The profitability of an enterprise is primarily characterized by the activities of the enterprise as a whole and its profitability. The calculation of the profitability of the enterprise is necessary for the analysis and timely changes in the company's policy regarding the conduct of activities.
Instructions
Step 1
The profitability of an enterprise is an indicator of the net profit that a company has in the process of carrying out its activities. There are various systems of indicators on the basis of which the profitability can be calculated.
Step 2
The profitability of the enterprise is summed up from the indicators of the profitability of economic and financial activities carried out with the aim of making a profit, and indicators of the profitability of production.
Step 3
All forms of profitability indicators are the most important characteristics and form the profitability and profit of the enterprise. That is why these indicators are considered mandatory components of benchmarking used to assess the profitability and financial condition of the enterprise.
Step 4
In the analysis of the production activity of the enterprise, profitability indicators are used as tools for pricing and investment policy.
Step 5
You can calculate the profitability of an enterprise by calculating the ratio of the total profit of the enterprise to the cost or prime cost of products or services provided. The profitability of an enterprise is predetermined by the efficiency of the enterprise, in terms of production activities and the sale of products or services.
Step 6
The profitability of an enterprise is influenced by various factors. The main ones are the amount of profit, the volume of sales of the results of the enterprise.
Step 7
To increase the profitability of the enterprise are such procedures as reducing the labor intensity and capital intensity of the production processes of the enterprise, increasing the efficiency of management.
Step 8
The profitability of the enterprise reflects the rate of compensation or remuneration of the aggregate of all sources used by the enterprise to carry out its activities.
