Standard indicators of profitability of sales. What is gross margin? Calculation formula

It describes the final (net) performance of the organization.

The indicator reflects the share net profit(loss) in the company's revenue.

Calculation formula (according to reporting)

Line 2400 / line 2110 of the income statement * 100%

Standard

Not standardized

Conclusions about what a change in indicator means

If the indicator is higher than normal

Not standardized

If the indicator is below normal

Not standardized

If the indicator increases

Positive factor

If the indicator decreases

Negative factor

Notes

The indicator in the article is considered from the point of view not of accounting, but of financial management. Therefore, sometimes it can be defined differently. It depends on the author's approach.

In most cases, universities accept any definition option, since deviations according to different approaches and formulas are usually within a maximum of a few percent.

The indicator is considered in the main free service and some other services

If you see any inaccuracy or typo, please also indicate this in the comment. I try to write as simply as possible, but if something is still not clear, questions and clarifications can be written in the comments to any article on the site.

Best regards, Alexander Krylov,

The financial analysis:

• Definition Profitability of core activities is the ratio of profit (loss) from sales to revenue. The indicator characterizes the share of profit (loss) received by the organization in its core activities. That…
• Definition Return on sales is an indicator characterizing the level of gross profit (loss) in revenue. It describes the basic performance of an organization. It can be considered the markup level of the enterprise...
• Definition Retained earnings (uncovered loss) 1370 is the amount of retained earnings or uncovered loss of an organization. It is equal to the amount of net profit (net loss) of the reporting period, i.e....
• Definition Other 2460 - these are other indicators that influence the amount of the organization’s net profit: taxes paid when applying special tax regimes, penalties and fines, surcharges for...
• Definition Deferred tax assets 1180 are an asset that will reduce income taxes in future periods, thereby increasing after-tax profits. The presence of such an asset...
• Definition Net profit (loss) 2400 is the net profit (loss) of the organization, i.e. retained earnings (uncovered loss) of the reporting period Net profit (loss) is the result of the organization’s activities...
• Definition Current income tax 2410 is the amount of income tax generated according to tax accounting data for the reporting (tax) period. In the site services the meaning of this...
• Definition Borrowed funds 1410 - these are long-term (for a period of more than 12 months) loans and borrowings received by the organization. An organization can transfer reporting to short-term reporting when the deadline...
• Definition Other liabilities 1450 are other liabilities of the organization, the maturity of which exceeds 12 months, which are not included in other groups of the 4th section of the balance sheet. Their presence...
• Definition Earnings before taxes (EBT) - profit (loss) before taxes. For analysis, we can consider the line analogue of profit (loss) before tax (2300)…

Profit - an indicator that reflects the efficiency of the enterprise and is a source of financing the social and production expenses of the enterprise.

Profitability - an indicator that is calculated as the ratio of gross profit to production and sales costs.

Profit and profitability - main positions

You can evaluate the performance of an enterprise different ways. Most often, company earnings and profitability data are used to determine a reliable actual estimate. The assessment depends on how high the level of the factors presented is. general level company, including not only operational efficiency, but also reputation coupled with status.

Properly calculated indicators of profit and profitability help in the development of methodological programs to raise the level of quality of goods or services provided by the company. Also, the results of the analysis can serve as the most accurate forecast for the near future of the enterprise’s activities, which is certainly an important component in determining the company’s policy and strategic moves to improve the management component commercial activities companies. It is a mistake to think that profitability and profit are synonymous.

Of course, these factors have their own points of contact, but in general they should not be combined with a single meaning. Let's try to understand what profit and profitability actually are from the point of view economic analysis commercial activities of the company.

Profitability

It's purely relative economic indicator, which clearly displays the degree of efficiency of the company. Profitability indicators indicate the competent use of all available company resources, including labor, material and monetary resources in complex.

If we talk about profitability of sales, then this is nothing more than a profitability ratio that can most accurately reflect the share of the profitable part in each ruble earned. It is calculated, as a rule, as the ratio of gross profit for a specified period to the volume of products sold expressed in material equivalent for a similar (specified) calendar period.

Profitability of sales is the determining indicator of the entire pricing policy of the enterprise, and also determines the company's ability to control costs. Different companies may have unique perceptions of the meaning of return on sales. This is explained by significant differences in the strategies developed by the company to reach a higher and, as a result, profitable level in comparison with the activities of competing enterprises, as well as differences in the company’s product lines.

Return on sales is most often used to formulate estimates related to the operating performance of enterprises. At the same time, it is very important to remember that equal indicators of revenue, profit and operating costs for two completely different companies can lead to completely different indicators of profitability. This is significantly influenced by the volume of interest payments on the amount of gross profit.

The return on sales ratio during a company's operations can be calculated taking into account the performance of each reporting period. Planned effect of investment long term it, of course, does not reflect. To make it clearer, it is worth considering clear example. Suppose a certain company switches to more promising technologies or the most relevant products that require large financial investments. In this case, the likelihood that the cost-benefit analysis data will noticeably decrease is quite high. But if the strategy has been correctly defined and correctly formulated, all the funds initially spent will pay off in the shortest possible time, which makes it possible to form the conclusion that a temporary decrease in profitability in the company’s activities does not at all imply its low efficiency and effectiveness in its work companies.

Now let’s look at certain indicators that reflect the profitability of individual types commercial products. This profitability implies the ratio of profit from the sale of a particular product to its absolute cost and absolute cost minus direct cash expenses. The result of the calculation provides the opportunity and basis for an economic justification for changes or the need for changes in the product range, as well as for justifying the need for certain measures aimed at increasing the overall profitability of the company’s production activities.

The profitability of certain types of products is determined by the ratio of profit from the sale of a given type of product to its full cost, as well as to the full cost, minus direct material costs. This indicator makes it possible to economically justify changes in the product range and specific measures being developed in order to increase production profitability

In branch economic activity profitability is divided into types:

Profitability of certain types of goods

Profitability of production and sales of goods

Profitability of production activities

Profitability of economic activities

If we touch upon the term profitability of activities, we should first of all touch upon its semantic component. It implies a certain generalizing and unifying indicator that reflects the overall percentage of profitability and efficiency of the enterprise. The profitability of the activity itself is divided into two more components - general and calculated.

Overall profitability reflects the percentage of the enterprise's income component as a whole. This is the balance of profit to the average cost of fixed assets, as well as working capital. If profitability indicators are steadily increasing, this indicates an increase in profit per ruble production assets about the funds involved in the turnover process. Estimated profitability implies the ratio of profit to the average cost of the enterprise's production assets and working capital assets, minus production assets that were exempt from payment. The results of the analysis of estimated profitability to some extent exclude the influence of factors market production, which are not directly related to the company’s activities, on the level of enterprise efficiency.

Profit

Profit is an absolute measure of economic analysis. It is calculated by deducting all costs from the net (gross) revenue of the enterprise. It can be both positive, which reflects the efficiency of the company, and negative, which corresponds to the absolute inefficiency of the enterprise in certain industries and areas.

Profit is the main purpose of the existence and activities of absolutely any company. Also, it determines the degree and status of the enterprise, as well as the level of effectiveness of the enterprise’s policy, the quality of services provided or commercial products, the literacy of forecasts and strategic programs.

Profit, like any goal of commercial activity, has certain functions, which will be discussed below.

Stimulating function. In this case, it is considered as a factor influencing general development production of the enterprise.

Reproductive function. Similar to stimulating, it affects the development of production and the performance of the company.

Control function. Implies a criterion for competent analysis and evaluation of work economic object(enterprises).

If not all, then practically all activities of industries depend on profit. Most importantly, the dynamics of development, which characterizes the commercial performance of an enterprise in the economic sphere, depends on profit. As a rule, part of the profit is used for the development of the enterprise, including increasing wages for staff, to stimulate workers, to improve and provide the conditions necessary for quality work businesses to buy a new one modern equipment, for the development of infrastructure industries social sphere. Also, another part of the profit received is distributed to improve the well-being of enterprise managers and their owners.

Profit, as is obvious, has its own reserves for formation. And in contrast to the existing formation reserves.

Profit is divided into specific categories.

Accounting. It is formed when calculating the difference between the income received from the sale of goods and existing expenses.

Economic. Net profit, the amount of which is calculated by subtracting any third party expenses from those mentioned above, accounting profit. If we analyze the specifics of expenses, then these include expenses that were not taken into account when determining the cost, as well as all kinds of bonus programs for qualified personnel, uncompensated own expenses, funds allocated for officials and others. In short, this is the final income after deducting absolutely all expenses.

Normative or prescribed.

The maximum possible.

Minimum acceptable.

Lost (with a negative result) - unprofitable profit.

Also, profit can be divided according to taxation characteristics, for example, taxable and non-taxable, and according to the specifics of the enterprise’s activities, for example, depending on financial, production and investment activities. If we take a closer look at the profit from financial activities, then it implies the result obtained by attracting capital on favorable agreements and conditions. As for production activities, this is, of course, an indicator of the sales and production activities of the company. Also, if we look at investment activities, then this is the profit received through the placement of deposits, securities, funds received in the course of joint activities with third-party companies and enterprises.
If we touch upon the issue of the regularity of profit formation in existing reserves, then it can be either seasonal profit, normalized profit, or excessive profit.
Speaking about profit, one cannot help but touch upon the marginal type of profit, which is characterized as income from the activities of an enterprise that ensures absolute break-even. Marginal profit can be calculated by subtracting products sold from the total quantity produced. In this case, calculations must be made without including VAT and time costs.

Moreover, the number of variable costs depends on the volume of production. TO variable expenses should include those aimed at acquiring necessary materials and raw materials, technological equipment and staff salaries. All in all, marginal profit is simply required to cover expenses. Moreover, the higher the marginal profit, the faster you can cover material obligations and, as a result, get higher profits. In other words, this is the amount to cover regular expenses.

Relationship

Of course, profitability and profit are closely interrelated and equally affect the efficiency of operations, but they also have a number of differences. For example, the main difference is that profit is an absolute value, while profitability is a relative value. First of all, this is determined due to the specifics of their calculation. When analyzing profit, costs are subtracted from total revenue, and when calculating profitability, the ratio of the most profitable part and other indicators. Also, another difference is that profit is an objective value, despite the fact that there are divisions into net and gross, and profitability is considered powerful tool when assessing any branches of the enterprise’s activity.

Read about profit and profitability on Ansver

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Managers of entrepreneurial projects are interested in the profitability of their business, since the initial purpose of its creation is enrichment. The correspondence of the resources expended to ensure production, expressed in monetary terms, and the result obtained determines the efficiency of the subject’s functioning. The main indicator that allows you to decide on the advisability of further work in the previous mode, or the need to adjust it, is the profitability of the enterprise. In economic calculations, the parameter is displayed in the form of coefficients.

Profitability parameters

About the enterprise efficiency parameter

Profitability is an indicator that allows assessing the economic efficiency of a subject entrepreneurial activity. It determines the degree of effectiveness of using the company's resources. For the analysis, it is necessary to separately take into account investments in the business for the allocated period, which are of the following nature:

• labor;
• industrial;
• material;
• monetary

Gross Margin

Sales effectiveness allows you to evaluate specific gravity profit in revenue received from the sale of labor results.

Another name for the indicator is known as rate of return. According to standard methods, the parameter is determined by calculation based on the net profitability in revenue. If it is necessary to determine the weaknesses of a business, it is recommended to divide income into gross, balance sheet and operating components.

Types of profitability

Gross profitability is an enterprise performance ratio calculated using the gross profitability parameter. It allows you to determine the profitability of sales based on gross profit. The parameter is determined by the private gross profit and revenue. It allows you to determine the number of kopecks of gross profit contained in a ruble of revenue.

Gross profitability, the formula takes into account the specific nature of profitability, allows you to determine the gross profit indicator displayed in financial statements about the results of activities. Its value corresponds to the difference between revenue and total cost. Revenue in this formula is interpreted as the product of sales volume and selling price.

Operating profit margin

Operating profit is positioned as an intermediate value of return on sales and net profit. It allows you to determine the Return on Sales coefficient as a quotient of the parameter and revenue.

Types of profit

Operating profitability is the second name for the indicator of return on sales based on operating profit.

It reflects the number of kopecks in a ruble per ruble of revenue. These components of the formula are determined on the basis of the items reflected in the financial report. Read also:

Groups of fixed assets

Parameter Analysis

A decrease in the economic indicator indicates a drop in demand for the result of the labor of a business entity and a decrease in the competitiveness of its products. To stabilize the situation, the head of the enterprise needs to initiate measures to stimulate demand and improve the quality of the goods produced. As an alternative, it is possible to consider the option of entering into activities in a new market niche.

The trend of changes in the sales performance indicator is assessed in the dynamics of the base and reporting periods.

The base period is the past time period in which the indicator showed high levels. It is necessary to enable comparison of the parameter with the indicator accepted as the standard.

Profit margin is a key indicator financial analysis, which allows you to understand whether the business pays for itself and how effectively. You will need to calculate this indicator to draft a high-quality business plan, monitor cost dynamics, adjust prices for products or services, as well as for a general assessment of the profitability of your company in the analyzed period. Profit margin is usually expressed as a percentage, and the higher the percentage, the more profitable the business is.

Steps

Part 1

Understand the difference between gross profit margin, gross profit margin and net profit margin. Gross profit is the difference between revenue from the sale of goods or services and their cost. Its calculation does not take into account commercial, administrative and other expenses; only those costs that are directly related to the production of goods or the provision of services are taken into account. Gross profit margin is the ratio of gross profit to revenue.

Determine the billing period. To calculate profitability, the first step is to determine the period to be analyzed. Typically, the calculation takes comparable months, quarters or years and calculates the profitability for these periods.

• Think about why you need to calculate profitability? If you want to get a loan approved or attract investors, then interested people will need to analyze a longer period of time of your company's operation. However, if you want to compare profitability figures from month to month for your own needs, then it is quite acceptable to use shorter monthly time periods for calculations.

1. Calculate the total revenue received by your company in the analyzed period. Revenue is all of a company's income from the sale of goods or provision of services.

   • If you only sell products, for example, keep retail store, then your revenue for the analyzed period will be all realized sales excluding discounts and product returns. If you don’t have ready-made numbers at hand, then multiply the number of goods sold by their price and adjust the result for discounts made and returns made.
   • Similarly, if your company provides services, for example, repairing and sewing clothes, then your revenue will be all funds received for the provision of services in a specific period.
   • Finally, if you own an investment company, you should consider interest income and dividends received when calculating your income.

2. To calculate your net profit, subtract all your expenses from your revenue. Expenses are the opposite in nature of revenue. They represent the costs you had to incur during a period in connection with the production of goods or services and the use of certain facilities in your business. Your expenses will include not only the cost price, but also operating, investment and other types of expenses.

   Divide your net profit by your revenue. The result of the division, expressed as a percentage, will represent the net profit margin, namely, the percentage share of net profit in the company's revenue.

   • For the above example, the calculation would look like this: (300,000 ÷ 1,000,000) *100% = 30%
   • To further explain the meaning of the profitability indicator, we can use the example of a business selling paintings. Profitability in this case will talk about what share of the money received for the sale of paintings covers the costs and allows you to make a profit.

   Part 2

   Correct application of profit margin indicator

   1. Evaluate whether the ROI value is what your business needs. If you plan to live solely on the income from your business activities, analyze the profitability and sales volumes that can usually be realized in a year. You will definitely want to spend part of the profit received on reinvestment in the business, so calculate whether what is left from the profit will be enough for you to live your usual lifestyle?

      • For example, as mentioned above, the company's net profit amounted to 300,000 rubles out of 1,000,000 rubles in revenue. If 150,000 rubles are spent on reinvesting in the business, then you will only have 150,000 rubles left in your hands.

   2. Compare your company's profitability to that of other comparable companies. To others useful application

      • For example, Company 1’s revenue is 5,000,000 rubles, and all expenses are 2,300,000 rubles, which gives a profitability of 54%.
      • Company 2 has revenues of 10,000,000 rubles and expenses of 5,800,000 rubles, so its profitability is 42%.
      • In this situation, Company 1's profitability is better, despite the fact that Company 2 receives twice as much revenue and has a higher net profit.

   3. When comparing profitability indicators, you should not “compare forks with bottles.” The profitability of companies varies greatly depending on their size and industry. To obtain maximum benefit from comparative analysis, it is best to compare two or more companies in the same industry that have approximately the same revenue.

   4. If necessary, try to improve your company's profitability ratio. Profitability can be changed by increasing revenue (for example, by raising prices or increasing sales) or reducing the cost of doing business. In addition, even if after taking actions to increase revenue and reduce costs, the profitability value does not change, you will receive an increase in net profit in ruble terms. However, as you experiment with raising prices or lowering costs, remember to consider your business's characteristics, risk tolerance, and competition.

      • It's usually necessary to make small changes before committing to larger ones to avoid bankrupting your business or causing customer dissatisfaction. Remember that increasing profitability comes at a price, and trying to increase profitability too aggressively can have the opposite effect on your business.
      • In addition, profitability should not be confused with trade margins. Trade margin is the difference between the selling price of a product and its cost.

Performance indicators can be divided into direct and inverse. Direct efficiency indicators are return coefficients, which show what standard unit of result is obtained from a standard unit of costs for its production. Inverse efficiency indicators are capacity coefficients, which illustrate how many conventional units of input are needed to obtain a conventional unit of result.

One of the main indicators of the efficiency of an enterprise's economic activity is profitability. Profitability indicators are less susceptible to the influence of inflation and are expressed by different ratios of profit and costs. Profitability indicators are mainly measured in the form of ratios.

Profitability

Profitability can be defined as an indicator of economic efficiency, reflecting the degree of efficiency in the use of material, monetary, production, labor and other resources.

Profitability indicators are divided into different groups and are calculated as the ratio of the selected meters.

The main types of profitability are the following indicators:

1. Return on assets.
2. Profitability of fixed production assets.
3. Sales profitability.

Return on assets

Return on assets is financial ratio, showing the profitability and efficiency of the enterprise. Return on assets shows how much profit an organization receives from each ruble spent. Return on assets is calculated as the quotient of net profit divided by average value assets multiplied by 100%.

Return on assets = (Net profit / Average annual assets) x 100%

The values ​​for calculating return on assets can be taken from financial statements. Net profit is indicated in Form No. 2 “Profit and Loss Statement” (new name “Income Statement”), and the average value of assets can be obtained from Form No. 1 “ Balance sheet" For accurate calculations, the arithmetic average of assets is calculated as the sum of assets at the beginning of the year and the end of the year, divided by two.

Using the return on assets indicator, you can identify what the discrepancies between the projected level of profitability and real indicator, and also understand what factors influenced the deviations.

Return on assets can be used to compare the performance of companies in the same industry.

For example, the value of the enterprise’s assets in 2011 amounted to 2,698,000 rubles, in 2012 – 3,986,000 rubles. Net profit for 2012 is 1,983,000 rubles.

The average annual value of assets is equal to 3,342,000 rubles (arithmetic average between the indicators of the value of assets for 2011 and 2012)

Return on assets in 2012 was 49.7%.

Analyzing the obtained indicator, we can conclude that for each ruble spent the organization received a profit of 49.7%. Thus, the profitability of the enterprise is 49.7%.

Profitability of fixed production assets

Profitability of fixed production assets or profitability of fixed assets is the quotient of net profit divided by the cost of fixed assets, multiplied by 100%.

Profitability of OPF = (Net profit / Average annual cost of fixed assets) x 100%

The indicator shows the real profitability from the use of fixed assets in the production process. Indicators for calculating the profitability of fixed production assets are taken from financial statements. Net profit is indicated in Form No. 2 “Profit and Loss Statement” (new name “Statement of Financial Results”), and the average value of fixed assets can be obtained from Form No. 1 “Balance Sheet”.

For example, the value of the enterprise's fixed production assets in 2011 amounted to 1,056,000 rubles, in 2012 - 1,632,000 rubles. Net profit for 2012 is 1,983,000 rubles.

The average annual cost of fixed assets is equal to 1,344,000 rubles (arithmetic average of the cost of fixed assets for 2011 and 2012)

The profitability of fixed production assets is 147.5%.

Thus, the real return on the use of fixed assets in 2012 was 147.5%.

Return on sales

Return on sales shows what portion of an organization's revenue is profit. In other words, return on sales is a coefficient that illustrates what share of profit is contained in each ruble earned. Return on sales is calculated for a given period of time and expressed as a percentage. With the help of sales profitability, an enterprise can optimize costs associated with commercial activities.

Return on Sales = (Profit / Revenue) x 100%

Return on sales values ​​are specific to each organization, which can be explained by the difference competitive strategies companies and their product range.

Can be used to calculate return on sales different kinds profit, which causes the existence of different variations of this coefficient. The most commonly used are return on sales calculated based on gross profit, operating return on sales, and return on sales calculated based on net profit.

Return on sales by gross profit = (Gross profit / Revenue) x 100%

Return on sales based on gross profit is calculated as the quotient obtained by dividing gross profit by revenue multiplied by 100%.

Gross profit is determined by subtracting cost of sales from revenue. These indicators are contained in Form No. 2 “Profit and Loss Statement” (new name “Statement of Financial Results”).

For example, the gross profit of the enterprise in 2012 was 2,112,000 rubles. Revenue in 2012 was 4,019,000 rubles.

The gross profit margin on sales is 52.6%.

Thus, we can conclude that each ruble earned contains 52.6% of the gross profit.

Operating return on sales = (Profit before tax / Revenue) x 100%

Operating return on sales is the ratio of profit before taxes to revenue, expressed as a percentage.

Indicators for calculating operating profitability are also taken from Form No. 2 “Profit and Loss Statement”.

Operating return on sales shows what part of the profit is contained in each ruble of revenue received minus interest and taxes paid.

For example, profit before tax in 2012 is 2,001,000 rubles. Revenue in the same period amounted to 4,019,000 rubles.

Operating return on sales is 49.8%.

This means that after deducting taxes and interest paid, each ruble of proceeds contains 49.8% of profit.

Return on sales by net profit = (Net profit / Revenue) x 100%

Return on sales based on net profit is calculated as the quotient of net profit divided by revenue, multiplied by 100%.

Indicators for calculating return on sales based on net profit are contained in Form No. 2 “Profit and Loss Statement” (new name “Financial Results Statement”).

For example, Net profit in 2012 is equal to 1,983,000 rubles. Revenue in the same period amounted to 4,019,000 rubles.

Return on sales based on net profit is 49.3%. This means that in the end, after paying all taxes and interest, 49.3% of profit remained in each ruble earned.

Cost-benefit analysis

Return on sales is sometimes called the rate of profitability, because return on sales shows the share of profit in revenue from the sale of goods, works, and services.

To analyze the coefficient characterizing the profitability of sales, you need to understand that if the profitability of sales decreases, this indicates a decrease in the competitiveness of the product and a drop in demand for it. In this case, the enterprise should think about carrying out activities to stimulate demand, improving the quality of the product offered, or conquering a new market niche.

Within factor analysis profitability of sales examines the influence of profitability on changes in prices for goods, works, services and changes in their costs.

To identify trends in changes in sales profitability over time, it is necessary to identify the base and reporting period. As a base period, you can use the indicators of the previous year or the period in which the company made the greatest profit. The base period is needed to compare the obtained return on sales ratio for the reporting period with the ratio taken as a basis.

Sales profitability can be increased by increasing prices for the range offered or reducing costs. For acceptance the right decision the organization must focus on such factors as: market dynamics, fluctuations consumer demand, the possibility of saving internal resources, assessing the activities of competitors and others. For these purposes, tools of product, pricing, sales and communication policies are used.

The following main directions for increasing profits can be identified:

1. Increase in production capacity.

Using the achievements of scientific progress requires capital investment, but allows you to reduce costs manufacturing process. Existing equipment can be upgraded, which will lead to resource savings and increased operational efficiency.

2. Product quality management.

High-quality products are always in demand, therefore, if the level of return on sales is insufficient, the company should take measures to improve the quality of the products offered.

3. Development of marketing policy.

Marketing strategies are focused on product promotion based on market research and consumer preferences. IN large companies Entire marketing departments are being created. Some enterprises have a separate specialist who is involved in the development and implementation of marketing activities. In small organizations, the responsibilities of a marketer are assigned to managers and other specialists in management departments. requires significant costs, but its successful implementation leads to excellent financial results.

4. Cost reduction.

The cost of the proposed product range can be reduced by finding suppliers who offer products and services cheaper than others. Also, while saving on the price of materials, you need to ensure that the quality of the final product offered for sale remains at the proper level.

5. Staff motivation.

Human resource management is a separate sector management activities. The production of quality products, the reduction of defective products, and the sale of the final product to a certain extent depend on the responsibility of employees. In order for employees to perform their job duties efficiently and promptly, there are various motivational and incentive strategies. For example, bonuses for the best employees, holding corporate events, organizing corporate press, etc.

Summarizing the above, readers of MirSovetov can conclude that profit and profitability indicators are the main criteria for determining the effectiveness of the financial and economic activities of an enterprise. In order to improve financial results, it is necessary to evaluate it, and based on the information received, analyze which factors are hindering the development of the organization as a whole. Once the existing problems have been identified, you can move on to formulating the main directions and activities in order to increase the company's profits.