home Accounting Profitability of goods sold products. Profitability of sold products: calculation formula

Profitability of goods sold products. Profitability of sold products: calculation formula

Profitability is the most important indicator in assessing the activities of the enterprise.

It is characterized by the state when the use of funds leads not only to the company's expenses, but also to the receipt of income.

The profitability of an enterprise is assessed both in absolute and relative terms.

Absolute indicators are expressed in profit, determined by the cost, that is, the national currency.

Relative indicators are measured as a percentage and characterize profitability.

Profitability indicators are under the influence of inflationary processes to a lesser extent in relation to the amount of profit.

This is because profitability is determined different ratios profits and capital, or profits earned and costs of production.

Profitability is calculated regardless of the type of activity of the enterprise. The indicators of profitability are the assets of the enterprise, whose profitability is the income remaining at the enterprise.

It is divided by the average value of assets for the past period. The number obtained after division must be multiplied by 100%.

Product profitability formula: return on assets = profit of the enterprise: the value of assets in the average annual indicator X 100%.

The resulting number characterizes the income that is received from each ruble used to create the assets of the enterprise. The assets of the enterprise, their profitability shows the profitability of the enterprise for a specific time.

Thus, the profitability of products is determined by the formula, abbreviated as follows: RP \u003d P / PZ x 100%

From the foregoing, it follows that RP is an indicator of the profitability of production, PZ-production costs, P-profit, calculated based on the volume of production.

Product profitability is determined existing restrictions when calculating, let's consider them:

Only quantities corresponding to each other can be related;
That is, only those costs that are incurred to make a profit in a specific amount are subject to accounting.
The profitability of sold products is calculated in a similar way: the calculation includes indicators of expenses that are written off for sale and reduce profit from sales;
Before calculating the profitability of production by the formula, it is necessary to sum up all the costs incurred during the production process;
The profitability of production can be calculated after the taxation of enterprises or before it.

Calculation examples from practice

For example: the company is engaged in the production of diapers and diapers for children. Revenue in the aggregate figure for the last month amounted to 400 million rubles.

The cost of sold products, including the costs of commerce and the staff of the enterprise - 240 million rubles.

The main indicators are indicated, now the question arises of how to calculate the profitability of goods produced by a particular enterprise?

First you need to find the income for the previous month. The full cost price is subtracted from all proceeds, it turns out 160 million rubles. We apply the basic formula: 160/240x100 \u003d 66.66%.

It turns out that the profit received from the enterprise from each ruble of production in this case is 66 rubles 66 kopecks. This is a good return on goods.

Why is it necessary to evaluate the profitability of goods? The following factors play a role here:

Competitiveness of the enterprise in the sphere of consumption;
Efficiency of production at the enterprise.

A decrease in the profitability of goods directly indicates a decrease in demand from consumers for the products of a particular manufacturer, or low production efficiency at the enterprise.

Profitability can be calculated for several products belonging to a particular product group. And here is another example:

The company is engaged in the production of three types of products with an average profitability of 30%. To calculate the profitability for each product, you must use the basic formula, but in relation to each of the products separately.

Profitability is the most important characteristic of an enterprise's efficiency. It shows how correctly and effectively an economic entity uses various resources: monetary, material, intangible, labor, etc. In a general sense, this is the ratio of profit commercial organization to the streams that form it.

Why calculate the rate of return?

The most important indicator of the financial success of any company is profit. Its absence is an important signal to owners that something is going wrong and that action needs to be taken. But how to evaluate the effectiveness, if financial results Above zero? How to understand how big it is for a given field of activity?

The absolute values of the profit margin are not able to cope with this task for two main reasons:

First, they are affected by inflation, so their growth may not reflect the real picture;
Secondly, they depend on the size of the company and its chosen production and marketing policy.

They cope much better with the problem of performance evaluation relative values, one of which is the level of profitability. They exclude the influence of inflation and other extraneous factors and allow for an objective and impartial assessment of the activity.

Such coefficients make it possible to determine the effectiveness of many points:

Chosen pricing policy;
production process;
Investments made;
Uses equity;
The work of the company as a whole, etc.

A competent definition of profit indicators and profitability values is the basis for building analytical calculations. This is the base that enables the management of a commercial organization to draw conclusions about its current state and make plans for the future.

For different analytical purposes, different profitability indicators can be determined. Each of them has its own formula and its own calculation procedure. Let's consider them in more detail.

What is return on sales?

In order to determine the effectiveness of the pricing policy of the organization and check to what extent it can control the costs associated with the sale of products, calculate the profitability of sales. This ratio shows the amount of net profit for each ruble of revenue earned.

The following formula is used to calculate the indicator:

P = Net profit / Revenue

Profits and revenues are taken as monetary terms for the same period of time. The source of information for calculations can be the "Profit and Loss Statement".

This ratio can vary greatly from company to company. He is affected price policy, overall strategy sales, product line features and other factors.

Return on sales can be calculated based on different types arrived:

clean;
Before tax;
EBIT is earnings before taxes and interest on loans.

Return on sales is very important for financial analytics purposes. It shows how much money remains at the disposal of the enterprise after deducting the cost, taxes and interest on loans from profit. Often this ratio is used to assess the operating efficiency of the organization.

The recommended values of the indicator can vary significantly depending on the industry. It reflects the performance of the company in the reporting period, but it is not able to describe the effect of long-term investments. For example, if a firm has made large investments in the purchase of production facilities or in the improvement of manufactured goods, then the profitability of sales may temporarily decrease.

However, if the investors' calculation was correct, then soon it will not only reach the previous level, but also exceed it.

What is the level of profitability of the enterprise?

To evaluate a business, an indicator of the profitability of an enterprise is often used. It means the ratio of profit and the average market value of fixed and current assets of the organization. This ratio shows how efficiently the company as a whole works. To determine it, the formula is used:

R \u003d P / F, where:

P - balance sheet profit;

Ф - the average cost of fixed and current assets of the company.

This ratio is especially important for the owners of the company. It reflects how effectively the property and current assets at its disposal are used, as well as what are the company's prospects for the future.

For a more detailed analysis, individual indicators can be used:

The level of profitability of fixed assets is a coefficient that shows what part of the profit is received per unit cost of fixed capital. It is obtained by dividing the profit by the valuation of the main assets;
The value of the return on current assets - shows how much profit can be obtained from one ruble of working capital. For calculation the formula is used: P = Net profit / cost of current assets.

What is the level of profitability of products?

To determine what result current costs give, analysts calculate the profitability of products. This is the ratio of the profit received to the costs of production and sale of goods (or their cost). It shows to what extent the enterprise can cover its costs with profit.

To determine the value of profitability, the formula is used:

P \u003d P / Z, where

P - profit from the sale of goods and services;

Z - the value of the cost of production and marketing (cost).

As a rule, the following main items are included in the amount of costs:

The amount of commercial expenses;
The amount of management costs;
Cost price products sold.

The calculation of profitability can be made both for the company as a whole and for individual types of products.

This ratio has great importance for analytics, it allows you to evaluate:

the work of the company as a whole;
The correctness of the chosen pricing strategy;
Investment policy;
Production efficiency.

If a company invests in production assets or product development, then the indicator may fall for some period, but subsequently it will not only reach its former level, but also exceed it (if investors have planned everything correctly).

What other indicators of profitability are there?

In addition to the main ones (profitability of sales, enterprises and products), in economic analysis additional profitability indicators are used, which allow assessing the company's activities in more detail in one or another context. These include:

The level of return on capital - shows the amount of profit per unit cost authorized capital. This ratio is actively used by financiers in developed countries;
The value of return on investment - shows what profit in terms of 1 ruble can bring investments in the company's capital. The resulting value clearly demonstrates whether the investment was successful;
Profitability of personnel is the ratio between the amount of profit and average headcount personnel. The analysis of this ratio shows how many employees the organization needs to maintain in order to maximize income.

What should be considered in a profitability analysis?

In order for an economist to draw correct conclusions when analyzing various profitability indicators, he must take into account three important features of such ratios:

Time aspect of the company. Profitability is a ratio that is relevant only for the present moment, it does not reflect future results or goals financial planning. It is possible, for example, that the profitability of sales will decrease as a result of investments in the development of the product line. It would be wrong to regard this state of affairs as negative, because if the benchmarks were chosen correctly, then this "subsidence" will be only temporary;
The problem of risk. Very often, the company's management faces a choice, which is better: a high level of profitability with a serious risk of operations or lower profitability with risk-free activities. This problem is very well illustrated by the coefficient of financial dependence: if it is large, then the company is balancing "on the knife's edge";
The problem of evaluation. The indicator formula consists of a numerator and a denominator, which are expressed in monetary units with different purchasing power. The amount of profit is the result of the reporting period, while, for example, the cost of equity was formed over several previous years. In addition, the indicator fixed in the balance sheet may not take into account the prestige of the brand, modern technologies in production and management, etc.

Profitability is very important indicator, which can help to conduct an objective and impartial assessment of the activities of any enterprise. In this regard, it provides much greater analytical capabilities than, for example, the values of different types of profit. Drawing conclusions based on the values of certain coefficients, one can take competent management decisions and lead the company to development and prosperity.

Conducting activities without monitoring its results, the efficiency of the enterprise is simply unthinkable. Periodically, it is necessary to analyze the data obtained, identify the profitability of operations and all activities in general, and on the basis of this, draw up reports with conclusions about the prospects for the further functioning of the enterprise.

To assess all activities, the main indicator was identified - , but we will consider it in a narrow specificity, namely, product analysis. Thanks to this calculation, competent compilation is possible, with the help of which it is possible to identify how much profit is attributed per unit of products sold.

The essence and composition of the concept

Profitability is part of the structure economic efficiency, which shows the profitability of the work performed. It helps to calculate how profitable the organization is using its assets.

Exactly profitability of production any product and characterizes the profitability of products. It is the relationship between profit from sales and the cost of producing the product sold.

profitability base production is the efficiency of product sales. And regardless of the type of activity of the company, the ratio of profits and costs does not change. It is the formula that will help calculate the operating activities of the company.

Myself indicator consists from profitability:

all goods sold;
sales by PE (net profit);
generalized data.

Formula and data calculation

This indicator has the abbreviation "ROM" and is calculated as follows:

ROM= (Profit from sales)/(production costs)*100%

As we can see from the formula, we get the result as a percentage. He characterizes not the current situation at the enterprise, but taking into account strategic plans. The numerator and denominator are made up of data for a certain period, they are selected for a couple of months or years, i.e. the analysis is carried out in dynamics.

When calculating, do not overlook three key points:

price dictatorship;
increase in the cost of production;
heterogeneity of produced goods.

Rising prices, even with rising costs, can be controlled, but provided that you are engaged in monopoly activity, or your competitors have low activity, without posing a threat to your demand

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Calculation options

Using revenue, sales and total costs for production:

ROM = (Profit from sales)/(Full cost) *100%;

Using revenue and cost, consisting of the cost of raw materials and materials, workers, maintenance, depreciation (technological):

ROM = (Profit from sales) / (Technological cost) * 100%;

Using net profit and total cost:

ROM = PV / (Full cost) * 100%;

Using net profit and production cost manufactured product:

ROM = PV / (Manufacturing cost) * 100%;

Let's look at examples

Example 1 The total revenue from the sale of shampoo for the past month is 6 million rubles. The cost of manufactured products is 3.2 million rubles. Determine the profitability of products.

Initially, we will define total profit received last month.

PR \u003d 6 - 3.2 \u003d 2.8 million rubles.

Thus,

ROM = (2,800,000)/(3,200,000)*100%=87.5%

It turns out that profit from each ruble of sold products is equal to 87.5 kopecks. For a product, this is a fairly high performance. After analyzing all this, it is possible to assess the competition of this company in the market. If the indicator starts to decline, then this indicates a drop in demand for the product, or incomplete production efficiency is affected.

Example 2 The situation is more complicated, the enterprise produces several types of goods .

The conditions are:

Find the profitability for each type, and give feedback on each type of product.

First, let's determine the profitability of the product:

(46-37)/37*100 = 24,3%;
(40-32)/32*100 = 25%;
(31-33)/33*100 = -6,06%.

The first thing that catches your eye is the absolute unprofitability of the 3rd product, it even has a negative profit. Its release must be stopped, because it brings a loss of 1.89 kopecks for every ruble.

Product 1 brings more profit than the second, but it is less profitable. The second product is more profitable (by 0.7%), therefore, you need to concentrate on its release.

Nuances in the calculation of balance sheet items

The formula calculation always has a high percentage of confidence and evaluates the effectiveness of products taking into account many factors, but sometimes the data is affected by fluctuations in tax system, but this is an extreme case.

It is also possible to calculate according to the balance, with certain features.

ROM=((line 050)/(p.20+p.30+p.40)-1)*100%

We got profitability as a percentage for a certain period. But the formula itself may vary, depending on the number of types of manufactured products.

Analysis and conclusions based on the results obtained

We have already answered why the indicator is calculated: for a qualitative assessment of the result of the functioning of the enterprise. The head of the company can determine for himself how much profit he receives if he invests one ruble of his funds. If we calculate according to the technological cost, then we reveal the effectiveness of the costs of production of goods.

The result at the production cost is always higher than at the full cost, so both indicators must be calculated and taken into account. Undoubtedly, the greater the profitability, the more profitable the products are produced, and this also leads to effective competitiveness.

In order to maintain and improve profitability, follows:

Reduce costs, but not at the expense of quality. Try new techniques and methods of production;
Increase sales, use new directions in marketing and advertising, open or find new sales markets, increase the species assortment.

Like any activity, increasing the performance requires some costs, but later they will pay for themselves, if properly applied.

For information on what profitability is, what types of it exist and the features of the product profitability indicator, see the following video material:

Not only its management is interested in the efficiency of the enterprise, but also investors (both real and potential) and employees (the more efficient the organization is, the greater the increase in wages the employer can provide). Financial analytics, which can give an objective idea of the current state of affairs, and make a forecast for subsequent periods, will help to correctly assess the efficiency of the enterprise. The most important place in this process is given to the analysis of various profitability indicators, among which the product profitability formula is considered one of the fundamental ones.

Product profitability is a ratio that shows the ratio of profit to the cost of production and sale (in other words, cost) of products. In other words, such a profitability ratio informs about how much profit one ruble invested in the production process will bring to the enterprise. The indicator can be calculated both for the company as a whole, and for individual areas, and even for types of products.

How to calculate the profitability of products

AT general view the formula for calculating the profitability of products sold can be represented as follows:

Rpr \u003d Pr / Ss * 100%,

where Rpr is the product profitability ratio;
Pr - the value of profit from the sale of products;
Cs - the cost of production.

The numerator and denominator contain data for a certain time period (several months or years), which allows for analysis in dynamics.

At full cost of production.
According to the production cost of products.
By profit from sales.
By net profit.

Balance calculation formula

Like any other rate of return, this indicator can be calculated based on the balance sheet data. Figures from form 1 are not used, all the necessary information contained exclusively in form 2 (statement of financial results).

Depending on the type of the analyzed parameter, the formulas for calculation may differ slightly:

The formula for calculating Rpr based on net profit and total cost:
Rpr = Line value 2400 from form 2 / Total value of lines 2120, 2210 and 2220 from form 2 * 100%.
The formula for calculating Rpr by profit from sales and the total cost:
Rpr = Line value 2200 from form 2 / Total value of lines 2120, 2210 and 2220 from form 2 * 100%.
The formula for calculating Rpr based on net profit and production cost:
Rpr = Line value 2400 from form 2 / Line value 2120 from form 2 * 100%.
The formula for calculating Rpr by profit from sales and production cost:
Rpr = Line value 2200 from form 2 / Line value 2120 from form 2 * 100%.

In our country, the value of the indicator at the level of 12% is considered normal.

It is worth mentioning that this figure can vary in a fairly wide range, depending on the industry the company is focused on. For the most honest assessment of effectiveness, the value of the coefficients should be compared with the industry average.

Poor profitability is a reason for inspections

The profitability of products can become one of the criteria on the basis of which tax authorities the schedule for the implementation of inspections is determined. Moreover, the suspicion of the Federal Tax Service can cause both too low value indicator is too high. A critical deviation from the industry average is 10 percent or more.

What can affect the profitability of the company's products

The value of the coefficient calculated for the organization as a whole is directly dependent on several factors:

From any changes in the structure of products sold. If the share of more profitable types of goods increases in the total amount of goods sold, the profitability ratio of products increases, otherwise it decreases.
Change in the average value of selling prices. It has a direct effect on the value of the coefficient.
Change in the level of cost of goods. It is inversely related to the level of profitability of products. The cost price increases - the value of the indicator decreases, and vice versa.

Rising prices (even under the condition of rising costs) can be controlled, but only if the company is a monopolist in its field, and the closest competitors have a relatively low business activity and practically do not affect the company's demand indicators.

Calculation of indicators

Example 1

The company produces toothpaste. Over the past month, the total sales revenue amounted to 5,000,000 rubles. Production costs for the same period amounted to 3,300,000 rubles. The task is to evaluate the profitability of products.

First of all, you need to find the total profit for the billing period. Pr \u003d 6,000,000 - 3,000,000 \u003d 2,700,000 rubles. Based on this value, you can calculate the profitability ratio:

Rpr \u003d Pr / Ss * 100% \u003d 2,700,000 / 3,300,000 * 100% \u003d 81.8%

The resulting figure shows that each ruble invested by the enterprise in the production of this product brings 81.8 kopecks of net profit, which is a fairly good result.

After spending comparative analysis with previous time periods, we can draw some conclusions about the competitiveness of the product in the market. So, in the case of a decrease in the indicator, we can talk about a drop in consumer demand, or about insufficient production efficiency.

Example 2

The same enterprise in the context of the release of several goods. For example, it will be toothpaste, soap and shampoo. For each of them, the values of revenue and cost of production are known. The task is to evaluate the profitability of each product and conduct a comparative analysis of three types of products.

Profitability certain types products can be defined as the ratio:

Rpr1 \u003d Pr1 / Cs1 * 100% \u003d (47 - 38) / 38 * 100% \u003d 23.6%
Rpr2 \u003d Pr2 / Cs2 * 100% \u003d (39 - 31) / 31 * 100% \u003d 25.8%
Rpr3 \u003d Pr3 / Cs3 * 100% \u003d (61 - 66) / 66 * 100% \u003d -7.5%

The negative profitability of the third product immediately catches the eye. For each ruble invested in its production, there will be 1 ruble 7.5 kopecks of losses. It is worth thinking about stopping its production, or about reducing the cost of production (preferably not at the expense of quality).

The first product brings the company more profit, but its profitability is somewhat lower than that of the second. Literate financial analyst recommends the management of the company to focus on increasing the volume of the second product.

How indicators are analyzed

A specialist who is well versed in economics must know not only how to calculate the profitability of products and what ratio can determine its value. A competent analyst will be able to extract a lot of useful information from the calculated values of indicators. To keep the coefficient level at required level, or increase its value, there are several ways.

Every novice entrepreneur is madly happy when he receives the first shoots of his labors, and rightly so. - a difficult path, requiring high costs in every sense of the word. Why do some of them suffer subsequent disappointment? After all, the idea is great, the products are in demand, the equipment is set up, and the staff has already learned how to work? And the problem is that production costs have consistently exceeded the profit from sales, and the initial capital has melted like an iceberg in Africa.

The main result of the activity of any enterprise was and remains. Achievement of this indicator depends on many factors:

Income from sales of manufactured products (or services of the enterprise).
Production costs: utility bills, payments and interest on loans, tax liabilities, materials and equipment, payments to employees and subcontractors, etc.

The profitability of the enterprise allows you to evaluate the effectiveness of its activities and consists of the total result of profitability:

Sales (sales of products), if the organization produces goods in an assortment, then it is necessary to calculate the profitability for each type of product.
, here we mean the entire property of the company (transport, real estate, equipment, etc.) excluding borrowed funds and debt obligations.
Own capital.
Investments and loans.

In addition to the production and sale of products, the company may be engaged in the performance of any other work: the provision of services, investment, or be a borrower. Any of these operations will generate income or increase costs, which in turn affect the profitability of the organization. Therefore, it is very important to evaluate each of these terms separately, which will allow us to identify weak sides and correct the situation in a timely manner.

Profitability of sales depends on many factors:

commodity unit, production costs
Buying activity and demand for products
Competitiveness, quality and attractiveness of the product for the consumer
Pricing policy and market value of a commodity unit

This value is calculated as a percentage and shows how much profit the organization received for a certain period of time from each ruble spent on the production and sale of a particular product. Also this financial indicator is an estimate effective management enterprise, because profit directly depends on the correct decisions of management.

Calculation formula and main indicators

So, in the course of its activity, the enterprise spends resources, and as a result, it makes a profit. The ratio of profit to costs is the profitability ratio of the enterprise. As for the profitability of sold products (sales), it is determined by the following formula:

Where RRP is the profitability ratio of sales, PP is the profit from sales, SBS is the cost of goods sold.

The correctness and accuracy of the calculations lies in what types of profits and costs are included in them. It is also necessary to clearly define the period for which the calculation will be made. If the profit is calculated for one month, and the costs for another, then the result will be incorrect and useless.

It will not be entirely correct to use the net profit of the enterprise in calculations if the company receives income from several types of activities, and not each of them is related to the sale of products. In this case, you need to take as a basis only the profit from sales, which is easy to find in. If you need to determine the profitability ratio for the sale of a particular product group or type, you will have to calculate the sales revenue for the selected period of time specifically for a specific product category.

Now it's time to decide on the cost. This indicator has two main forms: production and full.

The production cost consists only of the costs of manufacturing products (raw materials, materials and other resources), but they do not include sales. It is also not entirely correct to operate with this figure, since the result obtained will be overestimated and not relevant enough. The calculations should be based on the total cost, which consists of the costs of both production and sales.

The accuracy and reliability of the result will depend on the choice of the correct key indicators, in the absence of which the analysis and further calculations lose their meaning.

Calculation examples and conclusions

For a more complete perception of this information, one should consider a visual one: the company is engaged in the production of chocolate and sweets. The sales revenue for the selected period amounted to 560,000 rubles, the total cost, including all costs, was 243,000 rubles. It is necessary to calculate the profitability of products sold.

In the beginning, you should determine the profit from sales, for this, costs should be subtracted from the proceeds: 560000-243000 \u003d 317000 rubles. Next, we calculate the profitability ratio of sales: 317000/243000=1.3045, rounding the result to hundredths, we get 1.30.

To determine the amount of profit from each ruble for products sold, this one is multiplied by 100, 1.3 * 100 = 130 (kopecks). It turns out that each ruble spent brings 1 ruble 30 kopecks of company profit. This can be considered a very good result.

Now an example of a more detailed calculation. The company produces bar chocolate, boxed and weighted candies.

Profitability for each product group for each ruble spent, respectively: 0.86 rubles, -0.34 rubles, 0.78 rubles. It turns out that the production of boxed sweets is unprofitable for the enterprise and should either be stopped or reconsidered: increase the market value, reduce costs, etc. Sometimes the company's management decides to conduct promotions, that is, the cost of certain time increase, but then there is a positive trend.

The threshold of profitability is considered to be an indicator equal to zero, when the costs are covered, but the company does not receive profit. A similar trend is typical for newcomer firms whose products are not yet in use. in high demand, the investment has not yet paid off and there is a constant need for advertising costs. If for a long time this indicator remains zero or negative, you should analyze the situation and identify weaknesses.

Sales profitability analysis

There is no regulatory framework for the profitability ratio of sold products. This financial indicator is determined in comparison:

With sales of firms - competitors
With previous performance and dynamics in general
Compliance with previously made forecasts and plans

Competitiveness has always been the key successful business. It is almost impossible to achieve good results in today's market without looking at competitors. To this end, regular monitoring of certain commodity groups. The main methods of maintaining competitiveness:

Flexible pricing policy. An excessively high cost leads to a decrease in consumer demand, and an underestimated one will not bring profit. Very important to find here golden mean to stay ahead of the competition.
Constant control of product quality. Without paying attention to this issue, you can lose all customers and customers.
The attractiveness of the product to the buyer. Here, all means are good: colorful practical packaging, high-quality advertising, etc. Many companies provide outlets equipment for their products in order to present them in the most favorable light for the consumer.

A rather unstable financial indicator that needs to be constantly monitored. The easiest way to analyze the situation is with the help of graphs or a table where data is entered for each reporting period This will allow you to quickly and visually track the dynamics of profitability.

If this financial indicator tends to decrease and does not correspond to the previously developed plans, it is necessary to identify the causes of such a trend and take measures to eliminate them. The methods can be very diverse, but they have two main directions: to reduce costs and increase profits.

The profitability of sold products is the main indicator that evaluates the company's performance. This aspect is important both for the owner of the enterprise and for investors, creditors and business partners, so you need to monitor it constantly and very carefully.

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