The rate of return is one of the key categories in a market economy. This indicator is used by monopoly enterprises to regulate product prices. It also shows the degree of equilibrium between supply and demand.
It is necessary
- - calculator;
- - a computer.
Instructions
Step 1
Calculate the rate of return for the year. Determination of the rate of return is carried out according to two groups of factors: market and internal production. The mass of profit is the main factor affecting the magnitude of the rate of profit. The higher the profit mass, the more profitable the business is considered.
Step 2
When calculating the rate of return, take into account the funds advanced into production and the cost of remuneration of employees. Consider the rate of turnover of funds used during production, surplus value and the organic composition of capital. An increase in the turnover rate leads to an increase in production volumes, which in turn affects an increase in the rate of return. If there is an increase in the organic structure of funds, then the rate of profit will tend to decrease. The rate of return also depends on the savings in the cost of means of production. With a decrease in production costs, the profit rate of the enterprise will increase. Its value depends on the macroeconomic state of the market and price fluctuations.
Step 3
Calculate the advanced funds for the production of the enterprise before the beginning of the billing period. These funds consist of the cost of wages of employees of the company and the cost of funds spent on production.
Step 4
Calculate the profit of the company for the billing period. Profit shows how much the income from the products of the enterprise exceeds the cost of manufacturing the products. As a rule, the calculation of profit is carried out for the year, therefore, the rate of return always means the annual rate of return.
Step 5
Calculate the rate of return, which will be equal to the ratio of the profit to the funds advanced. The rate of return is usually presented as a percentage. The higher the rate of return, the more profitable the enterprise is considered.
