First of all, we should put aside the hackneyed phrases about the social responsibility of business, the mission of the company and other grandiose things that have a remote relation directly to entrepreneurship. In the overwhelming majority of cases, the main purpose of the existence of a business is the profit of its owners. In economic analysis, this expression hides the indicator of profitability.
Instructions
Step 1
Traditionally, profitability is defined as the share of profit in revenue. Accordingly, in order to calculate the profitability of a store, it is necessary to determine three components: revenue for a certain period, all expenses for the same time (including the cost of goods sold) and the profit received in absolute terms.
Step 2
Probably, there will be no problems with the calculation of the revenue indicator. Usually, the main turnover of the store's cash flows through the cashier. Less often, non-cash payments from customers are accepted (mainly, these are large stores serving the b2b sector). If both payment methods apply, add up the proceeds for them.
Step 3
Create a table in which you write down all the associated costs line by line. To calculate the profitability, all costs should be calculated using the "on shipment" method. This method means that all costs incurred during the period are equally distributed to all months included in the period. For example, in the current quarter, computer equipment was repaired in the store for 3000 rubles. For correct accounting, 1000 rubles should be included in the repair costs for each of the 3 months.
Step 4
To calculate the profitability of a store, add up all expenses for the selected period and subtract them from the proceeds. The total value is the profit received from the work of the store in a given period of time. By dividing the absolute amount of profit by revenue and multiplying the result by 100%, you will get a measure of profitability.
