Assessment of the profitability of a construction enterprise and the main directions for increasing it. Development of measures to increase the profitability indicators of Stroykomplekt LLC Expected performance for the current year

Methodology for determining planned profit using the simple counting method and the analytical method

Algorithm for profit planning and search for reserves for its growth

Profit is the most important indicator of the final financial results of an enterprise. It is defined as the difference between revenue from sales of products and its cost.

Profit planning is the process of developing a system of measures to ensure its formation in the required volume and effective use in accordance with the goals and objectives of the development of the enterprise.

It is necessary to plan profit in order to:

• the owners of the enterprise could make decisions regarding dividend and investment policies;
• effectively distribute funds, direct them to update production assets;
• identify on-farm production reserves, rationally use production assets, material, labor and financial resources of the enterprise.

Profit is planned separately for all types of activities of the enterprise. Planning objects are elements of profit before tax. In this case, special attention is paid to planning profit from sales.

In a steadily developing economy, profits are planned for a period of 3 to 5 years; with relatively stable prices and predictable business conditions, current planning within 1 year is common. In an unstable economic and political situation, planning is possible for a short period - a quarter, a half-year.

3 main methods of profit planning:

1) direct counting method;

2) method of relationship between revenue, costs and profit (direct costing method);

3) analytical method.

Direct counting method

The direct counting method is most common in enterprises. It is used, as a rule, when there is a small range of products, when justifying the creation of a new or expansion of an existing enterprise, or when implementing an investment project.

The direct counting method determines the planned profit in the upcoming period according to the following stages (Fig. 1).

Rice. 1. Determination of planned profit using the direct counting method

The essence of the direct counting method is that profit is calculated as the difference between revenue from sales of products (at appropriate prices, minus VAT and excise taxes) and its full cost,

Planned profit (P) is calculated using the formula:

P = (O × C) - (O × C),

where O is the volume of production in the planned period in physical terms;

P — price per unit of production (minus VAT and excise taxes);

C is the total cost per unit of production.

Profit on commodity output (Pt) is planned on the basis of the cost estimate for production and sales of products, which determines the cost of commodity output for the planned period:

P t = C t - C t,

where Ct is the cost of commodity output of the planned period in current selling prices (excluding VAT, excise taxes, trade and sales discounts);

St - the total cost of marketable products of the planned period.

Note!

It is necessary to distinguish the planned amount of profit per commodity output from the profit planned per volume of products sold.

Profit on products sold (Pr) is generally calculated using the formula:

P r = B r - C r,

where B p is the planned revenue from sales of products at current prices (excluding VAT, excise taxes, trade and sales discounts);

C p is the full cost of products sold in the coming period.

In more detail, profit from the volume of products sold in the planning period is determined by the formula:

P r = P he + P t - P ok,

where P it is the sum of the profit of the balances of unsold products at the beginning of the planning period;

P t - profit from the volume of output of commercial products in the planning period;

P ok - profit from the balance of unsold products at the end of the planning period.

For your information

This calculation method is applicable for the enlarged direct method of profit planning, when it is easy to determine the volume of products sold in prices and at cost.

Analytical method

The analytical method of profit planning is used for a large range of products, and also as an addition to the direct method for the purpose of its verification and control (Fig. 2). Profit is determined not for each type of product produced in the coming year, but for all comparable products as a whole. Profit on incomparable products is determined separately.

Rice. 2. Determination of planned profit using the analytical method

Note!

The advantage of this method is that it allows you to determine the influence of individual factors on planned profit.

Direct costing method

The basis of the direct costing method is the grouping of costs into variable and semi-fixed. The relationship between sales volume (thousand rubles) and cost structure (thousand rubles) is presented in Fig. 3.

Rice. 3. Relationship between sales volume and cost structure

The company will make a profit if the volume of product sales exceeds a certain critical amount of revenue.

Planning profit

Let's look at how to plan profit using the example of a conditional enterprise.

ABC LLC plans its production activities on the basis of agreements concluded with consumers of products and services, as well as suppliers of material, technical and other resources.

The purpose of the organization is to satisfy the need for its products, works, services and make a profit.

Main activities: construction, decoration and renovation of offices and apartments; electric installation work; roofing; carpentry work; installation of steel structures; stone works; implementation of design projects; preparation of the construction site.

The organization specializes in the construction of large buildings, so its business partners are mainly private individuals.

The dynamics of profit are presented in table. 1.

Table 1

Profit dynamics of ABC LLC

Indicators	Unit change	Values		Changes
		2014	2015	absolute	relative, %
Revenue from works, services
Cost of work, services
Business expenses
Revenue from sales
Other income
other expenses
Gross profit
Income tax
Net profit
Return on sales
Product profitability

Analyzing the data in table. 1, we see that sales profit increased by 16.4%. This was facilitated by an increase in revenue from work by 8.4% and a decrease in commercial expenses by 25.6%. Net profit also increased by 23.9%. Sales and product profitability increased by 2.5 and 4.0%, respectively.

Let's consider the main ways of planning profit from the sale of commercial products.

As mentioned earlier, ABC LLC specializes in the construction of prefabricated frame houses. Income from this type of service is about 50% of the total profit of the enterprise. The price of one house is 1,694,915 rubles, the production cost according to the report for the past year is 1,303,781 rubles.

In 2014, 15 houses were built, in 2015 - 18.

Let's calculate the planned profit using the direct counting method.

Let’s say that 20 houses will be built next year, the reduction in production costs will be 5%, the cost of selling products will be 0.5% of the products sold at production costs.

The production cost per unit of production in the planning year will be:

1,303,781 × 95 / 100 = 1,238,591.95 rubles,

volume of marketable products in the planning year at production cost:

1,238,591.95 × 20 = 24,771,839 rubles.

In order to determine the full cost of production, we calculate the cost of selling products:

24,771,839 ×0.5 / 100 = 123,859.2 rubles.

Therefore, the volume of product sales at full cost will be:

24,771,839 + 123,859.2 = 24,895,698.2 rub.

The sales volume in physical terms is 20 units, and in wholesale prices - 33,898,300 rubles. (20 × 1,694,915).

Under these conditions, profit from sales of products in the planning year will be:

33,898,300 - 24,895,698.2 = 9,002,601.8 rubles.

Calculating profit using the direct counting method is simple and accessible. However, it does not allow us to identify the influence of individual factors on the planned profit and, with a large range of products, is very labor-intensive.

Let's calculate profit using the analytical method:

1. We determine the basic profitability, i.e. the ratio of the expected profit to the total cost of comparable commercial products (Table 2).

table 2

Calculation of basic profitability

Indicators	Unit change	Results for 9 months	IV quarter plan	Expected performance for the current year
Quantity of commercial products
Comparable products for the past year:
at current prices (excluding VAT, excise taxes and sales tax)
at full cost
Profit per volume of comparable products
Adjustments to the amount of profit in connection with price changes that occurred during the year (+/-) from the beginning of the year to the date of change
Basic profitability

2. Since the planned year provides for an increase in comparable marketable products by 11.5%, its output at the cost of the reporting year will be:

22,895,562 × 111.5 / 100 = 25,528,551.6 rubles.

Profit on comparable products in the planning year, based on the basic level of profitability, will be equal to:

25,528,551.6 × 29.4 / 100 = 7,505,394.2 rubles.

3. We take into account the influence of individual factors on the amount of planned profit.

The output of comparable commercial products in the planning year at last year’s cost is RUB 25,528,551.6. The same comparable products, but at the full cost of the coming year - 26,075,620 rubles. (20 × 1,303,781). The increase in the cost of comparable commercial products amounted to RUB 547,068.4. (26,075,620 - 25,528,551.6), and this will entail a decrease in planned profit.

The planned change in the product range causes an increase or decrease in planned profit. But ABC LLC does not plan changes in the assortment, so we are skipping this stage of calculations.

The size of the planned profit is also affected by price changes in the planning period. If prices decrease or increase, the estimated percentage of decrease or increase should be calculated based on the volume of the relevant product. The amount received from a decrease or increase in prices will affect the decrease or increase in planned profit.

Let’s say that prices for all marketable products sold are expected to increase in the planning year by 6.03%. If the planned output of commercial products, calculated in prices, is 33,898,300 rubles, then only due to this factor a profit will be received in the amount of:

33,898,300 × 6.03 / 100 = 2,044,067.5 rubles.

Let's make a summary calculation of profit from product sales (Table 3).

Table 3

Summary calculation of profit calculated by the analytical method

Indicators	Amount, rub.
Marketable products in the planned year:
comparable commercial products at full cost in the reporting year
comparable commercial products at full cost in the planning year
decrease in profit from increased costs of comparable products
Profit on comparable products based on underlying profitability
Increased profits due to rising prices
Total planned profit

Note!

Despite the fact that the direct planning method is simpler and more accessible, profit in it is determined as a total amount, without identifying specific reasons that influence its value. The analytical method is more complex, but it allows you to identify both positive and negative factors affecting profit.

The final planned profit of ABC LLC from the construction of prefabricated frame houses next year will be 9,002,393.3 rubles, which is certainly a positive factor. At the same time, the planned profit is significantly reduced by an increase in cost by 547,068.4 rubles, which is explained by an increase in prices for consumed inventory, an increase in wages due to an increase in the minimum monthly wage and other factors.

Profit growth by RUB 2,044,067.5. planned in connection with the expected increase in prices for products sold, taking into account inflation. This factor also cannot be considered as positive, since it is impossible to predict buyer behavior when the price of a product increases.

To predict the maximum possible profit in the planned year, it is advisable to compare revenue from product sales with the total amount of costs, divided into variable, constant and mixed (Fig. 4).

Rice. 4. Composition of costs

Due to the small share of mixed costs, we will not take them into account in the calculation. The increase in profit depends on the relative decrease in variable or fixed costs.

The following calculations allow us to determine the so-called production leverage effect - a phenomenon when, with a change in revenue from product sales, a more intense change in profit occurs in one direction or another.

To calculate the effect or force of a lever, a number of indicators are used:

• gross margin = sales profit + fixed costs;
• contribution (coverage amount) = sales revenue - variable costs;
• leverage effect = (sales revenue - variable costs) / profit.

Revenue from sales of products in 2014 amounted to 29,591,430 rubles, including variable costs - 18,944,482 rubles, fixed costs - 3,951,080 rubles.

Thus, with total costs of 22,895,562 rubles. profit is equal to:

29,591,430 - 22,895,562 = 6,695,868 rubles.

If in 2015 revenue increases by 10%, which will amount to RUB 32,550,573. (29,591,430 × 110/100), then variable costs will also increase by 10% and will be equal to 20,838,930.2 rubles. (18,944,482 × 110 / 100). Fixed costs remain unchanged, i.e. 3,951,080 rubles.

In this case, the total costs will be:

20,838,930.2 + 3,951,080 = 24,790,010.2 rub.,

32,550,573 - 24,790,010.2 = 7,760,562.8 rubles.

At the same time, profit will increase by 15.9% compared to last year (7,760,562.8 × 100 / 6,695,868 - 100).

Consequently, with an increase in revenue from product sales by 10%, profit will increase by 15.9%.

When looking for opportunities to increase profits, it is advisable to check the influence on its growth not only of variable, but also of fixed costs. So, if variable costs increase by 10% - 20,838,930.2 rubles, and fixed costs - by 2% - 4,030,101.6 rubles. (3,951,080 × 102 / 100), the total amount of all costs will be:

20,838,930.2 + 4,030,101.6 = 24,869,031.8 rub.

The company will make a profit:

32,550,573 - 24,869,031.8 = 7,681,541.2 rubles,

which will increase by 14.7% compared to last year (7,681,541.2 × 100 / 6,695,868), rather than by 15.9%.

20,838,930.2 + 4,109,123.2 = 24,948,053.4 rubles.

Profit in this case is reduced to the amount of 7,602,519.6 rubles. (32,550,573 - 24,948,053.4), i.e. it increases by only 13.5% (7,602,519.6 × 100 / 6,695,868 - 100).

Based on the above calculations, we can draw the following conclusion: as fixed costs increase, ceteris paribus, the rate of profit growth decreases.

Next, we calculate the force of influence of the production lever

To do this, we exclude variable costs from the total revenue from product sales and divide the result by the amount of profit.

Economists call the difference between sales and variable costs the cost contribution.

The quantitative impact of operating leverage on profit can be expressed by the formula:

where O is the operating lever;

B - contribution to coverage;

P - profit.

Let us determine the strength of the production lever in 2015:

29 591 430 - 18 944 482 / 6 695 868= 1,6.

The indicator of the production leverage effect has important practical significance. If revenue from product sales increases, for example, by 4%, then, using the indicator of the strength of the production lever, we can determine in advance that profit will increase by 6.4% (4% × 1.6).

Based on the strength of the impact of the production lever, we can conclude: the higher the share of fixed costs and, accordingly, the lower the share of variable costs with a constant amount of revenue from product sales, the stronger the impact of the production lever.

For your information

This does not mean that fixed costs can be increased uncontrollably, since if this reduces revenue from sales of products, the enterprise will suffer large losses in profit.

When studying the relationship between fixed and variable costs and profit, production break-even analysis plays an important role. Let's determine the so-called break-even point for production and sales of products.

The break-even point corresponds to the sales volume at which the company covers all fixed and variable costs without making a profit. Using the break-even point, the threshold is determined beyond which the sales volume ensures profitability, i.e., the profitability of the product.

The sales volume corresponding to the break-even point (B) is defined as the ratio of fixed costs (Zpost) to the difference between the unit and the quotient of variable costs (Zper) divided by sales volume in value terms (P):

B = W post / (1 - W lane / P).

The sales volume of ABC LLC in 2014 was RUB 29,591,430, including:

• variable costs - 18,944,482 rubles;
• fixed costs - RUB 3,851,080;
• profit - 6,695,868 rubles.

18 units sold. products, unit costs - 1,643,968.3 rubles. (29 591 430 / 18). Sales volume in monetary terms at the break-even point will be:

3,851,080 / (1- 18,944,482 / 29,591,430) = 10,697,444.4 rubles.

In physical terms, the quantity of products sold at the break-even point is 6 units. (10,697,444.4 / 1,643,968.3).

This means that the proceeds from the sale are 6 units. products cover all costs without generating profit. The sale of each additional unit above 6, i.e. above the break-even point, will generate a profit.

Such calculations make it possible to predict break-even activities in advance.

Also, when determining a strategy, an enterprise must take into account the margin of financial strength (F), i.e., estimate the sales volume above the break-even level. To do this, the sales volume (P) excluding the sales volume at the break-even point (B) should be divided by the total sales volume:

Ф = (P - B) / P × 100.

Let's determine the financial strength of ABC LLC:

(29,591,430 - 10,697,444.4) / 29,591,430 × 100 = 63.8%.

Therefore, the business can reduce production and sales by 63.8% before reaching the break-even point. Such a high margin of financial strength must be taken into account in the process of forming the company's strategy.

For your information

Having a large margin of financial strength, an enterprise can develop new markets, invest funds both in securities and in production development.

So, factor analysis made it possible to identify reserves that will help increase the net profit of the enterprise. This is a reduction in costs and a change in the structure of products sold.

As for the organizational structure of the enterprise, it is advisable to make some changes to it (Fig. 5).

Rice. 5. Proposals for changing the organizational structure of ABC LLC

Currently, ABC LLC does not have a planning department, which every enterprise that wants to be competitive should have.

Let's calculate the effectiveness of the implementation of the planning department. To do this, we first determine the amount of costs that will be needed to implement the planning department:

• wages to be paid to employees:

3 people × 42 thousand rubles. = 126 thousand rubles;

• deductions from the payroll fund:

126 thousand rubles. × 34% / 100% = 43 thousand rubles.

The total wage costs will be:

126 thousand rubles. + 43 thousand rub. = 169 thousand rubles.

Now let’s calculate the economic indicators (in value terms) of the department’s work. The increase in the volume of sales of products and services (sales volume; V) is determined by the formula:

V = V Wed days × β × D,

Where V Wed days — average daily revenue, thousand rubles;

β - relative increase in average daily revenue, %;

D - number of days of accounting for revenue volume.

The increase in profit (P pr) is determined by the formula:

P pr = V × P r,

where P r is profit per 1 ruble of revenue from sales of products and services, rub.

Now let’s calculate the current (annual) economic effect (E) from the implementation of the department:

E = P - Z r,

where 3 r is the current costs of holding events, thousand rubles.

Let's calculate the planned revenue from the work of this department (Table 4).

Table 4

Calculation of the effect of implementing the planning department

Index	Unit change	The value of the indicator
Average daily revenue before the implementation of the planning department (RUB 29,591,430 thousand / 365 days)
Relative percentage increase in average daily revenue
Number of days of revenue accounting after the implementation of the planning department
Profit per 1 rub. sales of products
Costs of implementing a planning department
Additional revenue volume
Profit increase
Current (annual) economic effect

conclusions

The result of the financial and economic activities of the enterprise depends on how reliably the planned profit is determined.

Based on the results of calculating the planned profit using the analytical method, the following conclusions can be drawn:

• the final planned profit of ABC LLC for the construction of prefabricated frame houses next year will be 9,002,393.3 rubles;
• the planned profit will decrease due to an increase in production costs by 547,068.4 rubles;
• profit growth by RUB 2,044,067.5. planned in connection with the expected increase in prices for products sold.

Increasing production costs and increasing prices for these products are factors that will negatively affect the financial condition of the organization in the future.

To maximize profits, the share of variable and fixed costs was changed.

This method allows the enterprise to plan for the future the size of the increase in profit depending on the results of production and take measures in advance to change in one direction or another the value of variable and fixed costs.

Based on the analysis, taking into account the found reserves for profit growth of ABC LLC, recommendations were developed to increase the company’s profit for the next year. It was proposed to create a planning department, and the economic effect of implementing this proposal was calculated.

Approximate calculations of the planned profit of an organization are important not only for the enterprises and organizations themselves that produce and sell products (services), but also for shareholders, investors, suppliers, creditors, banks associated with the activities of this enterprise, participating with their own funds in the formation of its authorized capital. Therefore, planning the optimal profit margin in modern conditions is the most important factor in the successful operation of enterprises and organizations.

K. V. Salnikova,
Ph.D. Econ., Associate Professor

The main task of the enterprise in a market economy is to fully satisfy the needs of the national economy and citizens for its products, works and services with high consumer properties and quality at minimal costs, increasing the contribution to accelerating the socio-economic development of the country. To achieve its main task, the company ensures an increase in profits.

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

And regardless of the fact that in economic analysis the performance of enterprises can be assessed by such indicators as production volume, sales volume and profit, the values ​​of the listed indicators are not enough to form an opinion about the effectiveness of its activities. This is due to the fact that these indicators are absolute characteristics of the enterprise’s activities, and their correct interpretation for assessing performance can only be carried out in conjunction with other indicators that reflect the funds invested in the enterprise. Therefore, to characterize the efficiency of the enterprise as a whole, the profitability of various areas of activity (economic, financial, entrepreneurial) in economic analysis, profitability indicators are calculated.

The profitability of an enterprise is an indicator of the efficiency with which fixed assets are used, calculated as the ratio of profit to the average cost of fixed and current assets.

Increasing the profitability of an enterprise and optimizing costs in order to increase income in a situation of increased competition is a primary task.

As you know, the main source of free cash for an enterprise is revenue from sales of manufactured products. In this regard, the key activity of the entity is to increase the profitability of production by reducing costs and observing savings regimes, as well as the effective use of resources available to the enterprise.

Thus, in order to improve the mechanisms for generating and distributing profits and increasing profitability, it is recommended to develop measures to ensure increased profitability. These activities are shown in the table.

Activities to improve profitability

Profitability indicators	Types of costs that determine profitability	Cost reduction measures
1. Profitability of production	Cost of sales of products; Administrative expenses; Sales costs	Cost reduction: 1. reduction of resource costs; 2. control of production volumes; 3.continuous scientific and technological progress (new technology, production automation, improvement of technologies, introduction of innovations); 4. expansion specialization and cooperation; 5.increasing labor productivity. Reduced administrative costs:

1. use of improved heating and air conditioning systems;

2. rational use of electricity;

3. reducing the cost of renting premises;

4. reduction in the number of managers and administrators.

Reduced sales costs:

1. optimization of costs for transportation of products; 2. improvement of loading and unloading operations;

2. Return on fixed assets

Cost of fixed assets

1. increasing the intensity of use of fixed assets;

2. increasing the extensiveness of the PF load, through their technical improvement;

3. automation and mechanization of production processes, and replacement of outdated equipment with more advanced ones.

3. Return on current assets

Current assets;

Future expenses

1. improvement of the working capital management system;

2. acceleration of turnover of working capital;

3. changes in technology and equipment used in industries serving production;

4. rationality

use of working capital

4. Profitability of total resources

Non-current assets

Current assets

Payroll fund

1. reducing the amount of redundant equipment and quickly involving uninstalled equipment in production;

2. work at the optimal mode of the technological process;

3. improvement of the production management system;

4. reducing the balance of unsold products;

5. profit growth due to economies of scale;

6. increasing the efficiency of using enterprise resources;

7. providing employees with unpaid leave (at the request of the employee);

8. suspension of work or downtime;

9. reduction in wages;

10. reduction in the number of working hours per day and working days per week;

11. automation of production processes.

5. Personnel profitability

Average number of personnel

1.maintaining the optimal number of working personnel;

2. reduction of production costs that are associated and do not participate in production;

3. increasing the level of qualifications of employees;

4. use of progressive remuneration systems;

5. increasing the interest of workers in improving productivity;

6. increasing work motivation.

Based on all of the above, it can be argued that the implementation of these measures will increase the volume of profits received, the level of profitability and, ultimately, will lead to an increase in the efficiency of the enterprise as a whole.

The main activity that will improve profitability and efficiency is to improve the production management system. But since the management process consists of planning, organization, motivation and control, it can be argued that this event includes many other activities that reduce costs when using enterprise resources involved in production.

Such events include:

Control of production volumes;

Automation and mechanization of production processes, and replacement of outdated equipment with more advanced ones;

Increasing workers' interest in improving productivity;

Increasing the efficiency of using enterprise resources, etc.

Based on the above, we can conclude that the efficiency of an enterprise directly depends on the efficiency of production management. And an important condition for achieving such a result is the cohesion of all components of the management process; only in this case will the enterprise be able to optimize production processes and, accordingly, achieve maximum production efficiency.

Therefore, the main goal of any enterprise should not be to make a profit, which is relevant only in the short term, but to maintain and develop the business, which will make it possible to make a profit in the future.

And an important feature of a developed and competitive enterprise is that its management, in order to maximize profits, sets itself the task not of minimizing costs, but of optimizing them, which is achieved through effective management.

Literature:

1. Abryutina, M.S. Enterprise economics: textbook / M.S. Abryutina. – M.: Publishing House “Delo and Service”, 2010. – 585 p.

2. Kovalev V.V. Analysis of enterprise funds and their use // Accounting. - 2000. - No. 10 - P. 10-15.

3. Efimova O.V. Analysis of return on capital // Accounting. - 2001. - No. 5 - P. 16-20.

Financial stability is a consequence of the manifestation of various factors, the systematization of which is necessary for making rational management decisions. According to the influence of the managing subject, all factors can be divided into external and internal.

Financial stability is closely related to the capital structure, and many researchers reduce its essence solely to this. Another part of the researchers considers the structure of sources of asset coverage as the essence of an organization’s financial stability. To combine existing approaches to defining the essence, we proposed to conditionally consider these concepts, respectively, as the external and internal aspects of the essence of financial stability, since the first characteristic reflects how independent (or dependent) the enterprise is of external creditors, and the second - the organization of the organization’s finances, enhancing or strengthening its financial stability from the inside .

Let us determine the following ways to optimize the financial condition of GeoStroyProekt LLP - optimization of operating results (the company must earn more profits) and rational management of operating results.

The basis for a stable financial position of an organization over a long period of time is the profit received. When optimizing the financial condition of GeoStroyProekt LLP, it is necessary to strive, first of all, to ensure the profitability of the activity.

Since the profit of GeoStroyProekt LLP is small and the reserves for optimizing working capital are almost exhausted, the company should pay special attention to costs. In conditions of falling sales volumes, sometimes it is advisable to outsource part of the technological operations, reducing part of your production assets.

Economic analysis of financial stability as a management function allows us to determine development trends and is the basis for planning and formulating a financial strategy. It also allows you to identify and measure the influence of factors on the financial condition of the organization. The results of the analysis are important in justifying optimal management decisions to regulate production processes and increase financial stability.

As the analysis showed, despite the fact that the organization operates profitably in 2014, the liquidity of its assets is quite low. Financial difficulties at GeoStroyProekt LLP arise due to irrational management of working capital.

Working capital management involves material and technical supply, sales, establishment and control of the terms of mutual settlements with buyers and suppliers.

If you make amaling and technical sleep, then according to the result, the structure of the Balansa structure has laid out that the RAZMER of the “Geostroyproekt LLP” in 2014 impudently increased and increased at the end of 2014 year 6 693 008 thousand tenge. The company GeoStroyProekt LLP needs some reduction in inventories without damaging the economic activities of the organization. To increase the liquidity of assets, the management of GeoStroyProekt LLP needs to take inventory of inventories and get rid of illiquid assets, and it is also necessary to sell part of the inventories, which divert significant funds from turnover.

Of course, it is very difficult to determine the ideal level of inventory that reconciles the minimization of storage costs with reducing the probability of an “inventory gap” to an insignificant value. But the management of the GeoStroyProekt LLP organization needs to develop a reasonable policy for the purchase of inventories, which would allow optimizing the volume of inventories, eliminating ill-conceived purchases for future use.

To optimize accounts receivable, the company GeoStroyProekt LLP can apply various measures:

carry out factoring transactions with the bank;

transfer rights under an assignment agreement;

carry out the procedure for monitoring issued invoices;

if possible, focus on increasing the number of orders in order to reduce the scale of the risk of non-payment, which is significant when there is a monopoly customer;

control the status of settlements on overdue debts;

promptly identify unacceptable types of receivables, which, first of all, include overdue debts from customers for more than three months.

All this contributes to the fact that accounts receivable are reduced and funds are received on time.

In 2014, the main negative factor in the financial position of GeoStroyProekt LLP is the trend of a slight increase in absolute liquidity. The reason for this is the significant amount of accounts payable, which the organization is not able to cover with its own funds. Analysis of this debt suggests that a significant part of it accounts for debt to suppliers and contractors. An increase in accounts payable, as noted earlier, leads to a decrease in balance sheet liquidity.

To increase the liquidity of current assets, the company GeoStroyProekt LLP needs to increase the amount of funds of the organization, since an optimal cash reserve is required, which will ensure the process of self-financing of the organization, in the event that the current receipts of cash from customers are delayed. By analyzing the movement of cash flows, it is possible note that the organization "GeoStroyProekt" LLP receives the main volume of cash receipts from current activities, this is a positive point because only a further increase in revenue from sales of goods (works, services) can have a positive impact on the financial condition of the organization, since in terms of investment and financial there is practically no income from activities.

Increasing the volume of revenue is extremely necessary for the organization of GeoStroyProekt LLP, since the cash flows currently received from core activities can only cover those cash outflows that are associated with this activity.

Therefore, the management of GeoStroyProekt LLP needs to organize the work of the sales department in order to expand the sales market for its services. As a result of the growth in cash receipts, the GeoStroyProekt LLP organization will be able to increase profitability and increase the amount of cash. Its growth against the backdrop of revenue growth will indicate an expansion of production volumes. All this will contribute to an increase in liquidity ratios, and, consequently, an increase in the liquidity of the current assets of GeoStroyProekt LLP.

An important component in improving the solvency of the GeoStroyProekt LLP organization is the structure of its assets. After analyzing the organization, the following measures can be proposed to management.

Restore solvency, since according to the results of the analysis, there are prerequisites for this. The only acceptable means of restoring solvency is to increase the short-term assets of the organization through the results of economic activities.

In modern conditions, the structure of aggregate sources is the factor that has a direct impact on the financial condition of the organization.

The least risky way to replenish sources of reserves is to increase capital (net assets) by increasing profits.

Let's take a closer look at the organization's own sources. Analysis of the capital structure showed that its main share falls on issued capital. Financing from capital at GeoStroyProekt LLP can be carried out by reinvesting profits.

The main form of increasing the organization's capital should be the distribution of net profit to reserve funds formed in accordance with the constituent documents, and the conservation of retained earnings for the purposes of core activities with a significant limitation on its use for non-productive purposes.

Thus, GeoStroyProekt LLP should increase profits due to the growth of business activity indicators and the profitability of production and economic activities.

The most radical direction of financial recovery for the organization of GeoStroyProekt LLP is the search for internal reserves to increase the profitability of production through more complete use of production capacity, improving the quality of the product and services produced, reducing its cost, rational use of material, labor and financial resources, juice unproductive expenses and losses.

These measures help accelerate capital turnover by reducing excess reserves and the collection period for accounts receivable of GeoStroyProekt LLP. All this will increase the profit of GeoStroyProekt LLP, obtain capital and achieve an optimal financial balance sheet structure and financial stability.

The most significant factor in increasing the financial stability of GeoStroyProekt LLP is the replenishment of its real capital.

The main form of increasing the capital of the GeoStroyProekt LLP organization is the distribution of net profit to reserve funds formed in accordance with the constituent documents, and accumulation funds or conservation of retained earnings for the purposes of core activities with a significant limitation on its use for non-productive purposes.

The proposed activities are largely determined by the planning of the listed proportions. Analysis of the quality of planning (implementation of the plan) comes down to comparing the planned and actual values ​​of the proportions and identifying the factors that caused the deviation of the fact from the plan.

An important problem is determining the required amounts and rates of capital accumulation. These indicators can be determined, in particular, based on the goals of ensuring normal minimum levels of financial ratios that characterize the financial stability and solvency of the organization.

This requires a significant increase in profit itself. It is impossible to achieve this only by increasing sales volumes. To do this, it is necessary to improve the material and technical base, which requires additional investments, and the organization lacks its own funds.

It is possible to receive government financial support from budgets of various levels, sectoral and inter-sectoral extra-budgetary funds. However, the organization to a greater extent should make up for the lack of its own funds on its own.

Attracting long-term loans for profitable projects that can bring high income to the organization is also one of the reserves for increasing the financial stability of GeoStroyProekt LLP.

Also, one of the measures to increase the profitability of the GeoStroyProekt LLP organization is to conduct marketing events and develop a marketing program.

By conducting marketing activities, research into the prevailing opinion of consumers will allow the construction company to create a position in the market that would provide it with a competitive advantage over its competitors in this segment of the target market.

When developing marketing programs, various conditions are taken into account, the state and prospects for the development of a construction organization in the market, as well as the effect of direct and feedback links with the market, the need to quickly respond to the constantly changing environmental conditions of the organization and actively influence the formation and expansion of market demand.

The development of marketing programs for GeoStroyProekt LLP can be carried out in the following sequence:

the goals and objectives of the trade organization and the realistic time frame for their achievement are determined;

by analyzing and forecasting market conditions, realistically achievable indicators for the corresponding period are assessed;

indicators that are desirable for a trading organization are compared with the indicators that are most realistic from the standpoint of qualified accounting of development trends in specific markets and the actions of competitors;

an analysis of the main reasons that caused their differences is carried out;

management policy tools are developed and analyzed that can minimize the resulting difference between the desired and actual levels of development;

the order and priority of applying the most effective measures to achieve the desired results are established;

the main goals of the program, adjusted on a realistic basis, are formulated and specific measures of management policy are given, in particular measures of integrated marketing, i.e. the entire marketing program is brought together.

The effectiveness of the results from the implementation of the measures indicated in Figure 16 can hardly be overestimated. After all, the key to the success of this construction company, GeoStroyProekt LLP, is constant study of consumer demand, because the main profit comes from trading building materials and providing construction services. Expensive building materials should also be included in demonstrations, since building materials are part of a building supply store.

According to the reports of sales managers of GeoStroyProekt LLP, it is clear that competitors do not prefer to sell foreign brands, but, on the contrary, look for less popular brands of manufacturers. They are the ones that will be of interest to a buyer with an average income who wants to purchase building materials and products of foreign models, but also not spend much of the family budget.

The implementation of these measures before the end of the year will bring tangible profits in 2014, but in 2013 there will be an increase in cash flows, which will contribute to the gradual improvement of business activity indicators and profitability of GeoStroyProekt LLP. At the same time, it will be possible to systematically develop the goals set to strengthen the financial stability of the company. The level of qualifications of the marketer is of great importance for the organization. The effectiveness of the final result will be higher in those organizations where there is greater mutual assistance and understanding between all divisions of the organization and where management groups and executive groups are clearly separated. One of the major problems with any planning in our sales organizations is the lack of strategic marketing.

Most domestic enterprises have realized the need to use marketing in a market economy. But in the vast majority of cases, marketing is used not as an integral system for managing production and sales activities, but in the form of individual marketing activities aimed at achieving specific goals. This is due to the lack of specialists in this field, lack of funds, and lack of experience.

Therefore, for the organization of GeoStroyProekt LLP, the issue of determining the effectiveness of marketing activities in conditions of uncertainty and a highly changing external environment is relevant.

Thus, the considered measures, which the management of GeoStroyProekt LLP can apply in practice, will help to increase the financial stability of the organization in the market and will lead to an improvement in the structure of current assets and increased liquidity and solvency.

In the future, GeoStroyProekt LLP should promptly respond to market conditions, changing the quality of services provided and pricing policy in accordance with its requirements.

DEVELOPMENT OF MEASURES TO INCREASE THE PROFITABILITY OF THE ENTERPRISE

Brezhneva Yulia Sergeevna

4th year student, Institute of Economics and Industrial Enterprise Management,NUST MISIS,RF, Moscow

E- mail: brejnewa 93@ yandex . ru

Eliseeva Evgenia Nikolaevna

scientific supervisor, Ph.D. econ. Sciences, Associate ProfessorNUST MISIS, RF, Moscow

The operating efficiency of an enterprise is determined by its ability to make a profit. The amount of profit is formed under the influence of many external and internal factors, so profit can be considered as a manageable object that can be subject to planning and forecasting, accounting and analysis, regulation and control. The scheme for generating the enterprise's profit is presented in Figure 1.

Figure 1. Scheme of enterprise profit generation

Profit, being the most important indicator, summarizes the results of economic activity and depends on many factors of its formation.

To assess the level of profit of an enterprise, it is advisable to analyze the profit structure, as well as calculate, analyze and monitor the main indicators of profitability of the enterprise, presented in Figure 2.

Figure 2. Factors generating enterprise profit

The role of the above indicators is undeniably high for determining real capital gains, assessing the quality of management decisions of the enterprise management, and predicting changes in financial results.

The study of the enterprise's profit was carried out on the basis of the financial statements of one of the large enterprises of the metallurgical complex, the aggregate balance of which is presented in Table 1.

Table 1.

Aggregated Balance Sheet

Assets				Passive
I.NON-CURRENT ASSETS(F)				III. CAPITAL AND RESERVES
II. CURRENT ASSETS:				IV. LONG TERM DUTIES
				V. SHORT-TERM LIABILITIES:
Cash, settlements and other assets (R a)				Including short-term loans and credits
Including accounts receivable and other current assets (r a)				Accounts payable and other short-term liabilities
Short-term financial investments (d 1)
Cash (d 2)

In order to identify trends in the dynamics of the volume of capital, its composition and the impact of capital on financial stability, an analysis of the dynamics of the capital structure of the enterprise was carried out. The analysis of the dynamics of the enterprise’s capital structure was carried out in 2 stages:

Stage 1 - consideration of the dynamics of the volume of the main components of capital in comparison with the dynamics of product sales and production volume; determination of the ratio of debt and equity capital and its trends; studying the ratio of short-term and long-term financial obligations; determining the size of overdue financial obligations and finding out the reasons for this delay;

Stage 2 - consideration of the system of coefficients for the financial stability of an enterprise, determined by its capital structure in dynamics: the autonomy coefficient, the ratio of short-term and long-term debt, the coefficient of long-term financial independence, the financial leverage coefficient and other coefficients.

The main problem of the enterprise under consideration has been identified - the high share of borrowed sources of financing in the capital of the enterprise. This is evidenced by the shares of borrowed funds in the total value of sources at the beginning of 2012, 2013, 2014, which are equal to 77.15%, 77.78%, 74.02%, respectively, while the shares of equity funds are 22. 85%, 22.22%, 25.98%, which in turn has a negative impact on the financial stability of the enterprise (Figure 3).

Figure 3. Change in the share of borrowed and equity funds

Having studied the financial and economic indicators of the enterprise, it was established that it has an unstable financial condition and is characterized by a violation of solvency. The enterprise is forced to attract additional sources to cover inventories and costs, and there is a decrease in production profitability. This is evidenced by the coefficient of financial independence of capitalized sources, which was equal at the beginning of 2012, 2013, 2014 - 0.27, 0.29, 0.29, respectively, the coefficient of financial leverage - 3.39, 3.51 and 2.86, respectively, as well as the current liquidity ratio for 2013 and 2014 - 2.44 and 1.21 (Figure 4).

Figure 4. Changes in financial stability ratios

A factor influencing the reduction of the enterprise’s costs, and therefore the increase in profitability, is the optimization of the enterprise’s capital structure, equity and borrowed funds, thus, it is advisable to propose measures to increase the enterprise’s equity capital, first of all, through the rational distribution of profits:

1. in order to ensure effective capital management in an enterprise, it is necessary to prepare a financial policy that will be aimed at attracting its own financial resources from various sources in accordance with the needs of its development in the coming period.

You can increase your own capital either by issuing shares or additional contributions from the founders, or through profits.

The source of increase in equity capital is also retained earnings. All funds that remain after distributing profits for dividends and taxes are reinvested in the enterprise. You can increase the share of equity capital: by accumulating and conserving retained earnings for the purposes of core activities while reducing its use for non-productive purposes; by distributing net profit to reserve funds, which are formed in accordance with the constituent documents;

2. A change in the capital structure can be carried out by attracting additional funds to increase a certain part of the assets, or by removing from the assets the part that is too large. For example, the profitability of an enterprise's fixed assets will increase if the passive part of fixed capital has been reduced;

3. When implementing activities, it is necessary to be guided by the rule of operating leverage: a larger share of the enterprise’s fixed costs provides a greater impact on profit when sales volume changes.

There are two ways to increase the profit of an enterprise: increase the revenue from sales of the enterprise and reduce the expenses of the enterprise.

To increase the positive result, it is necessary to develop measures that help ensure the main sources of increased profit:

· increase the efficiency of the enterprise's sales activities;

· improve the quality of commercial products and work performed, which will lead to increased competitiveness and interest in choosing this enterprise by customers;

· reduce production costs and manufacturing defects.

A detailed analysis of the profitability of the enterprise in question revealed that the structure of the asset (Table 1) has a high share of receivables, which indicates the enterprise’s widespread use of commercial (commodity) credit for advance payments to its customers. We can assume that the company, by lending to them, actually shares part of its income with them. And if payments are delayed, the company will need to take out loans to ensure current business activities, thus increasing its own accounts payable.

In order to effectively manage accounts receivable at an enterprise, a special financial policy for managing accounts receivable or a credit policy in relation to product buyers must be developed and implemented, which could:

· control settlements with debtors for deferred and overdue debts;

· reduce accounts receivable by the amount of bad debts;

· constantly monitor the ratio of receivables and payables;

· evaluate the possibilities of factoring, that is, the sale of receivables.

It is advisable to propose the following measures to improve the accounts receivable management system:

· exclude high-risk enterprises from the list of partners;

· use the possibility of paying receivables with bills of exchange, as well as with securities;

· periodically review loan limits;

· formulate the principles of settlements between the enterprise and its counterparties for future periods;

· identify the financial possibilities of providing an enterprise with a commodity (commercial) loan;

· determine the possible amounts of current assets diverted into accounts receivable for trade credit, as well as for advances issued;

· diversify clients in order to reduce the risk of non-payment.

The analyzed enterprise is faced with the task of accelerating the collection period of receivables, which becomes possible through the use of various forms of refinancing. It is necessary to find the possibility of providing discounts and determine their size for faster payment, as well as analyze the cost-benefit ratio for different discount sizes. However, the size of discounts should be carefully calculated and not assigned arbitrarily.

In connection with the above, in order to increase profit indicators, it is recommended:

· conduct marketing research of the metallurgical products sales market,

· consider the features of the metallurgical services market in order to identify the possibility of cooperation with large metallurgical companies;

· analyze customer needs and preferences,

· analyze the pricing policy of the enterprise relative to the policies of competitors.

Thus, the study of profitability allows us to determine the main factors influencing the financial and economic results of the enterprise. As a result of the analysis of the enterprise in question, it was found that it has opportunities to improve the situation, and the prerequisites for restoring balance by replenishing sources of its own funds remain.

Bibliography:

1. Abryutina M.S., Grachev A.V. Analysis of the financial and economic activities of an enterprise: Educational and practical manual. 2nd ed., rev. M.: Publishing house "Business and Service", 2010 - p. 256.

2.Bocharov V.V. Comprehensive financial analysis. Peter, 2010. - 429 p.

3.Vinogradskaya N.A. Diagnostics and optimization of the financial and economic condition of an enterprise: financial analysis: Workshop. M.: Publishing house. MISiS House, 2011

4. Mikhailushkin A.I. Economy. Workshop: Textbook / A.I. Mikhailushkin, P.D. Shimko. M.: Higher School, 2010. - 311 pp.; ill.

5. Rozhkov I.M., Vinogradskaya N.A., Larionova I.A. Financial management: analysis of the financial and economic condition and calculation of cash flows of an enterprise: Workshop. M.: Publishing house. MISiS House, 2011

6. Yuzov O.V. Enterprise economics: textbook: textbook for students of higher educational institutions studying in the field of Metallurgy / O.V. Yuzov, T.M. Petrakova, I.P. Ilyichev; Federal state educational institution of higher education. prof. education "National Research Technological University "MISiS". M.: MISIS, 2009. - 519 p.: ill. table; 21.

3. Development of measures to increase the profitability of the organization.

Analysis of the economic situation of the organization allows us to note the low level of key performance indicators and the negative dynamics of their changes: depreciation of funds, low profitability, illiquid cash flows. Planning practice has been lost, management structures are not adequate to market requirements. Based on this, we can outline the main directions for reforming the construction organization.

3.1. Interaction of the organization with the external environment.

In the process of carrying out activities aimed at ensuring the profitability of the organization, it is necessary to create a reliable socio-economic system. It is possible to create this kind of system only on the basis of gradual transformations; at each stage it is necessary to obtain results that ensure further economic growth.

When creating the image of a future organization, it is necessary to determine whether incremental or entrepreneurial behavior will be inherent in it.

Table No. 3.1.

Forms of organizational behavior

System characteristics	Behavior
	Incremental	Entrepreneurial
Goals	Profit optimization	Optimizing Profit Potential
Ways to achieve goals	Extrapolation from past approaches	Developing a qualitatively new interaction regarding making a profit
Restrictions	Taking into account environmental factors Taking into account internal environmental factors	Ability to neutralize the influence of the external environment Ability to create the required internal environment Ability to develop development alternatives

Not in all cases, incremental behavior should be considered conservative. An enterprise that produces consumer goods, in the initial period of its formation in new economic conditions, can set the task of preserving jobs and focus on increasing sales for those goods that have traditionally been produced. At the same time, elements of entrepreneurial behavior will appear gradually with the displacement of incremental behavior.

In relation to construction, this does not meet the requirements of market transformations and construction organizations can only choose entrepreneurial behavior. The justification for the inevitability of this kind of transformation is based on the following:

Enterprises have limited resources, which requires their more efficient development, and in this regard, it is possible to ensure priorities in receiving orders only through advanced technologies and effective design solutions;

The presence of significant time gaps between individual construction projects under construction, which requires a new approach to fulfilling the next order under changed external conditions;

Limitation of the possibility of increasing the volume of work without constant diversification as a result of falling living standards and an unfavorable demographic situation;

The presence of a crisis situation in production and the social sphere.

In accordance with the conditions that are put forward to the contracting construction organization when participating in tenders, an organization that has two main properties has a competitive advantage. First, the organization itself must be competitive. This is expressed in its property complex, accumulated market experience, and stable financial position. The organization is actively developing and is able to ensure low construction costs. Secondly, the organization produces competitive products, which is expressed in the characteristics of future production, effective design and space-planning solutions, and optimal construction costs.

Creating competitive advantages in the process of transformation is possible through the implementation of a set of measures that are in inextricable unity.

The main directions of transformation of a construction organization

to provide competitive advantages.

The implementation of each of these activities requires a change in the management system and a different quality of management decisions for each of these activities.

3.2. Organizational transformations.

Organizational changes in an organization require rapid, concentrated, but at the same time balanced measures. As a result, an organizational structure must be realized to ensure effective management of business activities.

The organizational structure should facilitate the creation of such a set of management influences that is capable of ensuring the reliability of the organization for a long period of time. A structure should be considered effective if, despite management costs and the number of hierarchy levels, it provides the opportunity to make effective management decisions.

For the success of ongoing activities, it is necessary to identify basic organizational elements and integrated organizational variables and provide effective measures to influence them. In relation to a construction organization, this can be represented as follows.

Table No. 3.3.

Systematization of organizational activities.

Components of the control mechanism	Organizational events
	Current	Long-term
Basic organizational elements	Reducing hierarchy levels. Creation of new structural units. Reduction of structural units that are inadequate to the market. Creation of project teams. Introduction of new information technologies. Labor motivation system. System of delegation of powers.	Professional growth of employees. Training. Organization of relationships of trust. Employee awareness. Hidden and overt coercive measures. Reasoning for changes. Consolidation of achievements.
Integrated Organizational Variables	Marketing. Optimization of production processes. Results management. Managing interactions with partners.	Creating a new organized culture.

Table No. 3.4.

Phases and main directions of organizational changes.

Information about the work “Main technical, economic and financial indicators of the Karostroyservice enterprise for the last three years and forecast for the future”