Indicators subject to factor analysis
There is also another important japan phone number 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
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Calculations of indicators for factor analysis of profit 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
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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.