The level and dynamics of profitability indicators are influenced by the following factors:
1. Level of organization and production and management
2. Structure of capital and its sources
3. Degree of use production resources
4. Volume, quality and structure of products
5. Production costs and production costs.
For factor analysis, factor models of the method of chain substitutions, absolute differences, integrated, index and correlation-regression models are used.
1.Factor analysis of profitability of sales. Ways to increase product profitability
Return on sales in terms of sales profit and net profit indicate the effectiveness of not only economic activity, but also pricing policies in the organization.
The main ways to increase product profitability are:
- reduction in unit costs;
- improving the use of production resources that form the cost (reducing capital intensity, material intensity, wage intensity, depreciation intensity of products or increasing the opposite indicators);
- growth in production volume;
- rising prices for products, accompanied by an improvement in their quality.
Changes in sales profitability are influenced by two factors: sales profit and sales volume.
To calculate profitability based on sales profit, use following models:
2 Factor analysis of profitability production assets .
The change in the profitability of production assets is influenced by profitability or return on sales volume, capital productivity (capital intensity) and the rate of loading of working capital.
3. Factor analysis of return on assets. Ways to increase product profitability.
The DuPont System of Analysis primarily examines the ability of an enterprise to effectively generate profits, reinvest them, and increase turnover.
Splitting key indicators into factors (multipliers) and their components allows us to determine and give comparative characteristics the main reasons that influenced the change in a particular indicator and determine the pace economic growth companies. The DuPont formula is widely known in the literature - the splitting of return on capital into the product of return on turnover and asset turnover, each of the factors itself being meaningful financial indicator. The same approach is applicable to the analysis of other key indicators of the financial and economic condition of the enterprise.
Factor analysis of return on assets.
Changes in return on assets are affected by asset turnover and return on sales.
The main factors influencing changes in return on assets are asset turnover and return on sales (products). An organization's assets characterize its economic potential for generating revenue, and therefore profit. Asset utilization shows how quickly funds invested in resources are converted into revenue. Assets have a complex structure and their turnover depends on the turnover of each type of asset.
Thus, return on assets reflects the level of:
· accounts receivable management, which is quantitatively measured by the average collection period of receivables;
· inventory management through the inventory turnover ratio;
· management of fixed assets, which characterizes normal production capacity And throughput organizations;
· liquidity management, which is characterized by the share of liquid assets in the balance sheet currency.
Return on sales is one of the tactical factors for increasing return on assets. The action of tactical factors is aimed at choosing an adequate pricing policy, expansion of sales markets, i.e. to increase the sales volume and profit of the organization, increasing the turnover rate of all capital. Both return on sales and asset turnover are subject to external influence market conditions.
4. Factor analysis of return on equity.
Return on equity capital is determined by dividing the enterprise's net profit by the average annual value of the enterprise's equity capital.
Allows you to determine the efficiency of using the capital invested by the owners and compare it with the possible profit from investing these funds
In the process of analyzing return on equity, deterministic factor models are used to give comparative assessment the main factors that influenced the change in return on equity (ROE).
In particular, such models form the basis of the factor analysis of the DuPont company
The third component of the concept of “performance” is indicators of profitability and profitability.
According to the “Profit and Loss Statement” (form No. 2), it is possible to analyze the dynamics of profitability of sales, net profitability of the reporting period, as well as the influence of factors on changes in these indicators.
Return on sales (RP) is the ratio of the amount of profit from sales to the volume of products sold:
R P = (P P / V) * 100% (24)
From this factor model it follows that the profitability of sales is influenced by the same factors that influence the profit from sales. To determine how each factor affected the profitability of sales, it is necessary to carry out the following calculations.
1. Impact of changes in sales revenue on Рп:
DR P (B) = (((B1 - C0 - KP0 - UR0) / B1) -
((B0 - C0 - KP0 - UR0) / B0))) * 100% (25)
where B1 and B0 are reporting and basic revenue;
C1 and C2 - reporting and basic cost;
KR1 and KR0 - reporting and basic business expenses;
UR1 and UR0 - administrative expenses in the reporting and base periods.
DR P (V) = (((9595 - 8587 - 1226 - 0) / 9595) - ((9736 - 8587 - 1226 - 0) / 9736))) * 100% = - 2.27% - (- 0, 79%) = - 1.48%
2. Impact of changes in cost of sales on Рп:
DR P (S) = (((B1 - C1 - KP0 - UR0) / B1) -
((B1 - C0 - KP0 - UR0) / B1))) * 100% (26)
DR P (C) = (((9595 - 8210 - 1226 - 0) / 9595) - ((9595 - 8587 - 1226 - 0) / 9595))) * 100% = 1.66% - (-2.27 %) = + 3.93%
3. Impact of changes in business expenses on Рп:
DR P (KR) = (((B1 - C1 - KR1 - UR0) / B1) -
((B1 - C1 - KR0 - UR0) / B1))) * 100% (27)
DR P (KR) = (((9595 - 8210 - 1348 - 0) / 9595) - ((9595 - 8210 - 1226 - 0) / 9595))) * 100% = 0.39% - 1.66% = - 1.27%
The total influence of factors is:
DR P = ± DR B ± DR S ± DR KR ± DR UR (28)
DR P = - 1.48 +3.93 - 1.27 = 1.18%
The profitability of sales for the reporting period increased compared to the profitability of the previous period by 1.18%.
The organization's net profitability is calculated as the ratio of the amount of net profit to sales revenue:
RH = (RH / V) * 100% (29)
P1 H = (-138/9595) * 100% = - 1.44%
P0 H = (-217/9736) * 100% = - 2.23%
In addition to the analyzed profitability ratios, a distinction is made between the profitability of total capital, equity, production assets, and financial investments.
To evaluate the performance of the organization as a whole and analyze its strengths and weak sides, it is necessary to synthesize indicators, and in such a way as to identify cause-and-effect relationships that influence financial position and its components. Let's consider the following indicators characterizing the profitability of the enterprise:
1. Return on sales - shows how much profit is per unit of products sold:
Р1 = (sales profit / sales revenue) * 100% (30)
P1 = (p.050 (form No. 2) / p.010 (form No. 2)) * 100% (31)
Р1 = (37/9595) * 100% = 0.39% (for the reporting period)
P1 = (-77/9736) * 100% = - 0.79% (for the base period)
2. Accounting profitability from ordinary activities - shows the level of profit after tax:
P2 = (profit from ordinary activities / sales revenue) * 100% (32)
P2 = (p.160 (form No. 2) / p.010 (form No. 2)) * 100% (33)
P2 = (-138/9595) * 100% = - 1.4% (for the reporting period)
P2 = (-217/9736) * 100% = - 2.23% (for the base period)
3. Net profitability - shows how much net profit is per unit of revenue:
P3 = (net profit / sales revenue) * 100% (34)
P3 = (p. 190 (form No. 2) / p. 010 (form No. 2)) * 100% (35)
Р3 = (-138/9595) * 100% = - 1.4% (for the reporting period)
Р3 = (-217/9736) * 100% = - 2.23% (for the base period)
4. Economic profitability - shows the efficiency of using all the organization’s property:
P4 = (net profit / average cost assets) * 100% (36)
P4 = (p. 190 (form No. 2) / p. 300 (form No. 1)) * 100% (37)
Р4 = (-138/2827) * 100% = - 4.88% (for the reporting period)
Р4 = (-217/3770.5) * 100% = - 5.76% (for the base period)
5. Return on equity - shows the efficiency of using equity capital. The dynamics of P5 affects the quote level.
P5 = (net profit / average cost of equity capital) * 100% (38)
P5 = (p. 190 (form No. 2) / p. 490 (form No. 1)) * 100% (39)
Р5 = (-138/1749) * 100% = - 7.89% (for the reporting period)
Р5 = (-217/1902) * 100% = - 11.41% (for the base period)
6. Gross profitability - shows how much gross profit is per unit of revenue:
P6 = (gross profit / sales revenue) * 100% (40)
P6 = (p.029 (form No. 2) / p.010 (form No. 2)) * 100% (41)
Р6 = (1385/9595) * 100% = 14.43% (for the reporting period)
P6 = (1149/9736) * 100% = 11.8% (for the base period)
7. Cost-effectiveness - shows how much profit from the sale is per 1 thousand rubles. costs
P7 = (profit from sales / costs of production and sales of products) * 100% (42)
P7 = (p.050 (form No. 2) / (p.020 + p.030 + p.040)) * 100% (43)
Р7 = (37/ (8210 + 1348)) * 100% = 0.39% (for the reporting period)
Р7 = (-77/ (8587 + 1226)) * 100% = - 0.78% (for the base period)
Gross profitability (P6) reflects the amount of gross profit in each ruble of products sold. This figure for the reporting year increased by 2.63%, therefore, the gross profit per unit of revenue of the organization increased.
Of particular interest for external assessment of the effectiveness of the financial and economic activities of an organization is the analysis of non-traditional profitability indicators such as cost-return (P7), which shows how much profit from sales falls on 1 ruble of costs. More informative is the analysis of return on assets (P4) and return on equity (P5).
One of the synthetic indicators economic activity the organization as a whole is economic profitability (P4), it is also commonly called return on assets.
According to the calculations, it is clear that the organization received a 1.4% loss per ruble from this type of activity during the reporting period. of its property, for the period last year the loss was 2.23% for this indicator. From formula P4 we can clearly see possible ways increasing economic profitability - ways to increase the profitability of capital.
The return on equity indicator (P5) allows us to establish the relationship between the amount of invested own resources and the amount of profit received from their use.
Sales profitability can be increased by raising prices or reducing costs. The organization's policy should be to increase the production and sale of those products (works, services), the need for which is determined by improving market conditions.
The company is very important stage in assessing financial condition. These indicators allow us to judge the effectiveness of activities. However, in order to draw any conclusions, simply calculating these indicators is not enough. After calculation, the indicators must be analyzed using one or another method. One of the most popular methods is factor analysis of the profitability of an enterprise, so that is what we will focus on.
As the name suggests, this type of analysis consists of determining the impact on the resulting indicator, in in this case- profitability, certain factors. A major contribution to the development of this method was made by DuPont, whose specialists developed special formulas that make it easy to analyze return on assets and equity. These formulas are based on the use of the absolute difference method, which is applied to slightly transformed mathematical models. Let us consider the transformations that need to be carried out in order to perform a factor analysis of profitability using these formulas.
Let's start with return on assets, which is determined by the ratio of net profit to the average value of these same assets for the period under review. Let's multiply the numerator and denominator of this formula by the revenue indicator. Now you can see that the resulting fraction can be represented as the product of two fractions, each of which is an economically significant indicator: and return on sales. Thus, we can conclude that it is this set of factors that affects return on assets.
In relation to the owner of the transformation, it is worth doing a little more. The calculation formula for this indicator must be multiplied and divided by revenue and asset indicators. After a row simple transformations it will be possible to conclude that the degree of efficiency in the use of the owner’s capital depends on the same factors that affect the profitability of assets (their turnover rate and return on sales), as well as on the indicator of financial dependence.
Factor analysis is performed in a slightly different way. The model can be transformed by revealing and detailing the profit indicator in the numerator and cost in the denominator. After this procedure, the chain substitution method can be applied to the resulting mathematical model. It cannot be used in this case, since the resulting mathematical model will be multiple.
Obviously, the ability to make a factor analysis of profitability depends on the availability of information about factors for several periods, at least two. It is most convenient to present the initial data, intermediate and final results in tables. Of course, if possible, it is worth using automation tools, that is, computers and special software. As a result of the analysis, it should be concluded which factors had the greatest positive and negative impact, and which factors can be neglected. Subsequent management decisions should help strengthen the positive influence and weaken the negative.
This type of analysis is not the only one to which profitability indicators are subjected. Much more often, the method of comparisons is used to analyze them. Comparisons can be made with the indicators of the same enterprise for previous periods in time), as well as with similar indicators of other companies (analysis in space) and with industry average levels.
Everyone knows that the main and immediate result of the activities of any commercial enterprise is profit, but it cannot always give a clear and complete picture of the efficiency and level of profitability entrepreneurial activity. Therefore, in order to characterize the work of an enterprise, not only the absolute amounts of profit are calculated as fully as possible, but also the relative indicators, such as the level of profitability.
Profitability acts not only as calculated value and a static indicator, but a criterion that gives a comprehensive assessment of the socio-economic position of the organization in the market. The amounts of profit received for different enterprises may be the same, but received in different conditions. Consequently, this determines the use of profitability indicators, because they assess the economic entity regardless of the size and nature of the activity.
Accounting views profitability as a two-component component:
profitability of business activities presented in the form of results from operating activities (in this case, profitability is influenced by the provisions of accounting policies);
potential profitability, which is represented by the income from ownership securities, long-term obligations and inventories.
An enterprise can be called profitable if the proceeds from the sale of products cover production costs and, in addition, generate the necessary amount of profit for the smooth operation of the organization. The distorting effect of inflation on profitability indicators is manifested to a much lesser extent than on profit indicators, because profitability shows the ratio of results to resources.
Therefore, profitability indicators characterize the formation of the amount of profit and income of the organization in the actual environment. They assess the financial results of the enterprise and, of course, its effectiveness in using funds to make a profit. Therefore, profitability analysis at an enterprise in modern conditions gains relevance. Relevance also ensures diversity in determining profitability, i.e. there is no uniform terminology and used various techniques its calculation.
When analyzing the profitability of sales, several types of profit can be considered to comprehensively assess the effectiveness of the results obtained. The ratio of gross profit to revenue shows the amount of proceeds from the sale of products that the organization can use to cover commercial and administrative expenses. If we take the ratio of profit from sales to revenue, then the output is “the purity of the analytical experiment,” i.e. this indicator is not affected by indicators such as other income and expenses. This indicator assesses the effectiveness of sales managementproducts. The ratio of profit before tax to revenue allows us to take into account the influence of other factors and identify the influence of tax. The “quality” of profits will also decrease, with the increasing influence of other expenses. The ratio of net profit to revenue is the final indicator in the system of profitability of sales indicators and reflects the influence of the entire set of income and expenses.
The enterprise under study is Diana K LLC, whose main activity is the production of cakes, pastries and cookies.
The Diana K company has long existed on the market of the Republic of Mari El, its products are known and in demand both within the republic and abroad.
To calculate the level of profitability of Diana K LLC, the values of profit, costs, revenue, assets and equity are required. In our case, sales profit will be used to calculate all profitability indicators. The choice of this indicator is determined by the need for comparability of calculations and generalization of the results obtained.
During the study various types profitability, it will be necessary to model profitability indicators based on factor dependencies and determine the influence of each factor on the result. This will make it possible to more thoroughly study the influence various factors on financial results, determine dependencies and development trends.
Any profitability indicators are a multiple model consisting of two factors and are presented in the following form -
F(x) = x/y. In this way this model expresses the ratio of profit to a quantitative indicator on which the amount of profit itself depends, in this case, the profit has a direct proportional dependence, and the indicator is inversely proportional.
When conducting a cost-benefit analysis, the following indicators will be considered:profitability of sales;return on assets;return on equity.
Each of the presented indicators characterizes in its own way financial condition organizations.
Since the area of research and analysis is financial results, let’s start the calculation with the indicator profitability of sales
. Return on sales is an indicator of the financial performance of an organization, showing how much profit the enterprise receives from one ruble received from the sale of products. Return on sales is considered an indicator of an enterprise's pricing policy and its ability to control costs.
We will conduct factor analysis of profitability using the following initial model:
where, - profitability of sales;
- revenue from sales;
– sales revenue.
Let's use the extension method and transform the original model, decomposing the profit from sales into its components:
where, is the cost of sales;
Business expenses;
Administrative expenses;
– production cost coefficient;
– commercial cost ratio;
Management cost ratio.
The third factor model of profitability of sales makes it possible to assess the impact on the performance indicator of two factors - price and cost per kilogram of confectionery products:
where, is the cost of 1 kg of products;
Price 1 kg of products;
– quantity of products sold.
To carry out factor analysis, we enter the calculated and initial data into Table 1.
Table 1 - Dynamics of profitability indicators from sales for 2010-2012.
| Index |
Years |
Absolute changes |
Growth rate |
||||||
|
2010 |
2011 |
2012 |
2011 to 2010 |
2012 to 2011 |
2012 to 2010 |
2011 to 2010 |
2012 to 2011 |
2012 to 2010 |
|
| thousand roubles. | |||||||||
| Sales revenue |
152842 |
181650 |
182512 |
28808 |
29670 |
118,85 |
100,47 |
119,41 |
|
| Cost price |
102085 |
122415 |
115408 |
20330 |
7007 |
13323 |
119,91 |
94,28 |
113,05 |
| Business expenses |
28457 |
39284 |
50281 |
10827 |
10997 |
21824 |
138,05 |
127,99 |
176,69 |
| Administrative expenses |
8161 |
11984 |
13328 |
3823 |
1344 |
5167 |
146,84 |
111,21 |
163,31 |
| Revenue from sales |
14139 |
7967 |
3495 |
6172 |
4472 |
10644 |
56,35 |
43,87 |
24,72 |
|
0,67 |
0,67 |
0,63 |
0,01 |
0,04 |
0,04 |
100,00 |
93,83 |
94,67 |
|
|
0,19 |
0,22 |
0,28 |
0,03 |
0,06 |
0,09 |
116,15 |
127,39 |
147,97 |
|
|
0,05 |
0,07 |
0,07 |
0,01 |
0,01 |
0,02 |
123,56 |
100,00 |
136,76 |
|
| Return on sales, % |
9,25 |
4,39 |
1,91 |
4,86 |
2,47 |
7,34 |
47,41 |
43,66 |
20,70 |
| per unit products, rub. | |||||||||
| Price |
125,09 |
143,43 |
161,90 |
18,34 |
18,47 |
36,81 |
114,66 |
112,88 |
129,43 |
| Cost price |
113,52 |
137,14 |
158,00 |
23,62 |
20,86 |
44,48 |
120,81 |
115,21 |
139,18 |
The data presented in Table 1 indicate that revenue from the sale of confectionery products of Diana K LLC increased in 2011 compared to 2010 by 1.2 times or 19%, but did not have the desired effect on the dynamics of sales profit. Compared to 2011, growth in 2012 was insignificant, by only 0.5%, i.e. revenue in 2011-2012 was almost on the same level. On this aspect also indicates the revenue growth rate for the period 2012-2012. – only 119%.
The cost of products sold changed over the period 2010-2012. in waves, it reached its peak in 2011, and in 2012 it decreased by 1.1% compared to 2011.
At the same time, there was a significant increase in commercial and administrative expenses, the increase of which from 2012 compared to 2012 amounted to 77% and 63%, respectively. The growth of these types of expenses significantly affected sales profits and, as a consequence, the profitability of sales.
The initial indicator in the profitability formula - profit from sales - has also undergone significant changes. The value of this indicator only decreased year after year, as evidenced by the growth rate - 56% - 2011, 44% - 2012 and 25% - for the period.
When interpreting the initial indicators, it is also necessary to analyze the calculated values. Production cost coefficient in 2010-2011 remained at the same level, and even decreased in 2012. This trend indicates an increase in efficiency in production due to a decrease in resource intensity. The selling expense ratio has been changing, increasing from year to year, which indicates an increase in distribution costs - an increase of 48% over the period 2010-2012. This dynamics is associated with the entry of Diana K LLC into new markets. The management cost ratio increased in 2011 and remained at this level in 2012, despite this it was not only significantly lower than other ratios, but also did not exceed the threshold values (threshold value 0.1-0.15).
When studying the dynamics of the cost and price of a kilogram of confectionery products, it is clearly seen that the cost is growing at a faster rate than the price.
The detailed influence of factors after analysis is presented in Table 2.
Table 2 - Assessment of the influence of factors on the performance indicator - return on sales
|
Effect of factor, % |
|||
|
2011 (comparing '11 with '10) |
2012 . (comparing '12 with '11) |
For the period 2010 -2012. |
|
|
first model – decomposition into factors |
|||
| Sales proceeds | |||
| Cost price | |||
| Business expenses | |||
| Administrative expenses | |||
| Cumulative Impact | |||
|
the second model is the use of coefficients |
|||
| Manufacturing Cost Ratio | |||
| Business expense ratio | |||
| Management cost ratio | |||
| Cumulative Impact | |||
|
the third model is the use of specific indicators |
|||
| Price (per kg) | |||
| Cost (per kg) | |||
| Cumulative Impact | |||
The first two models presented in the table are similar, because a single initial model was used, but decomposed in different ways. As can be seen from the table, they give the same only the final result - the total impact. You can also notice that the first model describes in more detail the factors influencing the return on sales indicator.
According to the first model, profitability was influenced by an increase in sales volumes - in 2011, the size of the influence was 14.39%, and in 2012, the cost was such a factor - the influence was 3.84%. That. lower costs caused an increase in profitability in 2012. In addition, in 2012, sales growth had a beneficial effect on profitability, although not significant – 0.45%. As we can see, the influence of administrative expenses has weakened, while commercial expenses have increased somewhat. The influence of factors on the studied indicator for the period 2010-2012. had the following trend - growth in sales volumes had a positive effect on profitability, while other factors only contributed to its decline, which is explained by its descending line on the graph.
The second model generates the following results: for 2011, all cost coefficients had a negative value. The sales cost ratio had the strongest influence, and the production cost ratio had the least influence. In 2012, the situation changed a little - the production cost ratio not only became positive, but also began to have a significant impact on the growth of the performance indicator. However, its growth could not overcome the negative impact of other ratios, so there was not an increase in the profitability of sales, but a decrease in it. Values for the period 2010-2012. similar to the first method.
According to the third model, the following results emerged. For all periods studied, profitability of sales decreased due to rising costs, and the positive impact of the price per 1 kg. products did not cover the negative impact.
In order to have a comprehensive understanding of financial results the activity of the enterprise and the sustainability of profit in the future, just the return on sales indicator is not enough. Since return on sales shows whether the enterprise’s activities are profitable or unprofitable, but does not answer the question of how profitable investments in this enterprise are. To answer this question, return on assets and return on equity are calculated.
Return on assets
enterprises is one of the indicators of the effectiveness of economic activity. This indicator characterizes the return on use of all assets of the organization. It reflects the ability of an enterprise to generate profit without taking into account the structure of its capital (financial leverage), as well as the quality of asset management. Return on assets shows the profit that the company received from 1 ruble aimed at the formation of assets.
The measure of profitability of the enterprise in the period under study is expressed by this effective indicator. In other words, return on assets is a kind of indicator of the efficiency and profitability of an organization, without the impact of the volume of borrowings.
Modeling of the return on assets indicator is carried out using the following initial formula:
where, is total assets.
The first model looks like this:
where, is the asset turnover ratio.
The second model of return on assets comprehensively reflects the degree of efficiency in the use of costs, reserves and current assets:
where, - current assets;
Average annual reserves;
– full cost;
Revenue per 1 ruble full cost;
– the share of current assets in the formation of assets;
Share of inventories in the formation of current assets;
– inventory turnover.
As can be seen from the data in Table 3 below, sales revenue in 2011 increased significantly compared to 2010, and in 2012 the growth was not so significant. Compared to revenue, sales profit, on the contrary, decreased consistently over three years, i.e. the total decrease was 10,644 tr. The growth rate of total cost over three years was the highest among the presented initial indicators and amounted to 129%. Reserves grew throughout 2010-2011, and in 2012 they sharply decreased by 1.5 times compared to 2011. The value of the enterprise's assets increased in absolute terms, but the growth rate of the indicator relative to the previous year was insufficient, i.e. in 2011 the growth was 117%, and in 2012 only 103%. In general, during the period assets increased by 7,579 rubles, which is 121% growth. Against their background, the indicator of average annual current assets looked a little better - growth over three years amounted to 127%.
The results of the calculations allow us to tell us that sales revenue exceeds cost, although only slightly. In the dynamics of this indicator, there is a gradual decrease; this trend also indicates a decrease in the amount of profit. The dynamics of the indicator of the share of inventories in the formation of current assets suggests that it remained unchanged for two years, and in 2012 there was a decrease of 1.6 times, which can be characterized as a positive thing, because because There is no freezing of working capital in inventories. The fourth indicator of our model is the inventory turnover ratio. Its change can be assessed as a positive moment in the efficiency of using working capital. The dynamics of this indicator speaks for itself - the growth over 3 years was 73%.
If we compare indicators of relative stability, then this indicator is the asset turnover ratio - assets make 4 complete turnovers per calendar year. Return on assets and sales indicators show a gradual decline, as evidenced by a growth rate of only 20%, which is a negative trend.
Table 3 – Analysis of the structure and dynamics of indicators that form return on assets
| Index |
Years |
Absolute changes |
Growth rate, % |
||||||
|
2010 |
2011 |
2012 |
2011 to 2010 |
2012 to 2011 |
2012 to 2010 |
2011 to 2010 |
2012 to 2011 |
2012 to 2010 |
|
| Initial data, thousand rubles. | |||||||||
| Revenue from sales |
14139,00 |
7967,00 |
3495,00 |
6172,00 |
4472,00 |
10644,00 |
56,35 |
43,87 |
24,72 |
| Sales revenue |
152842,00 |
181650,00 |
182512,00 |
28808,00 |
862,00 |
29670,00 |
118,85 |
100,47 |
119,41 |
| Full cost |
138703,00 |
173683,00 |
179017,00 |
34980,00 |
5334,00 |
40314,00 |
125,22 |
103,07 |
129,06 |
| Average annual reserves (including VAT) |
3312,00 |
3737,00 |
2466,00 |
425,00 |
1271,00 |
846,00 |
112,83 |
65,99 |
74,46 |
| Average cost of current assets |
29542,50 |
35313,00 |
37439,50 |
5770,50 |
2126,50 |
7897,00 |
119,53 |
106,02 |
126,73 |
| Average asset value |
36102,00 |
42229,00 |
43681,50 |
6127,00 |
1452,50 |
7579,50 |
116,97 |
103,44 |
120,99 |
| Calculation data | |||||||||
|
1,10 |
1,05 |
1,02 |
0,06 |
0,03 |
0,08 |
94,91 |
97,48 |
92,52 |
|
|
0,82 |
0,84 |
0,86 |
0,02 |
0,02 |
0,04 |
102,19 |
102,50 |
104,74 |
|
|
0,11 |
0,11 |
0,07 |
0,01 |
0,04 |
0,05 |
62,24 |
58,75 |
||
| Inventory turnover ratio, turnover |
41,88 |
46,48 |
72,59 |
4,60 |
26,12 |
30,72 |
110,98 |
156,19 |
173,34 |
| Asset turnover ratio, turnover |
4,23 |
4,30 |
4,18 |
0,07 |
0,12 |
0,06 |
101,60 |
97,13 |
98,69 |
| Return on sales, % |
9,25 |
4,39 |
1,91 |
4,86 |
2,47 |
7,34 |
47,41 |
43,66 |
20,70 |
| Return on assets, % |
39,16 |
18,87 |
8,00 |
20,30 |
10,87 |
31,16 |
48,17 |
42,41 |
20,43 |
In order to assess in more detail the impact of each factor separately on return on assets, they are summarized in Table 4.
Table 4 - Assessment of the influence of factors on the performance indicator - return on assets
|
Name of the influencing factor |
Effect of factor, % |
||
|
2011 (comparing '11 with '10) |
2012 . (comparing '12 with '11) |
For the period 2010 -2012. |
|
|
first model – expansion with the introduction of the sales revenue indicator |
|||
| Return on sales | |||
| Cumulative Impact | |||
|
second model – resource efficiency |
|||
| Revenue per 1 rub. production costs | |||
| Share of current assets in the formation of assets | |||
| Share of inventories in the formation of current assets | |||
| Inventory turnover ratio | |||
| Cumulative Impact | |||
According to the first model, the main factor was the return on sales indicator. The influence of the asset turnover ratio was an order of magnitude smaller and did not significantly change the result. However, it should be noted that asset turnover had a positive impact on return on assets only in 2011 compared to 2010.
Examining the results of the second model, we can say that in 2011 compared to 2010 decisive factor, which influenced the performance indicator was price - the share of revenue per 1 ruble of cost. As a result of his action, return on assets fell by 21.54%. The factor of the share of inventories in the formation of current assets also had a negative impact. The inventory turnover ratio of 1.87% had a not entirely significant, but still positive impact on return on assets. In 2012, the factor of the share of revenue per 1 ruble of cost continues to play a decisive role in the impact of the resulting indicator, even despite its reduction by 2 times. In 2012, compared to 2011, factors such as the share of inventories in the formation of current assets are increasing their influence - bad influence increased by 3 times, and asset turnover also had a positive impact of almost 3 times on the performance indicator. When considering the impact of indicators for the period, the price factor had a significant effect on the decrease in return on assets - 31.66%, and the factor - the share of inventories in the formation of current assets - had a less significant, but also negative impact. The influence of the remaining two factors is positive, but they cannot overcome the negative influence of the valuable factor.
Return on equity shows the effectiveness of capital invested in business. It is important for both the owner and the investor .
To calculate return on equity, we use a model developed by DuPont analysts:
where, is the coefficient of financial dependence;
Equity.
The identified factors summarize almost all aspects of the financial and economic activities of the organization: the first factor summarizes the statement of financial results; the second factor is the assets of the balance sheet, the third is the liabilities of the balance sheet, those. generalize its statics and dynamics.
Table 5 - Analysis of the structure and dynamics of indicators that form return on equity
| Index | Years |
Absolute changes |
Growth rate, % |
||||||
| 2010 | 2011 | 2012 | 2011 to 2010 | 2012 to 2011 | 2012 to 2010 | 2011 to 2010 | 2012 to 2011 | 2012 to 2010 | |
| Profit from sales, thousand rubles. |
14139 |
7967 |
3495 |
6172 |
4472 |
10644 |
56,35 |
43,87 |
24,72 |
| Average equity capital, thousand rubles. |
20179,00 |
19889,00 |
18590,00 |
290,00 |
1299,00 |
1589,00 |
98,56 |
93,47 |
92,13 |
| Asset turnover ratio |
4,23 |
4,30 |
4,18 |
0,07 |
0,12 |
0,06 |
101,60 |
97,13 |
98,69 |
|
1,79 |
2,12 |
2,35 |
0,33 |
0,23 |
0,56 |
118,68 |
110,67 |
131,34 |
|
| Return on sales, % |
9,25 |
4,39 |
1,91 |
4,86 |
2,47 |
7,34 |
47,41 |
43,66 |
20,70 |
| Return on equity, % |
70,07 |
40,06 |
18,80 |
30,01 |
21,26 |
51,27 |
57,17 |
46,93 |
26,83 |
The data presented in the table indicates that the return on equity is decreasing. This is due to the fact that the rate of decline in sales profits is higher than the rate of decline in equity capital throughout the period under review. The asset turnover ratio is insignificant, but decreases, remaining at the level of 4 turnovers per year.
The coefficient of financial dependence is increasing in dynamics, which indicates that the sala organization is more dependent on borrowed funds - a growth rate of 131% for the period 2010-2012.
Table 6 - Assessment of the influence of factors on the performance indicator - profitability equity
|
Name of the influencing factor |
Effect of factor, % |
||
|
2011 (comparing '11 with '10) |
2012 . (comparing '12 with '11) |
For the period 2010 -2012. |
|
| Return on sales | |||
| Asset turnover ratio | |||
| Financial dependency ratio | |||
| Cumulative Impact | |||
Return on equity in 2011 compared to 2010 is negatively affected by return on sales – 37%. The financial dependence ratio has a positive impact of 6.30% on the resulting indicator. The asset turnover ratio has a positive effect as a factor, but not significantly. In 2012, compared to 2011, the main role in the decrease in profitability is also played by the return on sales – 23%. This factor is joined by the asset turnover ratio, which in this period changed from “plus” to “minus”. As the enterprise’s dependence on borrowed funds increases, the impact of the financial dependence ratio decreases by almost 3.5 times and amounts to 1.81%. During the period, the resulting indicator was negatively impacted by return on sales and asset turnover ratio.
In conclusion, we will show the change in the main calculated indicators - profitability indicators for clarity in diagram 1.
Diagram 1 – Dynamics of profitability indicators for 2010-2012.
The chart shows that not a single profitability indicator shows growth. A negative trend in return on sales indicates a decrease in the effectiveness of core activities. A change in the profitability of total assets indicates an observed decrease in the efficiency of use of enterprise resources. Return on equity also decreased, therefore we can conclude that the return on invested capital has decreased.
Bibliography
- Savitskaya, G.V. Analysis of the economic activity of the enterprise / G.V. Savitskaya. – M.; Infra-M, 2008. – 512 p.
- Sheremet, A.D. Analysis and diagnostics of the financial and economic activities of the enterprise / A.D. Sheremet. – M.: Infra-M, 2009. – 367 p.
- Klimova, N.V. Assessment of the influence of factors on profitability indicators // Economic analysis: theory and practice. – 2011. – No. 20 (227). - With. 50-54.
All phenomena and processes of economic activity of enterprises are interconnected, interdependent and conditional. Each performance indicator depends on numerous and varied factors. The more detailed the influence of factors on the value of the performance indicator is studied, the more accurate the results of the analysis and assessment of the quality of work of enterprises. Hence, an important methodological issue in the analysis of economic activity is the study and measurement of the influence of factors on the value of the studied economic indicators. Without a deep and comprehensive study of factors, it is impossible to draw informed conclusions about the results of operations, identify production reserves, and justify plans and management decisions.
Factor analysis is understood as a methodology for a comprehensive and systematic study and measurement of the impact of factors on the value of performance indicators.
Distinguish following types factor analysis:
Deterministic factor analysis is a technique for studying the influence of factors whose connection with the performance indicator is functional in nature, i.e. when the resultant indicator is presented in the form of a product, quotient or algebraic sum of factors.
Stochastic analysis is a technique for studying factors whose connection with an effective indicator, unlike a functional one, is incomplete (correlation). If with a functional (complete) dependence with a change in the argument there is always a corresponding change in the function, then with a correlation connection a change in the argument can give several values of the increase in the function depending on the combination of other factors that determine this indicator.
Direct factor analysis: research is conducted in a deductive manner from the general to the specific.
Reverse factor analysis carries out the study of cause-and-effect relationships using the method of logical induction from particular, individual factors to general ones.
Single-stage is used to study factors of only one level without detailing them into their component parts.
A multi-stage breakdown of factors into their component elements is carried out in order to study their behavior.
Static is used when studying the influence of factors on performance indicators as of the corresponding date.
Dynamic is a technique for studying cause-and-effect relationships in dynamics.
Retrospective, which studies the reasons for the increase in performance indicators over past periods.
Perspective, which examines the behavior of factors and performance indicators in the future. .
The main objectives of factor analysis are the selection of factors that determine the performance indicators being studied, the classification and systematization of factors in order to provide an integrated and systematic approach to the study of their influence on the results of economic activity, determining the form of dependence between factors and the performance indicator, modeling the relationships between the performance and performance indicators. factor indicators, calculating the influence of factors and assessing the role of each of them in changing the value of the effective indicator, working with factor model(its practical use for managing economic processes).
The selection of factors for the analysis of a particular indicator is carried out on the basis of theoretical and practical knowledge acquired in this industry. In this case, they usually proceed from the principle: the larger the complex of factors studied, the more accurate the results of the analysis will be. At the same time, it is necessary to keep in mind that if this complex of factors is considered as a mechanical sum, without taking into account their interaction, without identifying the main, determining ones, then the conclusions may be erroneous. In the analysis of economic activity, an interconnected study of the influence of factors on the value of performance indicators is achieved through their systematization, which is one of the main methodological issues of this science.
An important methodological issue in factor analysis is determining the form of dependence between factors and performance indicators: functional or stochastic, direct or inverse, linear or curvilinear. Here we use theoretical and practical experience, as well as methods for comparing parallel and dynamic series, analytical groupings of initial information, graphical, etc.
Modeling of economic indicators (deterministic and stochastic) also represents a complex methodological problem in factor analysis, the solution of which requires special knowledge and practical skills in this industry. In this regard, this issue in this course a lot of attention is paid.
Foremost methodological aspect in the analysis of economic activity, the calculation of the influence of factors on the value of performance indicators, for which the analysis uses a whole arsenal of methods, the essence, purpose, scope of application of which and the calculation procedure are discussed in the following chapters.
The last stage of factor analysis practical use factor model for calculating reserves for the growth of an effective indicator, for planning and forecasting its value when the production situation changes.
The level of profitability of production activities (recoupment of costs), calculated for the entire enterprise, depends on three main factors of the first order: changes in the structure of products sold, their cost and average selling prices.
The factor model of this indicator has the form:
Calculation of the influence of first-order factors on changes in the level of profitability for the enterprise as a whole can be performed using the method of chain substitution.
R condition1 = ; (9)
R condition2 = ; (10)
R condition3 = ; (eleven)
General change in profitability:
R total = R 1 - R 0
Including due to:
R vрп = R condition1 - R 0
R vрп = R conv1 - R 0;
R beat = R condition2 - R condition1;
R c = R condition3 - R condition2;
R c = R 1 - R conv.3.
It is necessary to do a factor analysis of profitability for each type of product. Profitability level individual species products depends on changes in average selling prices and unit costs:
Rз i = = = = 1 (13)
Calculation of the influence of these factors on changes in the level of profitability using the chain substitution method:
Similar calculations are made for each type of commercial product, from which it is clear which types of products at the enterprise are more profitable, how the profitability plan has been fulfilled and what factors influenced this.
It is also necessary to study in more detail the reasons for changes in the average price level and, using the method of proportional division, calculate their impact on the level of profitability.
Then it is necessary to establish due to what factors the unit cost of production has changed and similarly determine their impact on the level of profitability. Such calculations are made for each type of commercial product, which makes it possible to more accurately assess the work of a business entity and more fully identify intra-farm reserves for profitability growth in the analyzed enterprise. A factor analysis of profitability of sales is also performed.
In an in-depth analysis, it is necessary to study the influence of second-level factors on which changes in average selling prices, production costs and non-operating results depend.
Thus, we can conclude that all phenomena and processes of economic activity of enterprises are interconnected. Each performance indicator depends on numerous factors. Factor analysis, a detailed study of the influence of factors on the value of a performance indicator, provides accurate analysis results, an assessment of the quality of enterprise work, conclusions about the results of operations, production reserves, plans and management decisions. Types of factor analysis are identified: deterministic factor analysis, stochastic analysis, direct factor analysis, inverse factor analysis, dynamic, retrospective, prospective. The main tasks of factor analysis are the selection of factors, classification and systematization of factors, determination of the form of dependence between factors and an effective indicator, modeling of relationships between effective and factor indicators, calculation and assessment of the influence of factors, and work with a factor model. Calculation of the influence of factors for the entire enterprise can be performed using the method of chain substitution; calculations are also made for each type of product.