# Advice 1: How to calculate the profitability of the store

First of all, you should put aside hackneyed phrase about social responsibility, company mission, and other high-sounding things that are remotely related directly to the business. The vast majority of cases, the main purpose of existence of the business is profit to its owners. In the economic analysis of this expression hides the indicator of profitability.
Instruction
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Traditionally, profitability is defined as the share of profits in revenue. Accordingly, in order to calculate the profitability of the store, you need to determine three things: the revenue for a certain period, all expenses during the same period (including the cost of goods sold) and received in absolute terms a profit.
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Probably with a calculation of the revenue problems will not arise. Usually the main currency of the store is over the counter. Less likely to accept cashless payment from customers in most major stores that cater to the b2b sector). If you use both payment methods, a sum of revenue on them.
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Make a table in which, line by line, write down all related activity costs. To calculate ROI you must calculate all the costs method "on shipment". This method means that all costs undertaken in the period are evenly distributed to all incoming in a period of months. For example, in the current quarter, the store had repaired computer equipment for 3000 rubles. For a correct account should include the cost of repairs to each of the 3 months for 1000.
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To calculate the profitability of the store, fold all expenses for the selected period and subtract their sum from the proceeds. The total value is the profit derived from the operation of the store in a given period of time. Dividing the absolute value of profits in revenues and multiplying the result by 100%, you will receive a return.

# Advice 2: How to calculate profit and profitability

Profit and profitability are the most important economic categories and indicators of the effectiveness of economic activity. Profit it is the excess of revenues over expenditures (in monetary terms), and that is what the profit shows, it is advantageous if the conduct of any activities or not.
Instruction
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So, first we will understand what profit and profitability. Profit is the monetary expression of the final financial result of enterprises and the profitability is a relative measure that reflects the same financial result.
One of the main theories explaining the emergence of profit is the theory of surplus value developed by K. Marx. Marx says that surplus value is transformed into net profit after a sales record is created at the stage of production of the specific commodity "labor force". Surplus value is the value that is created by hired labor above the cost of his labor (i.e. salaries) and appropriated by the capitalist.
However, the profit is not equal to surplus value, because part of it goes to pay salaries to workers and to cover other costs: interest on the loan, taxes, rents. So the profit is called the transformed form of surplus value.
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Distinguish between gross (total) and net profit (the amount remaining after the payment of costs and payment of required taxes and deductions).
Gross profit is calculated as follows:

Gross profit = Net revenue from sales of goods and services — Cost of goods sold or services
Net profit (RAS) is calculated as follows:

Net profit = gross profit — the Sum of production costs — Sum of taxes, fines and penalties, interest on loans.
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Profitability is a relative measure of economic efficiency (%). A ratio of profitability calculated as the ratio of profits to assets (resources), its formative.
There are many indicators of profitability: return on fixed assets, return on assets, return on equity, return on sales, profitability, etc. let us Consider the last two indicators.
The return on sales shows a share of the profits earned in each currency and calculated:

Profit margin = Net profit / sales
Profitability of production shows, how many monetary units of net profit the company receives from each monetary unit spent on production and sales. Calculated:

Profitability = Profit from sales / Amount of expenses on manufacture and production realisation.
Note
Enterprise analysis should be based not only on the study of the profitability indicators, the analysis must be complete and structured.
Check the financial status of the enterprise do not better than one person, but several, so as one man may make mistakes.

# Advice 3: How to calculate the profitability of primary activities

Using the calculation of several financial indicators based on the analysis of balance sheet data you can partially assess the financial condition of the company. On the other hand, using the calculations presented below, any company can assess the financial condition of partial private contractors, which involves the delivery of products.
Instruction
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One of the key business indicators, which shows the success and efficiency of any company is profitability of its core activities. The profitability ratios characterize the profitability of the company. Along with other factors of financial analysis, profitability indicators are calculated based on financial statement data. These include the balance sheet (form №1), profit and loss statement (form №2) and a number of other documents. However, for calculating the profitability of core activities is enough of these two.
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The coefficient of profitability of primary activity (OD) shows the amount of net profit received by the company from 1 ruble spent on production. When efficiently organized business process, this indicator should over time grow. To calculate it, divide the profit from the implementation of statement of profit and loss in the value of the cost of production. For convenience, use the formula bound to the form №2:

The profitability ratio of OD = profit from sales / costs of production.
The profitability ratio of OD = p. 050 / (line 020 + line 030 + line 040).
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Another important indicator of the financial condition of the company is the ratio of return on sales. In contrast to the ratio of the OD it shows the amount of net profit, which brings the company for every 1 ruble of revenues. The increase of this ratio reflects the increase in the profitability of the core activities and means to improve the financial condition of the company. To calculate the ratio of return on sales, use the formula (based on the form № 2):

The ratio of return on sales = profit from sales / revenue from sales.
The profitability ratio of sales = p. 050. 010.
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Along with the profitability indicators in the financial analysis are applied, and other factors. For example, the efficiency ratios that reflect efficiency of use company's own funds. These include turnover ratios (an indicator of efficiency of use of all the available enterprise assets), inventory turnover (rate of implementation of inventory in days) and other indicators.
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