It is well known that the performance of enterprises can be assessed by various indicators, such as the volume of output, sales, profit. Describing financial or production result, the listed indicators are not able to assess the efficiency of enterprises. This is due to the fact that these indicators are absolute characteristics of the enterprise's activities, and their correct interpretation in terms of performance assessment can be carried out in conjunction with other indicators that characterize the funds invested in the enterprise. Indicators that characterize the efficiency of enterprises are indicators of profitability (or profitability). Profitability analysis allows you to assess the ability of the enterprise to generate income on the capital invested in the enterprise. In the economic literature, several concepts of profitability are given. Profitability (from German rentabel - profitable, profitable) is an indicator economic efficiency production at enterprises, which comprehensively reflects the use of material, labor and financial resources. According to other authors, profitability is an indicator that is the ratio of profit to the amount of production costs, cash investments in the organization of commercial operations or the amount of property of the firm used to organize its activities. Either way, profitability is the ratio of income to the capital invested in generating that income. By linking profits to capital invested, profitability compares the rate of return of an enterprise with alternative uses of capital or the return received by the enterprise under similar risk conditions. Riskier investments require higher returns to be profitable. Since capital always makes a profit, in order to measure the level of return, the profit, as a reward for risk, is compared with the amount of capital that was needed to generate this profit. Profitability is an indicator that comprehensively characterizes the efficiency of the enterprise. With its help, you can evaluate the effectiveness of enterprise management, since obtaining high profits and a sufficient level of profitability largely depends on the correctness and rationality of the decisions taken. management decisions. By the value of the level of profitability, one can assess the long-term well-being of the enterprise, i.e. the ability of the enterprise to earn a sufficient return on investment. For long-term creditors of investors who invest in the company's own capital, this indicator is a more reliable indicator than indicators financial stability and liquidity, determined on the basis of the ratio of individual balance sheet items. By establishing a relationship between the amount of profit and the amount of invested capital, the profitability indicator can be used in the process of profit forecasting. The forecasting process compares the expected return on investment with actual and expected investment. Estimated expected profit is based on the level of profitability for previous periods, taking into account projected changes. In addition, profitability is of great importance for making decisions in the field of investment, planning, budgeting, coordinating, evaluating and monitoring the activities of the enterprise and its results. Thus, we can conclude that profitability indicators characterize the financial results and performance of the enterprise. They measure the profitability of the enterprise from various positions and are systematized in accordance with the interests of the participants in the economic process. In the economic literature, various authors classify profitability indicators in different ways. In the Russian understanding of profitability, it means the profitability of products, production, or the profitability of sales. AT foreign practice all profitability indicators are indirect (relative) and, as a rule, VP or PE are present in the calculations. According to the definition of domestic authors, profitability indicators are indicators of a generalized characteristic of the efficiency of the enterprise as a whole, showing how profitable the organization's activities are. Most enterprises use the profitability indicator to assess the effectiveness of their activities. products sold. Product profitability = Profit from product sales / Cost of sales Return on equity (Dupon formula): Rsk = NP/BP × BP/A × A/SK, where (1) Rsk is profitability equity; PE - net profit; A - the amount of assets of the organization; BP - production volume (revenue from sales); SC - equity capital of the organization. Return on Assets = Net Profit / Average Value of Assets Return on Fixed Assets = Net Income / Average Value of Non-Current Assets Return on Current Assets = Net Income / Average Value of Current Assets Return on Equity = Net Income / Average Value of Equity Return on Sales = Profit on Sales / Revenue Overall profitability - the ratio of balance sheet profit to the average annual cost of fixed and working capital. It is determined by the formula: Ro = Pb / F * 100%, (2) where Ro - total profitability, Pb - total balance sheet profit, F - average annual cost major production means, intangible assets and tangible working capital.

Profit and profitability management 19

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

2.1. Organizational and production characteristics of the enterprise 27

2.2. Grade financial condition SPK "Ermak" 32

2.3. Analysis of return on equity of SPK Yermak, profitability

products 35

2.4. Analysis financial results activity of SPK "Ermak 37

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

3.1. Yield increase measure 49

3.2. New Services Event 55

3.3. savings event wages by improving the skills of employees 56

CONCLUSION 60

BIBLIOGRAPHY 64

APPS 67

Introduction

The main task of the enterprise in the conditions market economy is the full satisfaction of the needs of the national economy and citizens in its products, works and services with high consumer properties and quality while minimal cost, increase the contribution to the acceleration of social economic development countries. For the implementation of its main task the company provides an increase in profits.

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

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

Increasing the profitability of products is a significant source of increasing on-farm savings.

Suffice it to say that a 1% increase in the profitability of agricultural products will save approximately 700 million rubles. Finding and mobilizing the available reserves to reduce it is impossible without a comprehensive cost analysis.

Without analyzing the level of profitability of products, it is impossible to correctly resolve the issues of the structure of agricultural production, its specialization, distribution across the country, and determine the efficiency of production of a particular 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 profitability management is especially acute for Russian enterprises because lingering economic crisis, the components of which are high taxes and non-payments, significantly devalue the profits received. In addition, having found themselves in conditions of “free economic floating” since the beginning of the reforms, enterprises can no longer rely on state support, they are increasingly operating in conditions of self-sufficiency and self-financing

To analyze the profitability of agricultural products, various sources of information are widely used: planning, regulatory, reporting, control and auditing, production and technological, etc., which are taken mainly from the 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 profitability analysis of the main production is strategic objective reform economic policy.

Agricultural enterprises that have switched to new working conditions independently plan the amount of the annual increase in the profitability of products in rubles and as a percentage of the cost of comparable 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 former value. A systematic increase in the profitability of production is a matter of concern for the entire team of an agricultural enterprise, since this results in an increase in profits and corresponding sources for the further development of the enterprise and improving the well-being of the team.

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

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

Object of study is SPK "Ermak" Novovarshavsky district Omsk region. To achieve this goal, it is necessary to solve the following tasks:

study the profit economic category, reveal the essence, functions and types of profit;

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

identify the main economic forces affecting profit and profitability indicators in SEC "Ermak"

Develop measures to increase profits.

The methods used in the work 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 considers theoretical aspects 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 performance, analysis of profitability.

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

CHAPTER 1. THEORETICAL FOUNDATIONS 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 management of the enterprise. The most important of them are indicators of profit, which in a market economy is the basis of the economic development of the enterprise.

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

First, profit characterizes the final financial result. entrepreneurial activity enterprises. It is an indicator that most fully reflects the efficiency of production, the volume and quality of manufactured products, the state of labor productivity, and the level of cost. Profit indicators are the most important for assessing production and financial activities enterprises. They characterize the degree of his business activity and financial well-being. The level of return of advanced funds and the profitability of investments in the assets of the enterprise are determined by profit. Profit also has a stimulating effect on the strengthening of commercial calculation, the intensification of 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 obligatory payments must be sufficient to finance the expansion production activities, scientific and technical and social development enterprises, financial incentives workers .

The growth of profit 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 the problems of social and material needs labor collectives. It allows you to make capital investments in production (thereby expanding and updating it), introduce innovations, solve social problems at the enterprise, to finance activities for its scientific and technical development. In addition, profit is an important factor in assessing the company's capabilities by a potential investor, serves as an indicator effective use resources, i.e. It is necessary to assess the activities of the company and its capabilities in the future.

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

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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

discipline: Business Economics

on the topic: "Controlprofitabilityenterprises"

Completed by a student

A.V. Shumilina

group 09 - I - TX1

Checked by Associate Professor S. K. Vasiliev

Introduction

1. The essence of profitability, its role and significance

2. Profitability indicators

3. Profitability management methods

4. The role of managers in achieving profitability

5. Profitability as a factor in making investment decisions

Bibliography

ATconducting

In a mobile market economy, characterized by the presence of competition and the need to ensure the effective 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 profitability on the enterprise.

The purpose of the work is to study the impact of the profitability of activities to determine possible integrated methods and means of managing profitability.

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

Explore economic essence and the relationship of the profitability of the activities of organizations in modern economic conditions;

Familiarize yourself with the methods of managing the profitability of organizations.

1. Essenceprofitability,herroleandmeaning

If profit is expressed in an absolute amount, then profitability is a relative indicator. The profitability indicator is a relative characteristic of the financial results and performance 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 effectiveness 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 terms of performance evaluation can be carried out in conjunction with other indicators that characterize the funds invested in the enterprise. Indicators characterizing the efficiency of the enterprise, are indicators of profitability (profitability).

Profitability is the ratio of income to the capital invested in generating that income. By linking profits to invested capital, profitability compares the rate of return on an enterprise's activities with alternative uses of capital or with the return received by the enterprise under similar risk conditions. Riskier investments require higher returns to be profitable. Since capital always makes a profit, in order to measure the level of return, the profit, as a reward for risk, is compared with the amount of capital that was needed to generate this profit. Profitability is an indicator that comprehensively characterizes the efficiency of the enterprise.

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

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

By establishing a relationship between the amount of profit and the amount of invested capital, the profitability indicator can be used in the process of profit forecasting. The forecasting process compares the expected return on investment with actual and expected investment. Estimated expected profit is based on the level of profitability for previous periods, taking into account projected changes.

Profitability is of great importance for making investment decisions, planning, budgeting, coordinating, evaluating and monitoring the activities of the enterprise and its results.

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

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

It is impossible to evaluate and give recommendations on making managerial 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 the activity.

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 profitability of expenses and profitability of sales;

Indicators of financial profitability.

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

k = P/IR (1.1)

When assessing the effectiveness 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 for operation. total amount assets is used in profitability calculations to assess the effectiveness of economic activity by external users of information. This is due to the fact that owners and creditors invest money in an enterprise whose management has complete freedom of action to place these funds. Cash can be invested in assets that short term do not bring profit, and in the long run the company will benefit from such investments.

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

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

When calculating profitability, it must be borne in mind that the amount of capital invested in an enterprise changes during the period of income, so 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 can be used various indicators income of the enterprise: gross profit, profit from sales, profit before tax, net profit (according to Form No. 2 “Profit and Loss Statement”). There is a relationship between return on assets, asset turnover and return on sales, which can be obtained by modeling the return on assets by factor dependencies.

Return on assets is determined by the formula:

k = Р/А, (1.2)

where k - return on assets;

P - profit before tax;

A is the average annual value of assets.

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

k = Р/N * N/А, (1.3)

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

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

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

k = kp* ka (1.4)

The return on assets can increase with the same return on sales by accelerating the turnover of assets. And, conversely, with a constant resource efficiency, the return on assets can grow due to an increase in the profitability of 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 by 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/SK, (1.5)

where k - financial profitability;

Р - net profit;

SC - average cost own capital.

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

3. Methodsmanagementprofitability

Since profit takes part in the calculation of any indicator of profitability, in order to increase the profitability of an enterprise, it is necessary:

§ increase the volume of trade;

§ change the structure of turnover (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 work and increase labor productivity (it may be necessary to influence the technical equipment of workplaces);

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

§ develop the trading network by working on the territorial location of outlets;

§ increase the amount of working capital;

§ check the pricing procedure;

§ to organize work on timely collection of receivables;

§ work with business reputation enterprises;

§ reduce current expenses, 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. Rolemanagersinachievingprofitability

The manager responsible for the project or investment should take the lead in forecasting sales volume, prices, and transaction costs, on the basis of which cash flows will be calculated. An accountant may well be better prepared than a manager to conduct an analysis cash flows, however, it cannot be used to forecast sales volume, prices, number of employees and operating costs. This is an area in which the manager must rely on his own knowledge of the market 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 manager who should initiate specific “what if” questions, on the basis of which calculations will be carried out. The accountant may perform additional "what if" calculations to clarify situations that particularly affect profitability.

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

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

§ projects sometimes face serious obstacles or are abandoned after significant funds have been spent;

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

§ There should be a certain share of the income that will be redistributed in favor of the 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. Profitabilityhowfactoracceptanceinvestmentdecisions

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:

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

§ on the approval of risky projects, such as investments in promotion new products to 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 buyout loans and venture capital investments in new companies.

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

§ improving 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 developed markets within the country and abroad;

§ entry with new goods or services to developed domestic or foreign markets or, conversely, with developed goods to new markets;

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

It is clear that for each successive category the rate of return must increase. Establishing differentiated rates of return requires considerable experience. However, you can use a very flexible, albeit somewhat subjective approach to making investment decisions. Projects with a low level of risk should probably be approved even if the required profitability is not fully achieved. On the contrary, investments in new lines of business, showing only ordinary returns, require the most meticulous attitude.

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

§ comply with the chosen strategy and commercial nature of the company;

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

§ strike an acceptable balance between potential reward and risk;

§ Be acceptable to customers, suppliers and staff, if appropriate.

Listliterature

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

2. Milner B., Liis F. Modern corporation management. - M.: 2001.-436s.

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

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8.2. Profitability management

equity

To develop a strategy for managing the return on equity and a comprehensive assessment of the main factors influencing it, the DuPont model 1 is used. This model allows assessing the impact on the return on equity of such factors as the equity multiplier, business activity and return on sales.

The DuPont model aggregates the most important absolute and relative financial performance indicators of an organization (Figure 8.1).

The strategy of increasing profitability due to the above three factors largely depends on the specifics of the organization's activities. Therefore, in the process of developing financial policy, it is necessary to evaluate the internal and external factors of the functioning of the business. Due to the margin, an organization that produces high-quality products for a segment characterized by fairly high

1 DuPont's model of financial analysis was first formulated in the 1910s, when a well-known chemical company acquired a stake in General Motors Corp and set out to clean up the tangled finances of an automobile firm. According to former GM CEO Alfred Sloan, all of GM's future success was possible only because of the planning and management system developed at DuPont. This resounding success brought fame to the DuPont model in all large corporations USA. Until the 1970s, this was the dominant model of financial analysis.

8. Managing risk and organizational performance 369

Rice. 8.1. dupont model

DuPont's three-factor model has the form:

370 III. Long-term financial policy

accounts payable, for liabilities are equal to invested

capital) to own capital; to 0 - asset turnover ratio; t - net return on sales (net margin).

There are modifications of the DuPont model that allow you to more fully explore the influence of individual factors on the return on equity. For example, a five-factor model that additionally takes into account the factor of interest burden and the effectiveness of other activities. The "interest burden" indicator is calculated as the ratio of net profit to net operating profit and allows assessing the effectiveness of borrowing; the indicator "efficiency of other activities" is defined as the ratio of net operating profit to net sales profit and allows assessing the impact of the result from other operations on the final business performance.

The five-factor model has the form: .

Where P Cho - net operating income;

П NPR - net profit from sales, calculated as profit

from sales net of income tax; t Cho - clean operating margin;

b PR - percentage burden, calculated as the ratio of net

profit to net operating income;

to uh - coefficient of efficiency of other activities. If a

to uh < 1, then other activities are unprofitable and reduce the overall efficiency of the business.

DuPont's five-factor model allows for a comprehensive assessment of an organization's performance, including an assessment of the financing strategy (through the equity multiplier and the percentage burden indicator), management effectiveness (through asset turnover and the efficiency ratio of other activities), product competitiveness (through margin).

Analysis of the situation. The results of calculating the return on equity of JSC "XYZ" according to the three-factor DuPont model are presented in Table. 8.7.

Evaluating the results of the analysis, it can be argued that the decrease in the return on equity from 38.21 to 37.24% was predetermined by two factors:

8. Managing risk and organizational performance 371

8.28 percentage points), as well as the net margin (6.06 points), only the multiplier (13.37 points) had a positive effect on the return on equity. As a result, there was a partial compensation for the decrease in operating efficiency by an increase in financial activity. Thus, the methodology captures the following trends that took place in the analyzed period - a decrease in operating efficiency, manifested in a decrease in margin from 14.46 to 12.31% and a decrease in asset turnover from 2.47 to 1.99, as well as an increase in financial activity , which manifested itself in an increase in the multiplier from 1.07 to 1.52.

Table 8.7. capital according to the DuPont model

At the next stage of calculations, a five-factor model is studied, obtained by expanding the DuPont model and introducing two more factors into it - the percentage burden indicator and the indicator of the effectiveness of other activities. The calculation results are presented in Table. 8.8.

The calculation results make it possible to significantly specify the previously drawn conclusions. The decrease in net margin, which was noted earlier, is not due to a decrease in the efficiency of core activities, but to the inefficiency of other operations, the contribution of which to the decrease in profitability amounted to 5.55 points. If the efficiency of other operations had not decreased from 0.95 to 0.82, then the return on equity would have been 42.82%.

Borrowing efficiency was strong as the increase in the interest burden, which led to a 0.48 percentage point decline in profitability, was offset many times over by an increase in the multiplier, which led to a 13.37 percentage point increase in profitability.

372 III. Long-term financial policy

Table 8.8. The results of the profitability analysis of owncapital according to the five-factor model

The main areas of influence on the return on equity should be: further attraction of debt capital and an increase in the equity multiplier, an increase in asset turnover by strengthening control over the use of newly acquired property, increasing margins by strengthening the marketing mix and increasing the efficiency of the cost policy , increasing the efficiency of other activities by reducing losses from other operations. -