FACTORY ANALYSIS OF THE PROFITABILITY OF TRADING ENTERPRISES

Abstract

To assess the financial and economic activity of enterprises, the efficiency of production of all products, it is not enough to use only profit indicators. The amount of profit shows the absolute effect of the company's activity without taking into account the use of resources, and the profitability characterizes the measure of this efficiency, gives an opportunity to more fully evaluate the final results of the company's activity. The article examines the role and significance of profitability for the assessment of enterprise activity. It has been proven that profitability indicators measure the profitability of the enterprise from different positions and can be grouped according to the interests of the participants in the economic process. Particular attention is paid to the topical issue of the factor analysis of the profitability of the production of trade enterprises. The main stages of the profitability analysis are defined, which include five stages. When calculating profitability indicators, such profit should be used, which is the result of expenses or the use of funds, since profitability characterizes their effectiveness, using relative profitability as a criterion. When determining the indicator of profitability of production, which characterizes the relative profitability of the means of production, it is advisable to use the operating profit in the numerator of this indicator, since it is the final result of their use. In the process of analysis, special attention is paid to the factors that affect the change in the level of profitability of the company's production. Factor analysis helps determine the impact of factors on the profitability of equity capital. In the research process, a deterministic factor multiplicative model of the company's production profitability was built, which reflects the dependence of operating profit on fixed assets and working capital. It is proposed to use the method of chain substitutions to identify the influence of factors on the performance indicator. Reserves for the growth of profit from the company's operational activities have been determined. Such reserves of profit growth from operating activities have become: growth in the volume of product sales, increase in return on capital and turnover of working capital. The results of the research are of practical importance and can be used in the activities of a trading company.