Activity of any commercial enterpriseassociated with one or another interaction with assets. Based on this, we can say that the effectiveness of this interaction deserves special attention. There are various indicators that measure performance in one way or another. However, the simplest and most understandable method, which is directly related to the financial result, profit, is the definition of profitability. It is on how to calculate the return on assets ratio and some related indicators, we dwell in more detail.
In general, to determine profitabilityit is necessary to divide the profit indicator by the value of the profitability of which is calculated. Thus, the return on assets ratio will be calculated as profit related to the value of assets. This indicator reflects the efficiency of use of the property (assets) of the company, reflecting the amount of profit that is formed due to each ruble of the value of this property.
It is worth focusing on what exactlyvalues should be taken into account when calculating the indicator. One of the problems is that there is a fairly large "range" of profit indicators. In the profit and loss statement alone there are four different profit margins! However, the return on assets ratio is a fairly general indicator, therefore, when calculating it, you can use the usual indicator of net profit. In addition, calculation is allowed based on profit before tax. The calculation using this indicator allows you to compare organizations and enterprises with differences in tax status.
We turn to the denominator, which can alsoThere are some difficulties. They, in turn, are related to the fact that indicators of financial result, that is, profits, and property, that is, assets, are presented in the statements differently. Profit is generated and accumulated over a certain period, but the value of assets is reflected in the balance sheet only on a specific date. This means that during the period their value could change in a certain way, and these changes must be taken into account in order to correctly calculate the return on assets ratio. The most correct decision in this case would be to build a calculation based on the average value of the assets for the analyzed period. Less correct, but simpler is the use of the value of the property at the end of the period. Despite the fact that this calculation is less accurate, it has its own logic: the value at the end of the period has already undergone all changes.
In addition to determining the profitability of the wholeproperty, you can separately calculate the profitability ratio of current assets and non-current assets. Their calculation is made by a similar technique. In other words, in the numerator the sum of net profit is used, and in the denominator - the cost of current or non-current assets depending on the calculated indicator. It is obvious that in the case of both indicators it is also necessary to include in the calculation the average value of the property for the period, so that the profitability was determined more accurately.
The last indicator that we considercalled the rate of return on investment. It allows you to evaluate the effectiveness of investments in the acquisition of an asset. The calculation of this coefficient is quite different from the previously discussed. It is also determined by dividing, but the values used in the calculation are completely different. The numerator of the fraction must be put all the income received from the ownership of the asset. This income is the sum of the profit brought by it and the difference between the purchase and sale prices. Then this income must be attributed to the amount that was spent on the acquisition. You can calculate this indicator not only for one specific type of assets, but also for their totality.
