Profitability means an economic indicator of production efficiency, which is carried out at the enterprise and which can comprehensively reflect the result of the use of material, monetary and labor resources.
Instructions
Step 1
Find the projected profitability using the following formula: divide projected profit by production cost and multiply by 100%.
Step 2
Establish a relationship between the amount of profit and the value of the invested capital. In this case, use the profitability indicator in your profit forecasting activity. At the same time, compare the estimated profit between the actual and planned (expected) investments.
Step 3
Calculate the planned total profitability of the amalgamations as the ratio of the planned book profit to the average annual planned value of all underlying production assets plus standardized working capital.
Step 4
Determine the actual total profitability in the form of balance sheet profit in relation to the average annual actual value of the value of fixed assets, as well as working normalized assets that were not credited by the bank.
Step 5
In turn, the actual balances of normalized circulating assets are established on the basis of their balances on the balance sheet minus the amount owed to suppliers for payment accepted claims, the due date of which has not yet arrived, and to other suppliers for all unbilled deliveries.
Step 6
Find the level of the planned profitability, which depends on the amount of profit and on the volume of production assets. Estimated profitability means the ratio of the amount of the balance sheet profit minus the payment of production assets, fixed payments, profit directed to the intended purpose and interest on bank loans.
Step 7
Determine the indicator of the planned profitability for specific products, which reflects the efficiency of expenditures of materialized and living labor for the production of goods. For example, in mechanical engineering or other manufacturing industries, the planned profitability is defined as the ratio of the planned profit to the cost value minus the cost of used fuel, raw materials, energy, materials and components.
