How to calculate the level of profitability
Profitability it is important to distinguish between revenue. If the revenue merely reflects the aggregate turnover of the company (it is calculated in rubles), the profit margin and the efficiency of its activities (expressed in %). Cost effective you can call any business, which brought in the end of the reporting period profit. If a loss, profitability is negative.
In trading activities the profitability of the product is calculated as the ratio of net profit to cost.
Profitability of goods (works, services) = net income from sales (services)/cost*100%.For example, the company is engaged in sales of women's clothing. She bought goods in the amount of RUB 12 million, sold for 28 million. At the same time, administrative and selling expenses amounted to 5 million. Thus, the profit amounted to 11 million rubles, and the profitability of goods - 11/12*100=91%.
Profitability of sales (services) = net profit/ revenue*100%.
Service profitability is calculated in a similar way, in this case the cost is not taken into account the purchase price of the goods, and, for example, purchase costs of tools, labour, etc.
In evaluating the profitability of sales is accounted net profit and turnover. If to take for a basis the example of a clothing store, it will be equal = 11/28*100%= 39.2%. With the help of this formula, it is desirable to evaluate each product group separately. For example, the profitability of sales of t-shirts, sneakers, bags, etc. It will highlight the range of the most effective positions, as well as those on improving the profitability of which is necessary to work.
Acceptable level of profitability by sector
A single acceptable level of profitability does not exist, it varies depending on the industry. So, for example in the field of mining of minerals is considered to be normal profit margin above 50% and in the field of woodworking is not up to 1%.
Researchers estimate that the average ROI is about 12%. However, by itself this value is almost meaningless if not to compare it with similar indicators of competitors or average industry values.
Please note that if the level of profitability of your business deviates significantly from the industry average (10%), it increases the likelihood of a tax audit.
According to RIA-rating, the average profitability of sales by industry in 2013 were:
- mining - 26.3%;
- chemical industry - 18.3%;
- textile manufacturing - 2.8%;
- agriculture: 11.7%;
- construction - 6.7%;
- wholesale and retail trade - 8.2%;
- financial activities - 0.4% (2012, Rosstat);
- health care - 6.5% (2012, Rosstat).
In the services sector is considered an acceptable margin of 15-20%.
If you have come to the conclusion that it was seriously lagging behind its competitors in terms of efficiency of doing business, you need to work on improving profitability. This task can be achieved due to the competent marketing policy aimed at increasing the customer base and the growth of turnover of goods, and at the expense of more lucrative offers from suppliers (or subcontractors).
Advice 2: What work is considered female
Women differ from men not only by their physical features, but also some psychological nuances. If men are inclined to leadership, which allows them to be good leaders and lawyers, women are more inherent perseverance and the ability to focus on details.
Women usually gravitate to a collective work, whereas men tend to work more individually. This reflects the structure of the psyche, and the difference in the upbringing of girls and boys. If the first one is more inferior then the second from childhood to shift responsibility. This may explain why girls tend to find in collaborative work support, and the guys want to be the brains of this team.
There are purely female professions in which men are very little. This is cashiers, kindergarten teachers, stewards (flight attendants).
The work of the cashier associated with the assiduity and ability to concentrate on multiple things at once, that is not too interested in men. The profession of teacher is a real challenge for the mind. And the representatives of the stronger sex more skillfully cope with the management of Boeing and the leadership of a large company than with a Horde of restless kids.
Men can't be caregivers for one simple reason – they have almost no communication skills with young children. Babies often do mothers and grandmothers and fathers and grandfathers are connected to the process of education when the child goes to school.
The flight attendant profession requires resistance to stress and ability to find common language with different people. Therefore, it is more interesting to women. Men also like to feel like a captain, a leader and not staff. For the same reason, nurses, secretaries, agents and sales consultants are more often female.
It is clear that women, by and large, associated with the service sector. Therefore, manicurists, beauticians and hairdressers also are mostly girls. Although, as in any profession, there are always exceptions.
In addition, girls often choose a profession related to training. School teachers, nurses, librarians, Tutors – the vast majority of women.
Many girls may feel that women's jobs are very boring. This is not so. Time does not stand still and today there are many creative jobs for the fairer sex.
One of these jobs is tourism Manager. It gives a good income and also allows you to constantly learn something new. In addition, the managers have a fairly wide social circle, so there's always opportunity to find new friends and fans.
Many girls are attracted to the work of the designer. This is a great way of expression. Yes, the earnings yields are quite good. Of course, if a woman has tenacity and talent.
Another unusual profession for a woman – a specialist in etiquette. Suitable for girls who dream to get into high society and love to be the center of attention.