Analysis of the financial results of the enterprise (using the example of Forward-Stroy LLC). Analysis of the financial results of the organization's activities
1. The meaning, objectives and sources of analysis of the financial results of an enterprise
2. Analysis of the level and dynamics of financial results
3. Factor analysis of profit
4. Analysis and evaluation of the use of profits
5. Factor analysis of the profitability of a commercial organization
6. Reserves for increasing financial results
The financial condition of an organization is expressed in the ratio of the structures of its assets and liabilities, i.e. the ability of the enterprise to finance its current and future activities. The most important indicator of financial condition is the financial results of the company.
The meaning, objectives and sources of analysis of the financial results of an enterprise
The amount of profit received reflects the final financial results of any enterprise. In a market economy, obtaining the maximum possible amount of profit is the goal of any production, since profit is the main source of replenishment of savings funds, the social sphere, investments, replenishment of working capital, etc. Society is interested in the profitable operation of enterprises, because It is profit that ensures payments to the budget of many taxes.
Profit is part of the net income created by an enterprise in the production process and realized in the sphere of circulation. Only after the sale of products does net income take the form of profit. Profit is the difference between sales proceeds (after payment of VAT, excise taxes and other deductions from revenue to budgetary and extra-budgetary funds) and the full cost of products sold. The amount of profit is influenced not only by the volume of products produced and sold, but also by their quality, assortment, cost level, penalties, fines and penalties both paid and received, various deductions for losses, etc.
One of the main tasks of the analysis is to identify reserves for increasing the amount of profit received and the level of profitability as the most important indicators of the efficiency of the enterprise. During the analysis, they evaluate the implementation of the profit plan based on the results of work for each quarter and for the year as a whole, determine the positive and negative factors that influenced the amount of profit received, the reasons for their occurrence, and develop measures to eliminate the identified shortcomings.
It is important to note that to analyze the financial results of an enterprise, they use data from the economic and social development plan, balance sheet, “Report on Financial Results”, as well as the results of analysis of other aspects of the enterprise’s activities.
Analysis of the level and dynamics of financial results
A general assessment of the financial results of an enterprise is achieved on the basis of such performance indicators as profit and profitability.
Analysis of the formation and use of profit involves the use of the following profit indicators: gross profit, profit from sales, profit before tax; net profit.
The basis for the procedure for generating profit is a single model adopted for all organizations, regardless of their form of ownership (Figure 1).
The financial condition of an organization (FSP) is expressed in the ratio of the structures of its assets and liabilities, i.e. the organization's ability to finance its activities. Based on the study of the balance, external users can make decisions about the feasibility and conditions of doing business with this enterprise as a partner.
Figure 1 - Scheme of formation of the organization’s net profit
Net profit is that part of the profit that remains at the disposal of the enterprise after paying income tax and other similar payments.
Profit from product sales for the enterprise as a whole depends on four factors of the first level of subordination:
- volume of product sales (VRP);
- its structure (UDi);
- cost (Зi);
- level of average selling prices (CI).
Analysis of financial results obtained from other income and expenses comes down mainly to studying the dynamics and causes of losses and profits received for each specific case. Losses from the payment of fines arise due to violation of contracts with other enterprises. During the analysis, the reasons for unfulfilled obligations are established, and measures are taken to prevent mistakes.
Factor analysis of profit
Profit consists of two parts: real and potential. Real profit is the difference between revenue from sales of products and the costs of their production. The potential component is related to other activities of the enterprise and is formed from assets whose value changes over time (income from securities, from leasing property, etc.). The amount of profit and its dynamics are influenced by various factors (Figure 2).
Figure 2 - Main factors influencing profit
External factors are practically outside the sphere of influence of the enterprise: natural conditions; socio-economic; level of development of foreign economic relations; market conditions and so on. Internal factors are dependent on the enterprise.
Under the influence of these factors, profit from the ordinary activities of the enterprise is formed. It takes into account profits from all types of activities and reflects their economic efficiency.
When studying the dynamics of profit from sales, it is necessary to take into account inflationary factors of changes in its amount. It is important to note that for this, revenue must be adjusted for the weighted average increase in prices for the enterprise’s products on average in the industry, and the cost of goods, products (works, services) must be reduced by their increase as a result of an increase in prices for consumed resources over the analyzed period.
The volume of product sales can have a positive and negative impact on the amount of profit. Increasing sales of profitable products leads to increased profits. If the product is unprofitable, then with an increase in sales volume, the amount of profit decreases.
The structure of commercial products can have both a positive and negative impact on the amount of profit. If the share of more profitable types of products in the total volume of their sales increases, then the amount of profit will increase, and vice versa, with an increase in the share of low-profit or unprofitable products, the total amount of profit will decrease.
Product cost and profit are inversely proportional. If the price level increases, the amount of profit increases and vice versa.
At the end of the analysis, specific measures are developed aimed at preventing and reducing damages and losses from these types of activities.
4. Analysis and evaluation of the use of profits
In accordance with the current regulations, the profit received by the organization is distributed in the following order.
First of all, income tax (federal and local) is paid into the budget from it. It is important to note that in order to calculate taxable profit, the profit of the reporting year is reduced by the amount:
- income (dividends, interest) received on shares, bonds and other securities owned by the shareholder enterprise and certifying the right of the owner of the securities to participate in the distribution of profits of the issuing enterprise, as well as income in the form of interest received by owners of government securities of the Russian Federation and constituent entities of the Russian Federation and securities of local governments;
- income from equity participation in the activities of other enterprises, except for income received outside the Russian Federation;
- income from casinos, other gambling houses (places) and other gambling businesses, video salons, video screening, from rental of audio media. Video recordings, game and other programs and recordings on them, determined in the amount of the difference between revenue and expenses (including labor costs) from these services;
- profits from intermediary operations and transactions, if the profit tax rate for this type of activity, credited to the budgets of the constituent entities of the Russian Federation, differs from the profit tax rate for other types of activity;
- profit from the sale of produced agricultural and agricultural products, as well as from the sale of own agricultural products produced and processed in a given organization, except for the profit of industrial-type agricultural organizations;
- benefits provided in accordance with current legislation.
After paying the tax, the company remains with net profit. As a result, the organization remains at its disposal the net (undistributed) profit (loss) of the reporting period. The directions for using net profit are determined by the enterprise independently. The main areas for using profits are as follows: contributions to reserve capital, formation of accumulation and consumption funds, diversion for charitable purposes, etc.
Factor analysis of profitability of a commercial organization
Profitability indicators characterize the final results of business more fully than profit. They are used to evaluate the activities of an enterprise and as a tool in investment policy and pricing.
Profitability indicators can be combined into several groups:
1) indicators characterizing the profitability (recoupment) of production costs and investment projects;
2) indicators characterizing the profitability of sales;
3) indicators characterizing the profitability of capital and its parts.
All these indicators can be calculated based on sales profit and net profit.
The profitability of production activities (recoupment of costs) is calculated by the ratio of net profit to the amount of costs for products sold or produced. It shows how much profit the company makes from each ruble spent on the production and sale of products.
Return on sales is calculated by dividing the profit from sales by the amount of revenue received. Characterizes the efficiency of entrepreneurial activity: how much profit does the enterprise have per ruble of sales.
The profitability of products is calculated by dividing the profit from sales by the total cost of these products.
Profitability (profitability) of capital is calculated by the ratio of net profit to the average annual value of all invested capital or its individual components: own, borrowed, fixed, working capital, etc.
The level of profitability of production activities, calculated for the entire enterprise (R), depends on three main first-order factors:
- changes in the structure of products sold,
- its cost
- average selling prices.
Then you should do a factor analysis of profitability for each type of product. The level of profitability of certain types of products depends on changes in average selling prices and unit costs.
Factor analysis of the return on invested capital is carried out similarly: the total amount of profit depends on the volume of products sold, its structure, cost, average price level and financial results from other activities.
The average annual amount of fixed and working capital depends on sales volume and the rate of capital turnover. The faster the capital turns over in an enterprise, the less it is required to ensure the planned sales volume. Thus, sales volume in itself does not affect the level of profitability, because with its change, the amount of profit and the amount of fixed and working capital increase or decrease proportionally, provided that other factors remain unchanged.
Reserves for increasing financial results
Reserves are understood as unused and constantly emerging opportunities for growth and improvement of production, its final results (increasing output and sales of products, reducing its cost, increasing profits). Production reserves are characterized by the gap between the achieved state of use of production resources and their possible fullest use through the elimination of losses and irrational costs, and the introduction of advances in science and technology.
Reserves for increasing the amount of profit are determined for each type of commodity product. Their main sources are an increase in the sales volume of products, a reduction in their cost, an increase in the quality of commercial products, their sale in more profitable markets, and so on (Figure 3).
Reserves for profit growth at an enterprise can be calculated separately for each type of the most profitable product, for example, grain. One of the most realistic ways to find reserves for increasing financial results is to increase the number of profitable products. So, for example, you can strive to increase the amount of crop production produced by increasing yields to the level of the best year. It is important to note that for this it is necessary to consider possible ways to improve agrotechnical measures, comply with deadlines and technologies, etc.
One of the main factors for increasing the financial performance of production is the volume of production. The level of its cost, the amount of profit, the level of profitability, the financial position of the enterprise, its solvency and other economic indicators depend on it.
Figure 3 - Reserves for increasing the amount of profit.
INTRODUCTION……………………………………………………………...4
1 THEORETICAL FRAMEWORK FOR ANALYSIS OF FINANCIAL RESULTS OF AN ENTERPRISE…………………………………………………………….……...6
1.1 Concept, essence and goals of analysis and diagnostics of financial results…………………………………………………………………………………...6
1.2 Methods used in analyzing financial results…………………………………………………………………………………..8
1.3 Main indicators of the analysis of the financial results of the enterprise……………………………………………………………………………………11
1.4 Economic essence and profitability indicators………….14
2 COMPREHENSIVE ANALYSIS OF FINANCIAL RESULTS OF ACTIVITIES OF LLC “RTBO”…………………………………………………………….16
2.1 General characteristics of RTBO LLC……………………………….16
2.2. Analysis of enterprise profit……………………………………17
2.3 Factor analysis of the profitability of RTBO LLC…….………………………………………………………………………………..22
3 ANALYSIS OF PRODUCTION AND ECONOMIC ACTIVITIES OF THE ENTERPRISE……………………………………………………………26
3.1 Analysis of production and sales of products…………………….26
3.2 Analysis of the efficiency of use of enterprise resources.......28
3.3 Analysis of the cost of manufactured products....................................38
3.4 Profitability and cost-benefit analysis……………………………40
4 INDIVIDUAL TASK……………………………………………………….44
CONCLUSION………………………………………………………...52
REFERENCES…………………………………………………………..54
APPENDIX A - Initial data for the enterprise's APHD
APPENDICES B – G – Accounting statements of RTBO LLC for 2007 – 2009.
INTRODUCTION
The amount of profit and the level of profitability are the main indicators characterizing the financial results of an enterprise. The higher the level of profitability, the more efficiently the enterprise operates and the more stable its financial condition. Therefore, finding reserves for increasing profits and profitability is one of the main tasks in any area of business.
An important role in ensuring the comprehensive intensification of production and increasing its efficiency belongs to profit. Obtaining it is a prerequisite for the functioning of the enterprise.
As a source of industrial and social development, profit occupies a leading place in ensuring the self-financing of enterprises and associations, the capabilities of which are largely determined by the extent to which income exceeds expenses.
Profit is an objective economic category of commodity-money relations. The formation of a regulated goods market is accompanied by an increase in the role of profit in the system of indicators of the economic characteristics of enterprises. In addition, profit is the real tax base and, as a rule, the source of tax payment.
Profit occupies one of the central places in the general system of cost instruments and economic management levers. This is expressed in the fact that finance, credit, prices, costs and other levers are directly or indirectly related to profit.
Improving financial relations involves involving free financial resources of enterprises and the population into economic circulation and increasing the efficiency of their use.
Thus, profit is an integral element of market relations. It plays an important role in generating budget revenues and creating markets for means of production, consumer goods, etc.
The study of the socio-economic essence of profit is of paramount importance for considering the sources of its formation, developing a distribution system, forming the main activities of enterprises, and solving social problems. All these areas are considered in the work.
The purpose of this work is to analyze the financial and economic activities of RTBO LLC. Consideration of specific areas of enterprise accounting, with a detailed analysis of financial results, profit analysis, and profitability of the enterprise.
Main tasks coursework are:
Study of the theoretical foundations of FHR analysis;
Conducting a detailed analysis of the financial results of the enterprise based on financial statements;
Carrying out an analysis of the production and economic activities of the enterprise based on the received individual assignment;
Assessing the relationship between indicators of an enterprise's production activity using statistical methods of analysis.
Object of study is the Limited Liability Company "RTBO". Based on the financial statements of this enterprise, a comprehensive analysis of economic activity was carried out.
1.1 Concept, essence and goals of analysis and diagnostics of financial results
Analysis (translated from the Greek “analyzis” - to divide, dismember) is a way of understanding objects and environmental phenomena, based on dividing the whole into its component parts and studying them in all the variety of connections and dependencies. Thus, analysis consists of determining the essence of a process or phenomenon based on the study of all its component parts and identifying the patterns of its development.
Analysis of the financial and economic activity (AFAC) of an enterprise is an important part, and in fact, the basis for decision-making at the microeconomic level, i.e. at the level of business entities.
Analysis and diagnostics of the financial and economic activities of an enterprise - a comprehensive study of the production and economic activities of an enterprise with the aim of objectively assessing its results and its further development and improvement.
The main goal of financial analysis is to obtain a small number of key (the most informative) parameters that give an objective and accurate picture of the financial condition of the organization, its profits and losses, changes in the structure of assets and liabilities, in settlements with debtors and creditors, while the analyst and manager (manager ) may be of interest both in the current financial state of the organization and its projection for the near or longer term, i.e. expected parameters of financial condition.
The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis. The main factor, ultimately, is the volume and quality of the source information. It should be borne in mind that the periodic accounting or financial statements of an organization are only “raw information” prepared during the implementation of accounting procedures at the organization.
The result of the analysis for the internal user is a set of management decisions - a combination of various measures aimed at optimizing the state of the organization, which is revised under the influence of changes in the macro- and microeconomic environment.
The analysis and its results must meet certain requirements. Basic principles:
Compliance of the results and methods of analysis with state economic, social, economic, international policies and legislation;
Scientific nature of the research;
Complexity of analysis;
Systematic approach to the study of objects of analysis;
The analysis must be objective, specific and accurate, i.e. be based on reliable, verified information and realistically reflect the results of the enterprise’s activities;
The analysis must be effective and influence the economic activities of the enterprise;
The analysis must be prompt and carried out according to plan;
A wide range of workers should take part in the analysis and familiarize themselves with its results to improve production efficiency.
2.1. General characteristics of RTBO LLC
RTBO LLC is a legal entity. The Company acquired the rights and obligations of a legal entity from the date of registration. The company has an independent balance sheet, a seal with its name, and bank accounts. The Company operates independently on the basis of full economic accounting and self-financing, and is fully responsible for the results of its activities and fulfillment of obligations to customers, the budget and banks.
The goals of the company's activities are to meet public needs in the field of supply, repair, installation and dismantling of refrigeration, laundry, food equipment, as well as air conditioning systems for enterprises in Orel and the region.
Legal address: 302025, Orel, Moskovskoe highway, 137
The company is an official dealer of the largest Russian manufacturers of prefabricated refrigerated warehouses and refrigerated chambers; electric water heaters, such as OJSC Vyazemsky Machine-Building Plant, LLC PK Prodmash (trademark "SEVER"). Supplies refrigeration chambers of any size and capacity, carries out installation and commissioning of any complexity, warranty and post-warranty service and repairs.
The company's credo is effective customer service based on supporting mutually beneficial business partnerships. We understand partnership as cooperation where the more you give, the more you get back, we always try to combine efforts and capabilities to create solutions that are most suitable for achieving a particular goal, trying to strengthen long-term relationships with the client.
2.2. Profit analysis of RTBO LLC
When analyzing the financial results of an enterprise, you can start with an analysis of business activity. The main qualitative and quantitative criteria for the business activity of an enterprise are: the breadth of markets for products, including the availability of export supplies, the reputation of the enterprise, the degree of implementation of the plan for the main indicators of economic activity, ensuring the specified growth rates, the level of efficiency in the use of resources (capital), and the sustainability of economic growth.
Table 1. Results of economic activities
Revenue and profit from sales are taken from Form No. 2.
We find the total average annual assets as half of their amount at the beginning and end of the year:
CAc 2007 = (109+600)/2 = 354.5
CAc 2008 = (600+12304)/2 = 6452
CAc 2009 = (12304+15187)/2 = 13746
Revenue growth rate 2008/2007 = 23713/1233*100% = 1923%
Revenue growth rate 2009/2008 = 38332/23713*100% = 162%
Revenue growth rate 2009/2007 = 38332/1233*100% = 3109%
The growth rate of profit and total assets is determined similarly.
The business activity of an enterprise can be characterized by various financial indicators, the main ones of which are the volume of sales of products (works, services), profit, and the value of the enterprise's assets (advanced capital).
The dynamics of these indicators can be assessed by comparing the rates of their changes.
The optimal ratio is the following, based on their relationship:
where are, respectively, the rate of change in profit from sales, revenue from sales, and the amount of assets (capital).
In 2007, the above ratio was fulfilled
TP >TV >TA
In 2008, the above ratio was not met
TP<ТВ <ТА
In 2009, the above ratio was partially fulfilled
TP >TV<ТА.
That is, only in the first period was the “golden rule” fulfilled. In 2008, the rate of profit growth was lower than the rate of revenue growth, which indicates an insufficient reduction in distribution costs. The growth rate of sales revenue is less than the growth rate of assets, which means that the enterprise's resources are not used effectively. In 2009, the rule was not followed only for revenue and assets, which means we can conclude that the enterprise’s resources were inefficiently used.
Business activity can also be characterized using indicators of asset turnover, fixed and working capital and their elements. The most important among these indicators are the ratios of asset turnover, capital productivity of fixed assets and turnover of working capital.
Asset turnover ratio
Working capital turnover ratio
Table 2 - Indicators of efficiency in the use of capital and business activity
We will take the data for calculation from Table 1.
Koa 2007 = 1233/354.5 = 3.48
Koa 2008 = 23713/6452 = 3.68
Koa 2009 = 38332/13746 = 2.79
The asset turnover ratio (Ka) characterizes the “performance” of the property, that is, the relative ability of the assets to generate returns in the form of sales proceeds. At the enterprise under consideration, it characterizes the sufficient efficiency of the company’s use of all available resources, regardless of the sources of their attraction. The enterprise's asset turnover is characterized by some growth in 2008 and a relative slowdown in 2009 compared to the previous period. A decrease in the indicator characterizes a decrease in the efficiency of the enterprise's use of all available resources, regardless of the sources of their formation.
Working capital in the formula for the working capital turnover ratio represents the average annual balance of working capital, i.e. half the amount of working capital at the beginning and end of the year.
Ob.avg. 2007 = (24+532)/2 = 278
Ob.avg. 2008 = (532+12117)/2 = 6325
Ob.avg. 2009 = (12117+14856)/2 = 13487
Cob.os. = 1233/278 = 4.44
Cob.os. = 23713/6325 = 3.75
Cob.os. = 38332/13487 = 2.84
The working capital turnover ratio has a similar meaning, only in relation to working capital. There is a negative trend towards a decrease in the coefficient, that is, a decrease in the efficiency of the enterprise’s use of working capital.
Capital productivity
(3),
where is Fsr. – the average annual cost of fixed assets, which is defined as the amount of fixed assets at the beginning and finally of the year divided in half.
Fsr. 2007 = (85+68)/2 = 76.5
Fsr. 2008 = (68+187)/2 = 127.5
Fsr. 2009 = (187+331)/2 = 259
Fo 2007 = 1233/76.5 = 16.12
Fo 2008 = 23713/127.5 = 186
Fo 2009 = 38332/259 = 148
We will analyze the level and dynamics of financial results. The data is presented in Table 3.
Table 3 - Analysis of the structure of sales revenue and the level of financial results of RTBO LLC
Indicators | Amount, thousand rubles | Abs. change 2009/2008 | Rel. change 2009/2008, % | Abs. change 2009/2007 | Rel. change 2009/2007, % | ||
2007 | 2008 | 2009 | |||||
1. Revenue from the sale of goods and services | 1233 | 23713 | 38332 | 14619 | 161,6 | 37099 | 3108,8 |
2. Cost of goods and services sold | 986 | 14887 | 28310 | 13423 | 190,2 | 27324 | 2871,2 |
3. Selling and administrative expenses | 197 | 6884 | 7774 | 890 | 112,9 | 7577 | 3946,2 |
4. Profit, loss from sales | 50 | 1942 | 2248 | 306 | 115,7 | 2198 | 4496 |
5. Profit (loss) from financial and economic activities | 48 | 1213 | 1387 | 174 | 114,3 | 1339 | 2889,6 |
6. Income tax | 11 | 301 | 411 | 110 | 136,5 | 400 | 3736,4 |
7. Retained earnings (loss) of the reporting period (net profit) loss) | 37 | 912 | 976 | 64 | 107 | 939 | 2637,8 |
Thus, we can conclude that the main indicators of financial results over the past three years have tended to increase. Revenue in 2009 compared to 2007 increased by 37,099 thousand rubles, in percentage terms by 3,108.8%, which is a positive moment in the activities of this enterprise, because The volume of profit directly depends on the increase in revenue levels. However, there are also negative changes: sales profit is growing more slowly than sales revenue, which indicates a relative increase in production costs. Costs in 2009 are increasing accordingly. by 7577 thousand rubles. in relation to 2009
It should be noted that during the current period there is an increase in commercial and administrative expenses; in 2009 the growth rate was 112.9%
For the period 2007-2008. there is a sharp increase in net profit - by 875 thousand rubles, in 2009 profits are also growing.
2.3 Factor analysis of profitability
To assess the turnover of fixed assets, the capital productivity indicator is used. Capital productivity of fixed assets is the number of products sold per 1 ruble of fixed assets. RTBO LLC has a fairly high capital productivity. This is due to the fact that the company has few fixed assets. In the last period, capital productivity decreased, that is, revenue is growing at an insufficient pace compared to the growth of current and non-current assets.
The efficiency of using a company's assets can be assessed by return on assets (RA).
(4)
To calculate the indicator, we divide the net profit from line 170 of the income statement by the average annual total assets from Table 5.
Ra 2007 = 7/354.5 = 0.10
Ra 2008 = 912/6452 = 0.14
Ra 2009 = 976/13746 = 0.07
As you can see, in 2008 the return on assets increased, and in 2009 it halved. To analyze the factors that determine the value of this indicator, it should be presented in expanded form (Dupont formula):
Let's conduct a factor analysis of the influence of return on sales (the first factor) and asset turnover (the second factor) on return on assets.
Table 4 - Data for factor analysis of return on assets.
Sales 2007 = 37/1233 = 0.03
R pr. 2008 = 912/23713 = 0.04
R pr. 2009 = 976/38332 = 0.03
Asset turnover was calculated in Table 6.
Let's calculate the increase from 2008 to 2007:
DRA (Ppr) = DPpr. * Ob.act. 2007 = 0.01*3.48 = 0.03
DPA (Rev. act.) = DRev. act * Rpr. 2008 = 0.2*0.04 = 0.01
Balance of factors 0.03+0.01=0.04
That is, we can conclude that in 2008 there was an increase in return on assets to a greater extent due to an increase in return on sales, while the increase in the asset turnover ratio had a lesser effect.
DRA (Ppr) = DPpr. * Ob.act. 2008 = - 0.01*3.68 = -0.04
DPA (Rev. act.) = DRev. act * Rpr. 2009 = -0.89*0.03 = -.003
Balance of factors -0.04+(-0.03) = -0.07
That is, the decrease in return on assets was largely influenced by the decrease in return on sales, but the decrease in the asset turnover ratio also played a role.
The efficiency of using equity capital is assessed using the return on equity indicator (Rs.s.).
(6)
Own capital is calculated as the average annual value:
SK 2007 = (7+135)/2 = 71
SK 2008 = (135+1445)/2 = 790
SK 2009 = (1445+1784)/2 = 1614.5
Let's calculate the return on equity:
RSS 2007 = 37/71 = 0.52
RSS 2008 = 912/790 = 1.15
RSS 2009 = 976/1614.5 = 0.60
The factors that determine the value and dynamics of this indicator are identified using another DuPont formula, which gives a detailed representation of the return on equity:
That is, the factors influencing the change in return on equity will be return on sales (the first multiplier), asset turnover (the second multiplier) and the equity multiplier.
The equity multiplier is equal to the ratio of average annual assets to average annual equity capital.
Moscow time 2007 = 534.5/71 = 4.99
Moscow time 2008 = 6452/790 = 8.17
Moscow time 2009 = 13746/1614.5 = 8.51
Let's calculate the increase from 2008 to 2007 (due to rounding of indicators to the second tenth, the values are not accurate, but the exact calculation was verified using Excel):
DPsk.(Ppr) = DPpr. * Act.2007*Msk2007 = 0.01*3.48*4.99 = 0.17
DРsk(Ob.act) = Rpr.2008*DOb.act.*Msk2007 = 0.04*0.2*4.99 = 0.04
DRsk (Moscow time) = Rpr.2008*Rev.act2008*DMsk. = 0.04*3.68*3.18 = 0.42
Factor balance 0.17+0.04+0.42 = 0.63
The increase in return on equity in 2007 compared to 2008 was most influenced by the equity multiplier, less influenced by the increase in return on sales and a very slight increase in the turnover of current assets.
Let's calculate the increase from 2009 to 2008:
DPsk.(Ppr) = DPpr. * Ob.act.2008*Msk2008 = -0.01*3.68*8.17 = -0.38
DРsk(Ob.act) = Rpr.2009*DOb.act.*Msk2008 = 0.03*(-0.89)*8.17 = -0.20
DRsk(Msk) = Rpr.2009*Rev.act2009*DMsk. = 0.03*2.79*0.34 = 0.03
Factor balance(-0.38)+(-0.20)+0.03=-0.55
Return on sales had the greatest negative impact on the decrease in return on equity, a decrease in the asset turnover ratio also had a negative impact, and the growth of the equity multiplier had a positive effect, but could not overcome the effects of negative factors.
Based on the entire analysis, the following conclusions can be drawn. LLC "RTBO" is at the stage of formation of the enterprise. The company is quite financially stable and has its own working capital. To improve the financial condition of the enterprise, the following measures can be proposed. It is necessary to expand the sales market, not limited only to the Oryol region. Expansion of the sales market should lead to an increase in sales revenue. The enterprise should implement a budgeting system for planning income and expenses, planning cash flows and analyzing the cost of goods sold, as well as a system for managing receivables and payables. In addition, analysis of financial and economic activities should be carried out regularly, in order to identify possible problems, and not from time to time.
3 ANALYSIS OF PRODUCTION AND ECONOMIC ACTIVITIES OF THE ENTERPRISE
Based on the data in Table 3, analyze production and economic activities in the following main areas:
Production and sales of products;
Efficiency of use of enterprise resources (fixed assets, working capital, material resources, labor);
Cost of manufactured products;
Profit and profitability.
The initial data of the enterprise's activities at comparable prices are presented in Appendix A.
3.1 Analysis of production and sales of products
Analysis of enterprise activity begins with a study of production volumes and its growth rates. The main objectives of analyzing the volume of production and sales of products are:
Assessment of the dynamics of the main indicators of volume, structure and quality
products;
Determining the influence of factors on changes in the values of these indicators;
Identification of reserves for increasing production and sales of products;
Development of measures for the development of on-farm reserves.
The main indicators of production volume are gross, marketable, sold and net products (Table 12).
Gross output - This is the cost of all products produced and work performed, including work in progress and on-farm turnover. We calculate gross output as the difference between the volume of production and internal turnover.
Commodity production differs from gross production in that it does not include the remains of work in progress and intra-economic turnover and is expressed in current selling prices (excluding VAT).
We take the value of products sold from Table 7 (revenue from sales of products).
Net production is calculated as the difference between marketable products and the cost of raw materials, purchased semi-finished products and fuel and energy costs.
Table 5 – Main types of products of the enterprise
In addition, it is necessary to assess the implementation of the production and sales plan:
Table 6 - Analysis of the implementation of the plan for the production and sale of products by the enterprise for 2008.
Analysis data indicate that the actual volume of production is 12.9% less than planned. Products sold in 2008 was 1959 thousand rubles. less than planned, which is a negative factor.
Rhythmic work is the main condition for the timely release and sale of products. Rhythm means uniform production of products in accordance with the schedule in the volume and assortment that are provided for by the plan.
To assess rhythmicity, the rhythmicity coefficient is used. It is determined by the ratio of the actual (VP0) (but not higher than the planned target) production output to the planned output (VP1):
, ( 17)
.
The resulting value shows that actual production output is 12% lower than planned.
Based on the calculations made, we can conclude that the actual volume of production was less than planned. The difference was 13%. As a result, products were sold in 2008. was 1959 thousand rubles. less than planned. The reduction in production and sales volumes is a negative trend.
3.2 Analysis of the efficiency of using enterprise resources
Analysis of fixed assets
Fixed assets are one of the most important factors in the efficiency of any production. The objectives of the analysis are to determine the provision of the enterprise and its structural divisions with fixed assets, the level of their use, study the degree of use of the production capacity of the enterprise and equipment and identify reserves for increasing the efficiency of use of fixed assets.
To summarize the intensity and efficiency of use of fixed assets, the following indicators are calculated:
1. capital profitability (the ratio of profit to the average annual cost of fixed assets);
2. capital productivity of fixed production assets (the ratio of the cost of manufactured products to the average annual cost of fixed production assets);
3. capital productivity of the active part of OPF (the ratio of the cost of manufactured products to the average annual cost of the active part of OPF);
4. capital intensity (the ratio of the average annual cost of open investment funds to the cost of manufactured products for the reporting period).
The indicator of the total capital-labor ratio is calculated by the ratio of the average annual cost of fixed assets to the average number of workers.
Table 7 - Analysis of the use of fixed assets of the enterprise
Index | Meaning | ||||||
2007 | 2008 | From plan | From last year | ||||
Abs. change | Rel. unit, % | Abs. change | Rel. unit,% | ||||
Plan | Fact | ||||||
Gross output, thousand rubles. | 16810 | 20407 | 17740 | -2667 | -13 | 930 | 5,5 |
1749 | 3906 | 3021 | -885 | -22,6 | 1272 | 72,7 | |
Average annual cost of fixed assets, thousand rubles. | 13079 | 15240 | 13568 | -1672 | -11 | 489 | 3,7 |
share of the active part of the OS, % | 58 | 60 | 61 | 1 | 1,7 | 3 | 5,2 |
Average annual cost of the active part of the open pension fund, thousand rubles. | 7585,8 | 9144 | 8276,5 | -867,5 | -9,5 | 690,7 | 9,1 |
Average number of staff members, people: | 550 | 552 | 450 | -102 | -18,5 | -100 | -18,2 |
Equity return | 0,13 | 0,26 | 0,22 | -0,4 | -15,4 | 0,9 | 69,2 |
Capital productivity of OPF, rub./rub. | 1,28 | 1,34 | 1,3 | -0,4 | -3 | 0,02 | 1,6 |
Capital productivity of the active part of the general public fund, rub./rub. | 2,2 | 2,2 | 2,1 | -0,1 | -4,5 | -0,1 | -4,5 |
Capital intensity, rub./rub. | 0,78 | 0,75 | 0,76 | 0,01 | 1,33 | -0,02 | -2,56 |
Capital-labor ratio, rub./person. | 23,8 | 27,6 | 30,1 | 2,5 | 9 | 6,3 | 26,5 |
The capital productivity of general public funds during the study period increased slightly - by only 1.6%, but did not reach the planned value of 1.3 rubles / ruble. However, a slight increase in this indicator in any case indicates a slight increase in production output. At the same time, the capital productivity of the active part of the open pension fund decreased by 2008. by 4.5%.
The change in capital intensity over the two years under study is almost imperceptible: in 2008. the value of this indicator turned out to be equal to 0.76 rubles/ruble, which is 1.33% higher than the planned capital intensity.
The most general indicator of the efficiency of using fixed assets is capital profitability. Its level depends not only on capital productivity (), but also on product profitability (). The relationship between these indicators can be represented as a formula:
, (8)
The profitability of product output can be calculated as follows:
, (9)
Table 8 - Analysis of product profitability and capital return
Index | Meaning | Actual value deviation | |||||
2007 | 2008 | From plan | From last year | ||||
Abs. change | Rel. unit,% | Abs. change | Rel. unit,% | ||||
Plan | Fact | ||||||
Gross output, thousand rubles. | 16810 | 20407 | 17740 | 2875 | 11,27 | 6989,2 | 32,67 |
Result from sales (profit, loss), thousand rubles. | 1749 | 3906 | 3021 | 3077,4 | 13,87 | 9344,4 | 58,7 |
Cost of products sold, thousand rubles. | 10758 | 12540 | 12768 | 228 | 1,8 | 2010 | 18,7 |
Capital productivity of OPF, rub./rub. | 1,28 | 1,34 | 1,3 | -0,4 | -3 | 0,02 | 1,6 |
Product profitability, % | 16,3 | 31,1 | 23,7 | -7,4 | -23,8 | 7,4 | 45,51 |
Capital return, % | 20,9 | 41,7 | 30,9 | - 10,8 | -25,9 | 10 | 47,71 |
Based on the calculations made, we can conclude that the actual profitability of fixed assets is lower than planned by 10.8%; however, the value of this indicator by the end of 2008 was compared to the previous year increased by 10%.
Let's consider changes in profitability due to the following factors:
Capital productivity of OPF:
∆Ropf = ∆FO * Rvpl = (1.3 – 1.34) * 31.1= - 1.24%;
Product profitability:
∆Ropf = FOfact * ∆Rvp = 1.3 * (23.7 – 31.1) = -9.6%.
In addition, there is a relationship between output and capital productivity. It can be represented as the following formula:
, (10)
Let us carry out a factor analysis of the influence on the volume of production of various factors:
VP0= OS0. FO0 = 15240 * 1.34 = 20421.6 (thousand rubles);
VP1 = OS1 *FO0= 13568 * 1.34 = 18181.1 (thousand rubles);
VP2 = OS1 * ФО1 = 13568 * 1.3 = 17638.4 (thousand rubles).
Change in product output due to:
Changes in capital productivity:
∆VP(FO) = 17638.4 – 18181.1 = -542.7 thousand rubles.
Changes in the average annual value of fixed assets:
∆VP(OS) = 18181.1 – 20421.6 = -2240.5 thousand rubles.
Factor analysis showed that a change in planned capital productivity to actual results in a decrease in output by 542.7 thousand rubles. A change in the value of fixed assets also leads to a significant decrease in the amount of output - by 2240.5 thousand rubles.
Analysis of the use of working capital
The financial position of an enterprise is directly dependent on the state of working capital, therefore enterprises are interested in organizing the most rational movement and use of working capital.
The efficiency of using working capital is characterized by a system of economic indicators, primarily the turnover of working capital.
Working capital turnover refers to the duration of the complete circulation of funds from the moment of acquisition of working capital (purchase of raw materials, supplies, etc.) to the release and sale of finished products. The circulation of working capital is completed by crediting the proceeds to the company's account.
where is the volume of products sold;
OBC – volume of working capital.
Also, another indicator characterizing the efficiency of working capital loading is the load factor. It is the inverse of the turnover ratio.
In addition, the duration of the turnover is calculated, i.e. time during which working capital completes a full cycle:
, ( 12)
where T is the duration of the billing period.
Table 9 – Analysis of the use of working capital
Index | Meaning | Actual value deviation | |||||
2007 | 2008 | From plan | From last year | ||||
Abs. change | Rel. unit,% | Abs. change | Rel. unit,% | ||||
Plan | Fact | ||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Volume of products sold, thousand rubles. | 12507 | 17748 | 15789 | -1959 | -11 | 3282 | 26,2 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Amount of working capital, thousand rubles. | 11275 | 13795 | 17786 | 3991 | 28,9 | 6511 | 57,7 |
Turnover ratio, number of revolutions | 1,11 | 1,29 | 0,89 | -0,4 | -31,01 | -0,22 | -19,82 |
Load factor, share | 0,9 | 0,78 | 1,12 | 0,34 | 43,59 | 0,22 | 24,44 |
Duration of turnover, days | 329 | 284 | 412 | 128 | 45,07 | 83 | 25,23 |
Turnover ratio at the end of 2008 amounted to 0.89, which is 31% less than last year’s value. A decrease in this ratio indicates the ineffective activity of the enterprise; in addition, working capital does not make even one turnover per period, which means that fewer production cycles are completed. The load factor increases accordingly.
Analysis of material resources
Analysis of the use of standards and costs of materials and other resources is one of the main issues in production analysis.
To characterize the efficiency of use of material resources, a system of general and specific indicators is used.
General indicators include profit per ruble of material costs, material productivity, material intensity, and the share of material costs in the cost of production.
Material productivity is determined by dividing the cost of manufactured products by the amount of material costs. The material yield value must be greater than 1.
Product material intensity is the ratio of the amount of material costs to the cost of manufactured products. The standard value of the coefficient is less than 1.
The share of material costs in the cost of production is calculated by the ratio of the amount of material costs to the total cost of manufactured products. Production is considered material-intensive if the value of this indicator exceeds 50%.
Particular indicators of material intensity are used to characterize the efficiency of using certain types of material resources (raw material intensity, metal intensity, fuel intensity, energy intensity, etc.), as well as to characterize the level of material intensity of individual products.
Let's present all of the above general indicators in the form of table 10:
Table 10 - Analysis of the use of material resources
Index | Meaning | Actual value deviation | |||||
2007 | 2008 | From plan | From last year | ||||
Abs. change | Rel. unit,% | Abs. change | Rel. unit,% | ||||
Plan | Fact | ||||||
Gross output, thousand rubles. | 16810 | 20407 | 17740 | 2875 | 11,27 | 6989,2 | 32,67 |
10087 | 11227 | 9445 | -1782 | -15,9 | -642 | -6,4 | |
Total cost of production, thousand rubles. | 15950 | 19295 | 16420 | -2879 | -14,9 | 470 | 2,9 |
Result from sales (profit, loss), thousand rubles. | 1749 | 3906 | 3021 | 3077,4 | 13,87 | 9344,4 | 58,7 |
Profit per ruble of material costs, rub. | 0,17 | 0,35 | 0,32 | - 0,03 | -8,6 | 0,15 | 88,24 |
Material productivity, rub./rub. | 1,67 | 1,82 | 1,88 | 0,06 | 3,3 | 0,21 | 12,57 |
Material consumption, rub./rub. | 0,6 | 0,55 | 0,53 | - 0,02 | - 3,64 | - 0,07 | - 11,67 |
Share of material costs in production costs, % | 63 | 58 | 57,5 | - 0,5 | -0,86 | -5,5 | -8,7 |
Material output by the end of 2008 increased by 12.57% and amounted to 1.88 rubles/rub. This means that for every ruble invested in material costs, there are 1.88 rubles. manufactured products. Material consumption during the entire study period does not exceed one, which is the norm and indicates the efficient use of resources. It should be noted that there has been a tendency towards a decrease in material consumption: in 2008. its value is less than planned by 3.64%. The share of material costs exceeds 50%, which is a sign that the enterprise’s production is material-intensive and its activities are successful.
The factor model of material intensity can be represented as follows:
Let us determine the influence of material costs and product output on the value of material intensity:
ME0= MZpl / VPpl = 0.55 (RUB/RUB);
ME1 = MZfact / VPpl = 0.46(RUB/RUB);
ME2 = MZfact / VPfact = 0.53(RUB/RUB);
Change in material consumption due to:
Product release:
∆MEvp = 0.53 – 0.46 = 0.07 (RUB/RUB);
Material costs:
∆MEmz = 0.46 – 0.55 = - 0.09 (RUB/RUB).
Thus, we can conclude that a change in product output increases material intensity by 0.07 rubles/ruble, while a change in material costs, on the contrary, reduces it by 0.09 rubles/ruble.
Analysis of the use of labor resources
A sufficient supply of enterprises with the necessary labor resources, their rational use, and a high level of labor productivity are of great importance for increasing production volumes and increasing production efficiency.
Analysis of labor indicators is one of the main sections of enterprise performance analysis. PPP workers are divided into workers and employees. The employees include managers, specialists and other employees. Workers are divided into main and auxiliary. To analyze the use of labor resources, it is necessary to consider the personnel structure and estimate the share of workers in the total number of employees.
, ( 14)
where Rр – number of workers;
Rpp – number of industrial production personnel.
Labor productivity is found according to formula 9:
Table 11 – Analysis of the use of labor resources
The average annual output per worker during the study period increased slightly, however, by the end of 2008. the value of this indicator exceeded the plan by 11.76%, which undoubtedly indicates an increase in the efficiency of the use of labor resources. Based on the available data, we can calculate the lead coefficient as the ratio of the growth rate of labor productivity to the growth rate of wages:
Cop = 1.1875/1.4347 = 0.828
The resulting value does not reach 1; this means that the growth of workers' wages outpaces the growth of labor productivity, which is a negative trend and indicates the inefficiency of the organization.
Table 12 – Analysis of profitability of industrial production personnel
Index | 2007 | 2008 | Absolute deviation | ||
plan | fact | from plan | from 2007 | ||
Profit from sales of products, thousand rubles. | 1749 | 3906 | 3021 | -885 | 1272 |
Gross production volume, thousand rubles. | 18678 | 22752 | 20120 | ||
Revenue from product sales, thousand rubles. | 12507 | 17748 | 15789 | 3282 | |
Average number of employees, people. | 550 | 552 | 450 | -98 | -100 |
Return on sales, % | 13,98 | 22 | 19,13 | -2,87 | 5,15 |
Share of sales in the cost of manufactured products | 0,67 | 0,78 | 0,78 | 0,11 | |
Average annual production per employee, thousand rubles. | 33,96 | 41,22 | 47,71 | 6,49 | 13,75 |
Profit per employee, thousand rubles. | 3,18 | 7 | 6,71 | - 0,29 | 3,53 |
Let us determine the influence on the profitability of sales of such factors as profit from product sales and revenue from product sales:
R0= 3906 / 17748 * 100% = 22%;
R1 = 3021 / 17748 * 100% = 17%;
R2 = 3021 / 20120 * 100% = 15%.
Change in sales profitability due to:
Revenues from product sales:
∆Rreal. = 15 - 17 = - 2%;
Profits from sales of products
∆RPreal. = 17 - 22 = 5%.
Based on the calculations made, we can conclude that the actual value of sales revenue reduces the profitability of sales by 2%. A decrease in actual sales profit also reduces the profitability of sales by 5%.
3.3 Analysis of the cost of manufactured products
Analysis of the cost of products, works and services is of great importance. It allows you to identify trends in changes in this indicator, the implementation of the plan at its level, determine the influence of factors on its growth and, on this basis, assess the enterprise’s work in using opportunities and establish reserves for reducing production costs.
Product cost analysis usually begins with a study of the full cost of production as a whole and by main cost elements.
Let's consider the cost structure of the production cost of gross output. Let's present the costs of the enterprise in the form of table 13:
Table 13 – Cost structure of production costs
Cost elements | Amount, thousand rubles | Share of costs, % | ||||||||
2007 | 2008 | deviation | 2007 | 2008 | deviation | |||||
plan | fact | from plan | from 2007 | plan | fact | from plan | from 2007 | |||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
Wages, thousand rubles. | 1682 | 3062 | 2589 | -473 | 907 | 10,5 | 15,9 | 15,8 | -0,1 | 5,3 |
Social contributions, thousand rubles. | 236 | 365 | 313 | -52 | 77 | 1,48 | 1,9 | 1,9 | - | 0,42 |
Material costs, thousand rubles. | 10356 | 11699 | 9862 | -1837 | -494 | 64,9 | 60,6 | 60,1 | -0,5 | -4,8 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
Including: Raw materials and supplies, thousand rubles. | 10087 | 11227 | 9445 | -1782 | -642 | 63,2 | 58,2 | 57,5 | -0,7 | -5,7 |
- fuel and energy, thousand rubles. | 33 | 107 | 104 | - 3 | 71 | 0,2 | 0,6 | 0,6 | - | 0,4 |
- purchased semi-finished products, thousand rubles. | 821 | 661 | 458 | -203 | -160 | 5,15 | 3,4 | 2,8 | -0,6 | -2,35 |
Expenses for preparation of production, thousand rubles. | 1566 | 2068 | 1590 | -478 | 24 | 9,8 | 10,7 | 9,7 | -1 | -0,1 |
Expenses for maintenance and operation of equipment, thousand rubles. | 1682 | 3062 | 2589 | -473 | -907 | 10,6 | 15,9 | 15,8 | -0,1 | 5,2 |
General production expenses, thousand rubles. | 236 | 365 | 313 | -34 | -77 | 1,5 | 1,9 | 1,9 | - | 0,4 |
General expenses, thousand rubles. | 54 | 60 | 51 | -9 | -3 | 0,3 | 0,3 | 0,3 | - | - |
Losses from defects, thousand rubles. | 840 | 1020 | 920 | -100 | 80 | 5,3 | 5,3 | 5,6 | 0,3 | 0,3 |
Total production cost price, thousand rubles | 15950 | 19295 | 16420 | -2875 | -470 | 100 | 100 | 100 | - | - |
Including: Variable costs, thousand rubles. | 13095 | 15787 | 13222 | -2565 | 127 | 82,1 | 81,8 | 80,5 | 1,3 | 1,6 |
- fixed costs, thousand rubles. | 2855 | 3508 | 3198 | -310 | 343 | 17,9 | 18,2 | 19,5 | 1,3 | 1,6 |
Actual production cost in 2008 amounted to 16,420 thousand rubles, which is lower than the planned value by 2,875 thousand rubles. At the same time, variable costs increased: by the end of 2008. their value increased by 127 thousand rubles. Fixed costs also increased, but their share in production costs is only 18.5% on average over 2 years, so their increase had a slight impact on production costs. The main part of production costs is made up of material costs (60.1% in 2008), namely raw materials and materials (57.5%). This is 5.7% lower than in 2007 and 0.7% lower than planned.
3.4 Profitability and cost-benefit analysis
A general assessment of the financial condition of an enterprise is achieved on the basis of such performance indicators as profit and profitability.
The amount of profit and the level of profitability depend on the production, supply, sales and commercial activities of the enterprise, in other words, these indicators characterize all aspects of management. The greater the profit and the higher the level of profitability, the more efficiently the enterprise operates, the more stable its financial condition.
Gross profit is the difference between revenue and direct production costs for products sold.
Profit from sales of products is the difference between the amount of gross profit and fixed costs of the reporting period.
Balance sheet profit includes profit from ordinary activities, financial results from operating and non-operating transactions and extraordinary circumstances. In other words, this is the sum of financial results from the sale of products, non-operating income, minus non-operating expenses.
Net profit is that part of the profit that remains at the disposal of the enterprise after paying income tax.
Table 14 – Calculation of enterprise profit.
Index | Meaning | Deviation from actual value | |||||
2007 | 2008 | From plan | From 2007 | ||||
Abs. change | Rel. Measurement,% | Abs. change | Rel. meas., |
||||
Plan | Fact | ||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Result from sales (profit, loss), thousand rubles. | 1749 | 3906 | 3021 | 3077,4 | 13,87 | 9344,4 | 58,7 |
Non-operating income, thousand rubles. | 1247 | 1882 | 1890 | 8 | 0,4 | 643 | 51,6 |
Non-operating expenses, thousand rubles. | 637 | 455 | 670 | 215 | 47,2 | 33 | 5,8 |
Balance sheet profit, thousand rubles. | 2359 | 5333 | 4241 | -1092 | -20,5 | 1882 | 79,8 |
Income tax, thousand rubles. | 471,8 | 1066,6 | 848,2 | -218,4 | -20,5 | 376,4 | 79,8 |
Net profit, thousand rubles. | 1887,2 | 4266,4 | 3392,8 | -873,6 | -20,5 | 1505,6 | 79,8 |
Net profit in 2008 increased by 1505.6 thousand rubles. and amounted to 3392.8 thousand rubles. However, this is 20.5% below the planned net profit level. Non-operating income in 2008 exceeded the plan by 0.4% and amounted to 1,890 thousand rubles. Compared to last year 2007. income increased significantly – by 51.6%. However, non-operating expenses also increased to 670 thousand rubles, which is 47.2% more than the plan.
Table 15 – Analysis of the use of profits
Type of fund | Profit utilization percentage, % | Amount of deductions, thousand rubles. | Abs. off, thousand rub. | Amount of deductions, thousand rubles. | Abs. off, thousand rub. |
||||
2008 | 2008 | ||||||||
plan | fact | plan | fact | 2007 | 2008 | ||||
% | sum | ||||||||
Budget | 20 | 20 | 853,3 | 678,6 | -174,7 | 20 | 377,4 | 678,6 | 301,2 |
Reserve Fund | 10 | 10 | 426,6 | 339,3 | -87,3 | 10 | 188,7 | 339,3 | 150,6 |
Savings fund | 30 | 30 | 1279,9 | 1017,8 | -262,1 | 30 | 566,2 | 1017,8 | 451,6 |
Consumption fund | 20 | 15 | 853,3 | 508,9 | -344,4 | 20 | 377,4 | 508,9 | 131,5 |
Other purposes | 40 | 45 | 1706,6 | 1526,8 | 179,8 | 40 | 754,9 | 1526,8 | 771,9 |
Total: | 100 | 100 | 4266,4 | 3392,8 | 873,6 | 100 | 1887,2 | 3392,8 | 1505,6 |
Compared to the actual deduction plan in 2008. less money was transferred to the budget by 174.7 thousand rubles; to the reserve fund - by 87.3 thousand rubles; to the accumulation fund - by 262.1 thousand rubles; to the consumption fund - by 344.4 thousand rubles. However, 179.8 thousand rubles were spent on other purposes. more than planned. Total amount of contributions in 2008 amounted to 3392.8 thousand rubles, which is 873.6 thousand rubles. more than the planned amount of deductions, and more by 1505.6 thousand rubles than was paid in 2007.
Profitability indicators characterize the final results of business more fully than profit, because their value shows the relationship between the effect and the available or used resources. They are used to evaluate the activities of an enterprise and as a tool for investment policy and pricing.
Profitability indicators can be combined into several groups:
1) indicators characterizing the profitability (recoupment) of production costs and investment projects;
2) indicators characterizing the profitability of sales;
3) indicators characterizing the profitability of capital and its parts.
Profitability indicators:
Profitability of production activities:
RPD = , ( 16)
Profitability of products sold:
RRP = , ( 17)
Return on fixed capital:
RK = , ( 18)
Return on working capital:
ROK = , ( 19)
Profitability of core activities:
ROD = , ( 20)
Let's calculate these indicators and summarize the data in table 16:
Table 16 – Analysis of profitability indicators
In general, the level of profitability in 2008 increased in all indicators compared to 2007, especially the profitability of production activities increased - by 76.3%. However, none of the values obtained reached the planned levels. But we can say that the enterprise’s activities are profitable.
4 ASSESSMENT OF THE RELATIONSHIP BETWEEN ENTERPRISE PRODUCTION ACTIVITY INDICATORS USING STATISTICAL ANALYSIS METHODS
Based on the dynamics of individual indicators of the enterprise’s production activity, evaluate the relationship between them using statistical methods of analysis.
Table 17 – Indicators of production activity of the enterprise
No. | Labor productivity per person, thousand rubles. | Balance sheet profit, million rubles. |
1 | 52,008 | 41,589 |
2 | 51,835 | 41,559 |
3 | 52,014 | 41,582 |
4 | 51,739 | 41,524 |
5 | 51,724 | 41,449 |
6 | 51,699 | 42,734 |
7 | 52,093 | 41,574 |
8 | 51,811 | 41,547 |
9 | 51,823 | 41,469 |
10 | 51,751 | 41,502 |
11 | 51,663 | 41,249 |
12 | 52,978 | 41,562 |
13 | 51,802 | 41,554 |
14 | 51,728 | 41,444 |
15 | 51,907 | 41,539 |
16 | 52,010 | 41,589 |
17 | 50,989 | 41,579 |
18 | 51,841 | 41,554 |
19 | 51,524 | 41,183 |
20 | 52,199 | 41,709 |
4.1 Data grouping method
1. Select a grouping characteristic - it is labor productivity per person;
σ = , ( 24)
where xi is the individual value of the factor trait
n – number of population units
Let's find the coefficient of variation:
2,3323 / 51,8563 * 100% = 4,4975% < 35%,
The obtained value is less than 35%, therefore, the population under study is homogeneous.
3.Calculate the optimal number of groups.
We will carry out the calculation using the Sturgess formula:
k = 1 + 3.322 lgn, ( 25)
k = 1+3.322*ln 20= 5.3 ≈ 5
the optimal number of groups is 5.
4. Determine the size of the interval.
i = , ( 26)
i = = 0,3978.
5. Knowing the size of the interval and the minimum value of the factor attribute, we will form groups of enterprises based on labor productivity per person, and enter the available data into a table.
Table 18 - Groups by labor productivity per person.
6. Let us determine the balance sheet profit of enterprises in groups and the average balance sheet profit for each group, i.e. Let's calculate the general and group results. We present the results obtained in the form of the following table:
Table 19 - Calculation of balance sheet profit in groups.
7. Let’s establish the relationship between labor productivity per person and balance sheet profit; We enter the data in table 20.
Table 20 - Final grouping table.
Groups | Capital productivity groups | Number of enterprises | Average labor productivity per person, thousand rubles. | Average balance sheet profit, million rubles. |
1 | 50,989 – 51,3868 | 1 | 51,1879 | 41,576 |
2 | 51,3868 – 51,7846 | 7 | 51,5857 | 41,58357 |
3 | 51,7846 – 52,1824 | 10 | 51,9835 | 41,5556 |
4 | 52,1824 – 52,5802 | 1 | 52,3813 | 41,709 |
5 | 52,5802 - 52978 | 1 | 52,7791 | 41,562 |
Total: | 20 | 51,9835 | 207,9862 |
4.2 Analysis of variance
It is required to determine whether there is a relationship between labor productivity per person and capital productivity. Let's do this in several stages:
1. Using formulas 21 and 22, we find the average value of the factor and resultant characteristics.
– average value of the factor characteristic; – average value of the effective characteristic.
51.8563 (thousand rubles);
41.57455 (thousand rubles).
2. Let us determine the value of the interval using formula 36. It is equal to 0.3978.
3. Next, the entire population is divided into homogeneous groups. For each group, the mean and variance are calculated. The result is within-group and between-group variances. The total variance shows the influence of all conditions (factors) on the variation of a trait. Intragroup (random) dispersion shows the influence of random, not taken into account conditions (factors) on the variation of a characteristic, that is, it depends on the grouping characteristic. Intergroup dispersion characterizes the variation of a characteristic under the influence of determining conditions associated with the grouping characteristic.
4. Analysis of variance makes it possible to establish the influence of a grouping characteristic and the influence of random variables on the effective characteristic. In this case, the total variance of the resulting characteristic is divided into factorial and the residual (or random) factorial variance is compared with random variance, taking into account degrees of freedom. The number of degrees of freedom: for general dispersion - the number of values of a varying effective characteristic without one (n-1), for factorial dispersion - the number of groups without one (I-1).
Let's calculate the corrected variance in Table 22:
Table 22 - Calculation of corrected variance
5. The reliability of the influence of a factor characteristic on the resultant one is assessed using the calculated value of the F-criterion (Fisher criterion). The Fisher criterion is the ratio of factor and random variances calculated per degree of freedom.
S2gr > S2ost, therefore, Ffact = S2gr / S2ost
Ffact = 584186.3/ 676174.5 = 0.86395
Fact< Fтабл (4,89), можно говорить о наличии влияния исследуемого признака на результат.
4.3 Correlation analysis
Correlation dependence manifests itself only in average values and expresses a tendency for the value of one variable to increase or decrease while another increases or decreases.
1. A correlation relationship is a relationship that characterizes the mutual dependence of two random variables X and Y. In this case, the change in the resulting characteristic (Y) is due to the influence of the factor characteristic - (X) not entirely, but only partially because there may be influence of other factors.
In most cases, connections in social phenomena are studied using a straight line equation:
, ( 27)
where is the effective attribute (balance sheet profit);
x – factor sign (capital productivity); – free term of the equation (average level of capital productivity at x=0),
– regression coefficient showing how much on average the level of capital productivity will increase with an increase in book profit.
The equation of the straight line that describes the correlation relationship is the equation of communication, or regression, and the straight line itself is the regression line. The parameters of the straight line equation are found by solving a system of normal equations.
, ( 28)
Where n number of units in the population.
Solving this system, we find:
, ( 29)
, ( 30)
Let's find the values of a0 and a1:
Substituting a And a 1 into the regression equation we get:
yх = 39.5819 – 0.03842*x.
2. To measure the closeness of a linear relationship, a relative indicator is used, which is called the linear correlation coefficient rxy :
, ( 31)
The calculated correlation coefficient was equal to:
The square of the linear correlation coefficient is called the coefficient of determination (R):
d = r xy 2, ( 32)
The coefficient of determination shows the dependence of the variation of the resultant characteristic on the variation of the factorial one. The coefficient of determination shows that the variation of the resultant attribute is due to the variation of the factorial attribute by 0.05%.
Based on the calculations carried out, we will construct the dependence of balance sheet profit on capital productivity.
Figure 1 – Dependence of labor productivity on balance sheet profit
Thus, we see that as labor productivity increases, balance sheet profit increases.
CONCLUSION
Analysis of financial results is the most important link in the activities of any enterprise. Profit, as a financial result, is the main result of the economic activity of an enterprise, and its increase has a positive effect, and the use of profit, the formation of special funds shows the policy of the enterprise, for example, an increase in contributions to the accumulation fund allows for further expansion of the scale of production, and the consumption fund indirectly contributes increasing labor productivity.
Based on the analysis of the financial results and profitability of the activities of RTBO LLC, we can draw conclusions that the enterprise is profitable and cost-effective, the main indicators have been trending upward for three years, the level of return on assets and sales is high, however, there are the following reserves for increasing profits and profitability:
· increasing the volume of production and sales of products;
· reduction of production costs;
· improving the quality of products.
Thus, financial result is the most important characteristic of an enterprise’s activities. It determines competitiveness, potential in business partnerships, and assesses the extent to which the economic interests of the enterprise itself and its partners are guaranteed in financial and production terms.
According to the analysis of the production and economic activities of the enterprise carried out in Chapter 3, we can say that this enterprise is profitable, it is profitable and most indicators have increased over the year. However, actual indicators for such important items as production volume and revenue were lower than planned, while the cost of goods sold reached a value higher than planned. Indicators such as asset turnover ratio and return on fixed assets are also declining. This may indicate insufficiently satisfactory results in planning your activities.
Chapter 4 examines how labor productivity per employee affects the balance sheet profit of an enterprise. For this purpose, correlation and variance analyzes were carried out, as well as data grouping. Based on the results obtained, we can conclude that as labor productivity increases, balance sheet profit also increases, but the strength of the relationship between the attribute and the result is weak.
List of used literature:
1. Dontsova, L.V. Comprehensive analysis of financial statements [Text]: textbook. – M.: “Business and Service”, 2006. – 367 p.
2. Efimova O.V. Analysis of reporting [Text]: textbook for universities, - M.: Omega, 2005, - 293 p.
3. Kovalev, V.V. Analysis of the economic activities of an enterprise [Text]: textbook. – M.: Prospekt, 2007. – 424 p.
4. Kravchenko, L.I. Analysis of economic activities in trade [Text]: textbook. – M.: Higher School, 2005. – 356 p.
5. Makarieva, V.I. Analysis of the financial and economic activities of an organization [Text]: textbook for universities - M.: Finance and Statistics, 2005. - 264 p.
6. Protasov, V.F. Analysis of the activities of an enterprise (firm): production, finance, investment, marketing [Text]: textbook for universities. – M.: Finance and Statistics, 2006. – 536 p.
7. Rusak, N.A. Financial analysis of a business entity [Text]: textbook - M.: Higher School, 2006. - 316 p.
8. Savitskaya, G.V. Analysis of the economic activity of an enterprise [Text]: textbook. – M.: INFRA-M, 2007. – 512 p.
9. Selezneva, N.N. Financial analysis [Text]: textbook - M.: UNITI, 2009. - 392 p.
10. Chechevitsina, L.N. Analysis of financial and economic activities [Text]: textbook. – Rostov-on-Don: Phoenix, 2006. – 234 p.
11. Chuev, I.N. Comprehensive analysis of economic activity [Text]: textbook for universities. – M.: Dashkov and K, 2007. – 417 p.
12. Sheremet, A.D. Methods of financial analysis [Text]: textbook for universities - M.: INFRA-M, 2009. - 428 p.
APPENDIX A
Data for performing a general task
Indicators | 2007 | 2008 | |
Plan | Fact | ||
1. Volume of production (gross turnover) | 18678 | 22752 | 20120 |
2. Internal circulation | 1868 | 2345 | 2380 |
3. Change in work in progress balances | 137 | 138 | 154 |
4. Revenue from product sales | 12507 | 17748 | 15789 |
5. Cost of products sold | 10758 | 12540 | 12768 |
6. Result from sales (profit, loss) | 1749 | 3906 | 3021 |
7. Production cost of gross output (total amount): including: | 15950 | 19295 | 16420 |
- raw materials and supplies | 10087 | 11227 | 9445 |
- returnable waste | 33 | 107 | 104 |
- purchased semi-finished products | 821 | 661 | 458 |
- fuel and energy | 1566 | 2068 | 1590 |
- salary | 1682 | 3062 | 2589 |
- social tax and other deductions for social needs | 236 | 365 | 313 |
- local taxes and fees | 54 | 60 | 51 |
- production preparation costs | 840 | 1020 | 920 |
- costs of maintaining and operating equipment | 180 | 224 | 358 |
- general production expenses | 170 | 239 | 279 |
- general running costs | 113 | 160 | 279 |
- losses from marriage | 168 | 102 | 34 |
8. Business expenses | 2% | 3% | 4% |
319 | 579 | 657 | |
9. Full cost of gross output | 16269 | 19874 | 17077 |
10.Average number of staff members, people: | 550 | 552 | 450 |
- including workers | 466 | 488 | 410 |
11. Worked by workers, person-hour | 137366 | 141802 | 114689 |
12. Lost working time, hour: | 18431 | 5400 | 10529 |
- failure to appear with the permission of the administration | 2738 | - | 721 |
- downtime | 7490 | - | 2456 |
- study holidays | 5379 | 4200 | 4678 |
- temporary disability | 2824 | 1200 | 2674 |
13. Overtime, hour | - | - | 10789 |
14. Consumption fund | 7260 | 9720 | 5856 |
15. Payroll Fund (WF) | 4126 | 5026 | 4840 |
16. Standard increase in payroll, % | 10 | - | - |
17. Average annual cost of fixed assets: | 13079 | 15240 | 13568 |
- share of the active part of the OS, % | 58 | 60 | 61 |
18. Amount of working capital | 11275 | 13795 | 17786 |
19. Other income | 1247 | 1882 | 1890 |
20. Other expenses | 637 | 455 | 670 |
21. Use of profit, % | |||
- to the budget | 20 | 20 | 20 |
- to the reserve fund | 10 | 10 | 10 |
- to the accumulation fund | 30 | 30 | 30 |
- to the consumption fund | 20 | 20 | 15 |
- other purposes | 40 | 40 | 45 |
Profit indicators are the most important for assessing the production and financial activities of an enterprise. They characterize the degree of his business activity and financial well-being.
Also an important indicator of the financial performance of an enterprise are the profitability indicators of its activities. Profitability indicators characterize the final results of business more fully than profit, since their value shows the relationship between the effect and the available or used resources. Thus, in this work, an analysis of profit and profitability will be carried out using the example of a specific organization.
The object of research in this work is OJSC “Serpukhov Plant “Metallist”.
Throughout its history, the Metallist plant has been an instrument-making enterprise specializing in the production of gyromotors, gyroblocks, and various precision electromechanical sensors and devices.
Currently, the main activities of the plant are the production of parts of instruments and instruments for navigation, control, measurement, control, testing and other purposes, etc.
The authorized capital of JSC Serpukhov Plant Metalist at the beginning of 2014 was 146 thousand rubles. As a result of an additional issue of shares in the amount of 33 thousand rubles. The authorized capital at the end of 2014 is 179 thousand rubles.
The first step in analyzing financial results is to analyze the dynamics of profits. Analysis of profit dynamics allows you to evaluate the growth (or decline) of profit indicators, such as gross profit, sales profit, profit before tax and net profit, for the analyzed period, as well as note positive and negative changes in the dynamics of financial results.
To analyze the dynamics of financial results, we will use the data from the Report on the financial results of JSC Serpukhov Plant Metallist for 2014 (Appendix 2) and conduct a horizontal analysis.
As a result of the analysis, the following data were obtained, presented in Table 1.
Table 1
Analysis of the dynamics of financial results
Index |
Reporting period, thousand rubles |
Previous period, thousand rubles. |
Deviations, thousand rubles |
Deviations, % |
|
Sales revenue |
|||||
Cost of sales |
|||||
Gross profit |
|||||
Business expenses |
|||||
Administrative expenses |
|||||
Revenue from sales |
|||||
Income from participation in other organizations |
|||||
Interest receivable |
|||||
Percentage to be paid |
|||||
Other income |
|||||
other expenses |
|||||
Profit before tax |
|||||
Current income tax |
|||||
Deferred tax liabilities |
|||||
Deferred tax assets |
|||||
Net profit |
For clarity, let’s build a histogram reflecting the main profit indicators
Rice. 1. Dynamics of main profit indicators for 2013-2014.
Based on the results of the analysis, we can conclude that the main indicators of financial results in the reporting period increased significantly. Thus, gross profit increased by 28,563 thousand rubles. or by 36.74%. This was facilitated by an increase in revenue by 644,810 thousand rubles. or by 109.51%. Increase in cost by 616,247 thousand rubles. or 120.59% had a negative impact on gross profit.
Profit from sales increased compared to the previous period by 28,673 thousand rubles. or by 37.97%. This increase was also supported by higher revenues and lower commercial expenses. Selling expenses decreased by 110 thousand rubles. or by 4.93%. Rising costs had a negative impact on sales profits.
Profit before tax compared to the previous year increased by 35,228 thousand rubles. or by 59.08%. This increase was caused by an increase in profit from sales, income from participation in other organizations, interest receivable and other income, as well as a decrease in interest payable.
Net profit compared to the previous year increased by 27,188 thousand rubles. or by 56.16%. This increase is due to an increase in profit before tax. Such an indicator as the current income tax had a negative impact on net profit.
The bulk of the profit comes from sales. Therefore, we will further analyze the profit from sales, and also evaluate the structure of sales revenue, because it includes both cost and profit, and after that we will conduct a factor analysis of sales profit to determine the influence of the main factors on sales profit.
Analysis of profit from sales is presented in Table 2.
table 2
Sales profit analysis
Index |
Reporting period |
Previous period |
Deviations |
||||
Sales revenue |
|||||||
Cost of sales |
|||||||
Gross profit from sales |
|||||||
Business expenses |
|||||||
Administrative expenses |
|||||||
Revenue from sales |
According to the table, there is an increase in sales profits, which was already noted earlier. This was led to an increase in revenue by 644,810 thousand rubles. or by 109.51% and a reduction in commercial expenses by 110 thousand rubles. or by 4.93%. Cost has a negative impact on sales profit due to a significant increase in the reporting year. Also, when assessing the structure of revenue, it is clear that the main share in the volume of revenue belongs to the cost price and amounts to 91.38%. As for the share of profit from sales in revenue, this value is 8.45% in the reporting year and is an indicator of profitability, because Return on sales is determined by the ratio of sales profit to sales revenue. Thus, the return on sales in the reporting year amounted to 8.45%. The return on sales indicator and the factors influencing it will be discussed in detail below.
The main factors influencing sales profit are the volume of product sales, its structure, cost and price.
PR = BP - S = K ˟ C - S ˟ K,
where PR is the amount of profit from the sale; VR - proceeds from sale; K - quantity of products sold; P is the selling price of a unit of production; C is the cost per unit of production.
To carry out factor analysis, we will use data on inflation, which for the reporting year amounted to 11.4%, to determine the price index necessary to calculate indicators in comparable prices. Thus, the price index Ip = 1.114.
Table 3 below presents the data necessary for further calculation of the influence of factors on the change in the amount of profit from the sale of products.
Table 3
Profit analysis by factors
Table 4 presents the calculation of the influence of factors on the change in the amount of profit from the sale of products using the method of chain substitutions, where 0 indicates data from the beginning of the period, and 1 - data from the end of the period. Factors in the table are indicated by the following symbols:
V - volume of product sales;
Ud.v. - product structure;
C - cost.
Table 4
Influence of factors on changes in the amount of profit from product sales using the method of chain substitutions
Indicators |
Amount of profit, thousand rubles. |
Delta, thousand rubles |
|||||
At the beginning of the period |
VR 0 - s/s 0 = =588799 - 513280 |
||||||
Conditional 1 |
Pr 0 ˟ Kr = 75519 ˟ 1.881 |
||||||
Conditional 2 |
VR conv - s/s conv = 1107368,9-1013839,3 |
||||||
Conditional 3 |
BP 1 - s/s conv = 1233609 - 1013839,3 |
||||||
At the end of the period |
BP 1 - s/s 1 = 1233609 - 1129417 |
||||||
Sum of deltas |
Thus, the change in the amount of profit:
- · due to the volume of product sales amounted to 66511.46 thousand rubles;
- · due to the structure amounted to -48500.84 thousand rubles;
- · due to price increases amounted to 126,240.06 thousand rubles;
- · due to the cost of products sold amounted to -115577.68 thousand rubles.
The total change in profit, which is found by summing up these changes, is 28,673 thousand rubles.
Based on the results of a factor analysis of sales profits, we can conclude that a change in the product structure and an increase in costs had a negative impact on sales profits, while an increase in sales volumes and price increases had a positive impact on sales profits.
To analyze profitability, we will use the Balance Sheet of OJSC Serpukhov Plant Metalist (Appendix 1) and the Report on Financial Results of OJSC Serpukhov Plant Metalist (Appendix 2) and calculate the main profitability indicators:
- · profitability of sales;
- · profitability of production costs;
- · return on equity.
Using the profitability of sales formula, we will calculate the profitability of sales of an enterprise and carry out an analysis. The analysis is presented in Table 5.
Table 5
Analysis and assessment of profitability of sales
Index |
Reporting period |
Previous period |
Absolute deviations, +/- |
Relative deviations, % |
|
Sales revenue, thousand rubles. |
|||||
Profit from sales, thousand rubles. |
|||||
Return on sales, % |
The table shows that in the reporting year, profitability decreased by 4.38% compared to the previous year and amounted to 8.45%. The decrease in profitability of sales occurred as a result of a significant increase in production costs, the growth rate of which is 220.59% and exceeds the growth rate of revenue, which is 209.51%.
Let's look at the analysis of profitability of sales in more detail and conduct factor analysis to determine the influence of factors on changes in profitability of sales.
The factor model looks like this:
where PR is profit from sales; VR - sales revenue; C - cost; KR - commercial expenses; UR - management expenses.
1. The impact of changes in sales revenue on profitability is 45.56%.
2. The impact of changes in cost on profitability of sales is -49.95%.
3. The impact of changes in business expenses on profitability of sales is 0.01%.
4. The impact of changes in administrative expenses on profitability of sales is 0%.
∆Sales return = 45.56 + (-49.95) + 0.01 + 0 = - 4.38%.
Thus, an increase in sales revenue led to an increase in sales profitability by 45.56%, an increase in production costs led to a decrease in profitability by 49.95%, a decrease in commercial expenses led to a slight increase in profitability by 0.01%, and administrative expenses had no impact on profitability was not provided, because this indicator is equal to 0 both in the reporting and previous periods.
Based on the results of factor analysis, we can conclude that the main factor that had a negative impact and led to a decrease in profitability of sales in the reporting period is cost.
The next main indicator of profitability is the return on production costs. Using the return on production cost formula We will calculate this indicator and analyze the profitability of production costs. The analysis is presented in Table 6.
Table 6
Analysis and assessment of the profitability of production costs
Index |
Reporting period |
Previous period |
Absolute deviations, +/- |
Relative deviations, % |
|
Revenue, thousand rubles |
|||||
Cost of sales, thousand rubles. |
|||||
Selling expenses, thousand rubles. |
|||||
Administrative expenses, thousand rubles. |
|||||
Full cost |
|||||
Profit from sales, thousand rubles. |
|||||
Profitability of production costs, % |
According to the table, it can be seen that the profitability of production costs in the reporting year decreased compared to the previous year by 5.49% and amounted to 9.23%. The decrease in profitability occurred as a result of a significant increase in the total cost of production by 120.04%. At the same time, the growth rate of total cost exceeds the growth rate of revenue.
Due to the fact that the profitability of production costs, as well as the profitability of sales, has suffered a significant decrease, it is necessary to conduct a factor analysis and determine the influence of factors on the profitability of production costs.
The factor model looks like this:
Let's use the data in Table 6 and determine the influence of each factor on the profitability of production costs using the chain substitution method:
1. The impact of changes in sales revenue on the return on production costs is 125.63%.
2. The impact of changes in cost on the profitability of production costs is -131.13%.
3. The impact of changes in commercial expenses on the profitability of production costs is 0.01%.
4. The impact of changes in administrative expenses on the profitability of production costs is 0%.
The total influence of factors was:
∆Profitability of production costs = 125.63 + (-131.13) + 0.01 + 0 = 5.49.
Based on the results of a factor analysis of the profitability of production costs, we can conclude that an increase in revenue contributed to an increase in profitability by 125.63%, an increase in production costs led to a decrease in the profitability of production costs by 131.13%, a decrease in commercial expenses increased profitability by 0. 01, administrative expenses also did not have any impact, because this indicator is equal to 0 both in the reporting and in the previous periods. Thus, the main factor that had a negative impact on the profitability of production costs and reduced this indicator is cost.
The next main indicator of profitability is return on equity. Let's calculate this indicator using the return on equity formula and carry out an analysis. The analysis is presented in Table 7.
Table 7
Analysis and assessment of return on equity
Index |
Reporting period |
Previous period |
Absolute deviations, +/- |
Relative deviations, % |
|
Average equity capital, thousand rubles. |
|||||
Net profit, thousand rubles. |
|||||
Return on equity, % |
Based on the results of the analysis of return on equity, we can say that profitability in the reporting year increased compared to the previous year by 2.51% and amounted to 17.54%. The increase in profitability in the reporting year occurred as a result of an increase in net profit by 27,188 thousand rubles. or by 56.16%, which exceeds the growth rate of the average equity capital, which is 133.81%.
After the analysis of all the main profitability indicators, for clarity, we will construct a histogram (Fig. 2) reflecting the dynamics of these indicators.
Rice. 2. Dynamics of the main profitability indicators for 2013-2014.
Thus, the graph shows that in the reporting period only the return on equity indicator increased, the other main profitability indicators decreased compared to the previous year.
Based on the results of the analysis, it was revealed that many indicators were negatively affected by a significant increase in costs. Thus, when assessing the revenue structure, it was determined that the main share in the revenue volume belongs to the cost price and amounts to 91.38%. In a factor analysis of sales profit, it was found that the increase in cost reduced the sales profit by 115,577.68 thousand rubles. As a result of a factor analysis of profitability of sales, it was revealed that an increase in production costs led to a decrease in profitability by 49.95%. Based on the results of a factor analysis of the profitability of production costs, it was found that the increase in production costs led to a decrease in the profitability of production costs by 131.13%.
As you can see, these are significant numbers, which resulted from an increase in costs and thereby contributed to a decrease in the financial results of the organization. In this regard, it is necessary to analyze the cost by cost elements in order to determine which element the company should pay special attention to. Cost analysis by cost elements is presented in Table 8.
Table 8
Cost analysis by cost elements
Index |
Reporting period |
Previous period |
Deviations |
|||
Material costs |
||||||
Labor costs |
||||||
Contributions for social needs |
||||||
Depreciation |
||||||
Other costs |
||||||
Total by elements |
For clarity, we will construct diagrams reflecting the cost structure by cost elements in the reporting (Fig. 4) and previous (Fig. 3) periods.
Rice. 3. Cost structure by cost elements in 2013.
Rice. 4. Cost structure by cost elements in 2014.
Comparing the two diagrams, you can see how much the cost structure has changed over the year. If in 2013 the main element of expenses was labor costs, then in 2014 the largest expenses accounted for material costs, the share of which was 65.78% of the total cost. Compared to the previous period, material costs increased by 662,825 thousand rubles. or by 841.75% and amounted to 741,569 thousand rubles in the reporting year.
Thus, the main share of expenses falls on material costs, therefore, it is this element that needs to be given special attention when identifying reserves for reducing costs.
In addition, for further growth of financial results, it is necessary to increase the volume of product sales, then if the enterprise finds reserves for reducing costs, then with an increase in sales volume, profits will only increase, which will have a positive impact on the entire financial condition of the organization.
Thus, to improve financial performance, the following recommendations can be proposed:
1) Determination of reserves for profit growth due to a possible increase in product sales volumes. To ensure a stable increase in profit, it is necessary to constantly look for reserves to increase it. Profit growth reserves are quantitatively measurable opportunities for additional profit generation. When calculating reserves for profit growth due to a possible increase in sales volume, the results of an analysis of production and sales of products are used.
2) Reducing production costs.
Cost can be reduced, based on an analysis of cost by cost elements (Table 8), by reducing material costs.
Thus, in this work, an analysis of the financial results of the activities of OJSC “Serpukhov Plant “Metalist” was carried out and the main ways to increase financial performance indicators at the enterprise were proposed.
Scientific adviser:
Ksenofontova Oksana Viktorovna,
Candidate of Economic Sciences, Associate Professor of the Department of Economics, Management and Trade, Tula Branch of the Russian Economic University named after. G.
IN.
Plekhanov,
G.
Tula,
Russia
Analysis of the financial results of an organization is a study of the profit or loss received by it, both in absolute value and in ratios relative to other financial indicators of the organization 6 .
The main goal of financial analysis is to obtain a small number of key parameters that give an objective and accurate picture of the financial condition of the enterprise, its profits and losses, changes in the structure of assets and liabilities, and in settlements with debtors and creditors. At the same time, the analyst and manager may be interested in both the current financial state of the enterprise and its projection for the near or longer term, i.e. expected parameters of financial condition.
The goals of analysis are achieved as a result of solving a certain interrelated set of analytical problems. The analytical task is a specification of the goals of the analysis, taking into account the organizational, informational, technical and methodological capabilities of the analysis.
The assessment of the financial activities of an enterprise is carried out on the basis of financial statements.
The basic principle of analytical reading of financial statements is the deductive method, i.e. From general to specific. But it must be used repeatedly. In the course of such an analysis, the historical and logical sequence of economic factors and events, the direction and strength of their influence on the results of operations, is reproduced.
The practice of financial analysis has developed the basic rules for reading financial statements.
Among them there are 6 main methods:
horizontal analysis - comparison of each reporting item with the previous period;
vertical analysis - determining the structure of the final financial indicators, identifying the impact of each reporting item on the result as a whole;
trend analysis - comparison of each reporting item with a number of previous periods and determination of the trend, i.e.
the main trend of the indicator dynamics, cleared of random influences and individual characteristics of individual periods. With the help of a trend, possible values of indicators in the future are formed, and therefore, a promising forecast analysis is carried out;
analysis of relative indicators - calculation of relationships between individual report positions or positions of different reporting forms, determination of relationships between indicators;
comparative analysis is both an intra-company analysis of summary reporting indicators for individual indicators of a company, subsidiaries, divisions, and inter-company analysis of the indicators of a given company with the indicators of competitors, with industry average and average business data;
factor analysis - analysis of the influence of individual factors on a performance indicator using deterministic or stochastic research techniques.
Moreover, factor analysis can be either direct, when the effective indicator is divided into its component parts, or reverse (synthesis), when its individual elements are combined into a common effective indicator.
Financial analysis is part of a general, complete analysis of economic activity, which consists of two closely interrelated sections: financial analysis and production management analysis.
Financial analysis is divided into external and internal. Features of external financial analysis are:
multiplicity of subjects of analysis, users of information about the activities of the enterprise;
diversity of goals and interests of the subjects of analysis;
limited analysis tasks as a consequence of the previous factor;
maximum openness of the analysis results for users of information about the enterprise’s activities.
Financial analysis, based only on financial statements, takes on the character of an external analysis conducted outside the enterprise by its interested counterparties, owners or government agencies. This analysis does not reveal all the secrets of the company's success.
analysis of absolute profit indicators;
analysis of relative profitability indicators;
analysis of the financial condition, market stability, balance sheet liquidity, solvency of the enterprise;
analysis of the efficiency of use of borrowed capital;
economic diagnostics of the financial condition of the enterprise and rating assessment of issuers.
The main content of on-farm financial analysis can be supplemented by other aspects that are important for optimizing management, for example, such as analysis of the efficiency of capital advances, analysis of the relationship between costs, turnover and profit. In the system of on-farm management analysis, it is possible to deepen financial analysis by using data from management production accounting, in other words, it is possible to conduct a comprehensive economic analysis and evaluate the efficiency of economic activity.
Features of management analysis are:
orientation of the analysis results to your management;
use of all sources of information for analysis;
lack of regulation of external analysis;
completeness of the analysis, study of all aspects of the enterprise’s activities;
integration of accounting, analysis, planning and decision making;
maximum secrecy of analysis results in order to maintain trade secrets.
The main type of goods is non-food and food products.
To perform an analysis, it is necessary to evaluate the level and dynamics. To assess the level and dynamics of indicators, we will construct Table 2.4.
Table 2.4 - Analysis of the level and dynamics of indicators for 2013-2014.
According to table 2.4. The conclusion is the following: the Magnit store achieved the best results in its activities in 2014 compared to 2013, with a net profit of 377,000 thousand rubles.
The financial results of an enterprise are characterized by the amount of profit received and the level of profitability.
Profit is part of the net income created in the production process and realized in the sphere of circulation, which is directly received by enterprises.
Profit growth creates a financial basis for self-financing, expanded reproduction, and solving problems of social and material needs of labor collectives. At the expense of profits, part of the enterprise’s obligations to the budget, banks, and other enterprises and organizations is fulfilled. Thus, profit indicators become the most important for assessing the production and economic activities of enterprises. They characterize the degree of his business activity and financial well-being. Profit determines the level of return on advanced funds and the return on investment in the assets of a given enterprise.
The starting point in calculating profit indicators is the turnover of the enterprise for the sale of products. Changes in sales volume have the greatest impact on the financial results of the enterprise. Depending on the accounting policy of the enterprise, sales revenue is recorded either as the shipment and payment documents are presented to the buyer, or as payment for sold products and funds are received in the current account for non-cash payments, and when paying in cash - when they are received in enterprise cash register.
The following modifications of profit indicators are distinguished and analyzed: balance sheet (gross) profit, profit from sales of products (works, services), profit from other sales, profit from non-sales operations, taxable profit, net profit, profit from produced marketable products, profit of a specific type of product .
The initial indicator is profit for a specific type of product. This indicator constitutes a trade secret of the enterprise and is defined as the difference between the selling price and the full cost of a particular type of product.
Profit from produced commercial products (works, services) characterizes the potential amount of profit that an enterprise can receive from all commercial products (works, services). It is defined as the difference between the cost in wholesale prices and the full cost of the actual production of commercial products (works, services).
Balance sheet (gross) profit is the most complete amount of profit, which includes profit from the sale of products (works, services), profit from the sale of fixed assets, other property, as well as income and losses from non-sales activities.
Profit analysis is part of the analysis of the financial results of its activities, which consists in studying the assessment of the volumes, composition, structure and dynamics of profit indicators; identifying the influence of factors that shape profit and reserves for its growth.
Let's analyze the structure and dynamics of profit at JSC "Electrosignal" in table. 8
Table 8
Analysis of the structure and dynamics of profit
Indicators |
Line code |
Rep. period |
Deviation |
Level to revenue report. lane |
The level to revenue has passed. lane |
Level deviation |
|
Gross profit |
|||||||
Business expenses |
|||||||
Profit (loss) from sales |
|||||||
Interest receivable |
|||||||
Percentage to be paid |
|||||||
Etc. income |
|||||||
Etc. expenses |
|||||||
Stay (dec) until cash/region |
|||||||
Current income tax |
|||||||
Net profit |
Analyzing these indicators, we can say that in the reporting year 2012, the company’s revenue increased by 683,995 thousand rubles. Consequently, the cost increased by 648,152 thousand rubles. Selling expenses also increased, and as a result of all this there was an increase in sales profits. In the reporting year, the expenses of Elektrosignal OJSC decreased by 9987 thousand rubles. Thus, the organization’s net profit in the reporting year increased by 72,185 thousand rubles.
The main share of revenue in the overall structure is occupied by cost, which amounted to 0.89 structures in 2012 and 0.87 structures in the past. The share of gross profit in revenue decreased from 0.13 to 0.11 of the structure. Selling expenses in both years had the same structure - 0.002. Profit from sales of the organization occupied 0.13 of the structure in 2011, and in 2012 there was a slight decrease in the share to 0.12. Interest receivable in the reporting year decreased by 229 thousand rubles, which amounted to a 0.00011 reduction in the revenue structure. Interest payable also decreased by 16,362 thousand rubles. and this amounted to a 0.016 decrease in the revenue structure. Other income in 2011 amounted to 0.01 of the revenue structure, and in 2012 the share increased to 0.02. Other expenses decreased in 2012 by 9987 thousand rubles, which amounted to a 0.01 decrease in their structure.
Profit before tax last year was 0.059 structure, and in the reporting year the figure increased to 0.07. The current income tax in 2011 was 0.019 structures, and in 2012 0.12, which indicates its increase in the reporting year. Changes in deferred tax liabilities were insignificant during the analyzed period; their increase in the reporting year amounted to 1,361 thousand. rub. The change in deferred tax assets increased in the reporting year and amounted to 2,804 thousand rubles, which in the structure amounted to 0.001.
The net profit of the enterprise increased during the analyzed period by 72,185 thousand rubles. In the revenue structure in 2011, net profit was 0.04 of the structure, and in 2012 it was 0.057 of the total revenue structure.
Thus, having analyzed the structure and dynamics of profit for the analyzed period, we can conclude that in the structure of revenue the largest share is occupied by cost. Tighter cost management policies may need to be implemented to reduce product costs, which may have a negative impact on profits. In general, the company's net profit increased by 55.6%, which is a good result.
Table 9
Gross profit change
From the table Figure 9 shows that there was an increase in gross profit compared to last year by 35,843 thousand rubles, which amounted to 12.67%. But, the cost also increased in the reporting year by 33.9%. Thus, we can say that the increase in gross profit was due to an increase in sales volume.
Let's analyze the profitability of the organization in Table 10, calculating the following coefficients:
Table 10
Profitability of the organization
Analyzing these coefficients, we can talk about not very positive dynamics, since it is clear that 1 coefficient decreases for the analyzed period, which means that gross profit decreases. Also, coefficient 2 has decreased relatively much, income from core activities is decreasing, but net profit is slightly higher in the reporting year than in the previous year, but the cost ratio has increased in the reporting year. Enterprise costs should be reduced to improve these indicators.
The next most important indicator of financial results is profitability - it is the use of funds in which the organization not only covers its costs with income, but also makes a profit.
Analysis of profitability indicators is part of the analysis of financial results, which consists in studying and assessing the ability of an enterprise to effectively use various resources in production; identifying the influence of factors on profitability.
Stages of analysis of profitability indicators:
1. Indicators calculated on the basis of profit - are formed on the basis of calculating profitability levels based on profit indicators reflected in the enterprise’s reporting. These indicators include:
Return on sales - shows how much profit is generated per unit of product sales:
Accounting profitability:
Net profitability:
Economic profitability:
Economic profitability shows the efficiency of using all the organization’s assets.
2. Analysis of indicators calculated on the basis of production assets. They are formed on the basis of calculating the level of profitability depending on changes in the size and nature of advanced funds, which include the organization’s production assets, investment capital and share capital.
These indicators include:
Return on assets - shows how much profit an enterprise receives from 1 ruble invested in assets:
Where Pch is net profit;
Ba - asset balance: non-current assets + current assets.
Return on current assets - how much profit an enterprise will receive from 1 ruble invested in current assets:
Where TA are current assets
Return on investment - shows the effectiveness of raised funds:
Where SK is equity capital
DP - long-term liabilities
Profitability of core activities - what is the efficiency of using production resources:
Where PR is profit from sales
C - full cost
Production profitability:
Where PF are fixed assets
OS - working capital
3. Analysis of profitability indicators calculated on the basis of cash flows. These include:
Net cash flow (NCF) per unit of total capital:
Kchdp/bp = ,
where BP is the liability balance
NPV per unit of equity capital:
Investment cash flow coverage ratio:
Efficiency of enterprise cash flows:
where ODP is gross negative cash flow
Let's analyze the profitability indicators at JSC "Electrosignal" and conduct its factor analysis.
Table 11
The table shows that the profitability of production, equity capital and current assets is increasing, which indicates the full and efficient use of fixed production assets, and the decrease in profitability of sales and core activities is decreasing, which indicates a decrease in sales volume. To increase these indicators, the company needs to reduce costs.
Let's conduct a factor analysis of profitability according to table. 12
Table 12
Characteristics of the level of profitability
Let's conduct a factor analysis of profitability of sales using the following factor model:
where VR is revenue
C - cost
Rpr (BP) = - ; Rpr (C) =;
R=Rpr (BP) + Rpr (C)
where VR1 is the actual value of revenue
BP0 - planned revenue value
C0 - planned cost value
Thus, we get the change in profitability of sales under the influence of revenue:
Change in profitability due to changes in cost:
Changes in profitability influenced by two factors:
R=0.2-0.22= - 0.02
Having analyzed the invoice model, we can conclude: in general, during the analyzed period, the profitability of sales decreased by 0.02. Including due to a change in revenue by 0.2, due to a change in cost by - 0.22. Due to the influence of two factors by - 0.02.
Thus, at JSC "Electrosignal" it is necessary to reduce the cost of production, as a result of which it is possible to achieve an increase in revenue. Since it will increase not only due to sales volume, but also due to lower costs, costs must also be reduced to increase profitability of sales. Thereby increasing the efficiency of the organization as a whole.