Profitability refers to various relative values that determine the effectiveness of business activities. The return on sales ratio shows how capable the company's specialists are of controlling costs and implementing pricing policies.
The coefficient can be calculated not only for a traditional enterprise, but also for a huge corporation with many divisions or industries. The value will depend on the industry, the rate of turnover of funds and the capital structure (weight of borrowed funds). Economic theory offers various options for calculating this indicator.
Formulas for calculating the profitability of product sales
This ratio shows the share of profit in each ruble of revenue. The value depends on the industry, the size of the enterprise and the duration of the production cycle.
Traditional sales profitability formula:
- K = profit from sales/revenue excluding VAT and excise tax*100%
For calculations, you can use the values of gross, operating and net profit.
- gross ( VP) = revenue (price*sales volume) minus the full cost of production or purchase of goods;
- operating room ( OP) = VP minus operating (current) expenses;
- clean ( Emergency) – OP excluding taxes.
Formula for profitability of sales based on gross profit:
- VP/revenue*100%.
The result is the amount of gross profit in revenue.
Operating profit value:
- OP/revenue*100%
The result is the amount of operating profit in revenue.
Formula for calculating return on sales based on net profit (after tax):
- PE/revenue*100%
This ratio is important for enterprises with a small amount of equity capital and fixed assets. For the reliability of the analysis, it must be calculated over several periods. The coefficient can also be calculated for individual product groups.
In theory, there is also the concept of minimum profitability, which is equal to the average interest rate of a bank deposit. In practice, the minimum indicator depends on the scale of the enterprise. A large supermarket will survive with an indicator of 3-5%, and a mini-bakery will go bankrupt even with 15%. That is, the situation at an enterprise is not always determined by relative indicators. But the statement is always invariably true: “An increase in the sales profitability ratio is good, a decrease is bad.”
Reasons for the decline in indicators and ways to improve them
Coefficients decrease if prices decrease, assortment changes, and costs increase. Regardless of the reason, a decrease indicates an unfavorable situation. To identify the reasons, an analysis of costs, pricing principles, and assortment is carried out.
If the decrease is caused by a reduction in sales volumes, then there can be only 2 options: decreased demand or unsatisfactory performance of the marketing department. Constant calculation of indicators allows you to quickly navigate the situation, find the reasons for the decline and eliminate them.
But it’s not enough to know how to find return on sales—the formula won’t change anything. It is important to know how to improve your performance. There can be several ways:
- cost reduction;
- cost reduction;
- increase in prices for certain groups of goods.
The first method is used most often. This may include staff reduction and reduction in operating costs. The second method interacts with the first. For example, when staffing is reduced, production costs automatically decrease. A less common method is to expand the enterprise in order to reduce the cost per unit of goods.
The third method is the most risky. Implementation requires caution, accurate calculations and expansion of the range. You can increase the price without the risk of losing regular customers for groups of goods that are purchased at almost any price. Another option is to expand the range with very expensive but elite products.
The role of the profitability ratio of product sales in the analysis of economic activity
If the values of the coefficients are calculated for several periods in a row, their comparison makes it possible to determine how competently decisions are made and how efficiently resources are used. It is advisable to begin the analysis of indicators with a comparison with values for previous periods and industry averages.
It is also important to take into account that the calculation results will not be correct if the enterprise’s profit has a large share of income from other activities. This means that when calculating, you only need to take into account the profit from sales. Another nuance is the amount of borrowed funds. It is also necessary to deduct interest paid on loans from net profit.
In a general sense, profitability includes a set of indicators that comprehensively characterize the efficiency (profitability) of a business.
Profitability is always the ratio of profit to that object, the analysis of the influence of the effect of which needs to be clarified. In fact, the formula for return on sales on the balance sheet determines the share of profit per unit of the object in question.
Using the formula for return on sales on the balance sheet, you can find out with what degree of efficiency equity capital (company assets), fixed and working capital, etc. is used.
Return on sales shows what part of the profit is in the organization's revenue. In the analysis, return on sales is denoted by ROS (from the English returnonsales).
General sales return formula as follows:
ROS = P / Qp * 100%,
Here ROS is return on sales;
P is the amount of profit;
Qп - sales volume (revenue).
Return on sales is a relative indicator, determined as a percentage.
Formula for return on sales on balance sheet
When calculating the profitability of sales on the balance sheet, information is taken from the financial results report (form No. 2).
In this case balance sheet return on sales formula depends on the type of profitability that users need:
- Gross Profit Margin:
ROS=p.2100/p. 2110 * 100%
- Operating profit margin:
ROS=(p.2300 + p.2330)/p. 2110 * 100%
- Net profit margin:
Standard value of return on sales
When calculating the profitability of sales, there are no specific standards, since the average statistical values of profitability by industry are calculated. Each type of activity has corresponding norm coefficients.
In general, the formula for profitability of sales on the balance sheet should provide a profitability standard ranging from 20 to 30%, which reflects the high profitability of the enterprise.
An indicator of up to 5% indicates low profitability of the company, from 5 to 20% - average profitability, a profitability indicator of more than 30% indicates super-profitability.
Average return on sales by industry in our country:
- Agriculture – 10-13%,
- Mining – 25%,
- Construction – 5-10%,
- Trade – 7-8%.
Sales profitability analysis
The formula for profitability of sales on the balance sheet allows the administration of the enterprise to find out the degree of efficiency of the organization in the use of costs in the process of making a profit.
A cost-benefit analysis is needed in the following cases:
- Receipt and increase in profits;
- Control of company development;
- Conducting comparisons with competitors;
- Detection of profitable and unprofitable products, etc.
Examples of problem solving
EXAMPLE 1
| Exercise | The company has the following indicators taken from the accounting documentation: Revenue (line 2110) 2014 – 206,000 thousand rubles. 2015 – 46,600 thousand rubles. 2016 – 105,500 thousand rubles. Net profit (line 2400) 2014 – 11,000 thousand rubles. 2015 – 3,000 thousand rubles. 2016 – 3,300 thousand rubles. Find the profitability of sales on the balance sheet. |
| Solution | Net profit margin formula: ROS=p.2400/p. 2110 * 100% ROS 2014 =11,000 / 206,000 * 100% = 5.34% ROS 2015 =3,000 / 46,600 * 100% = 6.44% ROS 2016 = 3,300 / 105,500 * 100% = 3.13% Conclusion. We see that the return on sales in 2015 increased to 6% compared to 2014, but comparing 2015 and 2016, we see that it fell to 3%. At the same time, profitability is above zero, which indicates a positive result. |
| Answer | ROS 2014 = 5.34%, ROS 2015 =6.44%, ROS 2016 = 3.13% |
EXAMPLE 2
| Exercise | Calculate the return on sales indicator and draw conclusions about its changes using the example of the Rusneft LLC enterprise. The following indicators are given from the accounting documentation: Total sales revenue (line 2110) |
Profitability is an economic indicator that shows the degree of efficiency in the use of any type of resources (material, natural, labor, capital, investments, sales, etc.). In other words, profitability is the profitability of a business, its economic efficiency and benefit.
Accordingly, if profitability indicators are negative, then running a business is unprofitable and you need to work on indicators of increasing profitability, find out the reasons for low profitability and look for ways to solve them. Profitability, its level is expressed in coefficients, and relative indicators are expressed as percentages.
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Also, profitability shows the efficiency of using certain funds, when the enterprise not only compensates for all costs, but also makes a profit.
There is such a thing as a profitability threshold - this is an indicator (point) that actually separates the periods of unprofitable production and the effective operation of the company (compare it with the break-even point).
To analyze the efficiency of an enterprise, actual profitability indicators are compared with planned ones, with data from past periods and similar economic data of other companies. The ratio of total income to main flows or assets will be profitability indices (ratios).
Basic profitability standards can be divided into the following main groups:
- return on sales (return on sales);
- return on assets (return on non-current assets);
- return on investment;
- return on current assets;
- return on equity;
- product profitability;
- income from the efficient use of production assets;
The total profitability of the company is determined by these basic indicators depending on the scope of its activities. Assets and their profitability equals the efficiency of using equity capital or invested funds, how assets generate profit and in what quantity, depending on the resources expended. Return on assets is calculated as the ratio of profit for a certain period to the size of assets for the same period.
Formula:
Return on assets, R act. = P (profit) / A (size of assets)
Using the same parameters, economists calculate the profitability of the use of production assets, investment capital, and own fixed capital. For example, return on equity shows how effective the shareholders' investments in the business are.
Return on sales and formulas for calculating it
Return on sales (return on products sold) is a profitability indicator expressed in coefficients and displays income (its share) for each monetary unit spent. Return on sales is calculated as the ratio of net profit to total revenue.
Formula:
Return on sales, R prod. = P (net income) / V (revenue volume).
Sales profitability directly depends on the company's pricing policy and its flexibility according to market conditions in a particular segment. Some firms apply their external and internal strategies, study competitors' markets, product ranges and product lines to obtain high sales returns.
There are no clear standards and values for indicating the profitability of sales, since the standard value and their indicators depend on the specifics of the company’s activities. Return on sales indicators show the overall operating efficiency for a specific period.
Basic formulas for calculating return on sales
To effectively manage sales and monitor the company’s performance results, sales profitability is calculated using the following indicators:
- by gross profit;
- by operating profit EBIT;
- according to balance sheet data;
- net return on sales;
Sales profitability by gross profit is an indicator (coefficient) of profitability, which denotes the share of profit on each monetary unit earned. This indicator is calculated as the ratio of net income (after paying all taxes) to the total amount of cash for the same period of operating activity of the enterprise.
The formula will be as follows:
Operating profitability = Gross income / Trading revenue.
Gross profit organization is also reflected in the financial statements. Profitability of product sales based on operating profit EBIT is the ratio of EBIT to total revenue. EBIT is total earnings before subtracting all taxes and interest.
The formula for calculating this indicator is:
Operating profit margin EBIT = Total income (before taxes) / Total revenue
Return on sales based on operating profit EBIT is also called operating return on sales. This ratio is intermediate between the total sales return and the company's net profit results.
Return on sales on balance sheet– this is a coefficient that is calculated according to financial statements and characterizes the share of profit from the company’s sales in total revenue.
Calculated using the following formula:
Balance sheet return on sales = total income (or loss) from sales/volume of sales revenue.
Net sales return– this coefficient shows how many kopecks of net profit are in each monetary unit of revenue and is calculated as the ratio of net profit (the field of deduction of all taxes, cost and staff payroll, other expenses) to total revenue.
Formula:
Net sales return = Net profit/Revenue
In order to independently calculate data on net profitability from sales, it is enough to know the total number of units of products sold and income (after paying all relevant taxes and maintenance costs), which is not related to the non-operating activities of the enterprise (this could be exchange rate differences, investments, sales shares or other securities).
Analysis of results. Data on calculating return on sales help a company calculate various types of profit in total revenue, but everything also depends on the characteristics of the main activity of the enterprise.
Indicators for calculating profitability over several periods help to quickly manage the processes of an organization’s economic activity, quickly respond to market fluctuations and, using various economic methods, influence improvements in performance indicators and constant income generation.
Return on sales indicators are used to calculate operational activities; it is better not to use this indicator for long-term periods, since the sales market is very dynamic and you need to respond to all its changes as quickly as possible.
These indicators are effective for solving daily and monthly tasks and plans for the sale of products and goods.
How to increase your sales profitability
The main ways to increase sales profitability are the following:
- reduction in production costs (cost reduction);
- increase in production volumes and, due to this, gross revenue;
But when introducing these improvements, the enterprise must have material and labor resources. Work in this direction requires the selection of highly qualified personnel; it is possible to conduct training among personnel according to new methods and practices that are effectively used in world economic practice.
First of all, you need to study the position of competitors in the market, the range of products presented, pricing policy, promotions, and based on this, analyze what can affect the reduction of the cost of your products.
It is necessary to compare not only offers on the market in your region, but also take into account the features and advantages of leading companies on the market. Perhaps the low cost is influenced by the constant introduction of new technologies, then conduct research on how profitable it is to introduce these technologies in your business and at what speed the innovations will pay for themselves.
As practice shows, despite the initial costs of personnel development and the introduction of new products may seem large, but after doing an economic analysis, taking into account planned indicators, these costs are always justified.
To fully comply with market standards, you need to constantly monitor the dynamics of sales markets, customer requirements, and respond very quickly to all changes and fluctuations. Not only the pricing policy, but also the assortment policy should be effective. The assortment must be constantly updated and improved so that customers see it all (people love and are interested in new items). The quality of the product must also be appropriate.
To increase the profitability of sales, it is necessary to take into account not only economic factors and opportunities (cost reduction, profit optimization), but also an effective marketing policy. In most cases, to increase the profitability of sales, economists recommend eliminating or reducing some expense items, and marketers offer effective pricing policies.
The correct combination of marketing and economic decisions guarantees a constant income from sold products, goods or services.
One of the economic indicators of the efficiency of organizing the activities of an enterprise is return on sales (hereinafter referred to as RP).
It allows you to determine how profitable the entire process from manufacturing to sales of manufactured products is for the company. This value depends on the indication of gross profit (hereinafter referred to as GP), revenue and other factors.
The concept of profitability and its main types
The RP indicator is very widely used in all sectors of the economy in order to find out how effectively the enterprise uses current costs.
This indicator is measured as a percentage, showing the ratio of profits to expenses. This coefficient shows what share it takes in each ruble earned after the sale of manufactured products.
Exists several types of RP depending on the parameters used when determining it:
- by value before interest and taxes in each ruble of revenue;
- according to VP indications (Operating Margin, Gross Margin, Sales margin,);
- by net profit, part of which falls on 1 ruble of revenue (Profit Margin, Net Profit Margin).
Obtaining net profit is possible only if the company carries out expedient activities aimed at rational use of investments. The coefficient also depends on capital turnover and output volume.
What characterizes this meaning?
The RP parameter is an indicator of economic efficiency that characterizes the company's profitability from production activities.
By its meaning carry out analysis about how rationally the organization uses its available production resources:
If the results of the activities of non-profit structures are analyzed, then this parameter will assess the overall effectiveness of their work. For commercial departments, accurate quantitative characteristics are important when making calculations. RP is similar to efficiency, only the parameters in this analysis are the result obtained as a result of the activity, which is presented as the ratio of costs incurred to the amount of profit received. The more benefits received, the more profitable the production.
At enterprises, RP is an indicator of the organization’s pricing policy and competent cost control. Diversity in the competitive strategies of an enterprise is stimulated by the large difference in the parameters of the RP in different companies. It is widely used to analyze the operational efficiency of organizations.
For information about what this indicator is, the rules and examples of its calculation, see the following lesson:
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Calculation procedure and rules
The RP indicator is calculated in order to to carry out analysis such factors:
- dynamics of company development;
- efficiency of production processes;
- methods of product sales.
The RP value is usually calculated as the ratio of net profit, from which taxes have already been withheld, to the volume of proceeds received from sales for the same period of time.
By gross profit
The RP coefficient calculated using the VP parameter is called in English: GrossProfitMargin.
It is obtained by solving a simple formula - the ratio of VP to revenue:
RPval=VP/V,
where B is revenue.
This parameter shows the size of the VP’s share in kopecks contained in 1 ruble of proceeds. 
By operating profit
The numerical value found as a result of the ratio of operating profit to the amount received after the sale of products is the RP for operating profit or also called Return on Sales (ROS).
The formula for determining this parameter is as follows:
where Ebit is operating profit. This value is obtained as the sum of two lines: 2300 “Profit (loss) before tax” and 2330 “Interest payable”;
Tr – proceeds after sales.
In English, operating profit sounds like Earnings before Interests and Taxes.
In this parameter, as in the previous case, you can immediately see the penny share of operating profit included in 1 ruble.
This parameter is an intermediate performance assessment coefficient between sales profit and net profit.
By net profit
The designation Net Profit Margin (Npm) belongs to the term net profit margin. It is determined as a result of the ratio of net profit to total revenue. In this case, they talk about RP, which shows what share of net profit falls on 1 ruble of revenue.
The formula looks like this:
Npm=Pr./Tr,
in which net profit (Tr) is determined by multiplying the price by the number of items sold from the output:
Tr=W*L,
W – price, L – number of units sold.
Net profit =Tr - Total cost - Expenses + Income - Taxes,
where are the indicators “Expenses” and “Incomes” arising from the non-core activities of the enterprise. These include exchange rate differences in currencies, transactions with securities, in the production of other enterprises through, etc.
Balance formula
Another option for calculating the RP indicator is a formula that uses balance sheet data:
RP = profit from sales / amount of revenue
RP = line 050 / line 010 f. No. 2,
where profit from sales is the value from line 050 in form No. 1 of the enterprise; the amount of revenue is reflected in line 010 in form No. 2.
Each of the above calculation options is used in one case or another to analyze the company’s sales activities. 
Return on sales ratio
The share of net profit in total sales is determined using return on sales ratio(hereinafter KRP).
It is the most important among other indicators of a company's profitability. The indicator cannot have a negative value and correspond to the current inflation rate. In order for it to show a smaller error in countries with highly developed economies, the coefficient is correlated depending on the industry.
The formula for calculating the coefficient is as follows:
KPR = net profit/sales revenue.
This parameter can be calculated either for individual items (for example, for a specific product) or as a whole for total products. Calculations must be done quite often, because... This is important for organizing rational production at the enterprise, which allows you to stably maintain and increase the flow of profits.
Calculation example
To calculate the RP parameter required for analysis and find out how much net profit the company received from the sale of goods, you need to apply the formula. To make it easier to understand how to calculate RP, let's look at an example.
The company received total sales revenue for the year 2014 amounted to 15.85 million rubles, and in 2015 it increased to 17.51 ml. rub.
The net profit amounted to:
- in 2014 – 3.8 million rubles;
- in 2015 – 4.9 million rubles.
Do you need to determine how the RP has changed?
To answer, you must first find out the KRP for 2014 and 2015. To do this, let’s substitute the initial data into the formula for calculating the CRP given above:
KRP (2014) = 3.8/15.85 = 0.2397 or in terms of net profit RP (2014) = 23.97%.
KRP (2015) = 4.9/17.51 = 0.2798, respectively, and RP (2015) = 27.98%.
Now we need to clarify how the value has changed as follows:
RP (2015) - RP (2014) = 27.98-23.97 = 4.01%.
From the calculations it follows that in 2015 the profitability of sales increased significantly by 4.01%.
Analysis of the results obtained
By analyzing the value of return on sales, the management administration tries to find out how correctly the use of costs is organized in order to make a profit.
In many enterprises this analysis needed for the following:
- stable revenue and increased profits;
- control over the development of the company;
- making comparisons with competing firms;
- detection of profitable and unprofitable products, etc.
The management of the organization must carefully consider measures to increase profits and reduce losses in production activities. What to do if you need to increase your RP? What to do if profitability decreases? Regular monitoring and analysis of the RP level allows you to identify a lot of extremely important information. During the calculations, it becomes clear how production is developing, what needs adjustment, and what factors, on the contrary, do not require changes.
For every business activity, there is no more important goal than to constantly increase your income. To do this, it is necessary to regularly calculate all options for determining profitability and record the results obtained.
The main source of movable capital is revenue received from the sale of products. Therefore, one of the main activities of the subject should be to increase the RP indicator by observing the economy regime, reducing costs, and rational use of enterprise resources.
Due to the fact that the volume of costs for raw materials requires considerable investments, and increasing profitability implies reducing costs, it is necessary to rationally calculate the costs of purchasing materials. This will increase the KRP and increase profits.
Marketing market research will make it possible to establish an improved production of products similar to similar products from competitors and increase customer demand for their products.
Main activities for the use of labor resources affecting to increase profitability, such:
- optimal use of workers employed in production;
- increasing the skills and qualifications of working personnel;
- optimization of costs for departments that are not involved in direct production of products;
- use of automated mechanisms in production;
- promoting staff interest in increasing productivity.
Main factors that may influence to reduce sales profitability, such:
- Expenses are growing faster than revenue from product sales;
- The decline in revenue outpaces the increase in costs;
- There is a decrease in revenue against the background of increasing costs.
The first option is usually associated with an increase in corporate costs with a forced reduction in prices due to the onset of unfavorable market conditions. The second point is characterized by a drop in product sales.
And in the latter case there is a series factors influencing the decrease in RP. These include:
- the need to reduce prices for manufactured products;
- reduction in assortment due to the inability to stop the increase in corporate costs.
It is necessary to analyze these factors and revise the economic policy of the enterprise in order to prevent and gradually increase the RP indicator.
Standard values of this indicator for Russia
RP depends on many factors. The highest indicators are in the trade and mining industries, and the lowest in heavy engineering.
For this parameter influence:
- Industry;
- Region;
- Terrain;
- Kind of activity;
- Seasonality, etc.
According to statistics, in 2014 there were such profitability indicators:
- The maximum number belongs to the mining sector (24-33%) and chemical production (16.7%).
- Large business areas are showing a decrease in profitability due to falling prices and consumption on world markets.
- Enterprises in the small and medium segment of the economy showed a slight increase of about 0.9% of GDP.
Due to the turbulent geopolitical situation, the profitability of some industries has decreased, but nevertheless growth is observed and economists predict that retail trade could grow by 2.1% per year.
The rules and procedure for calculating profitability are discussed in the following video:
Profitability indicators
- Product profitability- ratio of (net) profit to total cost
- Return on fixed assets- ratio of (net) profit to the value of fixed assets
- Return on sales(Margin on sales, Return on sales) - the ratio of (net) profit to revenue.
- Basic return on assets ratio(Basic earning power) - the ratio of profit before taxes and interest received to the total amount of assets
- Return on assets (ROA)- the ratio of operating profit to the average amount of total assets for the period
- Return on equity (ROE):
- the ratio of net profit to the average amount of equity capital for the period;
- The ratio of earnings per common share to the firm's book value per share.
- Return on invested capital (ROIC)- the ratio of net operating profit to the average equity and borrowed capital for the period
- Return on Capital Employed (ROCE)
- Return on total assets (ROTA)
- Return on business assets (ROBA)
- Return on net assets (RONA)
- Profitability of markup(Profitability of the margin) - the ratio of the cost of a product to its selling price
- etc. (see profitability ratios in financial ratios)
Return on sales
Profitability of sales(English) Profit margin) - coefficient profitability, which shows the share of profit in each ruble earned. It is usually calculated as the ratio of net profit (or profit before taxes) for a certain period to the sales volume expressed in cash for the same period.
Return on Sales = Net Profit / Revenue
Return on sales is an indicator of a company's pricing policy and its ability to control costs. Differences in competitive strategies and product lines cause significant variation in return on sales values across companies. Often used to evaluate the operating efficiency of companies. However, it should be taken into account that with equal values of revenue, operating costs and profit before tax for two different companies, the profitability of sales can vary greatly due to the influence of the volume of interest payments on the amount of net profit.
Return on assets
Return on assets(English) return on assets, ROA net profit received for the period, by the total assets of the organization for the period. One of the financial ratios is included in the group of profitability ratios. Shows the ability of a company's assets to generate profit.
Return on equity
Return on equity(English) return on equity, ROE) - a relative indicator of operational efficiency, the quotient of dividing the net profit received for the period by the organization's own capital. One of the financial ratios is included in the group of profitability ratios. Shows the return on shareholder investment in terms of accounting profit.
Return on equity = Net profit/Average shareholders' equity for the period
Notes
Sources
- Brigham Y., Erhardt M. Analysis of financial statements // Financial management = Financial management. Theory and Practice. - 10th ed./Trans. from English under. ed. Ph.D. E. A. Dorofeeva.. - St. Petersburg: Peter, 2007. - P. 131. - 960 p. - ISBN 5-94723-537-4
Wikimedia Foundation. 2010.
See what “Sales return” is in other dictionaries:
The ratio of net profit to net sales. Dictionary of business terms. Akademik.ru. 2001... Dictionary of business terms
return on sales- The ratio of profit from product sales (operating profit) to sales volume for the period under review. Topics: economics EN sales marginsales profitability… Technical Translator's Guide
SALES PROFITABILITY- the ratio of the company's net profit to net sales... Large economic dictionary
Total return on sales- total return on sales is the ratio of the amount of gross profit from operating activities and interest paid on loans included in the cost price to the amount of revenue from sales of products and from non-sales operations;... Source:... ... Official terminology
Net return on sales- net return on sales is the ratio of net profit (after taxes) from operating activities to the amount of revenue from sales of products and from non-sales operations. Sometimes defined as the ratio of net profit to cost... ... Official terminology
Return on sales (RETURN ON SALES)- See Profit Margin... Glossary of management accounting terms
- (German rentabel profitable, useful, profitable), a relative indicator of economic efficiency. Profitability comprehensively reflects the degree of efficiency in the use of material, labor and monetary resources, as well as... ... Wikipedia
Profitability (German rentabel profitable, profitable), a relative indicator of economic efficiency. Profitability comprehensively reflects the degree of efficiency in the use of material, labor and monetary resources, as well as natural... ... Wikipedia
Total return on assets- total return on assets is the ratio of the sum of gross profit from operating activities and interest paid on loans included in the cost price to the average value of assets for the period. These indicators (total return on sales and assets)… … Official terminology
Profitability- – an indicator of the efficiency of using funds or other resources. Expressed as a ratio or in percentage form. To evaluate an enterprise or bank, it is customary to use several profitability indicators: return on assets (ROA) ... Banking Encyclopedia
Books
- , Savitskaya Glafira Vikentievna, The book examines the essence of the efficiency of entrepreneurial activity, developed a structured system of indicators to identify its level and a methodology for their calculation. Made… Category: Accounting and auditing Series: Scientific Thought Publisher: INFRA-M,
- Analysis of the efficiency and risks of business activities. Methodological aspects. Monograph, Savitskaya G.V. , The book examines the essence of business efficiency, develops a structured system of indicators to identify its level and a methodology for their calculation. Made... Category:
