Profitability of all assets of the enterprise formula. Return on assets ratio: taking into account all factors of growth and decline of the company in modern conditions

Each enterprise is interested in stable full-fledged work, obtaining high, developing the material and technical base and the level of personnel qualification. All this requires investment, careful attitude to every penny. Reinforce advanced planning Mathematical formulas for calculating economic benefits will help, which give a parallel assessment of the professionalism of management personnel.

how financial assessment the asset ratio or ROA (English abbreviation ReturnOnAssets) shows the effectiveness of management to get the most out of using all sources of economic benefit for the enterprise. The structure of capital (the ratio of borrowed funds to equity) and its impact on net income is not taken into account.

What numbers are taken into account?

Net profit- the balance of funds after paying taxes, mandatory fees, budgetary deductions. This amount can be reserved, directed to working capital or invested in the development of production.
is calculated as a relative value of the value of the property.
Important: it is customary to display taxes in monetary form as a percentage.

"Profit and Loss Statement" contains information about the tax burden of the organization.
Interest payments are a regular expense incurred by an enterprise using borrowed funds.

Payments = (loan amount * interest rate on the loan (1 + interest rate on the loan) number of payments): ((1 + interest rate on the loan) number of payments - 1)

To calculate the value of the interest rate for, you need to know the number of payments per year according to contractual obligations (monthly, quarterly, etc.).

For example, at 16% per annum, the interest rate is calculated as follows:

16 / (12 * 100) = 0.13333

Calculation of the return on assets

Detailed looks like this:

ROA = ((Net profit + interest payments) * (1-tax rate) / (company assets)) * 100%

The assets of the enterprise in the denominator are all cash, including receivables and deposits (liquid sources), as well as raw materials, materials, buildings and structures (less liquid), etc.

The growth of the economic result per unit of invested funds is directly proportional to the tax component and borrowed resources.

Normal value of profitability

The higher the capital investments and capital-forming investments of the enterprise, the lower the ROA ratio, which reflects the cash flow.

For example, the construction industry, energy, transport constantly require the introduction of new capacities, updating the material and technical base, as mandatory condition their survival with limited funding sources. ROA is inversely proportional to high costs, its value goes down.

Firms, large companies covering the service sector market do not need basic reconstruction, technical re-equipment of the enterprise and protection environment from the results of their activities. Their profitability far exceeds the manufacturing sector.

The activity of the enterprise is unprofitable if this parameter is less than zero. Careful analysis of indicators is required.

Return on assets: calculation example

OOO GRAN produces household chemicals. It is necessary to calculate the profitability for 2013, 2014 and 2015.

From the "Profit and Loss Statement" we take the values of net profit / loss for each year.

2013 - 934 766 rubles
2014 - 345 870 rubles
2015 - 222 786 rubles

From "", including current and non-current positions of assets, you will need a final line:

2013 - 10 234 766 rubles.
2014 - 15 345 870 rubles
2015 - 18 222 786 rubles.

Calculation by years

2013 - (934766 / 10234766) * 100 = 9.13%
2014 - (345870 / 15345870) * 100 = 2.25%
2015 - (222786 / 18222786) * 100 = 1.22%

Conclusion: active savings are growing, while profits are steadily decreasing. This enterprise needs to revise its financial policy, improve the quality of management and distribution of cash flows, search for markets for its products.

Mathematical formulas and conditional numerical components help to quickly understand the financial condition of an economic entity. They are valuable for managers, business owners, people interested in the real state of affairs.

A company can fully develop only if there is a reasonable probability of making high profits as a result of the purchasing power of the population, finding its own reserves of working capital resources without borrowing them at a high interest rate, avoiding financial dependence.

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Return on total assets - what shows

Return on total assets(ROTA) characterizes the degree of efficiency in the use of the organization's property, professional qualification enterprise management.

Return on total assets - formula

The general formula for calculating the coefficient:

Calculation formula according to the balance sheet data:

where line 2300 - line of the Statement of Financial Results (form No. 2), line 1600 - line of the Balance Sheet (form No. 1) at the beginning and end of the year.

Return on total assets - value

Growth of the indicator Return on total assets related:

with an increase in the net profit of the organization,
with an increase in tariffs for goods and services or a decrease in the cost of producing goods and providing services,
with an increase in asset turnover.

The decrease is due to:

with a decrease in the net profit of the organization,
with an increase in the value of fixed assets, current and non-current assets,
with a decrease in asset turnover.

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Return on assets (ROA)- an indicator of the effectiveness of the application and distribution of current and non-current assets of the enterprise. This ratio allows you to assess the company's ability to make a profit, not taking into account financial leverage(the ratio of loan and equity capital). The return on assets gives an idea of the rationality of using all the assets of the enterprise (in contrast to the return on capital, which characterizes only own funds), and its calculation is more relevant for managers than for investors. The ROA index allows you to analyze the financial reliability, creditworthiness, investment attractiveness of an organization by calculating the amount of profit for each invested monetary unit.

Return on assets (formula)

Return on assets is the product of net income and total asset value:

The net profit indicator is located in the income statement, the value of assets is in. To reduce the calculation error, the average annual value of assets is substituted into the formula for return on assets: (cost at the beginning + cost at the end of the reporting period) / 2.

Return on assets is also defined as the product of net profit and interest payments per unit, minus the tax rate:

The formula clearly shows that in addition to net profit, the calculation takes into account interest for the use of borrowed funds. This suggests that both equity and loan capital are used in the formation of long-term assets, and both are taken into account when calculating ROA.

Normative value of the ROA indicator

The profitability ratio directly depends on the scope of the organization. Thus, in heavy industry, the indicator will be lower than in the service sector, since the enterprises of the latter need less investment in working capital. In general, return on assets reflects the effectiveness and profitability of asset management, and therefore, the higher it is, the better. If the coefficient began to decline, then one of the assets (non-current or current) does not make a sufficient contribution to the income of the organization. A high return on assets indicates that a company is generating more revenue with less

The economic activity of each company takes into account two main groups of indicators - relative and absolute. Absolute includes revenue, sales volume, income. Such indicators can only superficially reflect the activities of the company. For a more accurate analysis, enterprises use relative indicators, which include the calculation of profitability ratios, financial stability, and liquidity. With their help, you can find out the dynamics of the development of a structural unit, its prospects, compare with other organizations, determine,. Return on assets makes it possible to evaluate many different indicators and get an informative picture of the work of any organization.

What does return on assets show?

Return on assets (ROA) is an economic indicator that reflects the return on the use of all company resources. It shows the company's ability to regenerate income without taking into account the capital structure, the correct distribution of financial resources.

If the company's income exceeded expenses, this does not mean that its activities are successful and efficient. An income of a million can be received by a large production complex with dozens of workshops, and a small company of 5-10 employees. In the first case, it is worth thinking about restructuring the enterprise, changing the development strategy, or even about. In the second example, the result is obvious - the company is moving in the right direction. As you can see, absolute indicators do not always reflect the real picture; management efficiency can demonstrate the ratio of income received to various items of expenditure.

Profitability is divided into several groups:

fixed assets;
current assets.

Fixed assets

Non-current assets are the property of the company, which is indicated in the balance sheet. For large and medium-sized enterprises, this indicator is displayed in the first section of the balance sheet, for small ones - in lines 1150 and 1170.

Non-current funds are used for more than 1 year, while they do not lose their specifications and partially redirected to the cost of products or services provided.

Non-current assets of the enterprise include:

fixed assets (tools, transport, Electricity of the net, production capacity, the property);
intangible assets (intellectual property, company partnerships);
monetary obligations (loans for a period of 1 year or more, investments in other companies);
other funds ().

current assets

Working capital includes property, which is indicated in the balance sheet in lines 1210, 1230 and 1250 (in the production section). These funds are used for one cycle (if it lasts less than 1 year).

The indicator includes:

the amount of VAT on purchased goods (for this you need to know);
receivables;
inventories;
money and its equivalent.

Advice: to determine the totality of all assets of the company, it is necessary to sum up the current and non-current funds.

Formula for calculating profitability

Return on assets (ROA) is calculated by dividing net income by assets. Calculation formula:

ROA = NI / TA * 100%, where

NI - net income;

This formula shows the ratio of net income to the sum of all funds of the company. Also, ROA can be determined by another method:

ROA = EBI / TA * 100%, where

NI is the net profit received by the shareholders of the company;
TA is the totality of all assets.

In other words, ROA shows the amount of income that comes from every ruble of investment invested. This is a kind of indicator of profitability, which shows the efficiency of the company.

Calculation example

According to the results of the work, the aggregate of all assets of JSC Etal at the beginning of the year amounted to 1.267 billion rubles, at the end - 1.368 billion rubles. Net profit amounted to 131.70 and 153.9 million rubles, respectively. In order to calculate the profitability at the beginning and end of the year, as well as the growth dynamics, you need:

ROA at the beginning of the year: ROA = 131.70/1267=0.10394 or 10.394%.
ROA at the end of the year: ROA = 153.9/1368=0.1125 or 11.25%.

The change in profitability for the year will be: ΔROA = 11.25%/10.394% = 1.082. The profitability ratio for the year increased by 1.082.

Rates of return

According to the average performance of enterprises, there are norms that reflect effective economic activity. These standards depend on the specifics of the company:

The highest ROA rates should be shown by firms that are engaged in the sale of goods. This is due to the lack of significant non-current funds. Manufacturing plants due to expensive industrial equipment have more assets, so the rates of return for them are significantly lower.

Advice: high profitability indicators can indicate not only the effective operation of the company, but also speak of increased risks.

For example, a company has taken out a loan for a large amount, which will affect the ROA in the direction of its increase, but this does not yet indicate the effective distribution of the received money. Therefore, when analyzing financial activities enterprises need to take into account borrowed funds and analyze financial stability, the structure of all expenses.

Factors that determine profitability

ROA is a general indicator of the company's performance when analyzing the ratio of costs and profits. But it is also affected economic conditions, and internal organizational factors.

External conditions are the cost of materials, raw materials for production, pricing strategies of competitors, the political situation in the country, changes in legislation, the balance of supply and demand.

Internal organizational factors include:

labor productivity;
technical indicators, equipment capacity;
method of organizing the production cycle;
management decisions, etc.

acceleration of trade;
increase in the cost of production;
cost minimization.

According to Western economists, this indicator is influenced by more than 30 factors that reflect the current market situation, capital intensity, market conditions, etc. When calculating the profitability indicator, it is necessary to take into account the season, equipment downtime, marriage, crisis phenomena that reduce demand. Sometimes it's easier to sell the business and invest the proceeds in.

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Return on assets is one of the most important performance indicators of an enterprise. It is most often used by business owners and managers to determine the work strategy, investors - to evaluate alternative projects. Analysis this indicator – important point any business plan that opens up prospects for growth and development.

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