Traditionally, a factor analysis of sales profitability is considered as an indicator that characterizes production results in a more detailed form than is done using such an indicator as profit. The reason for this is that factor parameters more closely correlate the effect of production, and not only with available or used resources. Factor analysis of the profitability of the organization is used to characterize the entire enterprise and as a tool for pricing.
In the most general form, profitability parameters can be reduced to the following classification groups:
1) indicators of recoupment of production costs;
2) indicators of return on investment projects;
3) parameters characterizing the actual profitability of sales;
4) characteristics of return on capital.
As a rule, these characteristics are calculated on the basis of aggregate profit indicators.
However, a factor analysis of the profitability of capital in modern conditions shows that competition is becoming an increasingly important factor in profitability. The result of competition is the need to intensify the implementation of innovative policies, expand the investment activities of enterprises. A factor analysis of sales profitability proves that this increases the efficiency of all tangible and intangible assets, and ensures ergonomic and aesthetic qualities of the product, its environmental friendliness, as well as operational safety. Effective tools of competition are the reliability and reputation of the manufacturer, his prestige, image and brand. Thus, competition, both “price” and “non-price”, optimizes the adequacy of the price, the quality of the goods produced, which meets the requirements of its competitiveness and the needs of consumers.
A factor analysis of sales profitability shows that all this is manifested when the competition mechanism is built on the market laws of the ratio of supply and demand. At the same time, setting the price of supply or demand for goods creates balanced prices in the market.
However, the processes of concentration of production and globalization of the economy contribute to the development of imperfect types of competition. It should be noted that in the current market structure, the predominant competition model is oligopoly, which is characterized by a small number of sellers (usually large firms). In this case, the goods may be differentiated. The factor analysis of sales profitability in such conditions reveals a peculiarity in that it is difficult for new sellers to enter this market, as oligopolistic firms apply price leadership policies and mutual agreement in order to maintain price levels and maximize profits. Full control over market prices is exercised by the monopoly.
Therefore, at present, the market cannot make competition effective. In this regard, the state, as the main economic regulator, should take measures that could provide civilized conditions for the functioning of the commodity producer and its “protection” from monopolies, the strengthening of which leads to deformations in the development of a market economy.
The state policy in the field of regulating the influence of monopolies is manifested in the implementation and improvement of antitrust regulation. Antitrust policy includes control over monopolized markets, organizational mechanisms for supporting small businesses, antitrust laws, procedures related to simplification of licensing, accounting, etc.