Analytics from ICSI experts on the situation in crop production, animal husbandry and the food industry.

In the I-III quarters of 2017, the profitability in the field of crop production decreased compared to the previous year, while in the livestock sector, on the contrary, it increased

According to Rosstat, in the I-III quarters of 2017, the level of profitability (estimated as the ratio of the net financial result to the cost of goods sold) in crop production amounted to 24%, and in livestock - 15%. Such a ratio of profitability between crop production and animal husbandry was observed earlier. However, over the past year, profitability in crop production has significantly decreased (by 12 percentage points compared to Q1 2016), while in animal husbandry, on the contrary, it has increased (by 5 percentage points) (see Figures 1 and 2 ).

Profitability indicators of agribusiness differ significantly among the regions of Russia. Thus, profitability in crop production in the I-III quarters of 2017 ranged from 3% in the Far Eastern Federal District to 36% in the Southern Federal District. The highest level of profitability in crop production was achieved in the Yaroslavl Region (78%) and the Trans-Baikal Territory (54%). At the same time, the level of profitability of animal husbandry varied from -17% (Far Eastern Federal District) to 19% (Central Federal District), and the highest rates were recorded in the Kursk region (46%) and the Pskov region (35%).

Profitability of crop production

The drop in profitability in crop production in Q1-Q3 2017 is largely due to the high grain harvest, which amounted to more than 140 million tons. to a fairly strong drop in grain prices, which is especially true for territories remote from ports. According to the Ministry of Agriculture at the end of November 2017, the average prices for wheat of the 3rd class (on the basis of free-elevator) amounted to 8350 rubles/t in the European part of Russia, 9235 rubles/t in the south of Russia, 7155 rubles/t. t - in the Siberian and Ural Federal Districts. For grade 5 wheat, the average prices in these regions were 5,760 rubles/t, 7,120 rubles/t, and 5,120 rubles/t, respectively. According to market participants, in some regions the price of feed wheat fell even below 5,000 rubles. For comparison, a year ago, prices in the European part of Russia for wheat of the 3rd class amounted to 10395 rubles/t, and the 5th class - 7915 rubles/t. In conditions of low prices, grain sales become unprofitable, especially for small and medium-sized producers with a higher cost of production.

The production costs of agricultural producers are also rising. According to Rosstat, in October 2017, gasoline prices increased by 11.9% year-on-year, for fuel - by 14-15%, for many mineral fertilizers - by 15-20% (see table).

The most attractive for grain producers now are export deliveries. But despite the fact that grain deliveries to foreign markets are growing at a fairly high rate (about 30% in annual terms), their further expansion is hindered by the high workload of ports and the lack of wagons for exporting grain. The transportation of grain itself is also quite expensive. Despite the fact that Russian Railways has established a 10.3% discount on export transportation of grain from the Voronezh, Oryol, Tambov, Orenburg and other regions since October 2017, and since November 2017 additional subsidies for the costs of export rail transportation have been approved through the REC, in reality, these support measures will become available to agricultural producers only next year, since most of them have transportation contracts valid until the end of 2017.

Under the current conditions, in the I-III quarters of 2017, the most profitable segments of agriculture turned out to be the cultivation of corn and oilseeds, as well as the cultivation of pome and stone fruits, where the level of profitability in Russia on average exceeded 33% (see Fig. 3).

Overall, the current drop in horticulture margins could lead to a reduction in production next year. According to the Ministry of Agriculture, as of December 13, 2017, the growth rate of winter sowing was already 1.7% less than last year.

Profitability of animal husbandry

The observed increase in the profitability of livestock products is associated with a decrease in the costs of agricultural producers for fodder crops, as well as with the expansion of opportunities for purchasing imported equipment, feed, additives, etc.

The most favorable situation with the profitability of sales has developed this year for meat producers. On the one hand, a high grain yield ensured low prices for feed ingredients. On the other hand, the appreciation of the ruble compared to the previous year brought benefits to manufacturers that are heavily dependent on imported equipment, machinery, feed components and additives. According to Rosstat, the highest level of profitability in the livestock sector on average in Russia is typical for raising pigs for meat (25%), as well as in poultry farming (9%) (see Figure 3). It is important to note that, as a rule, large manufacturers have high profitability in this area, while small and medium-sized manufacturers have low, and in some cases even negative profitability of sales.

Profitability in the food industry

In the I-III quarters of 2017, the profitability of sales in the food industry amounted to 8%. At the same time, the most profitable segments of the food industry were the production of flour confectionery, where the profitability ratio reached 32%, as well as the production of baby food and dietary foods (21%) (see Fig. 4).

It is also worth noting that this year the profitability of sugar production fell by more than 3 times - from 18.9% in the three quarters of 2016 to 6% in the I-III quarters of 2017. This reduction was caused by the overproduction of sugar and the corresponding drop in prices both domestically and internationally.

Profitability is one of the indicators of production efficiency. This indicator is used to characterize the efficiency of the use of production costs and is generalizing, as it gives a general description of the efficiency of the use of all factors of production that have a market value.

In general, profitability characterizes the result of economic activity for a certain period and is calculated as the ratio of profit to investments in fixed and working capital. Profitability serves as a necessary condition for the formation of financial resources of economic entities, ensuring expanded reproduction and improving the organizational and technical foundations of production.

Stability and growth of profitability are ensured by the development and increase in the return of fixed and working capital, their optimal structure, intensification of production and growth in labor productivity. An integrated expression of the increase in profitability is the relative increase in profits in relation to costs.

In economic analysis, the following types of profitability are distinguished: national economic, sectoral (by sectors of the economy - agriculture, industry, trade, etc.), intra-industry (by product and product groups - livestock, crop production, grain, wheat, pork production etc.), general and self-supporting.

Each branch of the national economy has its own system of profitability indicators. In agriculture, these are gross income, net income, total profit, profit per 100 hectares of agricultural land or arable land, profit per average annual worker, profit per man-day, rate of return, cost recovery. The same indicators are used to calculate profitability in individual sectors of the economy.

Gross income (GD) - the difference between the value of gross output (VP) and production costs.

net income(BH)- the difference between gross output and the total (total) costs of its production.

Gross profit (PR in)- the financial result from the production and non-production activities of the enterprise in terms of profitability, this is the total volume of marketable products sold at the sales price, minus the costs of production and sale of marketable products.

Profit from sales calculated as the difference between the cash proceeds from the sale of goods and services and the full cost of production and sales.

Net profit is defined as gross profit minus taxes not included in cost.

The listed indicators are absolute. They characterize the effect, the overall result. However, without a correlation with costs, it is impossible to judge the effectiveness of the resources used.

Profitability is an indicator of the comparative efficiency of the production or all activities of the enterprise when comparing the cost result with material and monetary costs. In addition, profitability is an indicator that determines the most profitable types of products for the enterprise.

Generally speaking, in agriculture, the level of profitability is defined as the ratio of profit to cost,%:

net profit margin

level of profitability in terms of profit from sales

where C pr - production cost, rub.; C p - full cost (production and sales), rub.; PR r - profit from product sales.

These indicators characterize the magnitude of the effect per unit of consumed resources.

With negative profitability, the cost recovery ratio (K oz) can be used, which shows the amount of cash receipts (B) per 1 rub. total costs (Sp R):

Also, to characterize the efficiency of the use of enterprise funds, the rate of return (N pr) is used, which characterizes the level of profitability of long-term costs in the form of the average annual cost of fixed production assets (C OPF) and inventories (C about):

All profitability indicators change with changes in selling prices and production costs. Therefore, all measures aimed at reducing costs will help to increase the rate of return. It is necessary to take into account the improvement of product quality as an objective basis for price premiums.

Profitability is the most important economic indicator that characterizes the economic activity of an 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.

The increase in the profitability of production is a significant source of increasing intra-farm savings - the basis for expanded reproduction on collective farms and state farms.

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 throughout 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.

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.

The relevance of the topic of this work 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 analysis of the profitability of the main production is a strategic task of the 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 collective of an agricultural enterprise, since this results in an increase in profits and corresponding sources for the further development of the enterprise and an increase in the well-being of the collective.

Course work contains material of theoretical and practical importance. An analysis of the profitability of products was carried out using the example of Devitsky Kolos LLC.

The purpose of the course work is to consider the state of profitability of sunflower LLC "Devitsky Kolos" and the design of measures to increase it.

Objectives of the course work:

1. Analyze information about the size, structure and composition of the enterprise, its state of the dynamics of the main economic indicators;

2. Conduct an analysis of the state of profitability of sunflower in Devitsky Kolos LLC

3. Suggest measures to increase the profit and profitability of sunflower production.

1. The essence of the profitability of an agricultural enterprise

In a market economy, the results of activities are evaluated by a system of indicators, the main among which is profitability, defined as the ratio of profit to one of the indicators of the functioning of an agricultural enterprise.

When calculating profitability, different indicators of profit can be used. This allows you to identify not only the overall economic efficiency of the enterprise, but also evaluate other aspects of its activities.

The rate of return is considered to be the rate of return, calculated as a percentage of the amount of net profit to the volume of trade or the cost of all capital.

The calculation of the economic profitability (profitability) of an agricultural enterprise is carried out according to the formula:

R o - the overall economic profitability of the economic activity of the enterprise;

P - the amount of profit (gross or net);

T - the volume of trade (excluding VAT).

This calculation formula is also applicable to determine the profitability of capital (invested funds) of an agricultural enterprise: the turnover indicator must be replaced by the capital indicator. Transforming this formula by multiplying and dividing by the turnover indicator, we got two indicators - the profitability of turnover and capital turnover:

P o \u003d P m *OK

where Pm is the profitability of the turnover

OK - the turnover of the capital of the enterprise (number of revolutions)

The profitability of turnover P t reflects the relationship between profit and turnover and shows the amount of profit received per unit of goods sold. Since accounting of business transactions is carried out in monetary terms, the profitability ratio of sales multiplied by 1000 shows how much profit was received from 1000 rubles of goods sold.

The higher the profit, the higher the profitability of trade. The sales profitability ratio (P:T) characterizes the share of profit in the turnover. By the ratio of net profit and turnover, one can more accurately judge the financial result of the activity of an agricultural enterprise.

The number of turnovers of capital (O to) reflects the ratio of turnover to the value of the capital of the enterprise. Based on this indicator, you can determine the amount of turnover per thousand rubles. invested capital. The higher the volume of trade, the greater the number of turnovers of invested capital. This indicator can be perceived as the turnover of capital, since it shows how many times each ruble of invested capital is turned over in a given period of time.

Regulation of the overall economic profitability is reduced to the impact on both components of its indicators - return on sales and capital turnover.

To characterize the effectiveness of the use of equity capital, the share of profit in equity capital is determined by the ratio of profit (P) and the average value of equity capital (K c).

Rk=P:X

The indicator of return on equity (P k) is of great importance for the shareholders of an agricultural enterprise. It serves as a criterion for assessing the level of quotation of shares of a joint-stock agricultural enterprise on the stock exchange, this indicator allows investors to assess the potential income from investing in shares and other securities. Based on this indicator, it is possible to determine the period during which the funds invested in a joint-stock company are fully paid off (1 / R c).

The profitability of the production assets of an agricultural enterprise is determined by the ratio of the amount of profit (gross, net) and the average cost of fixed and circulating assets, multiplied by 100.

R f \u003d (P (O f + M s) * 100), where

Р f - profitability of fixed assets

P - the amount of profit (gross or net)

О f - the average cost of fixed assets

M s - the average cost of material circulating assets.

If an agricultural enterprise operates in rented premises, buildings, or leases some fixed assets, then it is advisable to calculate the average cost of fixed assets taking into account the leased and leased fixed assets. In this case, the average values ​​of fixed assets are determined by subtracting from the total value of own and leased fixed assets the value of fixed assets leased out.

Along with indicators of turnover, capital, fixed and working capital, other indicators are also used to calculate the level of profitability: distribution costs, sown area, headcount, each of which emphasizes a certain aspect of the performance of an agricultural enterprise.

The level of profitability, calculated by the ratio of the amount of profit from the sale of goods to the amount of distribution costs, shows the effectiveness of current costs.

The increase or decrease in distribution costs directly affects the reduction or growth of profits. This indicator of profitability determines the effectiveness of a trade transaction for goods.

Profitability, calculated in relation to the number of employees employed at the enterprise, characterizes the efficiency of the use of labor and shows the amount of profit received per employee. Along with this indicator, the amount of gross and net profit is determined in relation to the actual amount of labor costs, taking into account the amount of mandatory contributions to extra-budgetary funds. This indicator of profitability reflects the size of the gross and net profit received per 1 thousand rubles. funds spent on wages and social needs. The smaller the number of employees of the enterprise, the more profit per employee, which indicates an increase in the efficiency of the use of labor.

The ratio of profit from the sale of goods to the size of the sown area of ​​an agricultural enterprise characterizes the amount of profit received per 1 sq.m. sown area.

The study of the system of indicators of profitability of an agricultural enterprise is recommended to be carried out in dynamics and, if possible, in comparison with the indicators of other similar trading enterprises.

1.1. Factors affecting the profit and profitability of an agricultural enterprise

Profit and profitability in the conditions of the formation of a market economy are the most important indicators of the economic activity of agricultural organizations and enterprises. These indicators reflect all aspects of the activities of enterprises:

The volume and structure of turnover, the rational use of resources, the implementation of measures to improve the organizations and technologies of production processes, etc.

The amount and level of profit are formed under the influence of a large number of different factors that have both positive and negative effects on them. The number of factors that determine the amount of profit and profitability can hardly be clearly limited, it is very large. Weight factors can be divided into the main ones, which have the greatest impact on the amount and level of profit, and the secondary ones, the influence of which can be neglected. In addition, the entire set of factors can be divided into internal and external. They are closely related.

Internal factors affecting profit and profitability include resource factors (the size and composition of resources, the state of resources, their operating conditions), as well as factors associated with an increase in revenue.

The main external factors that form the profit of an agricultural enterprise include the following factors:

1. Market capacity.

The training of an agricultural enterprise depends on the capacity of the market. The larger the market capacity, the greater the ability of the enterprise to make a profit.

2. Development of competition.

It has a negative impact on the amount and level of profit, because. it leads to an averaging of the rate of profit. Competition requires certain costs that reduce the amount of profit received.

3. The size of the prices.

In a competitive environment, price increases do not always lead to an adequate increase in selling prices. Agricultural enterprises tend to work less with intermediaries, choose among suppliers those who offer goods of the same quality level at lower prices.

4. Prices for services of transport, public utilities, repair and other enterprises.

The increase in prices and tariffs for services increases the operating costs of enterprises, reduces profits and reduces the profitability of trading activities.

5. Development of the trade union movement.

The company seeks to limit the cost of wages. The interests of workers are expressed by trade unions that are fighting for higher wages, which creates the prerequisites for reducing the profits of the enterprise.

6. Development of activities of public organizations of consumers of goods and services.

7. State regulation of the activities of agricultural enterprises. This factor is one of the main ones that determine the amount of profit and profitability.

2. Brief description of the enterprise

2.1. Production direction of the enterprise

The structure of the cash proceeds for the sold products testifies to the specialization of the enterprise. In addition, specialization can be judged by the structure of the cost of gross output, fixed and working capital.

Table 1.1.1. The structure of the cash proceeds of the agricultural enterprise "Devitsky Kolos" LLC for 2003 - 2004

Types of products and industries					amount for 2 years
Crop industry
sunflower
other industry products
Livestock industry
b) pigs
recycled products
other industry products
Other activities
Total for the enterprise

Conclusion: a diversified enterprise with a significant (3 times) advantage of the crop industry in 2004.

A significant excess of the crop industry allows us to talk about the crop specialization of the enterprise. However, considering the dynamics of structural indicators, it should be noted that the share of animal husbandry doubled in 2004 compared to 2003. On the face of a significant reduction in production in the crop industry, and the company stopped producing sugar beets altogether. Against this background, milk production even increased. Thus, the absolute predominance of the crop industry is out of the question.

2.2. Enterprise Size

It is advisable to present the indicators characterizing the size of Devitsky Kolos LLC in the form of the following table

Table 1.1.3. Size of Devitsky Kolos LLC

All indicators characterizing the size of Devitsky Kolos LLC correspond to the average for the region, with the exception of the cost of fixed assets and material costs - these indicators are significantly lower than the regional average.

This allows us to draw the following conclusion on the size of the enterprise: Devitsky Kolos LLC: a medium-sized enterprise with an outdated fixed assets.

With regard to dynamics, it should be noted that compared with 2003. there were no significant changes in the size of the enterprise.

2.3. Enterprise production size

Table 1.1.4. Enterprise production size

Indicators	Company
The amount of cash proceeds, thousand rubles.
Total production, q:
Sugar beet roots
Sunflower seeds
Live weight gain:
Calculated per 100 ha of arable land received, centners:
sugar beet
sunflower seed
j Per 100 ha of agricultural land received:
Milk, c
Live weight gain, c: Cattle
Cash proceeds, thousand rubles

In 2004, there is a significant decline in production in all respects, with the exception of grain production. At the same time, in 2003, grain production was an order of magnitude less than the average district, and in 2004. even exceeded the regional average. Along with this significant increase, the company completely abandoned the cultivation of sugar beets and reduced sunflower production by an order of magnitude. The livestock industry turned out to be relatively stable, it was noted only by a slight decrease in the production of milk and meat and is approximately at the inter-district level.

Table 1.1.5. Dynamics of indicators of provision with production resources

Indicators	Company		On average per 1 enterprise of the district
For 100 hectares of agricultural land there are:
Fixed assets, thousand rubles
Fixed and working capital, thousand rubles
Animals, conv. Goal.
Power capacities, l. With.
Provision with workers, people/100 ha of agricultural land
Availability of tractors, units/1000 ha of arable land
For 1 average annual employee:
The cost of fixed assets, thousand rubles.
Power capacities, h.p.
Working capital supply (100 rubles of fixed assets account for working capital), rub.

The availability of production resources is high and corresponds to the inter-district level, with the exception of fixed assets that do not reach even half of the inter-district level, which indicates a high depreciation of fixed assets and adversely affects production efficiency.

OOO "Devitsky Kolos" is a medium-sized enterprise in the region, experiencing problems with the renewal of the fleet of fixed assets. It should be noted a sharp reorientation of the economy in 2004 to the cultivation of grain crops and curtailment of the production of sugar beet and sunflower. The livestock industry remains stable in 2004.

3. Income and profitability of agricultural production

Table 2.2.3. Dynamics of profitability indicators in agriculture

The dynamics of profitability indicators of the enterprise is negative, the drop in profits and profitability of the enterprise is very significant (tens of times), so profit from 10,713 thousand rubles. in 2003 fell to 199 thousand rubles. in 2004 However, these indicators are still better than the average district indicators, where there is an average loss in agriculture. At the same time, the amount of loss is significant - 823.45 thousand rubles. Consequently, the downward trend in profits and profitability is common in the region, however, Devitsky Kolos LLC managed to get at least a small, but profit, in the end.

Table 2.2.4. Dynamics of profitability indicators for crop production

Approximately the same picture is observed in crop production: a significant (10 times) drop in profits and, accordingly, all profitability indicators. However, in terms of crop production, the average situation for the region is the same as that of Devitsky Kolos LLC - a small profit and low profitability. At the same time, Devitsky Kolos LLC was able to provide profitability indicators above the average for the region, especially the level of profitability, which is 4 times higher than the average for the region.

Table 2.2.5. Dynamics of profitability indicators for animal husbandry

Animal husbandry in Devitsky Kolos LLC remains consistently unprofitable, but its unprofitability is lower than the average for the region, which can be said about the efforts of the management of Devitsky Kolos LLC to increase the profitability of the industry, which is confirmed by the positive dynamics of profitability indicators: the loss decreased from -1223 thousand roubles. up to -966 thousand rubles. Cost recovery increased from 69.15% to 73.31% and significantly exceeds the average regional level.

Table 2.2.6. Profitability of production and share of main products in profit (or loss) in 2004

Types of products and industries	Sales proceeds, thousand rubles	Cost of goods sold, thousand rubles			Profitability level, %			Payback level, %
Sunflower
Sugar beet
Crop products of own production, sold in processed form
other industry products
Total crop production
Crop net result
recycled products
other industry products
Total livestock
Livestock net result
Total for agriculture
Net result for agriculture

In 2004, grain production accounted for the largest share in the formation of profits in Devitsky Kolos LLC in 2004, 92.74%. There is a loss on sunflower, which is 27.75% of the total losses of the enterprise. These losses even exceed the structure of losses from each branch of animal husbandry.

Those. sunflower is the most unprofitable line of production in Devitsky Kolos LLC.

Income and profitability of Devitsky Kolos LLC in 2004 fell sharply. Income-generating and cost-effective production of sunflower in 2004 became the most unprofitable line of business for Devitsky Kolos LLC.

Consequently, sunflower production needs to increase profitability and bring it out of a loss-making state.

4. Economics of sunflower production

To identify factors

Table 5.1.1. Importance of sunflower production in crop production and economics

Initial data
		including sunflower		including sunflower
Sowing area on the farm, ha
Cash receipts from the household, thousand rubles
Cash proceeds from crop production, thousand rubles
Profit (loss) on the farm, thousand rubles
Profit from crop production, thousand rubles
Production costs for the household, thousand rubles.
Production costs in crop production, thousand rubles
Specific weight of sunflower, %: - in the sowing area
In farm revenue
In crop production
In household profit
In profit from crop production
In household expenses
In crop production costs

Sunflower in the economy of Devitsky Kolos LLC occupies a small place, and besides, it is unprofitable. The intensification of sunflower cultivation is very low, so sunflower accounts for 6.31% of crop production costs, and only 3.22% of revenue.

Table 5.1.2. Sunflower production development dynamics

As a sunflower producer, Devitsky Kolos LLC lags significantly behind the inter-district indicators. Moreover, such a lag occurred in 2004. In 2003, Devitsky Kolos LLC was the leading sunflower producer in the region with a significant excess of inter-district indicators.

Table 5.1.4. Dynamics of profitability indicators of sunflower production in Devitsky Kolos LLC

Indicators	Housework		2004 in % to 2003	by region in 2004.
sunflower planting area, . ha
Production costs, thousand rubles
The cost of fertilizers, .thous. rub.
Labor costs, man-hour
Gross output, c.
Gross income, thousand rubles
Net income, thousand rubles
Factor indicators of production intensity
The cost of fertilizers per 1 ha of crops, rub.
Labor costs per 1 ha of crops, man-hours
Effective indicators of intensification
Productivity, c/ha
Gross income per 1 ha of crops, rub.
Net income per 1 ha of crops, rub.
Cost recovery (by net income), %

The level of profitability of sunflower production at Devitsky Kolos LLC in 2004 fell significantly, and now it is unprofitable and brings a loss to the farm. However, in 2003 the picture was quite the opposite, and the profitability of sunflower production significantly exceeded the regional average, which indicates high potential production efficiency and the need to increase profitability in the future.

Table 5.1.5. Labor productivity indicators in sunflower production

Indicators	By company		2004 in % to 2003	by region in 2004.
Initial data
Gross output, q
Direct labor costs, thousand man-hours
Labor costs, thousand rubles
Indicators
Received sunflower per 1 person-h, c
Labor costs per 1 centner, man-hour
Labor costs per 1 ha, man-hour
Factors affecting labor productivity
Productivity, c/ha
Labor intensity 1 ha, person-hour
Wage level, rub./person-hour

As can be seen from the table, the costs of sunflower production have increased significantly, the labor intensity of 1 ha has increased almost 4 times from 2.78 to 8.13 people. – h. It should be noted that even with such a decline in sunflower production, labor intensity is lower than inter-district indicators. Thus, reducing labor intensity and costs, increasing labor productivity in sunflower production can play a decisive role in increasing its profitability. Also, a significant reserve is the increase in productivity, which decreased in 2004 by almost 3 times.

Table 5.1.6. Level and structure of sunflower seeds cost in 2003

Table 5.1.7. Level and structure of sunflower seeds cost in 2004

Cost types	Housework				By region
	Total costs, thousand rubles	including sunflower	Costs per 1 c, r.	In % of total	Costs per 1 c, r.	In % of total
Salary
fertilizers
Works and services
including fuel
Other costs
Total cost

The level of unit costs in sunflower production in 2004 is quite high and is more than 7 times higher than in 2003. At the same time, the largest unit costs are observed in other costs, which was not the case in 2003, when the largest costs were for the maintenance of fixed assets.

This suggests that with a sharp decrease in sunflower production volumes, conditionally variable costs have decreased, while conditionally fixed costs have remained the same, i.e. in specific terms they have grown. Therefore, in order to make sunflower production profitable, one of the necessary conditions is to increase its production volumes in order to be able to take advantage of the economies of scale in production and reduce unit costs due to semi-fixed costs.

Table 5.1.8. Sunflower cost level and factors influencing it

Indicators			2004 in % to 2003	by region in 2004.
Initial data
Sunflower planting area, ha
Gross harvest of sunflower, c
Cost of sunflower, total, thousand rubles
including wages, thousand rubles
Labor costs for sunflower, thousand man-hours
Indicators
Cost price, r./c
Factors
Production costs per 1 ha, rub.
Productivity, c/ha
Labor intensity of products, people ~ h / c
The level of wages, rubles / person-hour

Most of the factors affecting the cost of sunflower seeds in 2004 had a negative impact:

The increase in cost resulted in:

Increase in production costs by 67.17%

Yield reduction by 63.05%

An increase in the labor intensity of products by 692.11%.

The decrease in the level of wages by 82.09% led to a decrease in the cost of production.

Table 5.1.10. Indicators of marketability of sunflower production

Table 5.1.11. Profitability indicators of sunflower production

Indicators			by region in 2004.
Number of products sold, q
Revenue from the sale of sunflower seeds, thousand rubles
Cost of goods sold, thousand rubles
Profit (Revenue - Cost), thousand rubles
Profitability indicators
Profit (in rubles) calculated: a) per 1 ha of sunflower crops,
b) per 1 man-hour
Profitability level, % [ (Profit/Cost.) x100]
Factors affecting profitability
Full, cost price of 1 centner, rub.
Average selling price of 1 q, rub.
Productivity, c/ha
Hourly labor productivity, q/person-h

Analysis of factors affecting the profitability of products

To establish the reasons for the deviation of profitability indicators for the economy from the average regional values, we use the following formulas for the influence of factors.

Designations:

Pr 1 ha, Pr 1 person-h, Pr s - profit per 1 ha of grain crops, 1 person-h, 100 rubles. costs

C 1.c - selling price of 1 centner of grain, rub./c

Sat. 1 c etc. - cost of 1 quintal of marketable (sold) products, rub./c

Ur- productivity, centner/ha

Kt - coefficient of marketability

Ptch - hourly labor productivity, c / person-h

Formula 1. Pr 1 ha \u003d (C1ts - Sat. 1 c etc.) * Ur * Kt

Formula 2

Formula 3. Pr z \u003d (C 1 c - Sat. 1 c etc.) * 100 / Sat. 1 c etc.

Sunflower production at Devitsky Kolos LLC in 2004 is in a deplorable state, being profitable in 2003, this activity is unprofitable. At the same time, sunflower production is more unprofitable than the livestock sector.

5. Project of measures to maximize profits and increase profitability

An analysis of the indicators calculated in the fourth chapter shows that in the production of sunflower at Devitsky Kolos LLC, it has a significant unprofitability.

The analysis revealed that the main reasons for the decline in the profitability of sunflower production were:

1. A significant decrease in labor productivity;

2. A sharp decrease in yield;

3. The rapid increase in production costs.

In this regard, measures are proposed to increase the yield of sunflower.

Therefore, the enterprise has the following opportunities to maximize profits and increase profitability:

1. Increasing the volume of production to a given level;

2. Rational use of production resources;

3. Choosing a market for cheaper resources;

4. Increasing the yield of sunflower.

Consider the possibility of using fertilizers to increase yields, because. (Table 5.1.) Fertilizers are used very poorly on the farm.

Table Calculation of the economic efficiency of using an additional amount of fertilizers for grain

Indicators
1. Added additional active ingredient, kg
2. Yield increase per 1 kg AI, kg
3. Yield increase per 1 ha, c.
4. The cost of yield increase, rub.
5. The cost of 1 kg of a.i. min. fertilizer, rub.
6. Cost of applied fertilizers, rub.
7. Cleaning costs for additional products
8. Total cost
9. Overhead
10. Total cost of additional products
11. Amount of net income from fertilizer
12. Profitability level of fertilizer application, %
13. Cost of 1 c. yield increase, rub.

Conclusion: the use of fertilizers significantly increases yields, while maximizing profits and increasing profitability.

Table Effect of fertilizer application on the economic efficiency of sunflower production

Indicators
1. Yield c/ha
a) no fertilizer
b) yield increase
c) with the use of fertilizers
2. Cost of production, rub.
a) no fertilizer
b) yield increase
c) with the use of fertilizers
3. Product costs
a) no fertilizer
b) yield increase
c) with the use of fertilizers
4. Net income, rub.
a) no fertilizer
b) yield increase
c) with the use of fertilizers
5. Profitability level, %
a) no fertilizer
b) yield increase
c) with the use of fertilizers

With the use of fertilizers, the level of profitability of sunflower increased significantly and amounted to 21.1%, while a significant increase in yield was ensured.

Thus, the use of fertilizers makes it possible to intensify the process of sunflower production, significantly increase the yield, increase profits, and therefore increase profitability.

Conclusion

This course work shows the importance and necessity of applying profitability analysis in the activities of the enterprise. The current state of analysis can be characterized as a fairly well-developed theoretical science.

The most important indicator characterizing the work of agricultural enterprises is the profitability of products. The financial performance of enterprises, the rate of expanded reproduction, and the financial condition of economic entities depend on its level.

An analysis of the profitability of products, works and services allows you to find out the trends in this indicator, the implementation of the plan according to its level, determine the influence of factors on its growth and, on this basis, evaluate the work of the enterprise in using opportunities and establish reserves for increasing the profitability of products.

As a result of solving the problems posed in the course work, the following results were obtained:

1. Devitsky Kolos LLC is defined as a medium-sized farm with a predominance of the crop industry;

2. With a general deterioration in the financial results of the farm, there was a loss in sunflower;

3. It is proposed to use fertilizers as a measure to increase the intensity of production, the effectiveness of fertilizers is assessed.

Bibliography

1. Nikolaeva S.A. Features of cost accounting in market conditions: direct costing system: Theory and practice. - M.: Finance and statistics, 2005. -128 p.

2. Nikolaeva S.A. Formation of cost in modern conditions//Accounting. - 2006. - No. 11 ..-S. 11-16.

3. Pizengolts N.M. Accounting in agriculture. Textbook. M.: UNITI. - 2004 -423s.

4. Intra-district specialization and concentration of agricultural production. Ed. A.P. Kurnosov. M.: Kolos, 2005.

5. Izmalkov A.M. Analysis of the cost of agricultural products: Lecture. - Voronezh: VSKhI, 2004.

6. Bakanov M.I., Sheremet A.D. Theory of analysis of economic activity Textbook, 3rd revised and enlarged edition: M.: Finance and statistics. 2006

7. Kravchenko L.I. Analysis of the financial condition of the enterprise. M.: UNITI. 2005

8. Savitskaya G.V. Theory of analysis of economic activity M: ISZ, 2006.

9. Sheremet A.D. Methods of financial analysis of the enterprise M .: IPO "MP", 2005.

10. Pankov D.A. Modern methods of analyzing the financial situation M .: Profit LLC. 2004.

11. Analysis of the financial and economic activities of the enterprise: Proc. Manual for universities / ed. Lyubushina N.P. -M.: INITI - DANA, 2006. 471s.

12. Economics of the enterprise Pod. editorial prof. V.Ya. Gorfinkel, M., 2006.

Tasks of the enterprise economy

Definition 1

An enterprise is an economic entity that carries out economic activities for the purpose of making a profit.

It is a system of internal relationships aimed at obtaining a monetary result.

Enterprises play an important role in the country's economy, linking the state and the population. The population, buying products, saturates their needs. The state, in turn, by taxing the profits of the activities of economic entities, replenishes its budget. Thus, we can say that the success of enterprises is important for all subjects of market relations.

Under the study of processes associated with the production, marketing and sale of economic goods, a separate discipline is singled out in economic theory - the economics of the enterprise.

This is due to the fact that the economic entity itself is a system that includes subsystems. In addition, the enterprise is exposed to the influence of factors of the external and internal environment, which in one way or another change the entire production process. Environmental factors, which in microeconomics are considered as equivalent, in the economics of the enterprise, taking into account the characteristics of the subject, acquire their own specific influence.

Structurally, an enterprise is determined by a large number of internal relationships, so the enterprise economy faces a variety of tasks for analysis and control. Such tasks include:

• organization of the production process, creation of a production structure and infrastructure network within the enterprise;
• ensuring the uninterrupted functioning of the subject by debugging the mechanism for the supply of raw materials and materials;
• development and implementation of action plans;
• pricing;
• optimization of the use of labor resources;
• social security of the labor process;
• environmental protection activities;
• development and implementation of new technologies;
• accounting policy;
• rational organization of the management process.

Remark 1

Thus, we can conclude that the enterprise not only plays an important role in the country's economy, but also largely determines its development trends.

Features of agricultural activity

Agriculture is one of the most important sectors of the national economy. It not only produces food products that meet the needs of the population, but is also a source of raw materials for the processing industry. The higher the level of development of this industry, the higher the social satisfaction of society and the more stable the material and technical base of the country.

In addition, a developed agro-industrial complex provides an intrastate economic balance, a stable political environment and food independence.

However, this industry is not able to compete equally with other sectors of the national economy, so it requires some state control and assistance.

State support can be expressed in:

• regulating the price of certain products;
• subsidizing;
• special lending programs;
• tax benefits;
• infrastructure development;
• legislative regulation;
• carrying out irrigation works.

Regulation of the market price allows you to maintain the profitability of production.

Definition 2

Profitability is the value of the efficiency of resources and finances invested in the production process.

This indicator allows you to analyze various aspects of the organization's activities.

Profit, being the financial result of economic activity, determines the ratio of income to the costs aimed at obtaining them.

Profitability also allows you to evaluate the effectiveness of certain types of costs, thereby making it possible to make adjustments to production and management.

With the transition from a planned model to a market one, agricultural market entities began to independently plan their activities, focusing on maximizing income and investment efficiency.

Profitability of an agricultural enterprise

The specifics of the industry determines the factors influencing the formation of the profitability of an agricultural organization. Among them are:

• the size of the market share;
• competition;
• pricing;
• transport tariffs;
• state regulation.

The profitability of an agricultural entity determines the form of turnover, the feasibility of using resources, and also makes it possible to increase the efficiency of the organization of the technological process.

To calculate the overall indicator of profitability of an agricultural entity, the following formula is used:

R = P/T $\cdot$ 100%

where P is profitability, P is profit (net or gross), T is the value of turnover without VAT.

This calculation allows you to determine the effectiveness of invested capital.

The total income and profitability of an economic entity are directly proportional to each other. This indicator more accurately determines the financial result of the enterprise.

The level of profitability is affected by the turnover of capital. So, by calculating the ratio of the turnover of goods to the amount of capital, you can understand what kind of return comes from each ruble. The turnover and turnover of capital are directly dependent on each other.

The profitability of production assets is also determined according to the principle common with other industries:

P = (P(O + M)) $\cdot$ 100%

where P - profitability, P - net or gross profit, O - the average cost of fixed assets, M - the average cost of working capital.

When using leased premises or equipment in the activities of an agricultural enterprise, their cost must also be included in the calculation.

Specific factors of agricultural activity are the distribution costs, the area of ​​land under crops, the number of labor resources.

Remark 2

Analysis of profitability in relation to distribution costs shows the profitability of commercial transactions.

In relation to the personnel involved, profitability determines the profitability per employee.

If we take the area under crops as the denominator, then we can calculate the profitability of one square meter of land.

It is best to conduct a constant analysis of the profitability of an agricultural enterprise, which will allow you to track changes in dynamics and correlate them with indicators of past periods.

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educational institution

TECHNICAL UNIVERSITY"

course work

by discipline: Economy organizations (enterprises)

on the topic: and ways to improve it

Student (ka) FPU of the course 2 groups93 EE

Borisovets Liya Aznaurovna

Supervisor

Teterinets Tatyana Anatolyevna

MINSK, 2014

MINISTRY OF AGRICULTURE

AND FOOD OF THE REPUBLIC OF BELARUS

educational institution

"BELARUSIAN STATE AGRICULTURAL

TECHNICAL UNIVERSITY"

FACULTY OF ENTREPRENEURSHIP AND MANAGEMENT

Department of Economics and Organization of Agricultural Enterprises

EXERCISE

to complete the course work for the student _________________________________

Theme of the course work: Profitability of agricultural production and ways to improve it

Initial data: ____________________________________________

____________________________________________________________

The term for defending the term paper "____" _____________ 20

Coursework Supervisor

Senior Lecturer

(academic degree, title) (signature) Khatkevich G.V.

«_____» __________ 20

The task was accepted for execution:

________________ _______________________

(signature) (full name)

"_____" __________ 20

ESSAY

Topic of the course work:

Profitability of agricultural production

pp.: Table 3. Il.5. Bibliography -20 names

Keywords: Profitability

Object of study:

Profitability of agricultural production

The work analyzes the profit and profitability at JSC Dokshitsy Ryagroservice

The area of ​​possible practical application of the research:

profitability agricultural production

INTRODUCTION

CHAPTER 1. THEORETICAL FOUNDATIONS OF PROFITABILITY OF AGRICULTURAL PRODUCTION

1.1 The concept and essence of the profitability of agricultural production

1.2 Types of profitability and calculation methodology

1.3 Factors that increase the profitability of agricultural production

CHAPTER 2

2.1 Analysis of the dynamics, composition and structure of profit at Dokshitsy Ryagroservice OJSC

2.2 Analysis of the level of profitability of agricultural production of the enterprise

CHAPTER 3 WAYS TO INCREASE THE PROFITABILITY OF AGRICULTURAL PRODUCTION IN OAO Dokshitsy Ryagroservice

CONCLUSION

LIST OF USED SOURCES

INTRODUCTION

In modern economic conditions, the activity of each economic entity is the subject of attention of a wide range of participants in market relations interested in the results of its functioning.

In order to ensure the survival of an enterprise in modern conditions, management personnel must, first of all, be able to realistically assess the financial condition of both their enterprise and existing potential competitors.

The goal of any enterprise is profit, which, accordingly, is also the most important object of economic analysis. However, the amount of profit itself cannot characterize the efficiency of the enterprise's use of its resources. One of the main indicators characterizing the efficiency of the enterprise is profitability. Profitability, in a general sense, characterizes the expediency of the resources expended in relation to the newly acquired (profit) resources. Therefore, it is important to calculate profitability indicators at the enterprise and analyze their dynamics. This is the relevance of the topic of the thesis.

Agriculture is one of the most important sectors of the national economy. It produces food for the population, raw materials for the processing industry, and provides for other needs of society. Therefore, the actual problem at present is the problem of further increasing the level of efficiency of the industry.

Efficiency is a complex economic category in which the most important aspect of an enterprise's activity is manifested - its effectiveness. A general indicator of the economic efficiency of agricultural production is the indicator of profitability. Profitability means profitability, profitability of the enterprise. It is calculated by comparing gross income or profits with costs or resources used. Based on the analysis of average levels of profitability, it is possible to determine which types of products and which business units provide greater profitability. This becomes especially important in modern, market conditions, where the financial stability of an enterprise depends on the specialization and concentration of production.

It should be noted that profitability indicators are important elements that reflect the factorial environment for the formation of enterprises' profits. Therefore, they are mandatory when conducting a comparative analysis and assessing the financial condition of the enterprise.

In addition, profitability indicators are used in the analysis of the effectiveness of enterprise management, are used as an instrument of investment policy and pricing.

The purpose of writing this paper is to study the methodology for calculating profitability indicators and apply it in practice, using the financial statements of Dokshitsy Ryagroservice JSC

To achieve this goal, it is necessary to solve the following range of tasks:

Give a definition of the concept of profitability in modern business conditions;

Consider a system of profitability indicators in accordance with their classification;

To assess the level and dynamics of profitability indicators of the financial activity of the analyzed enterprise;

- to characterize the efficiency of the main activity of the enterprise

The purpose of the thesis is to reveal the essence of profitability as the most important economic indicator of the enterprise, as well as to analyze the profitability of the enterprise and identify opportunities to increase its level.

CHAPTER 1. THEORETICAL FOUNDATIONS OF PROFITABILITY OF AGRICULTURAL PRODUCTION

1.1 The concept and essence of the profitability of agricultural production

Profitability is the most important economic category, which is inherent in all enterprises operating on the basis of cost accounting. It means profitability, profitability of the enterprise and is determined by comparing the results obtained (profit, gross income) with costs or unused resources.

Profitability is a relative indicator that determines the level of profitability of a business. Profitability indicators characterize the efficiency of the enterprise as a whole, the profitability of various activities (production, commercial, investment, etc.). They more fully than profit identify the final results of management, because their value shows the ratio of the effect to the cash or consumed resources. These indicators are used to assess the activities of the enterprise and as a tool in investment policy and pricing. The profitability ratio is calculated as the ratio of profit to the assets, resources or flows that form it. It can be expressed both in profit per unit of invested funds, and in the profit that each received monetary unit carries. Profitability rates are often expressed as a percentage.

Profitability acts as an economic category, an estimated performance indicator, a target, a tool for calculating the net income of a company, and a source for the formation of various funds.

Profitability is a relative indicator that determines the level of profitability of a business. Profitability more fully than profit reflects the final results of management, since its value shows the ratio of the effect to cash or used resources.

If a company makes a profit, it is considered profitable. Profitability indicators used in economic calculations characterize relative profitability.

The role and significance of the profitability indicator is as follows:

* increase in profitability characterizes the purpose of the enterprise in a market economy;

* Profitability - a productive, qualitative indicator of the enterprise;

* the growth of profitability contributes to the improvement of the financial stability of the enterprise;

* increase in profitability ensures the victory of the enterprise in the competition and contributes to the survival of the enterprise in a market economy;

* profitability is important for the owners (shareholders and founders), since with its increase, interest in this enterprise increases;

* Lenders and borrowers of funds are interested in the level of profitability in terms of the reality of obtaining interest on obligations, reducing the risk of non-repayment of borrowed funds, and the solvency of the enterprise;

* the dynamics of the company's profitability is studied by tax authorities, stock exchanges, ministries

The threshold of profitability is such a volume of production and proceeds from its sale, at which the enterprise has neither profit nor loss, i.e. sales revenue only covers costs

Profitability is a complex and ambiguous category. The famous American economist Samuelson defined profitability as an unconditional income from factors of production, as a reward for entrepreneurial activity, technical innovations and improvements, for the ability to take risks in conditions of uncertainty, as a monopoly income, as an ethical category.

The main functions of profitability are accounting, estimated, stimulating.

From an accounting point of view, profitability consists of two components. First component? income from the ordinary (everyday) economic activity of the enterprise (defined as the difference between gross income from sales and distribution costs). At the same time, the value of profitability from economic activity is influenced by the appropriate methodology for calculating costs, personnel costs, estimating the value of fixed assets, stocks and other components. Second component? potential profitability (income from holding securities, debt obligations and material assets). A variety of potential income is extraordinary income, which consists of income from the sale of assets, bad financial liabilities, the use of amounts from accelerated depreciation, and reserves.

When determining profitability, four “Rs” should be followed: resources-expenses-work-results (see Fig. 1)

Figure 1 "Four R"

In a market economy, the results of activities are evaluated by a system of indicators, the main among which is profitability, defined as the ratio of profit to one of the indicators of the functioning of an agricultural enterprise. When calculating profitability, different indicators of profit can be used. This allows you to identify not only the overall economic efficiency of the enterprise, but also evaluate other aspects of its activities.

The rate of return is considered to be the rate of return, calculated as a percentage of the amount of net profit to the volume of trade or the cost of all capital.

The calculation of the economic profitability (profitability) of an agricultural enterprise is carried out according to the formula:

where R o - the total economic profitability of the economic activity of the enterprise;

P - the amount of profit (gross or net);

T - the volume of trade (excluding VAT).

In domestic economic science, two types of profitability are distinguished: national economic and self-supporting.

National economic profitability is necessary, on the one hand, for a comprehensive scientific justification for the development of the country's economy as a whole, and on the other hand, for assessing the results of agricultural development, analyzing and establishing the most important proportions for the development of the agro-industrial complex. When determining national economic profitability, the entire surplus product created in agriculture is taken into account.

Self-supporting profitability is the profitability of an individual agricultural enterprise or a particular type of product. It depends on the quantity and quality of products, the price level and the value of production costs. When calculating self-supporting profitability, they take into account the amount of net income directly realized by the enterprise.

1.2 Types of profitability and calculation methodology

The problem of profitability, methods of its quantitative measurement is constantly in the spotlight in the development of methodological and instructive materials. In this regard, noteworthy is the proposal of economists to introduce a classification of profitability indicators into absolute and relative, depending on the method of their quantitative expression.

Absolute indicators of profitability are gross and net income. However, the absolute sizes of net income, profit and gross income do not allow to fully compare the economic results of the production activities of enterprises.

Therefore, to characterize the economic efficiency of production, relative profitability indicators are also used, which are expressed as the ratio of two comparable values: gross, net income, profit, and indicators of the efficiency of the use of certain production resources or costs.

Relative profitability indicators can be calculated in terms of money or, most often, as a percentage.

Relative ratios are less influenced by inflation because they represent different ratios of profit and capital invested, or profit and production costs.

By the absolute amount of profit, it is not always possible to judge the level of profitability of an enterprise, since its size is affected not only by the quality of work, but also by the scale of activity. Therefore, to characterize the efficiency of the enterprise, along with the absolute amount of profit, a relative indicator is used - the level of profitability.

Profitability makes it possible to satisfy the economic interests of the state, enterprises, employees and owners. The object of the economic interests of the state is that part of the “profit” that the enterprise pays in the form of income tax and which society uses to solve social problems. The economic interests of the enterprise are to increase the share of profits remaining at its disposal. Due to this profitability, the enterprise solves the production and social problems of its development. The interests of employees in increasing profitability are associated with creating opportunities for improving material incentives and increasing their level of social development. The owners are also interested in the growth of the profitability of the enterprise, because thereby the dividends will increase, the increase in their capital will be ensured.

The types of profitability of the enterprise include:

Profitability of the property of the enterprise

return on equity

Profitability of production assets

balance sheet profit margin

net profit margin

Profitability types can be grouped into three groups:

1. Economic profitability (reflects the indicators of profitability of property assets and their elements)

2. Financial profitability (reflects indicators of profitability of capital, sources of funds and their elements)

3. Production profitability (reflects the profitability of production)

Profitability indicators are the most important characteristics of the actual environment for the formation of profits and income of enterprises. They allow assessing the financial results of the enterprise and, ultimately, its effectiveness. For this reason, they are mandatory elements of comparative analysis and assessment of the financial condition of the enterprise. When analyzing production, profitability indicators are used as an instrument of investment policy and pricing. These indicators usually include the level of profitability, or the profitability ratio, which is expressed as the ratio of one or another type of profit to any base. All profitability ratios can be calculated on the basis of balance sheet profit, and profit from sales or net income. Different indicators reflect different aspects of the enterprise. It is quite natural that, in general, the efficiency of an enterprise can be determined only by a system of profitability indicators.

Profitability indicators can be combined into several groups:

1. indicators characterizing the profitability (payback) of production costs and investment projects;

2. indicators characterizing the profitability of sales;

3. indicators characterizing the profitability of capital and its parts.

The indicator of profitability of production more objectively reflects the overall level of efficiency of the production and economic activities of the enterprise than the profitability of individual types of products, goods and services. Profitability of production is divided into two types: general profitability, which is the ratio of book profit to the average annual value of fixed assets and working capital, and settlement, determined by the ratio of the net profit of the enterprise to these costs. In market relations, the use of profitability indicators for evaluating various areas of activity of enterprises and firms is expanding significantly. There are several dozen types and methods for calculating profitability, different in terms of tasks and content of the used initial indicators of profit and costs.

Product profitability (recoupment ratio):

R pr \u003d (P pr / C p) * 100

Shows how much the company has a profit from each ruble spent on the production and sale of products. It can be calculated for individual types of products and for the enterprise as a whole. When determining its level as a whole for the enterprise, it is advisable to take into account not only sales, but also non-operating income and expenses related to core activities.

Return on sales (turnover ) characterizes the efficiency of production and commercial activities: how much profit the company has from the ruble of sales. This indicator is calculated as a whole but for the enterprise and individual types of products.

where Pr - profit from the sale of products, works and services

In rp - revenue received

This indicator is very important for making current and strategic decisions. In a market where the goal of entrepreneurial activity is to maximize profits, the enterprise, after such an analysis, must make an appropriate decision - to get rid of unprofitable and low-profit products and, conversely, increase highly profitable types of products. If the industry is subsidized or individual products are subsidized, then certain adjustments should be made. An analysis of the profitability of individual types of products, as well as their entirety, will help identify internal reserves to reduce the cost of production, ways to improve product quality for a possible corresponding increase in prices, which in any case will increase the profitability of products, and therefore improve the financial, socio-economic situation of the industry enterprise

The profitability of funds (R f) is determined as follows:

(R f) \u003d PE / (OPF + OS) * 100,

where NP is net profit,

OPF is the average annual cost of fixed production assets,

OS-cost of working capital (annual).

Return on equity :

R to \u003d CHP / SK * 100

where NP is net profit

SC-value of equity

Profitability characterizes the performance of the organization. Profitability indicators allow you to evaluate how much profit a company has from each ruble of funds invested in the company's assets.
Profitability indicators are the most important characteristics of the actual environment for the formation of profits and income of enterprises. For this reason, they are mandatory elements of comparative analysis and assessment of the financial condition of the enterprise.

1.3 Factors that increase the profitability of agricultural production

The determining factor in the content of the concept of "profitability of production" is the amount of profit. In this regard, the establishment of profitability factors is, first of all, the establishment of factors influencing the formation of profit. Profit factors can be divided into two groups:

factors of an internal order, depending on the manufacturer of the product and of a subjective nature;

factors of an external order that do not depend on commodity producers and are objective.

Internal factors include the quantity of products sold, its quality, and production costs.

The number of products sold depends on the volume of gross output and the level of its marketability. With an increase in the volume of gross output, there is an increase in products to be sold, since the growth rate of its domestic consumption, as a rule, is lower than the growth rate of gross output, which creates conditions for an increase in the level of marketability and an increase in cash proceeds on this basis. Sold products is the cost of products released to the side and paid by the buyer in the reporting period. Commodity and marketable products do not differ in composition, quantitatively they differ by the amount of residues of unsold finished products. The volume of products sold according to the plan is determined by the formula:

RP \u003d He + TP-Ok,

where He, Ok - the balance of unsold products at the beginning and end of the year

Product quality is a set of product properties that determine its suitability to satisfy certain needs in accordance with its purpose. A product quality indicator is a quantitative characteristic of one or more product properties that make up its quality and is considered in relation to certain conditions of its creation, operation or consumption.

Factors of profitability of agricultural production can be extensive and intensive. Extensive factors - those that affect profitability by changing the amount of products sold, and intensive - on the growth of selling prices and reducing the cost of production.

Thus, the determination of reserves for increasing the profitability of agricultural production is reduced, on the one hand, to the determination of reserves for increasing cash proceeds from sales, and on the other, reserves for reducing the cost of production.

The main ways to increase the level of profitability are as follows:

1) increase in the volume of production and increase its marketability;

2) improvement of selling prices for agricultural products, which would cover costs and ensure profit;

3) quality improvement allows it to be sold at higher prices;

4) increase in labor productivity in the production of agricultural products;

5) reduction in the level of material and monetary costs per unit of output.

These measures can be carried out on the basis of the introduction of a correct system of farming, the systematic improvement of farming and livestock systems in relation to the zonal natural and economic conditions of regions and individual farms. The material and technical basis for increasing the level of profitability is further technical progress, the introduction of comprehensive mechanization and automation of production.

CHAPTER 2. PROFITABILITY ANALYSISAGRICULTURAL PRODUCTION AT JSC "DOKSHITSKY RAYAGROSERVICE"

2.1 Analysis of the dynamics, composition and structure of profits at OAO Dokshitsy Ryagroservice

A new trend can be traced in the countryside in Belarus: agricultural enterprises are being created and successfully operate that perform a whole cycle of work required in a particular area. The logic of their development is clear: why look for something beyond the seven seas, if this something is here, at hand. JSC “Dokshitsy Ryagroservis” also belongs to such enterprises.

JSC Dokshitsy Ryagroservice is a diversified enterprise. The main activity is agricultural. The enterprise provides services to the farms of the region, it is the supply of mineral fertilizers, means of protection, liming of soils. The company has its own stock of spare parts for the repair of various agricultural machinery. Brigades are working on electrophysical work, repairing water supply, as well as a mechanical team that is engaged in the preparation of organic fertilizers, increasing soil fertility, their disking, forage harvesting and the production of grain crops.

Profit is the final indicator of the efficiency of the enterprise, or the financial result of the activity.

There are the following profit functions:

Productive - actually received profit evaluates the effectiveness of the organization.

Funding - part of the profit is a source of self-financing of the organization's activities.

Investment - expected profit is the basis for making investment decisions.

Stimulating - part of the profit can be used as a source of material incentives for employees of the organization and payments to owners of capital dividends.

As an economic criterion, profit primarily characterizes the end result of the entrepreneurial activity of the enterprise, expressed in monetary terms. With the help of profit, you can determine such data as: production efficiency, labor productivity, product quality and factors that increase the cost of production.

Let's consider the dynamics and structure of profit at OAO Dokshitsy Ryagroservice.

The composition of the profit of this enterprise includes: gross (balance sheet) profit, profit from operating and non-operating income and expenses, net and retained earnings, profit from the sale of goods, products, works and services.

Table 1. Dynamics and structure of profit at Dokshitsy Ryagroservice OJSC

Profit figures
		structure,%		structure,%	value, million rubles	structure,%
Gross (balance) profit
Profit from operating income and expenses
Profit from non-operating income and expenses
Net profit
Undestributed profits
Profit from the sale of goods, products, works, services

Based on the data in Table 1, it can be seen that in the structure of profit, the largest part is profit from non-operating income and expenses, which during 2010-2012. increases immediately by 2.9% in 2011 and by 3% in 2012.

Gross (balance) profit is increasing at a fast pace: in 2010 it amounted to 3.3%, in 2011-5.1% and in 2012 8%.

Profit from operating income and expenses is sharply reduced. This is due to an increase in such indicators that are part of this profit, such as income from participation in the creation (foundation) of other organizations, expenses from operations with assets, etc. This ultimately results in negative earnings in 2012, which is -647. Sometimes negative earnings reflect deeper and longer-term problems for a firm. Some arise from poor strategic choices made in the past, others reflect operational inefficiencies, and still others are purely financial in nature, resulting from the firm's heavy borrowing that exceeds its current cash flow.

Also, the net profit indicator is significantly reduced. Over the course of three years, since 2010, it has decreased by 14.1%. The decrease in net profit is negative for the enterprise. Net profit is used to increase the working capital of the enterprise, the formation of funds and reserves, and reinvestment in production. The amount of net profit depends on the amount of gross profit and the amount of taxes.

On the basis of tabular data, we will build a graph 1 and consider the change in profit indicators for 2010-2012.

For convenience, we note: gross profit Vp, profit from operating income and expenses Subr, profit from non-operating income and expenses Pvr, net profit PE, retained earnings NP, profit from the sale of goods, products, works Pr.

Chart 1 “Change in profit indicators”

Factors affecting the amount of profit are divided into two groups:

§ Internal factors -- factors that affect the profit margin of the enterprise through an increase in output and sales, improving product quality, increasing selling prices and reducing production and sales costs.

§ External factors - these factors do not depend on the activities of the enterprise, but can have a significant impact on the amount of profit.

Let's take a closer look at the scheme of factors that affect profit

Consider the profit structure for 2010 in Chart 2, 2011 - Chart 3 and 2012 - Chart.

2.2 Analysis of the level of profitability of agricultural production of the enterprise JSC "Dokshitsky rayagroservice"

To analyze the level of profitability, we need to calculate the profitability of products, profitability of sales, equity capital, profitability of fixed assets and personnel. The calculated data will be presented in Table 2.

Product profitability:

Rn \u003d Pr / SP * 100 \u003d 10566 / 9112 * 100 \u003d 115.9 - 2010

Rn=10930/9318*100=117.2 - 2011

Rn13129/11159*100=117.6 - 2012

Return on sales profitability:

Rv \u003d Pr / Vrp \u003d 10566 / 9313 \u003d 1.13 - 2010

Rv=10930/9610=1.14 - 2011

Rv=13129/11485=1.14 - 2012

Return on equity:

Rk=PE/SK=2294/1025*100=223.8 - 2010

Rk=1951/1025*100=190.3 - 2011

Rk=957/1025*100=93.4 - 2012

Profitability of fixed assets:

Ros \u003d PE / OS \u003d 2294 / 58453 * 100 \u003d 3.9 - 2010

Ros=1951/63914*100=3.05 - 2011

Ros=957/81597*100=1.2 - 2012

Staff profitability:

Rp \u003d PE / average. headcount*100=2294/398*100=576.3 - 2010

Rp=1951/392*100=497.7 - 2011

Rp=957/361*100=265.09 - 2012

table 2

Table 2 shows that the profitability of products and profitability of sales during 2010-2012. gradually increases. In 2011, the profitability of products amounted to 117.2, which is 1.3 points more than in 2010 and 0.4 points less than in 2012. Return on sales profitability in 2011-2012 amounted to 1.14, which is 0.1 points higher than in the same period last year. As for the return on equity, fixed assets and personnel, their indicators are declining over the analyzed period. The return on equity in 2010 was 223.8, which is 33.5 points higher than in 2011. In 2012, this figure was 93.4, which is 130.4 and 96.9 points less than in 2010 and 2011, respectively. Return on fixed assets in 2011 amounted to 3.05, which is 0.85 points less than in 2010 and 1.85 points more than in 2012. There is a sharp decrease in the profitability of personnel. In 2012, this figure was 265.09. This is much less than in the same period of 2010 and 2011.

Let's look at chart 5, how each indicator of profitability changes for the analyzed period of 2010-2012.

Chart 5 "Change in profitability indicators 2010-2012"

Overall profitability . This indicator is the most common in determining the profitability of an enterprise and is calculated as the ratio of profit before tax to the proceeds from the sale of goods, works and services produced by the enterprise. The indicator shows what part of the proceeds from sales is profit before tax, is analyzed in dynamics and compared with the industry average values ​​of this indicator. For convenience, we present the data in Table 3.

Table 3

The overall profitability in 2010 was 0.233 (profit/revenue=2472/10566=0.233). In 2011, this figure was 0.202 and in 2012 - 0.083. Let's translate these figures into percentages and get the following figures: 2010 - 23.3%, 2011 - 20.2%, 2012 - 8.3%. The overall profitability indicator is noticeably declining: in 2011 by 3.1% and in 2012 compared to 2011 by 11.9%.

The company can be said to be in a state of decline. Many indicators of profit and profitability are declining, and the profit from operating income and expenses has reached a negative level altogether. All these problems need to be addressed.

CHAPTER 3 WAYS TO INCREASE THE PROFITABILITY OF AGRICULTURAL PRODUCTION AT OAO "DOKSHITSK RAYAGROSERVICE"

At the enterprise it is necessary to increase the return on equity, fixed assets and the profitability of personnel. The decrease in these indicators negatively affects the efficiency of the enterprise and leads to unprofitability.

If the analysis of personnel profitability clearly shows low work efficiency, then it is necessary to optimize its number. During this process, all costs are reduced without exception.

An analysis of personnel profitability already at the diagnostic level can identify jobs that an enterprise can do without. The second stage of optimization will be the determination of the minimum number of employees and the planning of reductions. Downsizing planning is a tricky optimization step. Here, the definitions of the “personnel core” (highly qualified specialists, without which the efficiency of work will fall) and the personnel periphery (part of the staff, most of the employees performing less significant functions) become very important. In this case, the profitability of personnel shows either underestimated or the same values ​​that could be without personnel periphery. Despite the fact that the employees of the latter perform their functions, in a crisis you can do without them.

Increase the return on equity due to the multiplier, i.e. by increasing liabilities is possible only if, firstly, the profitability of the organization's assets exceeds the cost of attracted liabilities and, secondly, non-current assets occupy a small share in the structure of its assets, which allows the organization to have a significant share in the structure of funding sources. weight of intermittent sources.

An increase in the profitability of equity capital while reducing the profitability of all funds (assets) of the enterprise indicates the inefficient use of borrowed funds, which is especially evident in the decrease in the profitability index of funds operating in production.

Thus, depending on the industry specifics, as well as financial and economic conditions, the organization can rely on one or another factor to increase the return on equity.

Ways to increase profitability:

1. increase in the volume of trade, by expanding the range of goods, introducing new methods of selling goods, etc.;

2. relationship with suppliers (purchase goods directly from manufacturers);

3. lowering the level of distribution costs

4. increase in the level of trade markup, etc.

Increasing the profitability of production is one of the most important tasks of every socialist enterprise. The higher the profitability of enterprises, the more savings they receive, the richer the country, the better life for the working people.

Product profitability. The growth of this indicator is a consequence of rising prices at constant costs for the production of sold products (works, services) or a decrease in production costs at constant prices, that is, a decrease in demand for the company's products, as well as a faster increase in prices than costs. This indicator can serve as a benchmark in assessing the competitiveness of products, since a decrease in cost may also mean a drop in demand for it.

main path increase the profitability of enterprises - the growth of labor productivity, which allows increasing the size of profits by reducing the cost of each unit of production and increasing the volume of production. The lower the cost, the more profit in each unit of production, since the unit price remains unchanged, it is set according to the plan.

Profitability can also be increased by increasing the volume of production, since with an increase in the volume of production, the profit of the enterprise increases, received from each unit of production, and from the entire increased quantity of products. The fact is that with an increase in output, the cost of production decreases, since production costs that do not depend on the size of production (for example, lighting, heating and maintenance of an industrial building) are distributed over a larger number of units of output.

The indicator of profitability of sales characterizes the efficiency of production and commercial activities and shows how much the company has a net profit from the hryvnia of sold products. Based on these indicators, the effectiveness of enterprise management is assessed, i.e. its ability to make a profit from its core business. However, this indicator is rather problematic, since there are many algorithms for its calculation. This does not allow, in turn, to correctly assess this indicator.

To eliminate all factors that negatively affect the formation of profitability and financial stability indicators, the management of the enterprise needs to take the following measures:

1) to ensure the outstripping growth of financial results over the total capital by intensifying the work of employees and reducing the material intensity, energy intensity and labor intensity of products;

2) the introduction of new technologies to reduce the cost of production;

3) identifying the most profitable types of products and optimizing the structure of its sale;

4) strict control over costs in all areas of the enterprise through the preparation of cost estimates.

Obviously, from the point of view increase the profitability of the enterprise on the whole, it is interested in producing more profitable products that have a greater share of profit in the price of the goods. Therefore, the actual level of profitability is affected not only by a decrease in the cost of production, but also by a change in the structure of manufactured commercial products against the plan. Since prices are set on the basis of industry average profitability, the actual level of profitability at enterprises may be lower or higher than the standard one.

The trade unions must draw the broad masses of the working people into the struggle against manifestations of mismanagement, wastefulness, and negligent attitude towards the people's good, develop in every possible way competition for the economy of raw materials and materials, for the elimination of waste, unproductive waste of working time and equipment, for the most efficient use of state funds, for frugality on production, assist in the work of public bureaus and councils of economic analysis.

CONCLUSION

The indicator of profitability of production is especially important when the management of the enterprise needs to constantly make a number of extraordinary decisions to ensure profitability, and, consequently, the financial stability of the enterprise.

The factors influencing the profitability of agricultural production are numerous and varied. Some of them depend on the activities of specific farms, others are related to the technology and organization of production, the efficiency of the use of production resources, the introduction of scientific and technological progress.

Profitability indicators have more or less significant fluctuations over the years, which is a consequence of changes in sales prices and production costs. The level of sales prices is primarily affected by the quantity and quality of marketable products, and the cost price is affected by the yield of agricultural crops and the productivity of livestock, as well as the amount of labor and material costs.

Based on the available data, we found that during 2010-2012. such indicators of profit as profit from operating income and expenses, profit from non-operating income and expenses, net profit, retained earnings, profit from the sale of goods, products, works, services are significantly reduced.

Thus, there is a significant downward trend in the profitability of the enterprise in terms of such indicators as the return on equity, fixed assets and personnel.

The factors influencing the profitability of agricultural production are numerous and varied. Some of them depend on the activities of specific teams, others are related to the technology and organization of production, the efficiency of the use of production resources, the introduction of the achievements of scientific and technological progress.

As practical calculations have shown, profitability indicators have more or less significant fluctuations over the years, which is a consequence of changes in sales prices and production costs. The level of sales prices is affected, first of all, by the quantity and quality of marketable products, and the cost price is affected by crop yields and livestock productivity, as well as the amount of labor and material costs.

Currently, most agricultural enterprises are unprofitable (unprofitable) or unprofitable, which is a consequence of the economic crisis in the country.

In 2010, the total profitability of JSC “Dokshitsy Ryagroservice” JSC amounted to 0.233 (profit/revenue=2472/10566=0.233). In 2011, this figure was 0.202 and in 2012 - 0.083. Let's translate these figures into percentages and get the following figures: 2010 - 23.3%, 2011 - 20.2%, 2012 - 8.3%. The overall profitability indicator is noticeably declining: in 2011 by 3.1% and in 2012 compared to 2011 by 11.9%.

In the structure of profit, the largest part is profit from non-operating income and expenses, which during 2010-2012. increases immediately by 2.9% in 2011 and by 3% in 2012. Gross (balance) profit is increasing at a fast pace: in 2010 it amounted to 3.3%, in 2011-5.1% and in 2012 8%.

On the basis of the data obtained, it can be concluded that the enterprise JSC "Dokshitsy Ryagroservis" is unprofitable.

LITERATURE

1. G.V. Savitskaya / Analysis of the economic activity of the enterprise

2. Popov M.A. Economics of branches of the agro-industrial complex: a course of lectures / M.A. Popov - M: Ekmos, 2005-368s.

3. Polensky S.L. Profitability of agricultural production and ways to improve it, M: Kolos, 1999

4. Goncharuk O.V., Knysh M.M., Shopenko D.V. Enterprise Financial Management: Textbook - St. Petersburg: D. Bulanin, 2006-264s.

5. Economics of the enterprise / V.A. Khrinach, G.Z. Susha, G.K. Okonprienko,

6. Shulyak P.N. Enterprise Finance: Textbook 2nd Edition-M: Dashkov Publishing House, 2007

7. Reports of the enterprise for 2010 - 2012

8. Ivakhnenko V. M. Course of economic analysis: Scientific guide. - 5th ed., revised. and additional - K .: Knowledge, 2006. - 261 p.

9. Analysis and diagnostics of the financial and economic activities of the enterprise: textbook. allowance for universities / P.P. Taburchak. - M.: Rostov n / D: Phoenix, 2010. - 352 p.

10. Stukach V.F. Adaptation of agricultural enterprises to market conditions / V.F. Squealer, M.E. Daueshov. - Omsk: OmGAU Publishing House, 2001. - 144 p.

11. Economic analysis: analysis of indicators of value creation / Kogdenko V.G.-2010.-№19.-p.11-20

12. Economics of enterprises and branches of the agro-industrial complex: a textbook for students of the specialty "Economics and management at the enterprise" / Leshchilovskiy P.V. [and etc.] ; under the editorship of: Leshchilovskiy P.V., V.S. Tonkovich, A.V. Mozol. -2nd ed., revised. and additional .. -Minsk: BSEU, 2007. -574 p.

13. Matalytskaya S.K. Analysis of the economic activity of agricultural organizations: workshop / S. K. Matalytskaya, E. A. Levshevich; EE "Belarusian State Economic University". -Minsk: BSEU, 2006. -159 p.

14. Economics of enterprises of the agro-industrial complex: a course of lectures / P. V. Leshchilovskiy [and others]. -Minsk: UMTs, 2005. -340 p.

15. Economics of the enterprise: a textbook for university students studying in economic specialties / ed. V. M. Semyonov. -4th ed. - St. Petersburg: Peter, 2007. -383 p. UCHL - Textbook

16. Nechaev V. I. Economics of agro-industrial complex enterprises: a textbook for university students studying in the specialty 080502 - "Economics and management at an agro-industrial complex enterprise" / V. I. Nechaev, P. F. Paramonov, I. E. Khalyavka. - St. Petersburg: Lan, 2010. - 461 p.

17. Loban L. A. Economics of the enterprise: educational complex / L. A. Loban, V. T. Pyko. -Minsk: Modern School, 2011. -429 p.

18. Enterprise Economics: Textbook / Ed. Rudenko A.I. - 2nd ed.

19. Tonkovich V.S. Economics of enterprises and branches of the agro-industrial complex: Proc. allowance / Ed. Tonkovich V.S., Dogil L.F. - Minsk: BSEU, 2006. -264 p.

20. Economics of the enterprise / Khripach V.Ya, Susha GZ, Androsovich E.I and others - 2nd ed., stereotype. -Minsk: Ekonompress, 2001. -464s

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