How to calculate profitability

To evaluate the effectiveness of production carried out the analysis using the received financial result. As financial performance are profitability: sales, assets, production and private capital.

You will need

• F. 2 financial statements statement of profit and loss
• Form 1 "Accounting balance sheet"

Instruction

1. Return on sales — the ratio that indicates the share of profits in each earned ruble. Calculate the ROI by dividing the profit from sales, works and services or by dividing net profit by the amount of the proceeds.
2. Return on assets — a relative measure of performance. Find this rate by dividing the net profit for the period total assets for the period.
3. Profitability — a ratio that shows how many rubles of profit the enterprise has from each ruble spent on the production and sales. To determine it, divide the profit from the sale in the amount of the cost of production.
4. ROE is a relative measure of efficiency, showing the effect on investment, in terms of accounting profits. To find it, divide the net profit by the equity of the enterprise.