Instruction

1

Find the net profit of the company for the period under review. For example, it is equal to 900 thousand rubles. All necessary data can be obtained in the accounting Department or look in the financial statements of the organization.

2

Request data on the volume of sales of the company. You should get the figure for the same time period, otherwise the ratio calculation will have no practical meaning. For example, the volume of sales equal to 156 million rubles. Be sure to Express this figure in the same units as the figure obtained at the 1st step. The result is 156000 thousand rubles.

3

Calculate the return on sales. To do this, divide net profit by sales. Divide 900 thousand rubles to 156,000 thousand rubles received 0,005769. This is the profitability of the company during the period under review.

4

Express the return on sales in percent. To do this, multiply the resulting ratio by 100%. 0,005769 multiply by 100, we obtain of 0.58%.

Note

Similarly, it is possible to calculate coefficients of liquidity, capitalization, activity and profitability of any organization. Keep in mind that in practice specialists use tens and hundreds of different financial ratios. Do not let knock yourself confused, mostly all of them are derived from the coefficients of the above categories are calculated similarly.

Useful advice

Practice to calculate margins for any other data from the report on profits and losses of the enterprise. You can also be based on data from the balance sheet of the company.