9. Analysis of profitability of the enterprise

Analysis of the profit of the enterprise provides research of its level and dynamics, changes in each of profit (loss) indicators for the reporting period compared to the previous period. Information about the main types of company profits, as well as basic data for their calculation contains "Report on financial results". The analysis of different types of income of the company for the period under review is provided in table 16.

Table 16

Level and dynamics of financial results

Indicators	Previous year	Reporting year	Deviation (+, -)
			absolute	relative, %
Income (revenue) from sales of products (goods and services), ths. UAH	989053	978530	-10523	98,936
Prime cost of sales (goods and services), ths. UAH	914902	910920	-3982	99,564
Gross profit (loss), ths. UAH	74151	67610	-6541	91,178
Other operating income, ths. UAH	8263	6779	-1484	82,040
Administrative expenses, ths. UAH	13442	13201	-241	98,207
Selling expenses, ths. UAH	2424	2290	-134	94,471
Other operating expenses, ths UAH	15163	16452	1289	108,5
Profit (loss) from operating activity, ths. UAH	66575	51385	-15190	77,183
Income from equity ths UAH	0	0	0	0
Other financial income ths UAH	53	9	-44	16,981
Other income, ths. UAH	5	8368	8363	167360
Financial expenses, ths. UAH	87	28	-59	32,183
Other expenses ths UAH	6321	14451	8130	228,618
Profit (loss) from ordinary activities before taxation, ths. UAH	45035	36344	-8691	80,701
Profit (loss) from ordinary activity, ths UAH	51385	42446	-8939	82,603
Net profit, ths. UAH	41252	28076	-13176	68,059

The table shows that income (revenue) from sales of products (goods and services) is decreased (+4326 ths. UAH) and all expenses are increased in reporting year . This may be due to changes with the changes in sales volume, the structure of production, selling prices of products sold, prices of raw materials, fuel, electricity tariffs and transportation, the level of costs of material and labor resources. Company is not engaged in extraordinary activity. So there is no extraordinary income and expenses.

The system of key indicators of profitability of products include: gross profitability, operating profitability ,net operating profitability.

Indicators of profitability of capital characterize the relationship of profits and capital invested in the formation of enterprise assets in order to obtain those profits.

The most important indicators of profitability of capital are: operating return on assets, net return on assets, net return on equity. Indicators of profitability for the period under review is provided in the table 17.

The most important indicators of profitability of capital are: operating return on assets, net return on assets, net return on equity. Indicators of profitability for the period under review is provided in the table 17.

Table 17