Analysis and profitability indicators

Ratio analysis is a set of general techniques that allow a complete assessment of a company’s financial state, as well as the efficiency of its development. One part of the ratio analysis is the profitability analysis – its reliable performance allows conclusions to be drawn on the efficiency of the company, which has a direct bearing on the planning of the next steps in its development.
Table of contents:

Multi-track development


Indicator analysis of the company


Analysis indicators

Analysis of the company’s profitability


What is profitability?

Important!

The result of the profitability analysis can be positive (we then say profit) or negative – such a situation is called a deficit.

Profitability indicators

ROS indicator

Formula for the ROS index

EXAMPLE 1

Example calculation of the ROS index

Important!

ROE

Formula for roe

EXAMPLE 2

Example calculation of ROE

ROA

ROA formula

EXAMPLE 3

This is worth knowing about:


  • Kobieta zapisująca obliczenia w księdze

    Revenue and expense ledger (P&L)


    Revenue and Expense Ledger (P&L) is a record kept for tax purposes. What elements must it contain and who is required to maintain it?
    More: Revenue and expense ledger (P&L)
  • klientka nadaje zwrot towaru do sklepu internetowego

    Returns management in e-commerce – how to reduce returns handling costs and satisfy customers?


    When running an online store, you can’t avoid returns. Find out how to manage them properly!
    More: Returns management in e-commerce – how to reduce returns handling costs and satisfy customers?
  • Return of goods purchased for a company online


    Until the beginning of 2021, entrepreneurs were not allowed to return goods purchased for a business online. Who can make refunds now and when?
    More: Return of goods purchased for a company online