<strong>Analysis</strong> <strong>of</strong> <strong>the</strong> <strong>Operation</strong> <strong>and</strong> <strong>Financial</strong> <strong>Condition</strong> <strong>of</strong> <strong>the</strong> <strong>Enterprise</strong><strong>the</strong> enterprise are turned over two times faster than <strong>the</strong> turnover <strong>of</strong> accounts payable. As ithas been previously stated, <strong>the</strong> turnover <strong>of</strong> accounts payable particularly declines during<strong>the</strong> most active period <strong>of</strong> enterprise operations, i.e., during <strong>the</strong> period from <strong>the</strong> end <strong>of</strong>March till <strong>the</strong> end <strong>of</strong> September. In <strong>the</strong> middle <strong>of</strong> 2XX9 <strong>the</strong> turnover <strong>of</strong> accountsreceivable was slower than in o<strong>the</strong>r periods, <strong>the</strong>refore, <strong>the</strong> enterprise management was<strong>of</strong>fered to use <strong>the</strong> services <strong>of</strong>fered by <strong>the</strong> factoring companies which <strong>the</strong> enterprisemanagement took up.The efficiency <strong>of</strong> implementing <strong>the</strong> factoring services can be felt, as starting with<strong>the</strong> middle <strong>of</strong> 2XX9 <strong>the</strong> turnover period <strong>of</strong> accounts receivable was reduced from 87 daysto 57 days (at <strong>the</strong> end <strong>of</strong> 2XX9). The effect brought in by use <strong>of</strong> <strong>the</strong> factoring services isfelt also in <strong>the</strong> rate <strong>of</strong> turnover <strong>of</strong> accounts payable, because likewise from <strong>the</strong> middle <strong>of</strong>2XX9 <strong>the</strong> period <strong>of</strong> turnover <strong>of</strong> accounts payable has been reduced from 174 days to 140days by <strong>the</strong> end <strong>of</strong> 2XX9.5.4. Pr<strong>of</strong>itability ratio analysis <strong>of</strong> <strong>Enterprise</strong> NPr<strong>of</strong>itability <strong>of</strong> salesFor <strong>the</strong> estimation <strong>of</strong> this financial performance measure <strong>the</strong> sales pr<strong>of</strong>itabilityformula 4.25 is used. In order to arrive at pr<strong>of</strong>itability <strong>of</strong> sales, it is necessary to know <strong>the</strong>pr<strong>of</strong>it <strong>and</strong> <strong>the</strong> net turnover figures for <strong>the</strong> period reported (see Table 5.9).Table 5.9Estimation <strong>of</strong> <strong>the</strong> <strong>Enterprise</strong> N pr<strong>of</strong>itability <strong>of</strong> sales for <strong>the</strong> period from31/12/2XX7 to 31/12/2XX9 (in CU)Dec., March June, Sept., Dec., March June, Sept., Dec.,2XX7 , 2XX8 2XX8 2XX8 2XX8 , 2XX9 2XX9 2XX9 2XX9Net turnover 788677 150046 347023 723868 1074683 243435 533788 846876 1166073Net pr<strong>of</strong>it orloss for <strong>the</strong>reportingperiod 16938 23501 -43876 78517 31222 16121-150795-175178 -96020Pr<strong>of</strong>itability<strong>of</strong> sales 2,15 15,66 -12,64 10,85 2,91 6,62 -28,25 -20,69 -8,23By looking at Table 5.9 ‘Estimation <strong>of</strong> pr<strong>of</strong>itability <strong>of</strong> sales for <strong>the</strong> period from31/12/2XX7 to 31/12/2XX9’ it can be sensed that <strong>the</strong> pr<strong>of</strong>itability <strong>of</strong> <strong>the</strong> enterprise ishighly varied by different time periods. This is related with <strong>the</strong> pr<strong>of</strong>itability levels <strong>of</strong> <strong>the</strong>projects implemented in <strong>the</strong> enterprise. In one occasion 123 thous. CU were required forimplementing <strong>of</strong> a project, although <strong>the</strong> contractual value did not exceed 120 thous. CU.This means that <strong>the</strong> project has been realised at a loss <strong>of</strong> 3 thous. CU, although an income<strong>of</strong> 30 thous was planned. CU have been planned. Considering that <strong>the</strong> gross pr<strong>of</strong>it <strong>of</strong> thisproject had to be sufficient for <strong>the</strong> enterprise to be able to cover its monthly debts, such as<strong>the</strong> warehouse <strong>and</strong> <strong>of</strong>fice rent, salaries <strong>of</strong> <strong>the</strong> administration, monthly leasing payments, aloss was incurred instead. Pr<strong>of</strong>itability <strong>of</strong> <strong>the</strong> projects implemented in 2XX9 by eachmonth is displayed in Table 5.10 ‘Pr<strong>of</strong>itability <strong>of</strong> projects implemented by <strong>Enterprise</strong> N in2XX9 by month’.100
<strong>Analysis</strong> <strong>of</strong> <strong>the</strong> <strong>Operation</strong> <strong>and</strong> <strong>Financial</strong> <strong>Condition</strong> <strong>of</strong> <strong>the</strong> <strong>Enterprise</strong>101
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