Profitability

The amount of the transaction is not disclosed, but it also takes into account the spent investments and debt obligations of Europack, Galakhova notes. According to her, such enterprises on the market cost about 40 million euros.

Initially, the project was estimated at 2.2 billion rubles. with a design capacity of 188 million sq. m per year.

The deal “provides the highest synergistic effect within our vertically integrated structure, since the capacity of APPM in connection with the ongoing modernization of the second cardboard machine (KDM-2) increases by 100,000 tons of cardboard per year,” comments Vladimir Krupchak, a member of the board of directors of APPM (his words given in the message). According to him, the main objective acquisition of an asset in Voronezh - expansion of processing capacity for expansion into the south of Russia, one of the main consumer centers for corrugated packaging in the country.

The south of Russia is the third largest market after the Central one federal district and Northwestern, Galakhova clarifies. This division into macro-regions is explained by the fact that the optimal transport distance for delivering corrugated packaging is 500 km, she adds.

The market in the south of the country is not only capacious, but also rapidly growing at a rate of more than 10% per year, outpacing the growth of the market in Moscow, Galakhova continues. According to her, the demand for corrugated packaging (especially in the tray segment) is stimulated by restrictions on the import of vegetables and fruits, which Russia applies to a number of countries. Arkhbum still trades in the south today, but supplies are small. The Voronezh enterprise will “significantly strengthen the company’s position” in this macro-region, Galakhova hopes, without specifying the market share.

Russian market packaging from cardboard and corrugated cardboard grew in 2017 by 13.4% to 4.6 million tons (in money terms - by 12% to 141.2 billion rubles), and by 2021 it could grow to 5 million tons, reports industry portal Unipack.ru with reference to data from Rosstat, Federal Customs Service and IndexBox analytics. The main players, in addition to APPM, are the Ilim group, Mondi SLPK, etc. They are also expanding the production of cardboard packaging.

The deal with the Voronezh enterprise is beneficial to both parties, comments Lesprom Network CEO Alexey Bogatyrev. Former owners The mothballed construction site, which generated losses, was removed from the balance sheet, and the APPM group received an almost finished plant, which most likely would have cost less than if it had been bought on the market or built from scratch, the expert explains. According to him, the packaging segment is the fastest growing in the pulp and paper industry, including due to the development of e-commerce. There are dozens of players on the market, but the APPM group will be able to offer competitive prices due to economies of scale, Bogatyrev adds.

This economic category was introduced to describe how efficiently an enterprise's operations are conducted overall. , or by individual components. For example, regarding 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 the addition average price by current assets, and the average price category of the main part in production. We multiply the result of previous actions 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 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. Implementing 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 low rate– 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 factor analysis is carried out on 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
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 make the right decision. We are talking 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:

Motivation for staff. A separate sector in management activities proper organization of personnel work becomes possible. 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.
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.
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.
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.
Increase in production capacity. Manufacturing process becomes less expensive when implemented scientific achievements, 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.

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Among the indicators that give an idea of the efficiency of resource use, return on sales is the most objective indicator that allows you to compare tactical and strategic goals enterprises. It is calculated as the ratio of profit from sales to revenue from sales of products. This indicator characterizes such an aspect of the company’s activities as product sales, and also estimates the share of costs in sales volume. 3 The amount of return on sales is influenced by many factors. Its reduction can be caused by an increase in production costs, as well as a fall in demand for it. If this indicator tends to decrease, then they speak of a decrease in the competitiveness of the enterprise in the market and a drop in demand for its products. 4 If such a situation arises, it is necessary to analyze the cost structure and identify the reasons for their growth.

Profitability as an indicator of company performance

In the Western market, they believe that the long-term profitability of companies depends on significantly more factors (more than 30) characterizing the state of the competitive situation, the situation in the manufacturer’s market, the current economic situation, etc. Therefore, it is important in the process of analyzing profitability not to lose sight of a number of other important factors: capital intensity, relative quality of products (services), enterprise share in the market, labor productivity.
Between the goals of enterprise development and the factors that determine them, there is close connection. If the goal is to meet the need for savings for production development, then the most important factors These include the structure of sales of goods and services, the level of trade markups, sales prices, volume, structure and efficiency of use of resource potential, and the size of profitability.

40. profitability indicators.

The profitability threshold is described as the monetary expression of the break-even point, that is, it reflects how much the company needs to earn so that the profit from sales is zero and all costs are covered. The indicator is abbreviated BEP and refers to the underlying profitability of assets.
More details about how it is found can be found in the article “What is the break-even point and how to calculate it.” All types of profitability are important for assessing the effectiveness of an organization.

Like other relative indicators, they allow not only to analyze the activities of a given enterprise, but also to compare it with competing companies. Profitability calculated over several years reflects the dynamics of performance and can become the basis for medium- and long-term planning.

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If the goal is to satisfy the interests of the property owner, then the most important factors ensuring its achievement are the volume of own and attracted working capital and the efficiency of their use, as well as the size of profitability. If an enterprise determines as a primary goal the provision of social consumption and social development collective, then the main factors that must be used to achieve it are distribution costs, the number and composition of labor resources used, measures government regulation(norms and standards for contributions to various funds social protection population, minimum wage, minimum subsistence level, etc.

etc.), level of profitability. All of the above goals and factors are themselves closely interconnected.

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It is unnecessary to remind you of the need to carry out all calculations in rubles.

Profit margin

It is important to follow the rules here:

The period for conducting the analysis is determined. Usually this is a year.
The total revenue of the company for the selected period of time is calculated.

That is, first, all income of the enterprise is taken into account (PRtot).
Since net income (NI) is taken as the basis, all expenses of the selected period are subtracted from revenue, including commercial and administrative expenses, taxes, written-off debts of debtors, payment of penalties and other expenses.

R = PE / PRtot x 100% Let's assume that the company's total income for 12 months is 2,500,000 rubles, and expenses in the form of taxes, rent, materials, wages, and so on amounted to 1,500,000 rubles. This means the net profit is 1,000,000 rubles.

In the case of return on sales, revenue is substituted into the denominator as a sales indicator. Return on assets is usually found by book profit, production and sales - by profit from sales, capital - by net profit.

Data for calculation are taken from the balance sheet and income statement. General formulas for calculating the profitability of Assets: ROFA = BN / Cvna, where ROFA is the profitability of non-current assets, BN is profit before tax, rub.; Svna – average cost non-current assets, rub.; ROCA = BN / Soba, where ROCA is the profitability of working capital; BN – profit before tax, rub.; Soba – average cost of mobile assets, rub.; ROA = BN / Cvna + Soba, where ROA is return on assets; BN – profit before tax, rub.; Cvna + Soba – average amount of fixed and current assets, rub.

Internal - this is the volume of production, the level of costs, product quality, rhythm of production, assortment (in production), rhythm of shipment, timely execution of documents, optimal forms of payment (in circulation). External - the situation on the market of raw materials, materials, semi-finished products, the volume of production within its competence, quality in comparison with analogues of other enterprises, the rhythm of deliveries (in production), the timing of document flow, compliance with the terms of contracts, the optimal form of payment (in the sphere of circulation).

In addition, there may be additional costs caused by: delays in delivery of materials and other resources, errors in transportation, late payment. Subjective factors include: moral factors, the political situation in the market, the field of activity and advertising ordered from the right agency - advertising-code.rf.

Profitability 40 what does it mean

Info

Financial results report" is divided by the average value of the indicator from form No. 1 " Balance sheet" Return on assets, like return on equity, can be considered as one of the indicators of return on investment.

Return on assets (ROA) is a relative indicator of operational efficiency, the quotient of dividing the net profit received for the period by the total assets of the organization for the period. One of the financial ratios is included in the group of profitability ratios.

Shows the ability of a company's assets to generate profit. Return on assets is an indicator of the profitability and efficiency of the company, cleared of the influence of the volume of borrowed funds.

If the profitability of sales has decreased due to a drop in sales volumes, attention should be paid to marketing factors, as well as the quality of the products. To increase this indicator, the enterprise must focus on changes in market conditions, monitor the level of prices for products, control the level of cost of manufactured and sold products, and also pursue a flexible assortment policy. Video on the topic Sources:

return on sales decreased in 2018