarly, factor analysis of the return on total capital is carried out. The balance sheet profit depends on the volume of products sold (VPP), its structure (UDi), the average price level (Ti) and financial results from other activities not related to the sale of products and services (VFR).

The average annual amount of fixed and working capital (KL) depends on the volume of sales and the capital turnover ratio (Kob), which is determined by the ratio of revenue to the average annual amount of fixed and working capital. It is assumed here that the volume of sales in itself does not affect the level of profitability, since with its change the amount of profit and the amount of fixed and working capital increase or decrease proportionally, provided that other factors remain unchanged.

To calculate the influence of factors on the level of profitability, the following initial data are used (table 3.3):

Tab. 3.3 Initial data.

In an in-depth analysis, it is necessary to study the influence of second-level factors that affect the change in average selling prices, production costs and non-sales results.

To analyze the profitability of production capital, defined as the ratio of book profit to the average annual cost of fixed assets and material working capital, you can use the factor model proposed by M. I. Bakanov and A. D. Sheremet:

P / F + E = P/N / (F/N + E/N) = (1 - S/N) / (F/N + E/N) = / (F/N + E/N), where

P - balance sheet profit;

F is the average cost of fixed assets;

E - average balances of circulating assets;

N - proceeds from the sale of products;

P/N - profitability of sales;

F / N + E / N - capital intensity of products (the inverse of the turnover ratio);

S/N - costs per ruble of products;

U / N, M / N, A / N - respectively wage intensity, material intensity and capital intensity of products.

By gradually replacing the base level of each factor with the actual one, it is possible to determine how much the level of profitability of production capital has changed due to wage intensity, material intensity, capital intensity, i.e. due to production intensification factors.

3.1 Method of factor analysis in the direct costing system

In our country, when analyzing profits, the following model is usually used:

P \u003d K (C - C),

Where P is the amount of profit;

K - quantity (mass) of products sold;

C - selling price;

C is the unit cost of production.

In this case, it is assumed that all the above factors change by themselves, independently of each other. However, the relationship between the volume of production (sales) of products and its cost is not taken into account here.

In foreign countries, to ensure a systematic approach in studying the factors of changes in profits and profitability and predicting their value, marginal analysis is used, which is based on marginal income.

Marginal income (MD) is the profit in the amount of fixed costs of the enterprise (N):

P \u003d MD - N

The amount of marginal income can, in turn, be represented as the number of products sold (K) and the rate of marginal income per unit of production (D s):

P \u003d K x D s - N, where D s \u003d C - V,

P \u003d K (C - V) - H, where

V - variable costs per unit of production.

Profitability analysis is performed in a similar way, which gives more accurate results, because the interrelation of elements of sales volume, costs and profit is taken into account.

Conclusion

Profitability characterizes the performance of the organization. Profitability indicators allow you to evaluate how much profit a company has from each ruble of funds invested in the company's assets. There are various groupings of the system of indicators of profitability. We have considered one of these classifications with the subdivision of profitability indicators into indicators based on the cost approach (profitability of products, profitability of operations); indicators characterizing the profitability of sales (profitability of sales); indicators based on the resource approach (return on total assets, return on fixed capital, return on working capital, return on equity).

As it turned 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 by the owners of the enterprise, who provide it with resources or leave at its disposal all or part of their profits in order to maximize income in the future.

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

List of used literature

1. Lyubushin N.P., Leshcheva V.B., Dyakova V.G. "Analysis of the financial and economic activities of the enterprise", M .: UNITI-DANA, 2000.

2. Markin Yu.P. "Theory of analysis of economic activity", M.: KNORUS, 2006.

3. Savitskaya G.V. "Analysis of the economic activity of the enterprise", Minsk: LLC "New Knowledge", 1999.

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

The methodology of factor analysis of profitability indicators provides for the expansion 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 overall profitability (return on assets), you can use a three- 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 materials should be added to the cost of components and semi-finished products, works and services of an industrial nature (performed by third parties or non-main divisions of the enterprise), fuel, purchased energy, etc. Labor costs should be supplemented with social contributions. In addition, other costs should be taken into account as a separate element or distributed proportionally among the main types of costs.

All models used are based on the following relationship:

where R is the return on assets (capital);

P - profit from sales;

K is the average value of assets for the period;

F is the average cost of non-current assets for the period;

E - average balances of current assets;

-costs per 1 ruble of products at full cost;

- wage intensity of products;

– material consumption of products;

– depreciation capacity of products;

-capital intensity of products for non-current assets;

- capital intensity of products for current assets (coefficient of fixing current assets).

The return on assets is higher, the higher the profitability of products, the higher the return on non-current assets and the rate of turnover of current assets, the lower the total costs per 1 ruble of production and unit costs for economic elements (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 the integral method of assessing factor effects.

Factor analysis of profitability is shown in table 21.

Three-factor model of profitability analysis.

Where - product profitability:

-capital intensity (capital intensity) of products for fixed capital:

- turnover of current assets (capital intensity for working capital):

(In this model, the turnover factor of current assets is reflected by the value , inverse to the average number of revolutions)

Table 21. Factor analysis of profitability

Indicators			Base year	Report. year		Deviations
							relative, %
Initial data
	Products, thousand rubles
	Human Resources a) industrial and production personnel, people b) remuneration with accruals, thousand rubles.
	Material costs, thousand rubles
	Fixed assets a) the value of non-current assets, thousand rubles. b) depreciation, thousand rubles.
	Working capital, thousand rubles
Estimated indicators
	Production cost, thousand rubles	U+M+A
	Profit, thousand rubles	N– S
	Return on equity (enterprises)
Calculations for the three-factor model
Factor 1. Profitability of products		P/ N
Factor 2. Capital intensity of products		F/ N
Factor 3. Turnover of current assets		E/ N
Calculations for the five-factor model
Factor 1. Material consumption of products		M/ N
Factor 2. Labor intensity of products		U/ N
Factor 3. Depreciation intensity of products		A/ N
Factor 4 Fixed capital turnover rate		A/ F
Factor 5 Turnover rate of current assets		E/ N

We will analyze the profitability using the example of tabular data. First, let's find the value of profitability for the base and reporting years:

for the base year:

for the reporting year:

Thus, the increase in profitability for the reporting period is .

Let's take a look at how different factors contributed to this change.