Profitability

The amount of the transaction was not disclosed, but it takes into account, among other things, the investments and debt obligations of Europack, notes Galakhova. 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 "gives the highest synergy effect within our vertically integrated structure, since the capacity of APPM in connection with the modernization of the second cardboard machine (KDM-2) is increasing by 100,000 tons of cardboard per year", comments a member of the Board of Directors of APPM Vladimir Krupchak (his words are given in the message). According to him, the main goal of acquiring an asset in Voronezh is to expand processing facilities for expansion to the south of Russia, one of the main consumer centers for corrugated packaging in the country.

South of Russia is the third largest market after the Central Federal District and the North-West, says Galakhova. This division into macro-regions is explained by the fact that the optimal transport shoulder for the delivery of 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, outstripping the growth of the market in Moscow, continues Galakhova. According to her, the demand for corrugated packaging (especially in the segment of trays) 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, but supplies are small. The Voronezh enterprise will allow "to significantly strengthen the position of the company" in this macro-region, Galakhova hopes, without specifying the market share.

The Russian market for packaging made of cardboard and corrugated board 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 may grow to 5 million tons , reports the industry portal Unipack.ru with reference to data from Rosstat, FCS and IndexBox analytics. Apart from APPM, the main players are Ilim Group, Mondi SLPK and others. They are also expanding the production of cardboard packaging.

The deal with the Voronezh enterprise is beneficial to both parties, comments Alexey Bogatyrev, CEO of Lesprom Network. The former owners removed from the balance sheet the mothballed construction site, which generated losses, and the APPM group received an almost finished plant, which, most likely, cost less than if it was 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 through 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, adds Bogatyrev.

This economic category was introduced to describe how efficiently an enterprise operates as a whole. , or by individual components. For example, working capital. It helps to understand how many kopecks you can get by investing one ruble in this or that 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 considered as follows. All income received, constituting the balance sheet profit, is divided by the result of the addition of the average price for current assets, and the average price category of the main part in production. We multiply the result of the previous actions by one hundred percent.
Realization profitability is distinguished separately.
PP = dividing income from the sale of goods by net profit after all operations. You cannot do without introducing a normalized bar for the average value. It will help to summarize the many calculations that have already been performed. It turns out a special number with an average result.
By assets. To determine the net operating income is divided by the value of assets in a given time period.
Investment. in its pure form, it is divided into stocks of equity capital, to which are added liabilities calculated for a long time.
According to the capital, the enterprise has. To calculate the net profit, we divide by the whole mass of savings.

Determination of negative profitability

For executives, negative profit margins are an important signal. It shows how unprofitable the production turned out to be in this or that case. Or a negative result for the sale of a certain product. Negative profitability appears with higher production compared to a decrease in sales 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, which could be considered effective.

Negative profitability shows that management is ineffective in using available funds.

What metrics are considered acceptable?

To be on the safe side, every business must go through the main objects and types of products in advance. Implementation of the following recommendations will have a positive impact:

Calculating the aggregate for the burden in taxes, and making a comparison with similar data related to a particular activity.
Calculation of burdens associated with income tax. For enterprises in the manufacturing sector, the indicator 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 for in the amount of tax, which is calculated from the tax base. This figure should not exceed 98%.

Specific data by field of activity

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

Analysis of profitability

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

If the parameters in this direction fall, it means that the demand for products, the level of its competitiveness, decreases. Then you 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 a factor analysis is carried out on the profitability of sales, the influence of the numbers on how the prices of goods and services with works change and how it affects the level of costs deserves a separate consideration.

Allocation of the reporting period and baseline 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 received the highest profit

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

Reducing the cost or increasing prices for the offered assortment helps to 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. Market dynamics are also studied separately.

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

The increase in profits is also carried out in several directions at once:

Motivation for staff. The correct organization of personnel labor is becoming a separate sector in management activity. Sales of the final product, reduction of defects in products, and production of higher quality products 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.
Reduced cost. To do this, it is necessary to identify suppliers whose prices are much lower than those of competitors. Despite the savings in materials, care must be taken to ensure that the final quality of the product is not compromised.
Creation of a new marketing policy. Product promotion should be based on market research and consumer preferences. In large companies, they create entire departments that deal specifically with marketing. Or they hire a dedicated marketing specialist. Such a policy is not complete without financial investments, but the results are fully justified.
Determination of acceptable quality. The demand is increasing only for quality items. The company should take all measures to improve it if the profitability indicators noticeably decrease.
Increase in production capacity. The production process becomes less costly with the introduction of scientific advances, although they require some investment. You can upgrade the equipment that is already in service. Then the efficiency of work will increase, resources will be saved.

The amount of profit earned often becomes the basis for assessing the performance of a business. used in order to assess the economic efficiency.

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Among the indicators that give an idea of the efficiency of resource use, the return on sales is the most objective indicator that allows you to compare the tactical and strategic goals of the enterprise. It is calculated as the ratio of the profit from sales to the proceeds from the sale of products. This indicator characterizes such an aspect of the company's activities as the sale of products, and also estimates the share of costs in sales. 3 Many factors influence the profitability of sales. An increase in production costs, as well as a drop in demand for it, can lead to its decrease. If this indicator tends to decrease, then they speak of a decrease in the company's competitiveness in the market and a drop in demand for its products. 4 If such a situation arises, it is necessary to analyze the structure of costs, to identify the reasons for their growth.

Profitability as an indicator of the company's performance

In the Western market, it is believed that the long-term profitability of companies depends on a much larger number of factors (more than 30) that characterize 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, the relative quality of products (services), the company's market share, labor productivity.
There is a close relationship between the development goals of the enterprise and the factors that determine them. If the goal is to meet the need for savings for industrial development, then the most important factors are the structure of the sale of goods and services, the level of trade markups, sales prices, the volume, structure and efficiency of using the resource potential, the amount of profitability.

40. indicators of profitability.

The profitability threshold is described as the monetary value of the break-even point, that is, it reflects how much the company needs to earn in order for the profit from sales to be zero and all costs are covered. The metric is abbreviated as BEP and refers to underlying asset profitability.
More details about how it is located can be found in the article "What is a break-even point and how to calculate it." All types of ROI are important to measure 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 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 owner of the property, then the most important factors ensuring its achievement are the volume of own and borrowed working capital and the efficiency of their use, as well as the size of profitability. If the enterprise determines the provision of social consumption and social development of the team as a primary goal, then the main factors that should be used to achieve it are distribution costs, the number and composition of labor resources used, measures of state regulation (norms and standards of contributions to various social funds protection of the population, minimum wage, minimum subsistence level, etc.

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

Journal headings

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

Profit margin

It is important to adhere to the rules here:

The period for the analysis is determined. This is usually a year.
The total revenue of the company for the selected period of time is calculated.

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

R = NP / PRtot x 100% Suppose that the total income of the company for 12 months is 2,500,000 rubles, and the expense in the form of taxes, rent, materials, wages, and so on is 1,500,000 rubles. This means the amount of net profit is 1,000,000 rubles.

In the case of profitability of sales, the denominator is revenue as an indicator of sales. Return on assets is usually found by balance sheet profit, production and sales - by profit from sales, capital - by net profit.

The data for the calculation is taken from the balance sheet and the income statement. General formulas for calculating the return on assets: ROFA = BN / Cvna, where ROFA is the profitability of non-circulating funds, BN is profit before tax, rubles; Cvna - the average cost of non-current assets, rubles; ROCA = BN / Coba, where ROCA is the profitability of working capital; BN - profit before tax, rubles; Soba - the average cost of mobile assets, rubles; ROA = BN / Cvna + Soba, where ROA is the return on assets; BN - profit before tax, rubles; Свна + Соба - the average value of the sum of fixed and current assets, rubles.

Internal - this is the volume of production, the level of costs, product quality, the rhythm of the release, the range (in production), the rhythm of shipment, the timely execution of documents, the optimal forms of payments (in circulation). External - the situation on the market of raw materials, materials, semi-finished products, the volume of production in its competence, quality compared to analogs of other enterprises, the rhythm of supplies (in production), the timing of document flow, compliance with the terms of contracts, the optimal form of payments (in the field of circulation).

In addition, there may be additional costs caused by: violations of the delivery time 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 in the right agency - advertising-code.rf.

Profitability 40 what does it mean

Info

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

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

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

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

return on sales fell in 2018