A strategy for managing the profitability of a commercial enterprise. Approaches to managing the profitability of an industrial enterprise's products Managing the profitability of an enterprise's production

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CHAPTER 2. ANALYSIS OF PROFITS AND PROFITABILITY ON THE EXAMPLE OF SEC "ERMAK" 27

2.1. Organizational and production characteristics of the enterprise 27

2.2. Grade financial condition SEC "Ermak" 32

2.3. Analysis of the return on equity of the SEC "Ermak", profitability

products 35

2.4. Analysis of the financial results of the activity of the SEC "Ermak 37

CHAPTER 3. DEVELOPMENT OF MEASURES TO INCREASE PROFITS IN SEC "ERMAK" 49

3.1. Yield increase measure 49

3.2. New Services Event 55

3.3. Savings measure wages by improving the qualifications of employees 56

CONCLUSION 60

BIBLIOGRAPHY 64

ANNEXES 67

Introduction

The main task of the enterprise in a market economy is to fully satisfy the needs of the national economy and citizens in its products, works and services with high consumer properties and quality at minimal costs, increasing the contribution to accelerating the socio-economic development of the country. To implement its main task the company provides an increase in profits.

Profit is the primary incentive for the creation of new or the development of existing enterprises. The opportunity for profit motivates people to look for more efficient ways to combine resources, invent new products that may be in demand, and apply organizational and technical innovations that promise to improve production efficiency. Working profitably, each enterprise contributes to the economic development of society, contributes to the creation and augmentation of social wealth and the growth of the well-being of the people.

Profitability is the most important economic indicator that characterizes the economic activity of an enterprise. Increasing the role of indicators such as profit, profitability, for the analysis of the activities of enterprises is of great importance. It serves as a calculation basis for prices, and therefore profits.

The increase in the profitability of products is a significant source of increasing on-farm savings.

Suffice it to say that an increase in the profitability of agricultural products by 1% will save about 700 million rubles. The search and mobilization of the available reserves for its reduction are impossible without a comprehensive cost analysis.

Without analyzing the level of profitability of products, it is impossible to correctly solve the problems of the structure of agricultural production, its specialization, location in the territory of the country, to determine the efficiency of production of one or another agricultural product. Based on the level of profitability of products, the state sets the level of purchase prices for agricultural products.

That is why the analysis of the profitability of products in an agricultural enterprise is of great interest and is of great importance for improving the efficiency of agricultural production.

The topic of profit and profit management is especially acute for Russian enterprises, since the protracted economic crisis, which includes high taxes and non-payments, significantly devalues the profits received. In addition, having found themselves from the beginning of the reforms in the conditions of “free economic floating”, enterprises can no longer rely on state support, they are increasingly operating in conditions of self-sufficiency and self-financing.

Various sources of information are widely used to analyze the profitability of agricultural products: planning, regulatory, reporting, control and revision, production and technological, etc., which are taken mainly from production and financial plans of farms.

Relevance thesis is determined primarily by the objectively significant role of studying the formation of the profitability of the main production in the agro-industrial complex in a modern socially oriented market economy, the transition to which is the main vector of the radical reform unfolding in Russia. That is why the analysis of the profitability of the main production is a strategic task of the economic reform policy.

Agricultural enterprises that have switched to new working conditions independently plan the amount of annual increase in the profitability of products in rubles and as a percentage of the cost price being compared marketable products, as well as in kopecks per ruble of all marketable products. This, however, does not mean that the profitability indicator has lost its previous value. A systematic increase in the profitability of production is a matter of concern for the entire team of an agricultural enterprise, since this leads to an increase in profits and corresponding sources further development enterprise and improve the well-being of the team.

Target thesis - a study of methods of managing the profit and profitability of the enterprise and the development of measures to increase profits.

Subject of study- profit and profitability of the organization, the essence, value and ways of increasing.

Research object is the SEC "Ermak" of the Novovarshavsky district of the Omsk region. To achieve this goal, it is necessary to solve the following tasks:

Study profit as economic category, identify the essence, functions and types of profit;

· To determine the main indicators of profit and profitability, their role and importance in assessing the efficiency of the enterprise;

Identify the main economic forces affecting the indicators of profit and profitability in the SPK "Ermak"

· Develop measures to increase profits.

The work used the methods of economic analysis - horizontal and vertical analysis, coefficient analysis and others.

Structurally, the work consists of an introduction, III chapters and a conclusion.

Chapter I of the work examines the theoretical aspects of the organization of profit and profitability management.

Chapter II contains a description of the SEC "Ermak", and it analyzes the financial condition of the organization, analyzes the financial results of activities, and analyzes the profitability.

Chapter III is devoted to the development of measures to increase profits and profitability. In the conclusion, the main conclusions of the study are formed.

CHAPTER 1. THEORETICAL BASIS OF THE ORGANIZATION OF PROFIT AND PROFITABILITY MANAGEMENT

1.1. Profit and profitability and their economic essence

Indicators of financial results characterize the absolute efficiency of the enterprise. The most important of them are the indicators of profit, which in a market economy forms the basis of the economic development of the enterprise.

Profit is the monetary expression of the main part of monetary savings created by enterprises of any form of ownership.

First, profit characterizes the final financial result. entrepreneurial activity enterprises. It is the indicator that most fully reflects the efficiency of production, the volume and quality of products produced, the state of labor productivity, the level of cost. Profit indicators are the most important for evaluating production and financial activities enterprises. They characterize the degree of his business activity and financial well-being. According to the profit, the level of return on the advanced funds and the profitability of investments in the assets of the enterprise are determined. Profit also has a stimulating effect on strengthening commercial accounting and intensifying production.

Secondly, profit has a stimulating function. Its content is that profit is both a financial result and the main element. financial resources enterprises. The actual provision of the principle of self-financing is determined by the profit received. The share of net profit remaining at the disposal of the enterprise after taxes and other mandatory payments should be sufficient to finance the expansion of production activities, scientific and technical and social development enterprises, material incentives for employees.

Profit growth determines the growth of the potential of the enterprise, increases the degree of its business activity, creates a financial base for self-financing, expanded reproduction, solving problems of social and material needs labor collectives... It allows you to carry out capital investment in production (thereby expanding and updating it), introduce innovations, solve social problems at the enterprise, finance measures for its scientific and technological development. In addition, the profit is important factor in the assessment by a potential investor of the company's capabilities, serves as an indicator of the effective use of resources, i.e. is necessary to assess the performance of the firm and its capabilities in the future.

Thirdly, profit is one of the sources of budgeting at different levels. It enters the budgets in the form of taxes and, along with other income receipts, is used to finance and meet joint public needs, ensure the performance by the state of its functions, state investment, social and other programs, takes part in the formation of budgetary and charitable foundations... At the expense of profit, part of the company's obligations to the budget, banks, other enterprises and organizations is also fulfilled.

To manage profitability, you can use an indicator such as the level of direct costs as a percentage of the volume of sales, because the lower it is, the higher the profitability and vice versa. Read about other ways to manage profitability, as well as how to control their implementation, in the interview.

– Alexey, please tell us what tools your company uses to manage profitability?

- To manage profitability, our company uses several tools that I can recommend to everyone:

Setting an annual target for the overall profitability of the business
Approval of target performance indicators of the company, which affect the formation of profitability.
Monitoring and analysis of the dynamics of profitability of individual areas and large projects of the company's business.
Development and implementation of an annual action plan to increase the profitability of the company's business.
Inclusion in the system of remuneration of employees of motivation to achieve target indicators and fulfill the annual goal of the company's business profitability.

– What targets do you use to manage profitabilitybusiness?

- The main targets that our company uses to manage business profitability are:

the level of direct costs as a percentage of the volume of sales;
level marginal income for each of the lines of business;
production per production employee in hours;
the cost of one actual hour of work at the customer's site.

– What are the reasons for the choice of these indicators?

- The choice is justified both by the degree of their influence on the level of the company's profitability and by the specifics of its business. For example, the level of direct costs directly affects the rate of return: the lower it is, the higher the rate of return, and vice versa. And the indicator of production per one production employee is an important indicator for the specifics of consulting companies, since in this business the main source of profit is the time spent by employees with project customers.

– How do you control their execution?

- The implementation of target indicators is monitored, firstly, through based on the results of each month, and secondly, using a quarterly analysis of the company's performance. Operational control is carried out on a weekly basis in the management database, where employees plan their work weekly and report daily on the actual work performed.

– What problems arise during the consolidation of financial statements, and how do you solve them?

- When consolidating management reporting the main problems, of course, are the need to combine data from various reporting forms into the general consolidated reporting of a group of companies and ensure the relevance of indicators throughout the reporting year.

The first problem is caused by the fact that the group of companies does not use a single accounting base, and therefore there is no common reference books for the formation of consolidated reporting. We solve it by unifying the reference books and data analytics of the accounting databases of the group's companies. For example, companies may have different cost items, but the first three levels of cost analytics will be common to all companies. This approach allows you to quickly form and comparatively evaluate the performance of each of the companies.

The second problem is well-known, since in the course of the activity of any company, the accounting service inevitably makes adjustments to business transactions and these adjustments must be tracked and reflected also in management reporting. We solve this problem by regulating the adjustment of business transactions, for which the group of companies has approved instructions for closing the reporting period in the databases of the group's companies. Accordingly, the instructions clearly define the procedure for adjusting operations and their reflection in the management database, as well as the personal responsibility of employees for compliance with this procedure.

– Please name your favorite and least favorite duty.

My favorite duty is probably the development of the annual financial plan, because in the process of working on it, a vision of the company's future is built, it becomes possible to identify negative trends in its activities and propose ways to eliminate them. I am sure that this work is similar to the work of a sculptor who creates a work of art from a shapeless block (see. ).

My least favorite is checking the validity of credentials, since it is a rather monotonous job that takes a lot of time and attention. But, unfortunately, no automation tools can eliminate human errors, so the head of the financial department will always be obliged to do this work as well.

– How do you motivate yourself?

Motivation can vary. As a rule, it depends on the complexity and duration of the problem being solved. For example, if you need to focus on a task that is not urgent, but important enough, then you can set yourself restrictive motivation. For example, do not go to your favorite cafe until some regulatory document is developed.

If a long-term project is being solved (for example, ), incentive motivation works best. Let's say after each completed stage of the project to plan for yourself the purchase of a new thing or a trip to nature. And of course, for successful self-motivation, you need sufficient willpower so as not to violate your given attitude.

- Once I noticed that the accountant incorrectly reflects in the program the operations for the depreciation of goods. I wrote the instructions, held a conversation. The accountant said that now everything is clear to her. After a while, I checked - now the operations are reflected neither as it was before, nor as indicated in the instructions, but according to the third option. He asked why so. The answer struck me: “I could not understand the instructions, I was ashamed to tell you about it, I asked how to do it from Elena Ivanovna (colleagues).

Was on a business trip, observed this situation at breakfast at the hotel. The client says to the waitress: "Now the service has become much better, before only sausages were offered for breakfast, but now we have a choice of three breakfast options." She asks - "What do you choose?" Client - “I choose breakfast # 2”. Waitress - "So these are sausages !?" Client - "I know, but now I have a choice!"

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Ministry of Education and Science of the Russian Federation

Federal Agency for Education

GOU VPO Kuban State Technological University

Department of Economics and Production Management

Institute of Food and Processing Industry

Report

by discipline: Enterprise Economics

on the topic: "Controlprofitabilityenterprises "

Completed by a student

A.V. Shumilina

groups 09 - I - TX1

Checked by Associate Professor S.K.Vasiliev

Introduction

1. The essence of profitability, its role and significance

2. Indicators of profitability

3. Methods of managing profitability

4. The role of managers in achieving profitability

5. Profitability as a factor in making investment decisions

Bibliography

Vconducting

In a mobile market economy characterized by the presence of competition and the need to ensure the efficient operation of any commercial organization, one of the most important areas of management of the organization is to ensure its profitability.

The relevance of this topic determines the impact of the profitability of activities on the enterprise.

The aim of the work is to study the impact of profitability of activities to determine possible integrated methods and tools for managing profitability.

To achieve this goal in this work, it is necessary to solve the following tasks:

To study the economic essence and the relationship between the profitability of organizations in modern economic conditions;

Get acquainted with the methods of managing the profitability of organizations.

1. The essenceprofitability,herroleandmeaning

If profit is expressed as an absolute amount, then profitability is a relative indicator. The profitability indicator is a relative characteristic of the financial results and efficiency of the enterprise, that is, it characterizes the relative profitability of this enterprise. The performance of an enterprise can be measured by indicators such as sales, costs and profits. Describing the financial or production result, the listed indicators are not able to assess the efficiency of the enterprise. First of all, this is due to the fact that these indicators are absolute characteristics of the enterprise's activities, and their correct interpretation in assessing performance can be carried out in conjunction with other indicators characterizing the funds invested in the enterprise. The indicators characterizing the efficiency of the enterprise are the indicators of profitability (profitability).

Profitability is the ratio of the income to the capital invested in creating that income. By linking profit to invested capital, profitability allows you to compare the level of profitability of an enterprise with an alternative use of capital or with the profitability received by the enterprise under similar risk conditions. More risky investments require higher returns in order for them to be profitable. Since capital is always profitable, to measure the rate of return, profit as a reward for risk is compared with the amount of capital that was required to generate this profit. Profitability is an indicator that comprehensively characterizes the efficiency of an enterprise.

With its help, it is possible to assess the efficiency of enterprise management, since obtaining high profits and a sufficient level of profitability largely depends on the correctness and rationality of the management decisions taken. Therefore, profitability can be considered as one of the criteria for the quality of enterprise management.

The value of the level of profitability can be used to assess the long-term well-being of the enterprise, i.e. the ability of the enterprise to generate sufficient return on investment. For creditors and investors investing money in the company's equity capital, this indicator is a more reliable indicator than indicators of liquidity and financial stability, which are determined on the basis of the ratio of individual balance sheet items.

By establishing the relationship between the amount of profit and the amount of invested capital, the profitability indicator can be used in the process of forecasting profit. In the process of forecasting, the profit that is expected to be obtained on these investments is compared with the actual and expected investments. Estimation of the estimated profit is based on the level of profitability for the previous periods, taking into account the projected changes.

Profitability is of great importance for decision-making in the field of investment, planning, budgeting, coordination, evaluation and monitoring of the enterprise and its results.

Summing up, we can say that profitability is an indicator that reflects the effectiveness of the use of material, labor, money and other resources. The system of indicators of profitability gives an idea of the economic efficiency of the organization's work and helps to make management decisions to business owners and m.

Liquidity is the ability of an asset to transform into cash, one of the most significant indicators of the company's performance. After all, it is he who determines whether the company is able to timely and fully pay for its obligations. The liquidity of an enterprise implies its full solvency, constant equality of the amount of liabilities and liquid funds (those very assets that can be used to pay off debt).

It is impossible to evaluate and give recommendations on making management decisions only on the basis of liquidity ratios, it is desirable to compare these indicators with the profitability indicators of the enterprise, which show the effectiveness of activities.

2. Indicatorsprofitability

profitability economic cost sale

Conventionally, all profitability indicators calculated in financial analysis, can be divided into groups:

Profitability indicators economic activity;

Indicators of return on costs and profitability of sales;

Financial profitability indicators.

The profitability of economic activity (k) characterizes the rate of compensation for the entire set of sources used by the enterprise, and is determined by the ratio of the amount of income of contributors and creditors (P) to the amount of their invested capital (IC):

k = P / IR (1.1)

When assessing the efficiency of economic activity, it is necessary to use the sum of all assets as the invested capital, since their total value takes into account all the debts of the enterprise, including those related to operation. The total amount of assets is used in the calculation of profitability to assess the efficiency of economic activities by external users of information. This is due to the fact that owners and creditors invest money in an enterprise, the management of which has complete discretion to place these funds. Cash can be invested in such assets that do not bring profit in the short term, but in the long term the enterprise will benefit from such investments.

One of the indicators of the efficiency of the production activity of the enterprise is the indicator of the profitability of production. When calculating it, the value of production assets is used as the invested capital as the sum of fixed production assets (F) and material working capital(E).

The cost of working capital can be used as the invested capital in calculating profitability.

When calculating profitability, it must be borne in mind that the amount of capital invested in an enterprise changes during the period of income generation, therefore it should be determined as its average value. In this case, the most correct is the calculation of the average chronological value of the invested capital.

When calculating profitability indicators, various indicators of the company's income can be used: gross profit, profit from sales, profit before tax, net profit (according to form No. 2 "Profit and loss statement"). There is a relationship between the indicators of return on assets, asset turnover and return on sales, which can be obtained by modeling the return on assets ratio by factor dependencies.

The return on assets is determined by the formula:

k = P / A, (1.2)

where k is the return on assets;

Р - profit before tax;

A is the average annual value of assets.

We divide the elements of this formula by one value - the proceeds from the sale (N), we get:

k = P / N * N / A, (1.3)

where P / N is the profitability of sales in terms of profit before tax;

N / A - asset turnover (resource efficiency ratio).

We obtain a formula that reflects the relationship between the indicators of return on capital (kp) and its turnover (kа):

k = kp * kа (1.4)

Return on assets can be improved with constant return on sales by accelerating asset turnover. Conversely, with a constant resource efficiency, the return on assets can grow due to an increase in the return on sales.

Thus, the profit of the enterprise, received from each ruble of funds invested in assets, depends on the rate of turnover of funds and on what is the share of profit in the proceeds from the sale.

Financial profitability characterizes the efficiency of investments of the owners of the enterprise, who provide the enterprise with resources or leave at its disposal all or part of their profits. In the very general view financial profitability is determined by the formula:

k = P / CK, (1.5)

where k is financial profitability;

Р - net profit;

SK - average cost equity capital.

When calculating the profitability, the cost of equity capital should be calculated as the average value for the period, since during the year the equity capital can be increased due to additional monetary contributions or due to the use of the profit generated in the reporting year.

3. Methodsmanagementprofitability

Since profit is involved in the calculation of any profitability indicator, in order to increase the profitability of an enterprise, you need to:

§ increase the volume of trade;

§ change the structure of trade (for example, expand the range);

§ accelerate the promotion of goods in trading network;

§ improve the trade and technological process of selling goods;

§ to influence the number and composition of employees, as well as to use a system of economic incentives for their labor and raise labor productivity (it may be necessary to influence the technical equipment of workplaces);

§ improve the state of the material and technical base of the enterprise;

§ develop a sales network by working on the territorial location of points;

§ increase the amount of working capital;

§ check the pricing procedure;

§ organize work on the timely collection of receivables;

§ work with business reputation enterprises;

§ reduce running costs, or switch to economy mode.

For a quantitative assessment of the interaction of profitability indicators and the influence of other factors on them, factorial and index methods of analysis can be used.

4. Rolemanagersvachievingprofitability

The manager responsible for a project or investment should take the lead in forecasting sales, prices and operating costs from which cash flows will be calculated. Accountant may well be trained better leader for analysis of cash flows, however, it cannot be shifted to forecasting the volume of sales, prices, the number of employees and operating costs. This is an area in which a leader must rely on his own market knowledge and work experience.

The manager needs to know better than the accountant about the main dangers that the project may face. Therefore, it is the leader who should initiate specific “what if” questions, on the basis of which the calculations will be carried out. The accountant may perform additional “what-if” calculations to clarify situations that are particularly affecting profitability.

The manager must not only understand what the answers calculated by the accountant mean, but also know why the company needs such high profitability... Achieving profitability only at the level of the current overdraft interest rates is completely insufficient, because:

§ managers tend to be optimistic about future cash flows from investments, therefore, an appropriate adjustment should be made in relation to the required level of profitability;

§ sometimes projects face serious obstacles or are abandoned after they have been used up significant funds;

§ in some industries, about 1/5 of all investments do not generate cash receipts, since they are directed to repair or replacement technological equipment, or is due to new legal requirements;

§ a certain share of the income should be envisaged, which will be redistributed in favor of shareholders in order to reward them for the commercial risk of the project.

Therefore, it is not surprising that many companies want to have a profitability of at least 25% per annum before corporate tax.

5. Profitabilityhowfactoradoptinginvestmentdecisions

Many companies set a single minimum profitability for all investment projects (an investment portfolio is strategic plan how the investor's money will be distributed and multiplied), regardless of the degree of risk and uncertainty. The advantage of this approach is simplicity. However, as a result, decisions can be made:

§ on the rejection of projects with minimal risk and uncertainty (for example, investments in order to reduce existing costs), since their profitability is slightly below the established minimum;

§ on the approval of risky projects, for example, investments in the promotion of new products on the foreign market.

Investment banks and financial institutions recognize the need for an acceptable balance between potential risk and reward. For example, they expect different returns on the company's buyout loan and venture capital investments in new companies.

Some large firms use a similar approach, setting different rates of return based on the degree of risk associated with different categories of projects. These categories can be:

§ increasing the efficiency of the existing business, for example, investments in automation, mechanization of loading and unloading operations, modernization of control and measuring equipment;

§ expansion of sales of manufactured goods or services in the developed markets within the country and abroad;

§ access with new goods or services to the mastered domestic or foreign markets, or, conversely, with the mastered goods to new markets;

§ a new product or service on a new domestic or foreign market.

It is clear that for each subsequent category, the rate of return must increase. Establishing differentiated rates of return requires considerable experience. However, a very flexible, albeit somewhat subjective, approach to investment decisions can be used. Low-risk projects should probably be approved even if the required profitability is not fully secured. On the contrary, investing in new lines of business, showing only normal returns, requires the most picky attitude.

It should never be forgotten that an acceptable level of calculated profitability is not an exhaustive argument when making investment decisions. In addition, the proposed project should:

§ be consistent with the chosen strategy and the commercial nature of the company;

§ be the most appropriate way to achieve the goal after considering the various available alternatives;

§ ensure an acceptable balance between potential reward and risk;

§ be acceptable to customers, suppliers and staff, if necessary.

Listliterature

1. Babo A. Profit. Per. with fr. / Common. ed. and comments. IN AND. Kuznetsova. - M .: A / O Publishing group "Progress", "Univers", 2003.-487s.

2. Milner B., Liis F. Management of a modern corporation. - M .: 2001.-436s.

3. Shein V.I., Zhuplev A.V., Volodin A.A. Corporate management. - M .: 2001.-458s.

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A strategy for managing the profitability of a commercial enterprise. Approaches to managing the profitability of an industrial enterprise's products Managing the profitability of an enterprise's production

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