Indicators subject to factor analysis
Posted: Sun Dec 22, 2024 10:17 am
Factor analysis of profit indicators is carried out on the basis of data contained in the balance sheet and financial report (respectively, forms No. 1 and No. 2). Today, all enterprises, with the exception of credit institutions, operate according to the form of financial statements approved by Order of the Ministry of Finance of the Russian Federation No. 66n dated 02.07.2010. Several profit indicators are analyzed.
Indicators subject to factor analysis
There is also another important indicator - other income and expenses. This includes interest payable and receivable, profit from operations not related to sales, income from participation in other organizations and other expenses and receipts. This indicator is often found in calculations. In order for the calculation results to be correct, it should not be confused with profit received from the main activity (sales of goods, works or services).
Indicators subject to factor analysis
Source: shutterstock.com
Calculations of indicators for factor analysis of profit mexico number for whatsapp are carried out in the following order. First, the value of each indicator of profit (profitability) is determined separately. After that, calculations are made that reflect their change, as well as the influence of the factors associated with them. Then, the obtained results are analyzed, the degree of influence of the indicators is determined, and the corresponding conclusions and findings are made.
For a more detailed understanding of the essence of factor analysis and its mechanism of operation, let us consider how research into certain types of profit is conducted.
Stages and types of factor analysis
In order to obtain the required result from factor analysis, it is necessary to strictly adhere to the designated plan, individual for each. The main stages that need to be completed to achieve the goal:
The definition of the indicator that needs to be analyzed is the result for which the quantitative measurement of the causes influencing it is carried out.
Clarification of the factor model, i.e. the relationship between the causes and the final result. To do this, you need to take into account the calculation order of the analyzed indicator, i.e. find out what it consists of.
Evaluation of the impact of factors on the result. Different methods are used for this, but most often these are the methods of absolute units and chain substitutions. We will dwell on them in more detail below.
Analysis of the results obtained. You will receive answers to the questions you asked:
what factors do not lead to a significant change in the analyzed indicator;
which indicators have a positive effect and which have a negative effect;
what needs to be done to strengthen positive factors and weaken negative ones, and so on.
It is clear that the management, not the financial structures of the enterprise, are responsible for resolving the latter issue, since it may include a revision of pricing policy, personnel changes, changes in motivational strategy, investment measures, and the introduction of an austerity regime.
Stages and types of factor analysis
Source: shutterstock.com
A financier must have certain theoretical knowledge to conduct competent factor analysis. He must be familiar with the models and know different methods of factor analysis of profit.
There are various classifications of factor analysis, but in practice the theory most often used is one based on the clear definition (rigidity) of cause-and-effect relationships. Accordingly, the analysis in question is divided into:
Deterministic - the dependence of the result on the influence of factors is expressed by a mathematical formula. The meaning of this can be understood by the following example: if the price of each unit of goods increases by two times, then, while maintaining the sales volume, the revenue will also double.
Stochastic - there is a relationship between the outcome and the factors that influence it, but it can only be discovered through deeper research.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
Download for free and implement today:
How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153116
Most often, teachers in lectures on financial analysis give the following example for the second type: the productivity of employees depends on fluctuations in the geomagnetic field. It is clear that weather-sensitive people work less efficiently during magnetic storms, but not a single textbook contains a formula by which one can calculate the dependence of labor productivity on an increase in geomagnetic activity by 1 point.
Stages and types of factor analysis
Source: shutterstock.com
To obtain the data, it is necessary to analyze geomagnetic fluctuations over the past few years and compare the result with the amount of products manufactured during the same time. But even in this case, a formula compiled on the basis of research data conducted in the Far East region will not be suitable for assessing labor productivity in the southern regions.
Evaluation of the influence
Indicators subject to factor analysis
There is also another important indicator - other income and expenses. This includes interest payable and receivable, profit from operations not related to sales, income from participation in other organizations and other expenses and receipts. This indicator is often found in calculations. In order for the calculation results to be correct, it should not be confused with profit received from the main activity (sales of goods, works or services).
Indicators subject to factor analysis
Source: shutterstock.com
Calculations of indicators for factor analysis of profit mexico number for whatsapp are carried out in the following order. First, the value of each indicator of profit (profitability) is determined separately. After that, calculations are made that reflect their change, as well as the influence of the factors associated with them. Then, the obtained results are analyzed, the degree of influence of the indicators is determined, and the corresponding conclusions and findings are made.
For a more detailed understanding of the essence of factor analysis and its mechanism of operation, let us consider how research into certain types of profit is conducted.
Stages and types of factor analysis
In order to obtain the required result from factor analysis, it is necessary to strictly adhere to the designated plan, individual for each. The main stages that need to be completed to achieve the goal:
The definition of the indicator that needs to be analyzed is the result for which the quantitative measurement of the causes influencing it is carried out.
Clarification of the factor model, i.e. the relationship between the causes and the final result. To do this, you need to take into account the calculation order of the analyzed indicator, i.e. find out what it consists of.
Evaluation of the impact of factors on the result. Different methods are used for this, but most often these are the methods of absolute units and chain substitutions. We will dwell on them in more detail below.
Analysis of the results obtained. You will receive answers to the questions you asked:
what factors do not lead to a significant change in the analyzed indicator;
which indicators have a positive effect and which have a negative effect;
what needs to be done to strengthen positive factors and weaken negative ones, and so on.
It is clear that the management, not the financial structures of the enterprise, are responsible for resolving the latter issue, since it may include a revision of pricing policy, personnel changes, changes in motivational strategy, investment measures, and the introduction of an austerity regime.
Stages and types of factor analysis
Source: shutterstock.com
A financier must have certain theoretical knowledge to conduct competent factor analysis. He must be familiar with the models and know different methods of factor analysis of profit.
There are various classifications of factor analysis, but in practice the theory most often used is one based on the clear definition (rigidity) of cause-and-effect relationships. Accordingly, the analysis in question is divided into:
Deterministic - the dependence of the result on the influence of factors is expressed by a mathematical formula. The meaning of this can be understood by the following example: if the price of each unit of goods increases by two times, then, while maintaining the sales volume, the revenue will also double.
Stochastic - there is a relationship between the outcome and the factors that influence it, but it can only be discovered through deeper research.
Increase Profits by 200%: Download 5 Powerful Tools for Free
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
Over the past 7 years, we have conducted over 23,000 comprehensive website audits and I have learned that all of us as leaders need clear and working algorithms for our marketing and sales.
Today we will share with you the 5 most valuable documents that we have developed for our clients.
Download for free and implement today:
How to find out the 5 key marketing metrics in your company?
Step-by-step calculation template with fields where you can insert your data
How to make a KPI for a sales manager based on his work results?
Current template for calculating KPI for sales manager
9 Examples of Universal Selling Commercial Proposals
Upgrade your CPs to close more deals
Cold Lead Processing Script Template
A checklist of ready-made questions for engaging cold clients
7 Profitable Marketing Strategies Examples
Will help increase customer flow by at least 30%
Download the collection for free
pdf 8.3 mb
doc 3.4 mb
Already downloaded
153116
Most often, teachers in lectures on financial analysis give the following example for the second type: the productivity of employees depends on fluctuations in the geomagnetic field. It is clear that weather-sensitive people work less efficiently during magnetic storms, but not a single textbook contains a formula by which one can calculate the dependence of labor productivity on an increase in geomagnetic activity by 1 point.
Stages and types of factor analysis
Source: shutterstock.com
To obtain the data, it is necessary to analyze geomagnetic fluctuations over the past few years and compare the result with the amount of products manufactured during the same time. But even in this case, a formula compiled on the basis of research data conducted in the Far East region will not be suitable for assessing labor productivity in the southern regions.
Evaluation of the influence