The profitability of services shows how efficiently the company operates, whether it makes a profit, and whether its expenses are covered. This relative indicator is most often expressed as a percentage.
Instructions
Step 1
Before proceeding with the calculations, refer to the form No. 2 of the financial statements (Profit and Loss Statement). Determine all the items of costs that affect the formation of the cost of services, not taking into account the Balance.
Step 2
Calculate the profitability of services (Ru) by the ratio of profit or loss from the sale of services (Pru or Uru) to the sum of all costs of services sold (Zru). An illustrative formula for the calculation is as follows:
Ru = Pru / Zru, or Ru = Uru / Zru, if the sale of services resulted in a loss.
Step 3
To determine the cost indicator, calculate the cost of services. To do this, add up the cost of services sold, selling and administrative expenses. And since the ROI is relative, multiply it by 100%.
Step 4
The profitability indicator characterizes the profit of the organization received from each monetary unit spent on the production of the service. If necessary, you can calculate the profitability for the entire enterprise, and for each type of service separately.
Step 5
By calculating the profitability of services, you can easily determine which services bring the most profit, and whether there is an opportunity to reduce the cost of any other service. Calculate the planned profitability of services in case the organization is going to introduce a new type of service.
