Standard profitability by industry. Standard value of return on sales by industry

15.05.2017

The Federal Tax Service has updated the data in the Concept of the planning system for on-site tax audits (https://www.nalog.ru/rn77/taxation/reference_work/conception_vnp/). In particular, information on the tax burden and profitability indicators for 2016 was published.

Source: Information from the Federal Tax Service (https://www.nalog.ru/rn77/news/activities_fts/6762385/)

It would be a good idea to familiarize yourself with the published information if you want to independently assess your tax risks. After all, the discrepancy between the company’s annual indicators and the industry average increases the chance of the enterprise being included in the on-site inspection plan.

Moreover, the more your company’s performance indicators differ from the “hospital average” (in particular, the tax burden and profitability), the more detailed the tax authorities will study your business activities.

News for accountants on the website: http://glavkniga.ru/news

Return to list

Profit rates for different industries

Intersectoral competition leads to the establishment of an average rate of profit on equal capital allocated to various sectors of the national economy. The growth of the organic composition of capital, objectively inevitable in modern conditions, causes the rate of profit to tend to decrease. Profit rate structure: cost equity firms; average rate of profit for this industry; the rate of profit of a particular company. Profit rate is one of key categories market economy. Its functional purpose in modern conditions is that, on the one hand, monopolies use this indicator to regulate prices; on the other hand, society sees in it the greatest degree of balance between supply and demand, which occurs in cases where there is not a large spread in the rate of profit in various industries.

FORMATION OF A GENERAL RATE OF PROFIT (AVERAGE RATE OF PROFIT) AND TRANSFORMATION OF THE COST OF GOODS INTO THE PRICE OF PRODUCTION

The organic composition of capital depends on each this moment from two circumstances: firstly, from the technical relationship between the applied labor force and the mass of the means of production used; secondly, on the price of these means of production. It should be considered, as we have seen, in percentage terms. We express the organic structure of capital, consisting of 4/5 constant and 1/5 variable capital, by the formula 80 c + 20 v. Further, when making comparisons, a constant rate of surplus value is assumed, namely some arbitrary rate, for example 100%. Capital, consisting of 80 c + 20 v, thus gives a surplus value of 20 m, which amounts to a rate of profit of 20% for the entire capital. The magnitude of the real value of his product depends on how large the main part of the constant capital is, and on whether much or little of this latter enters into the value of the product due to wear and tear. But since this circumstance does not matter for the rate of profit, and therefore for the present study, for the sake of simplicity we accept that constant capital is equally everywhere included entirely in the annual product of the capitals under consideration. We further accept that the capitals of various spheres of production annually realize the same amount of surplus value in relation to the size of their variable part; Consequently, we leave aside for the present the difference which difference in turnover time may cause in this respect. We will look at this point later.

Let us take, for example, five different spheres of production with different organic structures of capital invested in them:

Here we obtain for different spheres of production with the same degree of exploitation of labor very different rates of profit, corresponding to the different organic structure of capital.

The total amount of capital invested in five areas = 500; total amount surplus value produced by them = 110; total value of goods produced by them = 610. Let us consider 500 as a single capital, in relation to which capitals I–V are only in separate parts(as, for example, this is the case in a cotton factory, in various departments of which - carding, preparation, spinning, weaving - there is different attitude between constant and variable capital and the average ratio for the entire factory is obtained only by calculation). In this case, the average capital composition of 500 would be = 390 c + 110 v, or as a percentage 78 c + 22 v. The composition of each of the capitals of 100, considered as only 1/5 of the total capital, would be this average composition of 78 c + 22 v; likewise, for every 100 units there would be 22 units as average surplus value; therefore the average rate of profit would be = 22%, and finally the price of each 1/5 of the total product produced by a capital of 500 would be equal to 122. The product of each fifth of the total capital advanced would therefore have to sell for 122.

However, in order to avoid completely false conclusions, it is necessary to assume that production costs are not equal to 100 in all cases.

At 80 c + 20 v and the rate of surplus value = 100%, the entire value of the commodity produced by capital I = 100 would be = 80 c + 20 v + 20 m = 120 if all constant capital were included in the annual product. Under certain conditions, this, of course, can occur in some areas of production. However, this is hardly possible where the ratio c: v = 4: 1. Thus, it should be borne in mind that the values ​​of goods produced by each 100 units of different capitals may be different depending on the different division of c into fixed and circulating components and that the essential constituents of different capitals may in their turn wear out more slowly or more quickly, and consequently add unequal quantities of value to the product at equal intervals. This, however, does not affect the rate of profit. Does 80 c give to the annual product a value equal to 80 or 50 or 5, will the annual product therefore = 80 c + 20 v + 20 m = 120, or = 50 c + 20 v + 20 m = 90, or = 5 c + 20 v + 20 m = 45, - in all these cases, the excess of the value of the product over its production costs = 20, and in all these cases, when establishing the rate of profit, these 20 are calculated on a capital equal to 100; the rate of profit for capital I is thus in all cases = 20%. To present this even more clearly, in the following table, which refers to the same five capitals as before, we assume that the value of the product includes various shares of constant capital.

If we again consider capitals I–V as a single total capital, then we will see that in this case the structure of the sum of five capitals = 500 = 390 c + 110 v, therefore, the average structure remains the same = 78 c + 22 v , in the same way the average surplus value = 22 units. If we distributed this surplus value evenly between capitals I–V, we would obtain the following commodity prices:

In total, goods are sold at 2 + 7 + 17 = 26 above and 8 + 18 = 26 below their value, so that price deviations cancel each other out thanks to the uniform distribution of surplus value, that is, by adding to the corresponding production costs of goods I–V average profit of 22 units for every hundred of capital advanced; in the same proportion as one part of the goods is sold above, another part is sold below its value. And only their sale at such prices makes it possible that the rate of profit for capitals I–V is the same and equal to 22%, despite the different organic structure of capitals I–V. Prices arising in such a way that from different rates of profit in various fields production, an average is derived and this average is added to the costs of production in various spheres of production - such prices are the prices of production. Their prerequisite is the existence of some general rate of profit, and this latter presupposes, in turn, that the rates of profit in each special sphere of production separately have already been reduced to the corresponding average rate. These special rates of profit in each sphere of production

and must be derived, as was done in the first section of this book, from the value of the goods. Without such a derivation, the general rate of profit (and therefore the price of production of a commodity) would be a concept devoid of meaning and content. The price of production of a commodity is thus equal to its production costs plus the profit added to them, calculated according to the general rate of profit, in other words: the price of production of a commodity is equal to its production costs plus average profit.

Due to the different organic structure of capital invested in different branches of production, and therefore due to the fact that, depending on the different percentage of the variable part to the total capital of a given value, very different amounts of labor are set in motion by equal capitals, very different amounts of surplus labor are also appropriated by equal capitals , or very different masses of surplus value are produced. Accordingly, the rates of profit prevailing in different branches of production are initially very different. These different rates of profit are equalized by competition into a single general rate of profit, which is the average of these different rates of profit. The profit falling according to this general rate on a capital of a given size, whatever its organic structure, is called average profit. The price of a commodity, equal to its production costs plus the portion of the annual average profit on the capital used in the production of the commodity (and not just consumed in its production) that falls to its share under the given conditions of its turnover, is its production price. Let us take, for example, a capital of 500, including 100 of fixed capital, 10% of which is worn out during one period of turnover made by working capital of 400. Let the average rate of profit during this period of turnover be 10%. Then the cost of production of the product manufactured during this turnover will be: 10 c (wear and tear) plus 400 (c + v) working capital = 410; and its production price: 410 production costs plus (10% profit on 500) 50 = 460.

Thus, although capitalists various industries production, when selling their goods, receive back the capital values ​​spent on the production of these goods, however, they do not receive that surplus value, and therefore not the profit that was produced in their own industry in the production of these goods, but only so much surplus value, and therefore and profit, how much, with an even distribution, falls on each corresponding part of the total social capital out of all surplus value, or all the profit produced during a given period of time by this total social capital in all spheres of production taken together. For 100 units of each advanced capital, whatever its composition, there is as much profit during a year or other period of time as for every hundred of the total total capital during the same period of time. As far as profit is concerned, the different capitalists relate to each other as common shareholders of one joint stock company, in which profit is distributed among them evenly for every hundred of capital and therefore for different capitalists it is different only depending on the amount of capital invested by each in a common enterprise, depending on the relative size of participation of each in this common enterprise, depending on the number of owned by each shares Thus, if that part of the commodity price which replaces the parts of the capital value consumed in the production of the commodity, and with which, consequently, these consumed capital values ​​must again be purchased, if this part, constituting the costs of production, is entirely determined by the costs incurred within the corresponding sphere of production, then another component commodity price, added to these costs of production, profit, is not determined by the mass of profit produced by this specific capital in this certain area production during a given time, but by the mass of profit that, over a given period of time, on average falls on each capital invested in the business, as a certain part of the total social capital invested in all production as a whole

Thus, if a capitalist sells his commodity at the price of production, he receives a quantity of money corresponding to the value of the capital he has consumed in production, and makes a profit proportional to the amount of capital he has advanced, simply as a definite part of the total social capital. Production costs for each capitalist are specific. The profit added to these production costs does not depend on the conditions of the corresponding special sphere of production and is a simple average for each hundred of capital advanced.

Let us assume that in the previous example five different capitals I–V belong to one person. The amount of variable and constant capital consumed in the production of goods for every hundred of capital invested in the business is here given for Cherbuliez ["Richesse ou pauvreté". Paris, 1841, p. 71–72] of each enterprise I–V, and this part of the value of goods I–V is, of course, part of their price, since this price is necessary to compensate for the advanced and consumed part of the capital.

Thus, these costs of production are different for each class of goods I to V and as such must be fixed by the owner. As for the various masses of surplus value, or profit, produced in enterprises I-V, the capitalist could regard them as profit on his entire advanced capital, so that for every hundred of capital there would be a corresponding part of all this profit. Consequently, the costs of producing goods at each of enterprises I–V would be different; but for all these goods the part of the selling price which is formed by adding the profit on each hundred of capital to the costs of production would be equal. The total price of goods I-V would thus be equal to their total value, that is, the sum of the production costs of I-V plus the sum of the surplus value, or profit, produced in I-V; consequently, in fact, their total price would be the monetary expression of the total amount of labor, both past and newly added, contained in goods I–V. Likewise, on the scale of society - if we consider all branches of production as one whole - the sum of the prices of production of goods produced is equal to the sum of their values.

This position seems to be contradicted by the fact that in capitalist production the elements of productive capital are usually purchased on the market, therefore their prices contain already realized profit, and therefore the price of production, together with the profit contained in it, of one industry is included in the production costs of another. But if we calculate, on the one hand, the sum of the costs of production of goods in an entire country, and, on the other hand, the sum of the profit or surplus value produced in it, then, obviously, we will get the correct result. Let's take, for example, some product A; Let the costs of its production include profits from B, C, D, and the costs of production of B, C, D, in turn, include profits from A. When making the above calculation, we will not count the profit from A among its own production costs, and likewise the profits from B, C, D, etc., will not enter into their own costs of production. No one counts his own profit among the costs of his production. And, therefore, if there are, for example, n branches of production and in each of them the profit is equal to p, then the production costs of all of them combined = k − np. Considering the entire calculation as a whole, we find that the profits of one sphere of production, since they are included in the production costs of another sphere, are already taken into account here as a component of the total price of the final product and cannot appear again in the profit column. If they appear in this column, it is only because the given product is itself a final product and, therefore, its production price is not included in the production costs of any other product.

Pages:1234next →

Calculation of the standard value of return on sales for industrial enterprises and other organizations is extremely important in the management of the company. Knowing these indicators, it is possible to conduct a qualitative economic analysis and improve the efficiency of the enterprise. If a company wants to maintain its position in the market or even improve it, then it is very important to carry out such calculations over short periods. This will not only allow you to better manage the organization, but will also make it possible to respond in a timely manner to any changes in the market.

Basic Concepts

Before you understand what the standard value of return on sales is, you need to understand what it is. In accounting, this concept means an economic indicator, by determining which one can determine the level of efficiency in the use of certain resources in an enterprise. Moreover, not only material assets are taken into account, but also natural, labor resources, investments, capital, sales and more. More to the point in simple words, then profitability means the level of profitability of a business, its economic efficiency and the benefits it brings.

Thus, it turns out that if the profitability indicator is below zero, then such a business is unprofitable, and we urgently need to improve this indicator, find out what influenced the occurrence of this situation and eliminate the causes of the problem. The level of profitability is usually expressed in ratios, but relative indicators are expressed for profitability of sales as a percentage. The standard value can also indicate the efficiency of exploitation of the enterprise's resources; with normal values, the organization will not only cover costs, but also make a profit.

Profitability indicators

When calculating all indicators, it is very important to pay attention to such a concept as the profitability threshold. This indicator, or more precisely, the period, actually stands for the division of the unprofitable and effective state of the company. It serves as a comparison to the break-even point, reflecting the point at which an unprofitable business became effective. To analyze the company's performance, it is necessary to compare actual profitability indicators with planned ones. In addition, the comparison uses data from past periods and indicators of competing companies. But the coefficients, or, as they are also called, sales indices, are determined by calculating the ratio of total income to fixed assets and flows.

Main groups of standards

The standard value of return on sales and profitability can be divided into certain groups, namely:

• Return on sales (profitability of the enterprise).
• Profitability of non-current assets.
• Return on current assets.
• Return on personal capital.
• Product profitability.
• Profitability production assets and the profitability of their use.

Using these indicators, taking into account the company’s field of activity, one can determine its overall profitability. To determine the return on assets, it is necessary to determine the efficiency of exploitation of the company’s equity capital or its investment funds: it all depends on how the company’s assets bring it profit, how much of it, taking into account the resources spent on production. To calculate the return on assets, the ratio of profit for a specific period of time to the size of the enterprise's assets for the same period is used. The formula looks like this:

• R assets = P (profit) / A (size of assets).

The same indicators are used in economics to calculate the profitability of operating production assets, investments and equity capital. For example, by calculating the return on equity of a joint-stock company, you can find out how effective the shareholders' investments in this industry are.

Profitability calculation

Return on sales (normative value) is an indicator of profitability, which is expressed in coefficients and is a display of the share of income for each cash equivalent spent. To calculate the profitability of a company's sales, the ratio of net profit to the amount of proceeds is calculated. Calculations are carried out according to the formula:

• R cont. = P (net income) / V (revenue volume).

This indicator is directly influenced by the organization’s pricing policy, as well as its flexibility in the market segment where its products are used. To increase their own profits, many companies use various external and internal strategies, as well as analyze the activities of competitors, the range of products they offer, etc. There are no clear schemes, norms, or designations of profitability. This directly depends on the fact that the standard value of return on sales is directly related to the specifics of the organization’s activities. All indicators can only reflect the overall performance of the company for a specific period.

Basic formulas

In order to effectively manage sales and monitor the performance of the organization, calculations of the profitability of the enterprise are carried out. To do this, it is customary to use certain indicators, namely: gross and operating EBIT profit, balance sheet data, net return on sales. Calculation of profit taking into account the indicator of gross income shows a coefficient indicating the share of growth from each earned cash equivalent. To calculate this indicator, take the ratio of net income after paying taxes to the total amount of funds for a specific period of operation of the organization. In other words, operating margin equals gross income divided by trading revenue.

It is worth noting that this coefficient must be included in the financial statements.

But operating profit EBIT is equal to the ratio of EBIT to total revenue. Moreover, this indicator reflects the total income before all interest and taxes are subtracted from it. It is by this formula that the operating profitability of sales, the standard value in production, as well as other important values ​​are calculated.

It is believed that this coefficient is between the general profit data and the organization’s net earnings.

Profitability ratios

But the profitability of sales on the balance sheet is a coefficient, the calculation of which is carried out on the basis of data from accounting reports and represents a characteristic of the share of profit from the total revenue of the organization. This coefficient is calculated using the formula for the ratio of total income or loss from product sales to the volume of revenue. To get results, you just need to use ready-made data from the company’s balance sheet.

The calculation of net return on sales is carried out by the ratio of net profit after all payments to total revenue. To carry out independent calculations of the standard value of profitability of sales in trade, you need to find out how much product was sold and what income the organization received from this sale after paying all taxes, taking into account other expenses related to operating activities, but without affecting non-operating expenses .

Analysis of results

Thanks to all these formulas, company specialists can calculate a wide variety of types of profit relative to total number revenue. But still, the dependence on the specifics of the main direction of the enterprise’s work remains quite significant. If the return on sales, standard value and other coefficients have been calculated for several periods of the organization’s activity, then the company’s employees will be able to make a qualitative economic analysis. That is, these indicators will help to carry out operational management economic activity enterprises. In addition, this will allow you to quickly respond to fluctuations and changes in the market, which will undoubtedly help improve performance indicators and provide the company with a constant income.

Indicators reflecting the standard value of return on sales are used in calculations of operational activities. But use them for long-term periods It’s not worth it, since changes in the market occur quite often, and with such calculations it will not be possible to respond to them in a timely manner. They will help solve daily and monthly tasks, helping to make plans for the sale of manufactured products.

Increased profitability

There are ways to increase the standard value of profitability of sales. Among them, the most common are the following: reducing production costs by reducing the cost of producing goods and increasing the volume of goods produced, which will increase gross revenue. But in order to effectively use these methods, the organization must have sufficient labor and material resources. Again, to conduct such events, you need to work with highly qualified employees or increase the level of professionalism of your staff through various trainings and using new methods and practices of the global economy that improve the skills of workers.

In order to increase the standard value of return on sales based on net profit, it is important to study what positions the organization’s competitors occupy, what their pricing policy is, and whether they are holding promotions or other attractive events. And already having this data, you can analyze which factors are advisable to use to reduce production costs. Moreover, for analytical activities one should use not only data about competitors in the region, but also use information about the leaders of a given market segment.

Conclusion

To increase sales profitability indicators, the standard value for industries must be calculated using all the necessary formulas and an analysis of the obtained data must be carried out. It is worth considering that increasing the efficiency of an enterprise is influenced not only by its pricing policy, but also by the range that it can offer to its consumers.
More often the best solution to reduce production costs is the introduction modern technologies into production. To understand whether this method will improve production, it is necessary to conduct an economic analysis and find out what costs are needed for this, how long it will take to develop new technology employees and how long will it take for this investment to pay off.

This economic category was introduced to describe how efficiently an enterprise's operations are conducted overall. , or by individual components. For example, according to working capital. It helps you understand how many kopecks you can get by investing one ruble in a particular business. If we talk about sales efficiency, then profitability shows the share of profit in revenue.

To determine the indicator you need to use . The main thing is to remember that there are several of them, one for each type of indicator:

• The general level of the indicator is calculated as follows. All income received, constituting the balance sheet profit, is divided by the result of adding the average price by current assets, and the average price category of the main part in production. Result previous actions multiply by one hundred percent.
• Selling profitability is highlighted separately.
  PP = dividing income from the sale of goods by net profit after all operations. It is impossible to do without introducing a standardized average value bar. It will help summarize many calculations that have already been made. This produces a special number with an average result.
• By assets. To determine net production income, divide it by the value of assets in a given time period.
• By investment. in its pure form it is divided into reserves of equity capital, to which are added liabilities designed for a long time.
• In terms of capital available to the enterprise. To calculate the net profit, divide it by the entire amount of savings.

Definition of Negative Profitability

For managers, a negative profitability indicator is an important signal. It shows how unprofitable the production turned out to be in a particular case. Or a negative result on sales of a certain product. Negative profitability occurs with higher production compared to a decrease in operating profit. And the total price is not enough to cover all production costs.

The greater the negative profitability according to absolute data, the greater the deviation of the price level from the equilibrium value that could be considered effective.

Negative profitability shows that management is not effectively using available funds.

What indicators are considered acceptable?

To protect itself, each enterprise must conduct inspections of its main facilities and types of products in advance. Performance the following recommendations will have a positive impact:

• Calculation of the total tax burden and comparison with similar data related to a particular activity.
• Calculation of burdens associated with income tax. For manufacturing enterprises, the figure is low – 3% or less. Trading organizations are considered unprofitable at less than 1%.
• The next step should be the value of the share of deductions in the amount of tax, which is calculated from the tax base. This figure should not exceed 98%.

Specific data on areas of activity

There is no single indicator; in each industry it is calculated separately for each year. Profitability in the mining industry is considered normal at 50%. For the woodworking sector it does not even reach 1%. For services, a level of 12-20% is considered acceptable.

Conducting cost-benefit analysis

The profitable parameter is also called the profitable rate. Because the indicator reflects how much profit there was after the sale of services and goods with work.

If parameters in this direction fall, it means that the demand for products and the level of their competitiveness decreases. Then we need to think about additional measures to stimulate demand. There is a need to develop new market niches, or to improve the quality characteristics of the product.

When is it carried out? factor analysis In terms of profitability of sales, the influence of figures on how prices change in goods and services with work and how it affects the cost level deserves special consideration.

Identification of the reporting period and reference time is required to identify trends in changes in profitability in sales. The base period allows you to use for:

• last year
• the time when the company makes the greatest profit

The base period is needed in order to compare the indicators with what was taken as a basis during the calculations.

Reducing costs or increasing prices for the range offered helps increase profitability. An organization must focus on several parameters at once in order to accept the right decision. It's about about competitive activity and its assessment, the possibility of saving internal resources, fluctuations in consumer demand. The dynamics of market conditions are also studied separately.

It is planned to use tools that have become an integral part of the policy on goods and prices, sales, and communications.

Profits are also being increased in several directions at once:

1. Motivation for staff. Proper organization of personnel work becomes a separate sector in management activities. Sales of the final product, reduction of defects in products, and production of products with higher quality depend to a certain extent on the responsibility of employees. Incentive and motivational strategies will improve the quality of work performed by employees. For example, holding events and so on.
2. Cost reduction. To do this, you need to identify suppliers whose prices are much lower than those of competitors. Despite the savings on materials, it is necessary to ensure that the final quality of the product does not decrease.
3. Creation of a new marketing policy. Product promotion should be based on research of market conditions and consumer preferences. Large companies create entire departments that deal specifically with marketing. Or they hire a separate specialist responsible for carrying out marketing activities. This policy is not complete without financial investments, but the results are fully justified.
4. Determination of acceptable quality. Demand is increasing only for quality items. An enterprise should take all measures to increase it if profitability indicators noticeably decrease.
5. Increase production capacity. The production process becomes less expensive with the introduction of scientific advances, although they require certain investments. It is possible to modernize the equipment that is already in service. Then the efficiency of work will increase, resources will be saved.

The amount of profit received often becomes the basis for assessing business performance. used to evaluate economic efficiency.

Write your question in the form below

Industry turned out to be one of the most dynamically developing sectors of the economy in 2010 - industrial production growth amounted to 8.2%. This is one of the highest results in modern history Russia. A higher result was noted only in 2000 and 2003. Such a significant increase in 2010 is largely due to the low base factor, but the industry managed to to a greater extent restore the pre-crisis level than was observed in relation to GDP, investment, construction and a number of other economic indicators.

At the same time, the dynamics of industrial production in the sectoral context was heterogeneous. While some industries showed very significant growth, the dynamics of others were relatively modest. So, for example, if the production of vehicles and equipment increased by 32.2%, then mining production increased by only 3.6%. To what extent have the current positive dynamics affected the financial position of industries, which is one of the determining factors for investors? Is it possible to draw conclusions based on this regarding the sustainability of emerging trends, which industries are in the best financial position? The answers to these questions can be given by the rating of the financial condition of Russian industrial sectors, prepared by RIA-Analitika experts based on the results of 2010.

The rating methodology involves ranking industries based on the aggregation of a number of key indicators characterizing certain aspects of the financial position of the industry. The source of data for compiling the rating was Rosstat.

The first position in the ranking is occupied by the “production of coke and petroleum products” industry, which was the leader of the ranking in 2009. The greatest impact on industry results in this case was exerted by oil refining, which has heaviest weight in the industry (in the total balanced financial result of the industry, the production of petroleum products accounts for 98.9%). In terms of production volumes, oil refining in 2010 reached a record level for all product groups (primary refining, production of gasoline, diesel fuel and heating oil). The growth in production in the industry in 2010 was due to increased demand on the foreign market, as well as a significant increase in exports of Russian fuel oil and diesel fuel. High prices for fuel they stipulated high level revenues and profits of the industry, which is reflected in high profitability indicators and the highest labor productivity in the ranking.

The second place in the ranking is occupied by the “extraction of mineral resources, except fuel and energy” industry. At relatively at a moderate pace production growth in 2010, the financial position of the industry was quite strong. This is largely determined by high demand and favorable market conditions for metal ore. The profit of industry enterprises in 2010 increased 2.4 times. Return on sales and return on assets were 54% and 16.6% - these are the highest values ​​in the rating. Compared to 2009, the industry rose in the ranking by 3 positions.

In third place is the extraction of fuel and energy minerals. The inclusion of this industry in the top three is not surprising. Russia is demonstrating positive production dynamics for the second year in a row. At the same time, production volumes in 2010, against the backdrop of rising oil prices, reached a record value. For the first time in recent history, the production level of 10 million barrels per day was exceeded. In terms of oil production, Russia has been ahead for several years Saudi Arabia and occupies a leading position in the world. Almost all companies in the oil and gas industries demonstrated an increase in profits in conditions of favorable conditions on the world commodity markets.

The profit of enterprises in the “extraction of fuel and energy minerals” industry increased by 36.7%. This could not but affect the profitability of sales, which amounted to 33.1%. The industry is characterized by the highest autonomy coefficient in the ranking, which characterizes its financial independence. A significant role in shaping the good financial condition of the industry was played by both domestic demand for fuel and energy products and exports, which are growing confidently in both absolute and relative terms. The share of fuel and energy goods in Russian exports increased from 66.7% in 2009 to 67.5% in 2010.

It should be noted that a strong positional decline in the ranking compared to last year occurred in the electric power industry (fell by three places), although in 2010 there was a record increase in demand for electricity. The greatest contribution to this increase was made by the post-crisis economic recovery, but abnormal frosts at the beginning of the year and unprecedented heat in the third quarter also played a significant role. Abnormal frosts and heat not only stimulated demand for electricity, but also led to higher prices in a competitive market. During peak periods, the price of electricity in the European price zone went through the roof of 1000 rubles/kWh. On average, over the year, the price of electricity on the competitive market in the European zone rose by 30% compared to 2009. The decline in the industry's position in the ranking can only be explained by the high base factor. In 2009, when most industries experienced a significant deterioration in all financial indicators, the electric power industry was one of the few where the net financial result was positive. In 2010, the situation stabilized and the industry took its long-term average position.

The “production of machinery and equipment” industry, which can be considered a mirror of the processes of modernization and innovation, occupies a modest 12th place in the ranking, losing two positions compared to 2009. Despite the relatively high growth rate (12.2%), the volume of production in this industry lagged significantly behind the pre-crisis level. At the same time, in certain sectors of the industry the situation has worsened even more. In particular, in agricultural engineering the decline compared to 2009 was 20%, and compared to 2008 - 40%. Very low production volumes of construction and road-building equipment, and metallurgical equipment were also noted.

In 2010, the “production of vehicles and equipment” industry demonstrated high growth rates (the industrial production index in the industry was 132.2% compared to the previous year). Automobile manufacturers made a major contribution to the positive dynamics of the industry - production of cars, trailers and semi-trailers increased by 70.4%, and passenger car manufacturers were among the leaders (2 times growth). Government incentive measures played an important role here. As an example, this is the growing demand for AVTOVAZ cars. The recycling program made it possible to significantly warm up consumer demand and increase sales volumes at automobile manufacturing plants. At the same time, such high growth in itself is nothing more than the result of the low base effect of 2009, and in terms of absolute production volume, the industry has not yet reached the pre-crisis level. Therefore, there is no need to say that this led to a significant improvement in the financial performance of automobile factories. Rather, we are talking about a partial restoration of significantly weakened positions during the crisis. Profitability in the industry remains low, and the level of debt burden (the ratio of borrowed funds to turnover) is the highest among the industries represented in the rating.

Despite the fact that the profit of the textile clothing industry increased by 4.8% in 2010, the economic situation of most enterprises remains difficult. The industry has low profitability (5.4%) and the highest share of overdue debt in borrowed funds among the industries in the ranking. High competition with imports, lack of investment, outdated equipment - these are the factors that do not allow domestic light industry receive large incomes and have stable prerequisites for strengthening your financial position.

The industry "Wood processing and production of wood products" occupies the very last place in the ranking. And this is despite the fact that production dynamics in the industry were positive in 2010 (the production index in 2010 was 111.4%). All industry indicators are at a very low level. Return on assets is only 0.2% with an average rating of 7.1%, and the current liquidity ratio is 128.4% with an average rating of 181.9%.

In 2011, we can hardly expect significant changes in the ranking positions; however, a number of changes will still occur. High oil prices will continue to have a positive impact on both oil production and oil refining. Gradual recovery of the global economy from the crisis and continued growth Chinese economy will continue to stimulate demand for metal, which will lead to good financial results for the metallurgy and mining industries. In the electric power industry, the situation will depend on the dynamics of tariffs in conditions of complete liberalization of the market, as well as on the government’s willingness not to interfere in the process of pricing electricity if the increase in tariffs nevertheless exceeds a certain social threshold. The financial condition of the industry will be adversely affected by the price situation on the fuel market. Therefore, it is most likely to expect a decrease in the ranking of the “electricity production, transmission and distribution” industry in 2011.

The factor of import substitution in the context of a strengthening ruble and a decrease in demand for domestic cars will inevitably affect the financial results of the “production of vehicles and equipment” industry. In this regard, the industry will most likely not be able to improve its position in the ranking.

Import substitution will also affect other industries that create high value-added products. The most vulnerable of them is the “production of machinery and equipment,” which is highly dependent on domestic demand and exchange rate formation processes in the foreign exchange market. In turn, in the production of electrical equipment, electronic and optical equipment, further improvement in financial indicators is expected due to active demand from the energy complex, and accordingly, an increase in positions in the ranking.

The depressed industries “textile and clothing production” and “processing of wood and wood products” are unlikely to significantly improve their financial situation - problems associated with low production efficiency and high competition from imported products will persist.

Return on Sales Ratio in Excel

The level of economic efficiency of financial, labor or material resource characterizes such a relative indicator as profitability. It is expressed as a percentage and is widely used to evaluate the performance of a business enterprise. There are many types of this concept. Any of them is the ratio of profit to the asset or resource under study.

The essence of the concept of profitability ratio

The return on sales ratio shows the business activity of the enterprise and reflects the efficiency of its work. Evaluation of the indicator allows you to determine how much money from product sales is the company’s profit. What matters is not how much product was sold, but how much net profit the company earned. Using the indicator, you can also find the share of cost in sales.

The return on sales ratio is usually analyzed over time.

Profitability assessment

A rise or fall in an indicator indicates various economic phenomena.

If profitability increases:

1. An increase in revenue occurs more quickly than an increase in costs (either sales volumes have increased or the assortment has changed).
2. Costs are decreasing faster than revenue is decreasing (the company has either raised product prices or changed the assortment structure).
3. Revenue grows, but costs become lower (prices have increased, the assortment has changed, or cost standards have changed).

The first two situations are definitely favorable for the company. Further analysis is aimed at assessing the sustainability of this situation.

The second situation for the company cannot be called unambiguously favorable. After all, the profitability indicator has formally improved (revenue has decreased). To make decisions, pricing and assortment are analyzed.

If profitability has decreased:

1. Costs grow faster than revenue (due to inflation, price declines, increased cost standards, or changes in product mix).
2. The decline in revenue occurs faster than the reduction in costs (sales have fallen).
3. Revenue becomes less, and costs increase (cost rates have increased, prices have decreased, or the assortment has changed).

The first trend is clearly unfavorable. Additional analysis of the reasons is needed to correct the situation. The second situation indicates the company's desire to reduce its sphere of influence in the market. If a third trend is detected, pricing, assortment, and cost control systems need to be analyzed.

How to Calculate Return on Sales in Excel

The international designation of the indicator is ROS. The return on sales ratio is always calculated based on sales profit.

Traditional formula:

ROS = (profit/revenue) * 100%.

In specific situations, it may be necessary to calculate the share of gross, book or other profit in revenue.

Formula for gross return on sales (margin):

(Gross profit / sales revenue) * 100%.

This indicator shows the level of “dirty” money (before all deductions) earned by the company from the sale of products. The elements of the formula are taken in monetary terms. Gross profit and revenue can be found on the income statement.

Information for calculation:

In the cells for calculating gross profitability, we will set the percentage format. Enter the formula:

The gross profit margin indicator for 3 years is relatively stable. This means that the company carefully monitors pricing procedures and monitors the product range.

Operating profit margin (EBIT):

(Operating profit / sales revenue) * 100%.

The indicator characterizes how much operating profit is per ruble of revenue.

((Page 2300 + Page 2330) / Page 2110) * 100%.

Data for calculation:

Let's calculate the profitability of operating profit - substitute references to the required cells into the formula:

Formula for return on sales based on net profit:

(Net profit / revenue) * 100%.

Net profitability shows how much net profit is per ruble of revenue. Both figures are taken from the income statement.

Let's show the return on sales ratio on the graph:

In 2015, the indicator decreased significantly, which is regarded as an unfavorable phenomenon. Additional analysis of the assortment list, pricing and cost control system is required.

A value above zero is considered normal. The more specific range depends on the field of activity. Each enterprise compares its return on sales ratio and the standard value for the industry. It’s good if the calculated indicator is practically no different from the inflation rate.

Return to Profitability 2017

– wholesale trade – 10.5%
— retail – 3,6%
— construction – 6.7%

We should also not forget about such a criterion as a relatively low tax burden, which is noticeably lower than the average level for all business entities in a certain industry.

This can also attract increased attention from tax authorities.

— change in the cost of raw materials;

— influence of competition, etc.

Average profitability and tax burden

Many are familiar with the concept of assessing the risk of a tax audit, as well as the dependence of the magnitude of this risk on factors such as the size of the tax burden, almost equal amounts of income and expenses of the organization, or payment of salaries, the size of which is below the national average. Among these factors is the profitability indicator in the enterprise statistics. It is no secret that if it seriously deviates from the level of profitability calculated by the Ministry of Finance for a given area of ​​activity, this will inevitably entail an inspection by the Federal Tax Service.

Profitability by type of activity

The Federal Tax Service publishes average profitability indicators on its official website.

So, today the current figures are the following values:

– wholesale trade – 10.5%
— retail trade – 3.6%
— construction – 6.7%

Profitability indicators by industry should be taken into account when assessing the risk of a tax audit of your organization. When conducting on-site tax control, inspectors quite often pay attention specifically to the organization’s profitability statistics, so this criterion can also be used by taxpayers who want to adjust the results of their financial and economic activities in order to reduce the risk of coming to the attention of tax inspectors. A significant deviation is considered to be profitability that differs by more than 10% from the indicators of similar industries and organizations.

We should also not forget about such a criterion as a relatively low tax burden, which is noticeably lower than the average level for all business entities in a certain industry. This can also attract increased attention from tax authorities.

What percentage of return is considered acceptable?

Average profitability

When calculating profitability, you need to obtain two important accounting indicators: return on assets and return on sales. Then the obtained figures must be compared with the average level of profitability for your type of activity (main). Industry profitability is always indicated in special directories that are regularly published by Rosstat.

Experts consider the following to be significant factors influencing the amount of profitability:

— change in the cost of raw materials;
— level of qualification work force;
— the markup is too small or large;
— presence or absence of discounts;
— influence of competition, etc.

A significant deviation from the level of profitability established for a specific area of ​​activity will attract attention from the Federal Tax Service.

As can be seen from the presented material, the areas of activity in which there was a decrease in the level of profitability for 2017 (compared to 2016) were identified as follows:

– wholesale trade;
– production of electrical equipment;
– production of vehicles.

Spheres such as construction and transport remained at the same level (a small percentage decrease in profitability).

It should be noted that there is a significant deviation in the level of profitability from statistical indicators (established for specific types activities) will attract attention from regulatory authorities. Tax authorities take into account the deviation of the level of profitability according to the company (accounting data) from the industry average of no more than 10%.

Similar conclusions can be drawn about the impact of the tax burden on the ratio, since an increase in taxes (except for indirect ones in cases where the burden of the tax burden is shifted to buyers) leads to a decrease in both net profit and assets of the enterprise, and the return on assets ratio decreases with growth taxes are similar to the return on equity ratio (except for the increase in indirect taxes passed on to buyers).

It should be noted that the size of the tax burden does not affect the volume of sales (i.e., the denominator of the coefficient), therefore, the result of an increase in taxes is a decrease in net profit (i.e., the numerator of the coefficient) and a decrease in the profitability ratio of sales.

Thus, an increase in the tax burden, leading to an increase in government revenues, causes a decrease in such important indicators of the financial stability of a commercial organization as various profitability ratios (with the exception of cases of growth in indirect taxes, which are reimbursed by buyers and in this case have virtually no effect on the profitability of enterprises).

It is important to differentiate the profitability indicator from revenue. If revenue simply reflects the company’s total turnover (it is calculated in rubles), then profitability is the efficiency of its activities (expressed in %). Any business that has brought profit at the end of the period under review can be called profitable. If a loss is made, the profitability will be negative.

IN trading activities Product profitability is calculated as the ratio of net profit to cost.

Profitability of goods (services) = net profit from sales (provision of services) / cost * 100%.
Return on sales (services) = net profit/revenue*100%.

The assessment takes into account the company's net profit and turnover. If we take c as a basis, then it will be equal to = 11/28*100%= 39.2%. Using this formula, it is advisable to evaluate each product group separately. For example, the profitability of sales of T-shirts, bags, etc. This will allow you to highlight the most effective items in the assortment, as well as those that need to be worked on to increase their profitability.

Acceptable level of profitability by industry

There is no single acceptable level of profitability; it varies depending on the industry. So, for example, in the mining industry, the return on sales is considered normal above 50%, but in the woodworking industry it does not reach 1%.
According to researchers, the average Russian profitability rate is about 12%. However, this value in itself is practically meaningless unless it is compared with similar performance indicators of competitors or industry averages.

Please note that if the profitability of your business deviates significantly from the industry average (by 10%), this increases the likelihood of a tax audit.

If you have come to the conclusion that you are seriously behind your competitors in terms of business efficiency, you need to work on improving your profitability. This goal can be achieved through a competent marketing policy aimed at increasing the customer base and ensuring an increase in the turnover of goods, as well as by obtaining more profitable offers from suppliers of goods (or subcontractors).

Sources:

• what percentage of profitability
• Evaluation and selection of investment

Women's work differs from men’s not only in its physical characteristics, but also in some psychological nuances. If men are prone to leadership, which allows them to be good managers and lawyers, then women are more characterized by perseverance and the ability to focus on details.

Instructions

Typically, women gravitate towards collective work, while men tend to work more individually. This is not due to the structure of the psyche, but to the difference in upbringing and. If the former are given more ground, then the share of responsibility is shifted to the latter from childhood. This may explain why girls tend to find teamwork support, and the guys want to be the brains of such a team.

The work of a cashier is associated with perseverance and the ability to concentrate on several little things at once, which by nature does not interest men very much. The profession of a teacher is a real test for the psyche. And representatives of the stronger sex cope more skillfully with Boeing control and management big company than with a horde of restless children.

Men cannot be educators for one simple reason - they have almost no communication skills with small children. Babies are most often cared for by mothers and grandmothers, and fathers and grandfathers are involved in the upbringing process when baby is coming to school.

The profession of a flight attendant requires resistance to stress and the ability to find mutual language With different people. Therefore, it is more interesting to women. Men, on the other hand, prefer to feel like a captain, a leader, rather than an attendant. For the same reason, junior medical staff, secretaries, conductors and sales consultants are more often women.