The main indicator of the profitability of an event in a market economy is profit. All expenses, incomes, losses, economic results are accumulated in it. Profit is one of the incentives for the social and industrial development of the enterprise.
Instructions
Step 1
To assess the profitability of the event, it is necessary, first of all, to conduct a profit analysis. To do this, evaluate the profitability of the enterprise as a whole, as well as by divisions and types of activity - procurement, catering, transport and trade. In the process of analysis, it is necessary to study the implementation of the plan and the dynamics of profit, to measure the influence of factors on its volume. And the most important thing here is to identify, study and realize growth reserves for net income.
Step 2
The balance sheet profit can be influenced by non-operating income, expenses and losses, changes in the amounts of profits and losses from other sales, changes in the volume of goods turnover, the average level of gross income and the average level of distribution costs. Here, non-operating income, expenses and losses are of some importance, since they are the result of certain shortcomings in the operation of the enterprise, which, of course, must be taken into account when assessing profitability.
Step 3
Examine fines, interest, and forfeit. A large amount of fines paid may indicate a violation of contractual discipline by the enterprise itself, or by its partners and suppliers, which is equally assessed negatively. In this case, it is also necessary to assess the possibility of eliminating obstacles that prevent the full and high-quality fulfillment of contractual obligations.
Step 4
Among the points that should be assessed as positive when assessing profitability, it should be noted the growth of income from property lease, exchange rate differences on operations in foreign currency and foreign currency accounts, growth in income on securities owned by the company, as well as an increase in dividends on shares.
Step 5
It is worthwhile to assess negatively the identification in the reporting year of the profits and losses of previous years, as this indicates shortcomings in economic work. Particular attention should be paid to losses from writing off debts for waste, shortages or theft - this indicates problems with the safety of the property of enterprises. In this case, you need to check the validity and legality of the write-off for each amount.
Step 6
When assessing profitability, it can be useful to compare the financial results of the best divisions of the enterprise with the lagging ones. This will help to generalize their experience and in the future to take measures to improve profitability, as well as prevent loss.
