Thesis: Evaluation of the break-even sales and profits of the enterprise.

Break-even analysis or CVP-analysis is manifested in the relationship between the three groups of the most important economic indicators business plan:

Costs (costs);

The volume of production (sales) of products;

Profit.

Break-even analysis allows you to find the equilibrium point, the so-called critical sales volume - the point at which the total revenue is equal to the total costs. The value of these costs is the sum of the total value fixed costs and those variable costs that arise as a result of the production of products, the sale of which must fully cover the cost of production and sales.

The initial data for calculating the break-even activity of Tatneft-AlmetyevskRemServis LLC will be presented in Table 8.

Table 8 - Initial data for calculating the break-even activity of the enterprise LLC "Tatneft-AlmetyevskRemServis" for the period 2007-2009, thousand rubles.

Let's calculate the break-even of the production of LLC "Tatneft-AlmetyevskRemService" for the period 2007-2009. using the method of equations, which is presented in paragraph 1.3.

2. Calculation of the margin of financial strength (security indicator).

In value terms, we determine by formula (26):

for 2007: 1990914 - 1282273 = 880099 thousand rubles;

for 2008: 2139768 - 1941807 = 1941807 thousand rubles;

for 2009: 1949149 - 1710329 = 1710329 thousand rubles.

As a percentage of the expected sales volume - formula (27):

for 2007: (1990914 - 1282273) / 1990914 *100% = 39.6%;

for 2008: (2139768 - 1941807) / 2139768 * 100% = 27.9%;

for 2009: (1949149 - 1710329) / 1949149 * 100% = 12.1%.

The results of the analysis of the break-even activity of OOO Tatneft-AlmetyevskRemService for the analyzed period of 2007-2009. presented in table 9.

Table 4 and Figure 13 show that in 2007

the highest value of the marginal income of the enterprise Tatneft-AlmetyevskRemService LLC was obtained, which amounted to 968,090.8 thousand rubles, which is 2,369.2 thousand rubles more than in 2008, and more than in 2009 for 123629.8 thousand rubles.

Figure 14 - Dynamics of change in the break-even point of activity of OOO Tatneft-AlmetyevskRemService for the period 2007-2009

The data in Table 9 and Figure 14 indicate that in 2008 Tatneft-AlmetyevskRemService LLC had to sell products worth 1,941,807 thousand rubles. to achieve breakeven operation. The actual sales proceeds received in 2008 amounted to 2,139,768 thousand rubles, which exceeded the critical level by 997,961 thousand rubles. This excess constituted the margin of financial strength of the Tatneft-AlmetyevskRemServis LLC enterprise.

In 2009, there is a significant decline in marginal income. Increase fixed costs and a simultaneous decrease in the level of marginal income led to an increase in break-even turnover by 168,922 thousand rubles. In 2009, the company's financial safety margin decreased by 19.8% due to an increase in the share of fixed costs in the cost of production.

Using the data in Table 7, we will carry out a factorial analysis of the break-even production of LLC Tatneft-AlmetyevskRemService for the period 2007-2009. using the factorial model, which is presented in paragraph 1.3.

Calculation of the impact of changes in the break-even production for the period 2007-2008. we define by the method of chain substitutions:

Based on the initial data of indicators, we find the influence of factors

on the change in break-even production in 2007-2008:

1941807 - 1428200 = +113607.

299396 = +299396

Consequently, in 2008, compared to 2007, the increase in the break-even of production is explained by the decrease in the share of marginal profit in the price, i.e. growth of specific variable costs.

In a similar way, we will calculate the impact of each factor on the change in break-even sales volume for the period 2008-2009:

Break-even production in 2007:

Break-even production in 2007 at fixed costs in 2008:

Break-even production in 2008:

Based on the initial data of indicators, we find the influence of factors on the change in the break-even of production in 2007-2008:

Change in fixed costs:

1941807 - 1428200 = +113607.

Change in share of marginal profit:

1941807 - 1428200 = +113607.

Cumulative influence of factors: 1941807 - 1282273 = 149749 + 113607

299396 = +299396

Consequently, in 2009, compared to 2008, the increase in break-even production is explained by a decrease in the share of marginal profit in the price and an increase in fixed costs.

The dynamics of the financial safety margin of OOO Tatneft-Almetyevsk-RemService for the period 2007-2009. present in Figure 19.

Figure 19 - Dynamics of the financial safety margin of OOO Tatneft-AlmetyevskRemService for the period 2007-2009

The data in Figure 19 show that Tatneft-AlmetyevskRemServis LLC during the analyzed period of 2007-2009. had a rather low level of financial safety margin.

2007 has the highest value of the financial safety margin - 39.6%. In 2008, the level of financial safety margin decreased by 7.63% and amounted to 27.9%. In 2009, as a result of a decrease in the main economic indicators of the enterprise OOO Tatneft-AlmetyevskRemService, a decrease in the financial safety margin was observed, the level of this indicator reached a value of 12.1%.

The information presented in Table 9 indicates that in 2007 Tatneft-AlmetievskRemService LLC overcame the profitability threshold upon reaching sales volumes in the amount of 1,282,273 thousand rubles, which is 299,396 thousand rubles. increased the break-even point in 2008. The reason for this situation is due to a sharp increase in fixed costs, the amount of which in 2008 amounted to 407,037 thousand rubles, which is 41,989.2 thousand rubles. (or 11.4%) more than in 2007.

Figure 16 - Determination of the "critical" break-even point of activity of Tatneft-AlmetyevskRemService LLC in 2007

Figure 17 - Determination of the "critical" break-even point for the activities of Tatneft-AlmetyevskRemService LLC in 2008

Figure 17 shows that in 2008 Tatneft-AlmetievskRemServis LLC needed to sell products worth 1,941,807 thousand rubles. to achieve breakeven operation.

As can be seen from Figure 18, a significant increase in sales in 2009 was provided by the impact on market demand with the help of an effective marketing policy, which led to the achievement of a break-even point in the amount of 1,710,329 thousand rubles.

Figure 18 - Determination of the "critical" break-even point of LLC Tatneft-AlmetyevskRemService in 2009

For greater clarity, let us present the dynamics of change in the break-even point of activity of LLC Tatneft-AlmetyevskRemService for the period 2007-2009. in figure 14.

In 2008, sales proceeds increased to 2,139,768 thousand rubles, or by 7.9% compared to 2007. Accordingly, variable costs increased by 10.6%, their value amounted to 1974046 thousand rubles, and fixed costs increased by 41988.8 thousand rubles. or 11.4%. At the same time, the profit decreased to 198,689 thousand rubles, or 21.7% less than the 2007 profit. Thus, the decrease in profit by 43,998 thousand rubles. was the reason for the decrease in the marginal income of the enterprise Tatneft-AlmetyevskRemServis LLC. Based on the presented calculations, the following conclusion can be drawn: the break-even activity assessment confirms the fact that over the course of three years, Tatneft-AlmetievskRemService LLC has had a break-even turnover from its core activities. In 2007, Tatneft-AlmetievskRemService LLC overcame the profitability threshold upon reaching sales volumes of 1282273 thousand rubles, in 2008 - 1941807 thousand rubles, in 2009 - 1710329 thousand rubles. The increase in the break-even point is associated primarily with an increase in fixed costs, which required an increase in the volume of sales of services and the impact on market demand through an effective marketing policy in the regional and republican markets. A positive moment during the analyzed period in the activities of the enterprise can be considered quite high performance security zones and a margin of financial strength.

Thus, based on the results of the break-even analysis, it can be concluded that the analyzed enterprise Tatneft-AlmetyevskRem-Service LLC is very attractive for investors, creditors and other entities, since it has a break-even turnover from its core activities.

4.4. Analysis of the break-even level of the travel agency

Reviewed early methods and methods for analyzing the financial and economic activities of commercial organizations were based, as a rule, on financial accounting data, i.e., on data from official financial reporting forms intended for external users. The degree of generalization and frequency of submission of such information (mainly quarterly) are sufficient for financial authorities, state statistics, potential investors on initial stage acquaintance with the object. The results of the analysis of financial statements can suit the owners, as well as be used by the company's management in making strategic decisions and drawing up long-term development plans. However, this information is clearly not enough to guide the current activities.

As already mentioned, in a market economy, the role of economic factors in management activities. Despite the importance of technical and technological aspects development of production, very often it is not them, but economic considerations determine the choice of certain decisions, which necessitates the development of management accounting systems. Much attention has been paid to this issue in the economic literature. This is primarily due to the applied nature and the great importance of research on this issue from the point of view of management. commercial organizations. Without dwelling on the review of the problem of management accounting, we only note that it is based on much more specific and detailed technical and economic information about the enterprise and its structural, functional and production divisions than the data provided in the framework of financial accounting. Decisions made on the basis of this information are aimed at improving the efficiency of the current activities of enterprises.

It can be said that in the implementation of management accounting practices, managers and analysts operate with data that is an order of magnitude more detailed than the summary technical and economic information provided for the whole enterprise. This follows from the fact that one of the goals of management accounting is to separate the activities carried out in the process production activities costs by responsibility centers and cost centers, which are, as a rule, separate structural divisions or areas of the enterprise's activities. This distribution of costs allows you to link the amount of expended resources with the performance of individual production units. If there are somehow certain standards for the consumption of resources per unit of output (work), management accounting allows you to accurately localize those stages production process where unreasonably high costs of material, labor or other resources are observed. Also, specific measures can be developed on this basis to reduce resource consumption and increase production efficiency.

Naturally, for the most effective use management accounting data, special techniques and methods are being developed economic analysis. One of these methods, which are very widely used in the modern practice of managing commercial organizations, is the analysis of the level of break-even activity of the enterprise.

Note that such an analysis is one of the standard techniques used in business planning to justify the effectiveness of investment projects.

Consider general scheme break-even analysis of the travel agency. The break-even level of a travel agency is determined by the minimum sales volume required to cover all costs. The calculation of this volume, or, as it is also called, the break-even point, is based on three indicators.

These indicators are:

Marginal profit margin,
- fixed costs
- volume of sales or revenue.

Variable costs are costs, the value of which increases with the growth of sales and decreases with their decrease (for the tourism industry, these can be costs associated with issuing tours, providing visa services, transportation, accommodation, food for one tourist or their group, depending on whether what is accepted as a unit of calculation, payment for the services of accompanying and guide interpreters, costs for the sale of vouchers or tours, etc.).

Fixed costs are costs that remain unchanged regardless of the dynamics of sales volumes (advertising costs, administrative and management costs for the central office, depreciation costs, costs of acquiring and maintaining information databases, etc.).

Marginal profit is the difference between the proceeds from the sale of products and variable costs for its production.

Marginal profit margin The ratio of marginal profit to sales volume, multiplied by 100%, if profit margin is expressed as a percentage.

The "break-even point" of sales is the measure of sales volume or revenue that ensures break-even operation. With this value of sales volume, the firm operates both without profit and without loss. Over time, the break-even level changes, so you need to constantly monitor the values of this indicator.

The break-even sales calculation can be carried out for different periods(day, week, month, etc.).

The break-even level is calculated as follows:

The average price of one tour is 500 rubles.
- Variable costs for one tour 300 rubles.
- Marginal profit of 200 rubles.

Marginal profit margin is defined as follows:

200 / 500 ∙ 100% = 40%

Thus, the share of marginal profit in revenue is 40%. This information is used to find the breakeven point. It is defined as follows. Suppose that the fixed costs of a travel agency for a certain period are 1000 rubles. In this case, the revenue that ensures break-even production will be equal to the following value:

1000 ∙ 100% / 40% = 2500 rubles

As can be seen from the above example, the scheme for calculating the level of break-even activity is relatively simple. However practical implementation it requires a sufficiently large experience and high qualification of expert analysts. The main problem when calculating the break-even level, as in many applied economic research, is the classification of costs with their division into fixed and variable, the formulation of reasonable assumptions and assumptions about their behavior and quantitative certainty, and the determination of the interval of production volume (works, services), within which the assumptions made about the costs can be considered appropriate.

Variables are the costs associated with the sale finished products. However, in order to correctly take into account the many types of costs that form selling expenses, additional research is required on their nature in technological process production and sale of products.

Fixed costs include depreciation of fixed assets (using a straight-line method of calculation), as well as many types of enterprise management costs. To clarify the nature of the change in the management costs of the shop level with an increase in the scale of activity, special studies are also required. It is quite difficult to attribute the cost of repairing fixed assets to a particular type of cost. If the costs associated with the consumption of material resources, when performing current repairs are linear in nature depending on the volume of production, then the remuneration of repair workers, depending on the accepted system of remuneration for work, can refer to both variable and fixed costs.

The conditionality of attributing costs to fixed and variable is well illustrated by the example of depreciation. In accordance with the Regulations on maintaining accounting and financial statements in Russian Federation depreciation deductions can, along with the linear method, in which depreciation costs are unconditionally fixed, be charged in proportion to the amount of work performed, i.e. depreciation in this case will refer to variable costs. As can be seen from this example, both the ratio of variable and fixed costs and the breakeven point are determined not only technological features specific production, but also by the adopted cost accounting policy.

Above, the calculation of the breakeven point was shown for a rather rare case in the real economy when an enterprise produces one type of product. If a company produces two or more various kinds production, then when determining the level of self-sufficiency it is necessary to take additional assumptions. For example, you can find the breakeven point, i.e. volumes of output of each type of product, in which the revenue received allows you to cover all costs, at a given ratio certain types products.

Payback point calculation has great importance when substantiating the effectiveness of various investment projects. The project is considered good if the planned production volumes, provided by the effective demand of consumers, significantly exceed the level of self-sufficiency.

However, the division of costs into fixed and variable and their periodic recalculation have independent significance. Based on their analysis, management decisions that are very important from the point of view of the efficiency of current production can be made.

In the context of constantly changing market conditions and the level of prices for production resources, especially for a diversified enterprise, it is important to choose production program providing high efficiency his (enterprise) activities. In order to determine the most preferable product range under the given conditions, specific (i.e. per unit of production) variable costs and marginal profit are calculated for each of its types (in this case, the difference between the price per unit of production and specific variable costs).

The profitability of each type of product is determined by dividing the marginal profit by its price. Naturally, in conditions of limited production capabilities with a sufficiently high demand, when forming a production program, preference should be given to the manufacture of the most profitable products. On the other hand, in an unfavorable market environment, the price of products acts as the upper limit of specific variable costs. If the product produces a non-zero marginal profit, the release of each additional unit generates an inflow of additional funds to pay off fixed costs and reduce the amount of possible losses. Making a decision to continue the production of products, the variable production costs of which exceed its price, is economically unprofitable and can be justified by the need to preserve the market, the hope of reducing variable costs in the future, etc.

Unlike industrialized countries, where the determination of the level has long been an integral part of technical and economic calculations in the justification and formation of short- and medium-term plans for the development of enterprises, in Russia such calculations are carried out only occasionally. Even far from all business plans contain relevant sections with such calculations. However, it can be assumed that as market factors intensify when choosing a development strategy, determining the breakeven point will become the same routine analytical procedure in our country.

Break-even is a state in which a business is neither making a profit nor making a loss; the income received from the activity exceeds or is equal to the expenses associated with it.

The difference between the actual number of sold tourist products and the break-even sales volume is a safety zone, and the larger it is, the stronger the financial condition of the enterprise. Break-even sales volume and safety zone are fundamental indicators in the development of a business plan, justification management decisions, evaluation of the company's activities.

Ansi from break even production is carried out in order to study the relationship between changes in production volume, costs and profits. This analysis is a rather simple in form and deep in content tool for planning and making managerial decisions in a commercial enterprise.

The purpose of the analysis is to determine breakeven points. The break-even point, or the threshold of profitability, is such a point of sales volume at which the enterprise has costs equal to the proceeds from the sale of all products, i.e. there is no profit or loss. It is a criterion for the effectiveness of the enterprise. If the company does not reach the break-even point, then it operates inefficiently.

To determine the break-even point, the marginal income method, mathematical (equation method) and graphical methods can be used. Let's consider them in more detail.

1. Method of marginal income to determine the break-even point. There are two ways to determine marginal income. First way:

Second way:

Accordingly, if fixed costs are subtracted from marginal income, we get the amount of revenue:

The break-even point, or profitability threshold, can be determined by the following formula

where TB is the break-even point in units of sales;

PZ - fixed costs;

MD - marginal income per unit of sales.

2. mathematical method determination of the break-even point. He

is based on the fact that any income statement can be represented as an equation

The form of the equation emphasizes that all costs are divided into those that depend on the volume of sales and those that do not depend on it.

Example 1. Consider the procedure for calculating the break-even point for a tourist enterprise. Initial data:

the price of one tour is 12,000 rubles;
variable costs for one tour - 4000 rubles;
fixed costs - 8000 rubles.

Decision. Since at the break-even point the profit is zero, it can be found under the condition of equality of revenue and the sum of variable and fixed costs.

Using the equation method, we introduce the following components: X- breakeven point;

12 OOOx - revenue;
5000x - total variable costs.

Let's solve the equation:

12 OOOx - 5000x - 4000 = 0,
7000x = 40,000,

X= 40 (units).

Conclusion: the break-even activity of the enterprise will be achieved with the volume of sales of 40 tours.

3. Graphical method for determining the breakeven point. This method determination of the break-even point involves the construction

breakeven chart, in which the horizontal shows the volume of sales of the tourist product, and the vertical - the cost of production and profit, which together constitute the proceeds from the sale.

With the graphical method, finding the break-even point is reduced to building a comprehensive "costs - volume - profit" schedule. The sequence of plotting is as follows:

1) a coordinate system is determined for constructing a complex graph "costs - volume - profit". The abscissa axis reflects the volume of production or sales volume in physical terms, and the ordinate axis - the revenue indicator and the amount of fixed and variable costs;
2) first of all, a line of fixed costs is plotted on the graph in the form of a straight line parallel to the x-axis;
3) a line is built from the line of fixed costs total costs;
4) a straight line is drawn (leaving the point with coordinates zero, zero) corresponding to the value of revenue;
5) break-even point - the intersection of the line of revenue and total costs; the zone below is the zone of losses, and the zone above is the profit zone.

The break-even point on the chart is the point of intersection of the straight lines built according to the value of costs and revenue (Fig. 5.1).

Rice. 5.1.

The break-even point shown in the figure (profitability threshold) is the point of intersection of the gross revenue and total costs graphs. The amount of profit or loss is shaded. At the break-even point, the revenue received by the enterprise is equal to its total costs, while the profit is zero. The revenue corresponding to the break-even point is called the threshold revenue.

The volume of sales at the break-even point is called the threshold volume of production (sales). If an enterprise sells a tourist product less than the threshold sales volume, then it suffers losses; if more, it makes a profit.

The break-even operation of a hotel enterprise depends on many factors, including the choice of the optimal volume of production of goods and the provision of services and the appropriate pace of development. The amount of revenue must cover all costs incurred and ensure profit. To solve this problem, there is the following analytical tool:

The coverage amount is called the difference between revenue and total variable costs, i.e. sum fixed costs and profits. To calculate the amount of coverage, all variable costs (sometimes called

direct costs), as well as part of the overhead costs, which depend on the volume of production and provision of services and therefore relate to variable costs.

Average coverage is the difference between the unit price of a service and the average variable cost. The average coverage value reflects the contribution of a unit of service to covering fixed costs and making a profit.

The coverage ratio is the share of the coverage amount in the sales proceeds. For a single unit of service, the coverage ratio is the share of the average coverage in the price for that unit of service.

The break-even point (the critical volume of services (sales)) is the volume of sales at which the income received provides reimbursement for all costs and expenses, but does not make it possible to make a profit, in other words, this is the lower limit for the provision of services, at which the profit is zero .

The break-even point of a hotel, for example, is characterized by the following indicators:

1. The threshold (critical) sales volume is the revenue that corresponds to the break-even point. Threshold (critical) room/service sales volume = Fixed costs per sales volume / Price - Average variable costs per room/service.

2. Profitability threshold - this is such sales revenue at which the company no longer has losses, but still does not receive profit. Threshold of profitability, rub. = Critical room/service sales volume x Price.

3. Margin of financial strength - this is the amount by which the hotel company can afford to reduce revenue without leaving the profit zone, or the deviation of actual revenue from the threshold. Margin of financial strength, rub. = Revenue from sales, rub. - Threshold of profitability, rub. The margin of financial strength can also be calculated in% if a percentage deviation is set.

4. The margin of safety is the difference between the income from break-even sales and the income from sales at some level of their volume.

A high level of margin of safety indicates a relatively safe software

Table 7.2

Initial data for calculation Indicators In units of measurement Proceeds from the sale of rooms 386,000 rubles. Variable costs 251,000 rubles. Fixed costs 100,000 rubles. Profit 35,000 rubles. Price per room 386 rubles. Average variable costs per room 251 rubles. Sales volume of 1,000 rooms Thus, with a sales volume (sales) of 740 rooms and sales proceeds of 285,700 rubles. the hotel reimburses all costs and expenses with the income received, while the profit of the enterprise is zero. This state is called the "break-even point" or "dead point". The margin of financial strength in this case is 100,300 rubles.

The greater the difference between the actual volume of services provided and the critical one, the higher the "financial strength" of the hotel enterprise, and, consequently, its financial stability.

The value of the critical volume of sales and the threshold of profitability is influenced by the change in the amount of fixed costs, the value of average variable costs and the price level. Thus, a hotel company with a small share of fixed costs can produce relatively fewer services than a company with a large share of fixed costs in order to ensure the break-even and safety of its production. The margin of financial strength of such a hotel enterprise is higher than that of an enterprise with a larger share of fixed costs.

business position. Safety margin, pcs. = Sales volume of rooms/services - Critical sales volume of rooms/services. We present the calculation of the break-even point on the example of the data in Table. 7.2 and depict it in fig. 7.1.

1. Threshold (critical) sales volume = 100,000 rubles: (386 - 251) rubles / number. = 740 numbers;

2. Threshold of profitability = 740 numbers x 386 rubles/room. = 285,700 rubles.

3. Margin of financial strength = 386,000 rubles. - 285,700 rubles. = 100 300 rubles.

4. Security margin = 1000 numbers - 740 numbers = 260 numbers.

Sales proceeds (thousand rubles)

Critical Mara volume

rviiyairi security

Rice. 7.1. Determination of the break-even point The financial results of an enterprise with a low level of fixed costs are less dependent on changes in the physical volume of services provided. Hospitality enterprise with a high proportion of fixed costs should be much more wary of a decrease in the number of rooms.

BREAKEVEN POINT

Breakeven point- this is the volume of sales at which the income received ensures the reimbursement of all costs and expenses, but does not make it possible to make a profit, in other words, this is the lower limiting volume of output at which the profit is zero.

The break-even point is characterized by the following indicators:

1. Critical Fixed costs per sales volume

(threshold) = .

sales volume, pcs. Price - Average variable cost per unit

2. Threshold of profitability, rub. = Critical sales volume, pcs. × Price

financial = Revenue from sales, rub. – Threshold of profitability, rub.

strength, rub.

security, = Sales volume, pcs. – Critical sales volume, pcs.

Profitability threshold- this is such a proceeds from the sale, in which the company no longer has losses, but still does not receive profit. Margin of financial strength - this is the amount by which the company can afford to reduce revenue without leaving the profit zone.

We present the calculation of the break-even point on the example of the data in Table. 18.1:

Critical 100 million rubles.

volume = = 740 pcs.

sales (386 - 251) thousand rubles / piece.

Threshold of profitability = 740 pcs. × 386 thousand rubles / piece = 285.7 million rubles

Margin of financial strength = 386 million rubles. - 285.7 million rubles. = 100.3 million rubles.

Safety margin = 1000 pcs. - 740 pcs. = 260 pcs.

Thus, with a sales volume (sales) of 740 pcs. and proceeds from the sale of 285.7 million rubles. the enterprise reimburses all costs and expenses with the income received, while the profit of the enterprise is zero, and the financial safety margin is 100.3 million rubles.

Table 18.1

Initial data for calculation

The greater the difference between the actual volume of production and the critical one, the higher the "financial strength" of the enterprise, and, consequently, its financial stability.

The value of the critical sales volume and the profitability threshold is influenced by:

§ change in the amount of fixed costs;

§ the value of average variable costs;

§ price level.

Thus, an enterprise with a low fixed cost share can produce relatively less output than a company with a large fixed cost share in order to ensure the break-even and safety of its production. An enterprise with a high proportion of fixed costs should be much more afraid of a decrease in output.

FINANCIAL STABILITY OF THE ENTERPRISE.

LEVERAGE

Lever (leverage) is an indicator that characterizes the relationship between the cost structure, capital structure and financial result. There are three types of leverage:

operational;

· financial;

conjugated.

Operating (production) lever(OR) is an indicator of the potential possibility of changing profits due to changes in the cost structure and sales volume:

Gross margin

OR Price - Average Variable Costs

per unit = .

production Profit per unit of production

(Gross margin is the difference between sales revenue and variable costs.)

Operating leverage shows how much profit will change if the volume of sales changes by 1%.

For example, the proceeds from sales at the enterprise is 400 million rubles; variable costs - 250 million rubles; fixed costs - 100 million rubles. Then the gross margin is 150 million rubles, the profit is 50 million rubles, and the OR is 150 million rubles. / 50 million rubles = 3.0. Thus, if the volume of sales decreases (increases) by 1%, then profit will decrease (increase) by 3%.

The effect of operating leverage is that any change in sales revenue (due to a change in volume) leads to an even greater change in profit. The action of this effect is associated with the disproportionate influence of fixed and variable costs on the result of the financial and economic activity of the enterprise when the volume of production changes.

The strength of the operating lever shows degree of entrepreneurial risk, i.e. the risk of loss of profit associated with fluctuations in the volume of sales. How more effect operating leverage, i.e. the greater the proportion of fixed costs, the greater the entrepreneurial risk.

financial leverage- this is an indicator of the potential for changes in profits due to changes in the ratio of borrowed and own funds. Effect financial leverage characterizes the degree of financial risk, i.e. the possibility of loss of profit and decrease in profitability due to excessive amounts of borrowed capital.

The first method for calculating the effect of financial leverage ( EGF 1) connects the volume and cost of borrowed funds with the level of return on equity:

EGF 1 = (1 - SNP) × ( ER - SRSP) × ( ZK / SK) .

where SNP- income tax rate;

ER- economic profitability (return on assets);

SRSP- average calculated interest rate;

ZK- borrowed capital;

SC- equity.

This indicator reflects a possible change (increase or decrease) in the return on equity associated with the use of borrowed funds, taking into account the payment of the latter:

§ if SRSP < ER, then the enterprise using borrowed funds, the return on equity increases by the amount EGF 1 ;

§ if SRSP > ER, then the return on equity of an enterprise that takes a loan at a given rate will be lower than that of an enterprise that does not, by the amount EGF 1 .

With the second calculation method, the effect of financial leverage ( EGF 11) shows the percentage change in net earnings per share with a change in earnings (before interest and taxes) by 1%, i.e. it shows the possibility of increasing the return on equity and net income per share through the use of a loan:

Earnings before interest and taxes

EGF 11 = .

Profit minus interest

The more expensive the borrowed funds cost the company, the more EGF 11 and hence the financial risk. This is especially dangerous when profits decline.

Linked lever characterizes the combined impact of entrepreneurial and financial risks and shows how much the net profit will change when the sales volume changes by 1%:

Conjugate Strength operating effect

financial leverage lever

For financial stability enterprises important:

Find the optimal ratio between fixed and variable costs in the structure of production costs;

· choose a rational capital structure in terms of the ratio of own and borrowed funds.

home > Abrasives

Thesis: Evaluation of the break-even sales and profits of the enterprise.

4.4. Analysis of the break-even level of the travel agency

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