To calculate the project’s profitability indicator, you need to take the correct data from your production. Let’s consider how to obtain them.
First of all, to calculate profitability, you need a profit indicator, as well as one of the financial parameters: capital, assets, revenue, etc. All this can be found in the comprehensive financial statements of the enterprise.
However, based on the data from these sources
Only general, fairly aggregated parameters are industry email list calculated n the scale of the entire business. If you need to conduct a more in-depth and targeted analysis, more information will be required.
For example, if you need to calculate the profitability of only one type of product (and not all at once), then you will need data on the profit and cost price of a specific product.
What to consider to calculate the profitability of a resource correctly: tips
1. Consider the influence of external factors
Profitability indicators should vary depending on the season, time of year, and be adjusted under the influence of external factors. This is worth remembering when calculating different types of profitability.
For example, seasonality often affects sales profitability. Ice cream sales, as well as revenue and profit, are usually higher in the summer. Therefore, if you this call to action always has only one goal: calculate profitability for June and, by analogy, extrapolate the resulting indicator for each month of the year, you will receive incorrect data for a longer period.
2. Consider the specifics of the industry
Different industries have their own unique characteristics. When calculating profitability, it is important to pay attention to the specifics of your industry trust review and understand what profitability is considered acceptable for your industry. Each industry has its own “norm” of profitability.
Do not worry if you get a figure that seems quite low to you. Perhaps, for your industry, such a value is quite acceptable. To find out exactly, the level of profitability must be compared with competitors or simply with the industry average. Therefore, the industry average profitability indicator is also important for analysis.