METHODOLOGY FOR CALCULATING THE IMPACT OF MATERIAL RESOURCES AND EFFICIENCY OF THEIR USE ON THE PROFIT OF THE COMPANY
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Keywords:
factor, factor analysis, factor, model, modeling, methodology, indicator, method, profitAbstract
The article deals with the methodology for calculating the impact of material resources and efficiency of their use on the change in the profit of the company. It is suggested using a series of multiplicative models during factor analysis of this indicator, which include a set of various factors that reflect the material resources of the company and efficiency of their use.
In order to determine the impact of these factors on the overall change in the value of profit, it is recommended carrying out a step-by-step factor analysis, based on the chain substitution method.
This means that depending on the available source information and the objectives of such analysis, it is proposed to determine the effect of different factors (two, three, etc.) on the change in the profit, i.e. to carry out a two-factor, three-factor, multivariate analysis of this indicator.
With due regard to the above, the method of two-factor analysis of profit is considered first, in particular, the impact on the change in the profit of the material cost of production and the level of profitability of material costs is determined.
At the second stage of factor analysis, it is suggested calculating the impact of the following factors on the change of this indicator: magnitude of material costs, material productivity and level of profitability of products.
In the process of further analysis of profit, the author considers the method of calculating the impact on its overall change of such factors as: magnitude of material costs of production, material productivity, share of net income in the total volume of products and level of profitability of turnover. It is recommended determining the absolute impact of individual factors on the change in profit, relative influence and structure of such impact.
To calculate the absolute impact of factors, modification of the chain substitution method called “the absolute differences method” is used. The relative effect of individual factors on the change in profit is calculated by dividing the absolute impact of each factor on the base amount of profit. The structure of such impact of factors is calculated by dividing the impact of each factor on the total change in profit.
It is argued that the proposed method of factor analysis of profit contributes to the increase in the level of analytical and synthetic operation of the company allows “to determine the impact of material resources and efficiency of their use to change this indicator, to justify managerial decisions regarding further development of the company in the future.
References
Butynets, F.F. (2003) Economic Analysis: textbook. Zhytomyr: Ruta, 680.
Kostiuk, V. O. (2018) Feasibility Study of Municipal Companies: textbook. O.M. Beketov National University of Urban Economy, 223.
Savitska, H. V. (2004) Economic Analysis of Company Activities: textbook. Kyiv: Znannia, 654.
Tarasenko, N.V. (2003) Economic Analysis of Activities of an Industrial Company. Kyiv: Alerta, 485.
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