When analyzing the performance of a company, profitability indicators are often used. Usually, the following 4 main types of profitability ratios are calculated: return on sales, return on total capital, profitability equity, EBITDA margin. Profitability of sales shows what share, net profit takes in total sales. Accordingly, the formula for calculating the profitability of sales is as follows:

Return on sales = net profit / sales volume (revenue)

It is clear that the higher this indicator, the better. However, there will be significant differences in its values ​​when analyzing companies in different industries. Comparison of profitability of sales should be carried out for peer companies. The reasons, for example, for an increase in this indicator, may be as follows: either the numerator of our ratio increases (ie profit), or the denominator decreases (sales volume falls), or the first and second simultaneously. Profit can change for various reasons, not necessarily due to an increase in the price of goods or services.

As for the decline in sales, it is important to understand the reasons why this happens. Webinars from the forex broker Gerchik & Co will help you with this. If sales decrease against the backdrop of an increase in price, then this development of events can be regarded as normal. If sales are falling due to a drop in interest in the company's products, then this situation should alert investors. At the same time, there may even be an increase in the profitability of sales due to a short-term increase in profits (profit is a very volatile thing and depends on many factors, such as cost reduction, a sharp decrease in depreciation and other accounting tricks). Summarizing the above, we can say that the analysis of profitability of sales is a very vague task, but with all the shortcomings of this method of analysis, it allows you to get an initial picture of the company's profitability and compare peer companies.

Return on total capital gives us an idea of ​​how effectively the company manages all its capital - equity and borrowed. The return on total capital is calculated using the formula:

Return on total capital = net profit / total capital.

The value of this indicator is strongly influenced by the value borrowed money and the cost of servicing debt. The higher the share of borrowed funds under which the company raises funds and the higher the percentage, the lower the net profit and, accordingly, the lower the return on total capital. This indicator is very important in the analysis of business performance. According to the profitability of all capital, one can compare not only companies in different industries, but also determine the most profitable industries where it is worth investing your money. Return on equity (share) capital demonstrates the company's success in increasing share capital or its inability to generate a sufficient level of profitability. The formula for return on equity is:

Return on equity = net income / equity.

Equity capital in the balance sheet is a liability item "capital and reserves". The return on equity depends not so much on the profitability of the business, but on the ratio of debt and equity capital. This ratio is called the leverage effect. The essence of the leverage effect is as follows: the company, using borrowed funds, increases or decreases the return on equity.

The decrease or increase in the return on equity depends on average cost borrowed capital (average interest rate) and the amount of financial leverage. Financial leverage is the ratio of borrowed and equity capital of the organization. Formula for calculating financial leverage:

Financial leverage = borrowed capital / own (share) capital.

If you compare the return on equity of a company over the past few years with other investment vehicles, such as government bond yields or bank deposit rates over the same period, you can learn a lot about the level of profitability of the company. A company that, for a number of years, earns a return on equity lower than a bank deposit, if it lasts for a long time, will bring almost nothing to its shareholders. It is better if the return (profitability) of equity capital is several times higher than bond rates.

EBITDA margin EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization, EBITDA) is an indicator of a company's profit before interest, taxes, depreciation. EBITDA margin or EBITDA margin is calculated using the formula:

EBITDA margin = EBITDA / Sales revenue

The EBITDA margin shows the profitability of the company in terms of primary income, i.e. by EBITDA. Currently, this indicator is very popular with analysts. The explanation for this is simple - EBITDA shows the company's profit before various payments. These payments are either delayed in time, for example, taxes, so this money can be re-rolled by the company and no interest has to be paid for them, or in the case of depreciation, the money does not leave the company at all, which allows them to be used in the future. With regard to interest payable, here it is necessary to clarify the structure of the debt.

Typically, bond loans involve payments of one or two payments per year (sometimes more often), and bank loans are more frequent, so it is preferable to pay interest on bonds, because they are rarer, which allows the company to use the money for current needs for some time. Finally, it is worth noting that all profitability indicators are quite volatile, so it is better to carry out the analysis not in a separate period of time, but in dynamics, over several years, in order to identify a trend.

ROTA - coefficient equal to the ratio net profit to the total assets. The calculation data contains Balance sheet And Statement of financial results(formerly Profit and Loss Statement). This is a generalized indicator of profitability, reflecting the amount of profit per unit cost of capital (all financial resources organizations, regardless of funding sources).

Profitability total assets is calculated and analyzed in the FinEkAnalysis program in the Analysis and evaluation of profitability and profitability section as Return on total assets.

Return on total assets - what shows

Return on total assets(ROTA) characterizes the degree of efficiency in the use of the organization's property, the professional qualifications of the enterprise's management.

Return on total assets - formula

The general formula for calculating the coefficient:

Calculation formula according to the balance sheet data:

where line 2300 - line of the Statement of Financial Results (form No. 2), line 1600 - line of the Balance Sheet (form No. 1) at the beginning and end of the year.

Return on total assets - value

Growth of the indicator Return on total assets related:

• with an increase in the net profit of the organization,
• with an increase in tariffs for goods and services or a decrease in the cost of producing goods and providing services,
• with an increase in asset turnover.

The decrease is due to:

• with a decrease in the net profit of the organization,
• with an increase in the value of fixed assets, current and non-current assets,
• with a decrease in asset turnover.

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Return on total capital is calculated using the following formula:

This indicator is the most interesting for investors.

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

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

2. Profitability of sales

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

gross margin of the product sold;

operating profitability of the product sold;

net profit margin on product sold.

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

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

To calculate the operating profitability of a product sold, the following formula is used:

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

Net profit margin of product sold:

If the operating margin remains unchanged over any period of time, while the net profit ratio decreases, 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. Profitability of production

gross margin of production.

net profitability of production;

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

To calculate the gross margin of production, the following formula is used:

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

Net profitability of production:

Reflects how many rubles of net profit fall on the ruble of the product sold.

In relation to all the above indicators, positive dynamics is desirable.

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

52. Depreciation policy of the enterprise

The depreciation policy of an enterprise is a strategic and tactical set of interrelated measures to manage the reproduction of fixed capital in order to timely update the material and technical base of production on a new technological basis

The depreciation policy of an enterprise is determined from the economic strategy, the composition of fixed assets, methods for estimating the cost of depreciating objects, the inflation rate, etc. The depreciable property of an enterprise is most types of fixed assets (with the exception of land), as well as intangible assets. Fixed assets are accepted on the balance sheet of the enterprise at their original cost, which also includes the cost of transportation and installation work, after which depreciation is subtracted from them, i.e. resulting in residual value. Depreciation deductions (depreciation fund) are the main component of financial support for the reproduction of fixed assets.

In the process of forming the depreciation policy of the enterprise, the following factors are taken into account:

a) the volume of used fixed assets and intangible assets subject to depreciation;

b) methods for estimating the cost of used fixed assets and intangible assets subject to depreciation;

c) the actual period of the expected use of depreciable assets at the enterprise;

d) methods of depreciation of fixed assets and intangible assets permitted by law;

e) the composition and structure of the fixed assets used;

f) the rate of inflation in the country;

g) investment activity of the enterprise in the forthcoming period.

When choosing depreciation methods, proceed from the current legislative framework in this area, the estimated period of use of depreciation assets and the tasks of forming the investment resources of the enterprise in the context of individual sources. The decision to apply the method of straight-line (linear) or accelerated depreciation of fixed assets is taken by the enterprise independently.

The funds of the depreciation fund, which is formed at the expense of accumulated depreciation deductions, are targeted and should be used for the following purposes:

a) overhaul of fixed assets;

b) implementation of reconstruction, modernization, technical re-equipment and other types of improvement of fixed assets;

c) acquisition of new types of intangible assets (primarily related to innovation activities)

53. Settlement and cash services for enterprises in banks

54. The relationship of financial indicators. dupont formula

Financial indicators reflect the size, composite dynamics and the relationship of social phenomena and processes occurring in the field of finance, in their quantitative and qualitative state. The diversity of financial relations determines the diversity of financial indicators.

Factor analysis is the process of studying the influence of individual factors (reasons) on the performance indicator using deterministic and statistical research methods. In this case, factor analysis can be both direct (analysis itself) and reverse (synthesis). With the direct method of analysis, the performance indicator is divided into its component parts, and with the reverse method, the individual elements are combined into a common performance indicator. To achieve higher accuracy of the results, it is necessary to constantly adjust the set of indicators and the values ​​of the weighting coefficients for each indicator, taking into account the type of economic activity and other listed conditions.

The method of financial ratios is the calculation of the ratios of financial statements data and the determination of the relationship of indicators. When conducting analytical work, the following factors should be taken into account: 1) the effectiveness of the applied planning methods; 2) reliability of financial statements; 3) use of various accounting methods ( accounting policy); 4) the level of diversification of the activities of other enterprises; 5) the static nature of the applied coefficients.

In the practice of Western corporations (USA, Canada, Great Britain), the following three coefficients are most widely used: ROA, ROE, ROIC.

The DuPont model allows you to determine what factors caused the change in profitability, i.e. perform a factor analysis of profitability.

The DuPont method (DuPont formula or DuPont equation) is usually understood as an algorithm financial analysis profitability of the company's assets, according to which the profitability ratio of assets used is the product of the profitability ratio of product sales and the turnover ratio of assets used.

Currently, there are three main DuPont formulas in the educational literature, which depend on the number of factors used in the analysis of ROE (return on equity).

The first model has a rather simple form, with the help of it it is easy to find the value of the return on capital, the formula looks like this:

where NP is net profit, SK is the share capital of the enterprise.

It should be noted that this formula has its drawbacks, the main of which is the impossibility of determining the factors that influenced the return on equity.

The following DuPont model is more informative and looks like:

where ROA is the return on assets ratio, defined as the ratio of the company's net profit, excluding interest on loans, to its total assets; DFL - financial leverage ratio.

If we expand this formula by supplementing it with an implementation indicator, then the model takes the form:

ROE \u003d (PE / Or) * (Or / A) * (A / Sk)

where Or - the sale of goods, works and services, excluding excise taxes and VAT; A is the total assets of the company.

The DuPont equation, which already consists of five factors, most fully takes into account the factors influencing the return on equity:

ROE = (NP/EBT)*(EBT/EBIT)*(EBIT/Or)*(Or/A)*(A/Sk)

Two indicators are additionally introduced into this formula: EBT - profit before taxes; EBIT is earnings before interest and taxes.

Using financial leverage (or leverage), you can transform the specified equation, in this case, the Dupont formula will take the form:

ROE = (NV/EBT)*(EBT/EBIT)*(EBIT/Or)*(Or/A)*DFL

NP/EBT – tax burden;

EBT / EBIT - the burden of interest;

EBIT/Or - operating margin (ROS);

Op/A - asset turnover (resource return);

DFL is the effect of financial leverage.

In the broad sense of the word, the concept of profitability means profitability, profitability. An enterprise is considered profitable if the income from the sale of products (works, services) covers the costs of production (circulation) and, in addition, form an amount of profit sufficient for the normal functioning of the enterprise Filippova, A.S. Use of the indicator total profit in the analysis of return on equity: [Text] / A.S. Filippova // Management accounting. - 2008. - No. 10. - S. 46 ..

The economic essence of profitability can be disclosed only through the characteristics of the system of indicators. Their general meaning is to determine the amount of profit from one ruble of invested capital.

Profitability analysis allows you to assess the ability of an enterprise to generate income for the capital invested in it (enterprise). The characteristic of the profitability of an enterprise is based on the calculation of four main indicators - the profitability of all capital, equity, core activities and profitability of sales Lapusta, M.G., Mazurin, T.Yu. Enterprise Finance: [Text] / tutorial. - M.: Alfa Press, 2009. - S. 211 ..

The return on total equity (total assets) shows whether the company has a basis for providing a high return on equity. This indicator reflects the efficiency of the use of all property of the enterprise. A decrease in the profitability of all capital indicates a falling demand for the company's products and an overaccumulation of assets.

where is the net income

balance sheet at the end and at the beginning of the year,

This indicator reflects the profitability of assets, and is determined both by the pricing policy of the enterprise and the level of costs for the production of sold products. There are two main ways to improve return on assets:

1st - with low profitability of products, it is necessary to strive to accelerate the turnover of assets and its elements;

2nd - low business activity an enterprise can only be compensated by a decrease in production costs or an increase in product prices, i.e. increasing the profitability of products.

Return on equity characterizes the effectiveness of the use of equity capital. This ratio is one of the most important metrics used in business and measures the total return to shareholders. A high value of this ratio indicates the success of the company, which leads to a high market price for its shares and the relative ease of attracting new capital for its development. However, one must bear in mind that a high return on equity ratio can be associated with both high inflation and high company risk. Therefore, its interpretation should not be simplified and one-dimensional. Return on equity shows how much net profit falls on the ruble of equity.

where is the value of own funds at the beginning and at the end of the year.

The profitability of the main activity is calculated as the ratio of profit from sales to the sum of costs for production and sale of products.

where PR - profit from sales, C / C - cost of goods sold.

It shows how much the company has profit from each ruble spent on the production and sale of products. This indicator can be calculated both for the enterprise as a whole and for its individual divisions or types of products.

Increasing the profitability of products is provided mainly by reducing the unit cost of production. The better the basic production assets, the higher the profitability of production. By improving the use of material working capital decreases their value attributable to 1 rub. sold products. Consequently, the factors accelerating the turnover of inventories are at the same time factors in the growth of production profitability. This figure indicates the effectiveness of not only economic activity enterprises, but also pricing processes. It is advisable to calculate it both by the total volume of products sold, and by its individual types Gracheva, M.E. Problems of formation and analysis of the indicators of the statement of comprehensive income and the statement of changes in equity: [Text] / M.E. Gracheva // International Accounting. - 2010. - No. 11. - S. 2 ..

Return on sales is calculated as the ratio of net profit to the amount of revenue received.

where BP is the proceeds from the sale of products, PE is the net profit of the enterprise.

This indicator characterizes the effectiveness entrepreneurial activity(how much profit the company has from the ruble of revenue). The profitability of sales can be calculated both for the enterprise as a whole and for individual types of products.

If the profitability of sales is gradually decreasing, then the reason is either increased costs or increased tax rates. Therefore, we must turn to the study of these factors in order to find the root of the problem. The decline in sales volume may indicate, first of all, the decline in the competitiveness of products, as it suggests a reduction in demand for products.

IN reporting period Stroykrovlya's activities remained profitable, however, there was a general downward trend in all profitability indicators (Table 2.6 in Appendix 8). This trend is also illustrated by Figures 3 - 6 in Annex 9.

The profitability of core activities in the reporting period as a whole decreased from 41.1% at the beginning of the year to 27.1% at the end. This was due to the fact that the growth rate of production costs as a whole exceeded the growth rate of the company's revenue, which indicates a decrease in the efficiency of the company's cost management. The decrease in return on assets and return on equity was due to a sharp drop in net profit during the year, while the size of equity and total capital decreased slightly.

Return on sales after a sharp decline in the second quarter more than doubled to 10.6% by the end of the year again recovered to its original level of 24.8%. But it should be borne in mind that this is due to financial results from other activities of the enterprise, which significantly influenced the amount of net profit (it was noted above that the efficiency of the main production activity decreased).

Based on the foregoing, we can conclude that in the reporting period, the efficiency of the main activity of the enterprise decreased.

Return on total capital.

Shows how much profit a company earns per ruble of total capital invested in its assets. Return on equity closes the entire pyramid of performance indicators of the company.

At the same time, all activities of the company should be aimed at increasing the amount of equity capital and increasing the level of its profitability.

It is easy to see that the return on equity (ROE) and return on total capital (ROA) closely related:

Where MK- capital multiplier (financial leverage).

This relationship shows the relationship between the degree financial risk and return on equity. Obviously, as the return on total capital decreases, the company must increase the degree of financial risk in order to ensure the desired level of return on equity.

Return on equity.

Shows that it can depend not only on profit in business, but also on the ratio of borrowed capital and equity. This ratio is called the leverage effect. Its essence is very simple: the company uses borrowed funds to increase or decrease the return on equity. There is a decrease in the return on equity, the main reason for which is the decrease in the profitability of sales. The interpretation of the above dynamics of return on assets allows the company's management to draw the following conclusion: if in 2008 the company brought an average of 11.17 rubles of profit for each ruble of its own funds, then in 2013 each ruble of its own funds "earns" the company 76 rubles. And this is a good sign of the company's activity.

Here you can also notice that an important characteristic of the company's performance when analyzing the return on equity is a direct comparison of the characteristics of the return on its assets and equity. Such a comparison often shows the level of skill financial management companies.

Altman index. In adapted to the conditions of the Russian economy, this formula has the form:

where VB is the balance sheet currency (total assets);

VR - proceeds from sales for the period;

ZK - borrowed capital;

UK - authorized capital;

TA - current assets;

NK - accumulated capital;

AML - profit from core activities, p.

The company's ability to repay obligations in the long term is determined by the ratio of own and borrowed funds and their structure. You can also use the method of analyzing financial ratios, solvency, liquidity, the Fox method, the Taffler method, etc.

However, it is better to use the Altman model, which takes into account the data financial results, showing the company's distance from a bankruptcy situation.

For LSR, Altman's indicator shows, although a low result, but it is steadily not worsening.

Company market share. This is the percentage of the total target audience covered by the company. Also, market share is the percentage of sales of a particular company in the total sales of a particular product by all competing companies in a particular market. Market share is one of key indicators performance of the company, indicator of results competition. Market share demonstrates a certain ability of LSR to influence supply and demand in the market. Although certain marketing activities would not hurt to improve the position in this indicator.