Carrying out commercial or financial activities, any enterprise is faced with the need to determine some economic indicators. They are needed to analyze the results of labor and identify their profitability. One of the main indicators is gross profit. Gross profit Is the total profit earned before all deductions and deductions are made. That is, it can be defined as an indicator of the excess of income over all current costs. Gross profit includes depreciation of fixed capital and income from property. Profit is the end result of the enterprise. However, at the end of the reporting period, a loss may also be incurred. It may be a consequence extra costs for production or lower than planned income from the sale of goods and services. Therefore, the correct calculation of indicators and production planning are the main conditions for profitable activity. Some costs are compensated for by profit and are not classified as distribution costs. The total costs of the enterprise, which are part of the distribution costs and paid from profit, are usually called economic costs. They exceed distribution costs. This is the difference between economic profit and gross profit. Before calculating the gross profit, it is necessary to determine the distribution costs. The difference between gross income and these costs is gross profit. The economic profit of the enterprise will differ from the gross profit by the amount of costs not included in distribution costs. Therefore, any enterprise should strive to obtain economic profit, which is the final indicator of the total income received. It shows that the company pays for its production costs and is able to independently finance further development. There are many indicators of enterprise profitability and profit values. It is defined in percentages and levels. But gross profit is one of the main indicators. It determines the level of income received from the main activity. This is the amount of income from the sale of goods, property, including fixed assets, total income received from all transactions not related to the sale, from which all expenses that were incurred as a result of these activities were deducted. This indicator fully reveals the results from all the activities of the enterprise. As a result, you can identify unprofitable and profitable business transactions. This provides an opportunity for economic analysis and determination of optimal development paths. Economic analysis is very important in the activities of every enterprise, regardless of what services or goods it sells. Correct planning and organization of work depends on this. If the performance indicator is negative, it is necessary to identify problem areas, the costs of which have exceeded the planned ones. Reducing the cost of production, that is, the cost of its production, is one of the ways to increase the gross profit from its sale. It is the profit that makes it possible for the further development of the enterprise, the introduction of new technologies, the installation of new technological equipment and the rational use of material resources and labor. Correct additional investment of the obtained profit in the development of production pays off for some time. The main thing is to be able to build a production process rationally and economically. To determine the benefits from the organization of production, there are indicators of gross profit, net profit, profit from sales, profit from other activities, etc.
Revenue
In 2008, there is an increase in the amount of proceeds by 2% compared to 2006 and 2007.
Gross profit
In this diagram, we can see that in 2007 gross profit decreased by 1% compared to 2006, but in 2008 it increased by 3% compared to 2007.
Net profit
In 2008, there was a decrease in net profit compared to previous years, this is due to an increase in the share of the cost of goods, products, works, services sold.
Cost of goods, products, works, services sold
For three years, the cost has been increasing. Compared to 2006, the prime cost increased by 10%.
Profit before tax
We see a decline in profit before tax.
Product profitability
The decrease in profitability in 2008 is due to a decrease in profit in the same year.
Average number of employees
The average number of employees increased in 2008 by 9%.
The amount of funds allocated for wages
The amount of funds directed to wages increased in 2008 compared to previous years.
2. Measures to improve the activities of the enterprise
The main goal of the company is to generate income. Income from ordinary activities is the proceeds from the sale of products and goods, receipts associated with the performance of work, the provision of services. This is one of the most important indicators of the financial results of economic activities of organizations. Profit is calculated as the difference between the proceeds from the sale of a product of economic activity and the sum of the costs of factors of production for this activity in monetary terms. High profit is a guarantee of stability, prosperity and financial stability of the enterprise. For an efficient existence, an enterprise must ensure a constant excess of income over expenses in order to maintain solvency and make a profit. High income (revenue) is the result of competent, skillful management of the entire complex of factors that determine the results of the company's economic activities and contribute to an increase in financial results.
After analyzing the technical and economic indicators of the enterprise in Chapter 1, we can conclude that for 2008 JSC "Kirovsky Zavod" has a number of problems:
decrease in the company's net profit;
falling profitability of sales;
increase in the cost of goods.
Net profit- a part of the company's balance sheet profit remaining at its disposal after taxes, fees, deductions, mandatory payments to the budget. From the net profit, dividends are paid to shareholders, reinvestments are made in production and the formation of funds and reserves.
Cost price- all costs incurred by the enterprise for the production and sale of products or services. The cost of production is a cost estimate of the natural resources, means and objects of labor, services of other organizations and the remuneration of workers used in the production process. In other words, it shows how much it costs each organization to produce and sell products.
There is a problem of declining profitability. This problem is caused by changes in profit and an increase in the cost of goods.
Reducing the cost of goods provides an increase in profits, an increase in revenue and profits - helps to increase profitability. This is the guarantee of the profitable existence of the enterprise.
2.1. Ways to reduce production costs
Continuous technical progress is the decisive condition for cost reduction. The introduction of new technology, comprehensive mechanization and automation of production processes, improvement of technology, the introduction of advanced types of materials can significantly reduce production cost.
The most important in the struggle to reduce the cost of production is the observance of the strictest economy regime in all areas of the production and economic activities of the enterprise. The consistent implementation of the economy regime at enterprises is manifested primarily in the reduction of the cost of material resources per unit of production, in the reduction of costs for maintenance of production and management, in the elimination of losses from rejects and other unproductive costs.
General structure of the issuer's prime cost
|
Cost item name |
2006 year |
2008 r. |
|
|
Raw materials and materials,% |
|||
|
Works and services of a production nature performed by third-party organizations,% |
|||
|
Fuel, % |
|||
|
Energy,% |
|||
|
Labor costs,% |
|||
|
Rent, % |
|||
|
Social contributions,% |
|||
|
Depreciation of fixed assets,% |
|||
|
Taxes included in the cost of production,% |
|||
|
Administrative expenses, |
Material costs, as you know, in most industries are large specific gravity in the structure of the cost of production, therefore, even an insignificant saving of raw materials, materials, fuel and energy in the production of each unit of production as a whole for the enterprise gives a large effect.
The enterprise has the ability to influence the cost of material resources, starting with their procurement. Raw materials and materials are included in the cost price at the price of their purchase, taking into account the cost of transportation, therefore, the correct choice of suppliers of materials affects the cost of production.
It should be noted that for all items of raw material prices there is a significant increase, which in turn is reflected in the growth of the cost of finished products. Therefore, it is necessary to ensure the receipt of materials from such suppliers that are located at a short distance from the enterprise, as well as to transport goods by the cheapest mode of transport. When concluding contracts for the supply of material resources, it is necessary to order materials that, in terms of their size and quality, exactly correspond to the planned specification for materials, strive to use cheaper materials, without reducing at the same time the quality of products.
Therefore, it is necessary to reduce the cost of purchasing raw materials, the price of which will be lower than the price of 2008.
If the company reduces the cost of purchasing raw materials by 10%, then in 2009 the savings will turn out to be 1,750.00 thousand rubles.
Reducing production maintenance and management costs also reduces production costs. The size of these costs per unit of production depends not only on the volume of production, but also on their absolute amount. The lower the amount of shop and general plant costs for the whole enterprise, the lower, other things being equal, the lower the cost of each product.
The reserves for reducing shop floor and general plant costs consist primarily in simplifying and reducing the cost of the management apparatus, in saving on administrative costs.
Management cost table
change in control flow in% = (control flow 2007 / control flow 2008) * 100%
control costs in% = (38243001/42760442) * 100 = 11.6%
In this table, we see an 11.6% increase in administrative expenses. Therefore, if in 2009 to reduce management costs by 5%, then we get 40622420 thousand rubles.
Significant reserves for cost reduction are contained in the reduction of losses from rejects and other unproductive costs. Studying the causes of marriage, identifying its culprit make it possible to take measures to eliminate losses from marriage, reduce and most efficiently use production waste.
The scale of identifying and using reserves for reducing the cost of production largely depends on how the work on the study and implementation of the experience available at other enterprises is organized.
Comparative analysis
Let's calculate the planned cost by cost items for 2009 and compare with the actual figures for 2008. This table shows the change in production costs in 2009 by 10%.
Production cost 2008
Cost 2009 = * 10%
Cost of 2009 = 294887578 thousand rubles.
2.2 Ways to Increase Enterprise Profitability
One of the most important indicators of the company's activity is profitability.
Profitability is a generalizing indicator that characterizes the quality of an industrial enterprise, since for all the value of the mass of the profit received, the most complete qualitative assessment of the production and economic activity of the enterprise is given by the value of profitability and its change. It represents the ratio of profit to production assets or to the cost of production. The profitability indicator assesses the efficiency of production and its costs.
The main factors that have a direct impact on increasing the level of profitability in enterprises include:
1. Growth in the volume of production;
2. Reducing its cost;
3. Reducing the turnover time of fixed assets and working capital;
4. Growth in the mass of profits;
5. Better use of funds;
6. Pricing system for equipment, buildings and structures and other carriers of fixed assets;
7. Establishment and observance of norms of stocks of material resources, work in progress and finished products.
To achieve a high level of profitability, it is necessary to systematically and systematically introduce the advanced achievements of science and technology, effectively use labor resources and production assets.
According to the method of calculation in the national economy, there is a profitability of enterprises P pr. And a profitability of products P prod. The first indicator is defined as the ratio of the balance sheet profit P to the average annual cost of fixed assets F op and working capital F about:
P pr = (P / (F op + F about)) x 100%
The second indicator of profitability is expressed by the ratio of the balance sheet profit P to the cost of the finished product C:
R NS = (F / N) x 100%
Let's calculate the profitability of the enterprise for 2006-2008:
P pr. 2006 = 114156576/292670054 * 100 = 39%
P pr. 2007 = 112589353/298114799 * 100 = 37.5%
P pr. 2008 = 115825407/324770114 * 100 = 35.4%
Profitability table
Methods for determining profitability clearly show that the level of profitability and its change are directly related to prices for industrial products. Consequently, an objective pricing system is an important prerequisite for determining a reasonable level of profitability, which at the same time can influence the change in the level of prices for products. Thus, sound methods of establishing and planning profitability are closely related to the pricing system. The amount of profit, and, consequently, the level of profitability, first of all, depend on changes in prices for products and their cost.
The main factor in the growth of profits is the reduction in production costs. However, the value of the balance sheet profit is influenced by a number of other factors - change in product prices, the amount of the remainder of unsold products, sales volume, production structure, etc. prices (their increase in connection with an increase in the quality of products or a decrease due to the aging of certain types of products, saturation of the consumer market with some products or in connection with the transition to new equipment and production technology). An increase in the profitability of production means an increase in the return on each hryvnia of the advanced funds and, thus, their more efficient use.
Profitability indicators are important characteristics of the financial results and efficiency of the enterprise. They measure the profitability of an enterprise from various positions and are grouped in accordance with the interests of participants in the economic process, market exchange.
Profitability indicators are important characteristics of the factor environment for the formation of profit (and income) of enterprises. For this reason, they are indispensable elements of comparative analysis and assessment of the financial condition of the enterprise. When analyzing production, profitability indicators are used as a tool for investment policy and pricing.
Let's calculate the planned profitability of the enterprise for 2009.
The company's revenue for 2006-2008 is growing, so it can be assumed that in 2009 the revenue will also increase and amount to 386521322 thousand rubles.
Let's calculate the gross profit for 2009.
Gross profit is the difference between the proceeds from the sale of goods and the cost of goods sold. Calculated before deducting expenses, payroll, taxes and interest.
Gross profit = Revenue from the sale of goods - Cost of goods sold
Gross profit 2009 = 386521322 - 294887578 = 91.633744 thousand rubles.
R pr. 2009 = (F / N) x 100% = 91633744/294887578 *100% = 36,3%.
Enterprise profitability
In connection with the increase in the company's profitability in 2009, we can expect an increase in net profit in 2009.
CONCLUSION
As a result of the work done, the following conclusion can be drawn: if the enterprise of JSC "Kirovsky Zavod" follows the planned ways of solving problems, then the profitability of products and net profit should increase. The company has an authorized capital and a bank loan, which must be used in the process of implementing the planned activities.
In the future, JSC "Kirovsky Zavod" can expand the range of products, since the available resources are sufficient for this.
In progress term paper I analyzed the initial data, chose and substantiated a strategy, made an action plan for its implementation. All this contributed to the development of practical skills in one of the most important functions of management - planning.
Bibliography
Strategic planning for company OJSC Varna Khleboproduktov Combine
Coursework >> Management... company OJSC"Varna Kombinat Khleboproduktov" 2.1 General information about enterprise. 2.2 Analysis activities enterprises OJSC... a mini feed mill was installed plant with a capacity of 8 tons in ... ARKHANGELSK REGION 40.8% KIROVSKAYA REGION 29.6% ...
Analysis competitiveness OJSC NATI in the domestic and international market
Abstract >> Industry, production... plant", JSC "Petersburg Tractor plant"- subsidiary company OJSC « Kirovsky plant", CJSC "Selkhozmash", OJSC"Design Bureau of Transport Engineering", OJSC... questions and financial activities... 23. Consideration, analysis and registration of declarations ...
Economic efficiency of product sales OJSC "Kirovsky cold storage "
Abstract >> Economics... enterprises OJSC "Kirovsky refrigeration plant "is the largest refrigeration enterprise Kirovskaya area. OJSC "Kirovsky refrigeration plant "... fierce competition in the activities enterprises are: 1. price ... 15. Ice cream: analysis consumers and packaging ...
1) Official site of the enterprise www. kzgroup.ru/;
Goremykina T.K. " General theory statistics ", Moscow 2007;
Andreev G.I "Fundamentals of enterprise management. Economic mechanisms of the enterprise ", 2008;
Chernyak V.Z. "Theory of Management" 2008;
Volkov D.L. "Theory of value-based management: financial and accounting aspects" St. Petersburg 2008;
Gerasimova V.O. "Analysis and diagnostics of production activities of enterprises (theory, methodology, situations, tasks)", 2008, Publ .: KNORUS;
Malyuk V., Nemchin A. "Production management", series: " Tutorial", 2008, Publisher: Peter
JSC " Kirovsky plant OCM "(according to OKVED) - copper production. The form of ownership is private. Company ...
Chapter 2. Analysis of the financial results of the organization
Tasks, the main directions of the analysis of the financial results of the organization and its Information Support
In a market economy, essential acquire indicators of profit and profitability, which are the economic results of the activities of economic entities.
Profit is the basis economic development organizations, since profit growth creates a financial basis for self-financing, expandable reproduction, solving problems of social and material needs of the labor collective, and technical re-equipment of the organization. Therefore, in market conditions, the orientation of organizations to profit is a sine qua non entrepreneurial activity... Profit characterizes the absolute efficiency of the organization, is the most important indicator for assessing its production and commercial activities, business activity and financial well-being.
Profitability is a relative measure. Profitability more fully than profit reflects the final results of management, since profitability comprehensively reflects the degree of efficiency in the use of material, labor and monetary resources.
The main tasks of the analysis of financial results are:
Evaluation of the fulfillment of the tasks of the business plan based on economic results;
Analysis of the dynamics of the composition and structure of the profit of the organization;
Determination of the influence of certain factors on the profit from sales;
Consideration of the composition and dynamics of operating and other income and expenses, and their impact on net profit;
Analysis of the impact of paid taxes on profits;
Analysis of the total amount of income and expenses;
Calculation of profitability indicators and determination of the influence of individual factors on profitability indicators;
Profit profitability analysis;
Revealing the results of further increasing profits, increasing profitability.
Sources of information in the analysis of financial results are "Balance sheet" and "Statement of financial results".
The analysis of the financial results of the organization's activities is carried out in order to:
Systematic control over the implementation of plans for the sale of products and profit;
Identification of factors influencing the volume of sales and financial results;
Identification of reserves for increasing the volume of sales of products and the amount of profit;
Development of measures for the use of identified reserves.
General assessment of the dynamics and structure of profit
Profit is the final financial result of an organization's activities, which characterizes the absolute efficiency of its work.
An overall assessment of the dynamics and structure of profit (loss) is given on the basis of horizontal and vertical analysis according to the "statement of financial results"
With a general assessment of profit, it is necessary to calculate the absolute deviation, profit growth rates and specific weights different types profit in the organization's revenue.
Profit generation mechanism:
1) Gross profit is the difference between revenue (Qexp.) And cost price (C / C), i.e.
Pval = Qwyr. - C / C, (2.1)
2) Profit from sales is the difference between gross profit (Pwal) and commercial (KR) and management (SD) expenses, i.e.
Prod = Pval - KR-UR, (2.2)
3) Profit before tax is profit from sales minus interest payable (PU) and other expenses (PR) and the addition of interest to receipt (PP) and other income (PD), i.e.
PDND = Prod + PP - PU + PD - PR, (2.3)
4) Net profit is the sum of profit before tax (Pdn.o) and deferred tax assets (ITA) minus current income tax (TNP) and deferred tax liabilities (IT), i.e.
Pchist = Pd.n.o + SHE - TNP - ONO, (2.4)
Table 2.1- Analysis of the dynamics and structure of profit
| Indicator name | Amount, thousand rubles | Growth rate % | Specific gravity | ||||
| on 12/31/13 | on 12/31/14 | Deviation (+ ;-) | on 12/31/13 | on 12/31/14 | deviation | ||
| 1. Revenue | - | - | - | ||||
| 2. Cost of sales | |||||||
| 3. Gross profit | |||||||
| 4. Selling expenses | |||||||
| 5. Management costs | |||||||
| 6. Profit from sales | |||||||
| 7. Interest receivable | |||||||
| 8. Interest payable | |||||||
| 9. Other income | |||||||
| 10. Other expenses | |||||||
| 11. Profit before tax | |||||||
| 12. Current income tax | |||||||
| 13. Change in deferred tax liabilities | |||||||
| 14. Change in deferred tax assets | |||||||
| 15. Miscellaneous | |||||||
| 16. Net profit |
Conclusion to table 2.1
Analysis of the table data allows us to draw the following analytical conclusions:
Revenue in 2014 compared to 2013 decreased by _______ thousand rubles or by ______%, which is a negative point;
Gross profit decreased by _______ thousand rubles or by _____%, which is a negative point;
Profit from sales decreased by ______ thousand rubles or by ____%, which is a negative point; the organization can be advised to reduce business expenses;
Profit before tax decreased by _______ thousand rubles or by ______%, which is also a negative point; the organization needs to closely monitor other income and expenses;
Net profit decreased by _______ thousand rubles or by _____;
It is worth noting that all types of profits of the organization in the reporting year, compared with the previous one, have decreased; the organization needs to pay attention to increasing revenue and reducing costs and all types of expenses;
Different growth rates of revenue and cost of production caused changes in the profit structure:
The share of gross profit increased by ____%;
The share of profit from sales increased by ____%;
The share of profit before tax increased by _____%;
The share of net profit increased by _____%.
The redistribution took place in favor of gross profit, which indicates that the growth rate of the cost of the studied organization is less than the growth rate of revenue.
Analysis of sales profit
Sales profits generally account for the largest portion of pre-tax profits. Therefore, it is important to determine the influence of individual factors on it.
When analyzing the profit (loss) from sales according to the data of the "Statement of financial results", the influence of the following factors can be determined:
Change in revenue;
Change in product prices;
Change in business expenses;
Change in management costs;
Change in the cost of production.
Let's consider the impact of each indicator.
1) The impact of price changes on sales profit.
To determine the impact of changes in product prices on sales profit, it is advisable to apply the following calculations:
Let's define the price index (Y):
where - inflation of the reporting year;
Let's find the proceeds from sales of products (Q ') in comparable prices, which is defined as the ratio of the proceeds of the reporting period to the price index (Y):
The impact of price changes on revenue (∆Qev.price) is determined by the difference between the amount of revenue in the reporting period and revenue from the sale of products in comparable prices:
∆Qvol.price = Qrev.rep.-Q'vir. , (2.7)
Now you can determine the change in profit from sales under the influence of changes in product prices (∆Ppr):
, (2.8)
where is the profitability of sales, determined by dividing the profit from sales by revenue;
2) Impact of changes in revenue on sales profit:
The influence of changes in the volume of proceeds from sales of products is determined by multiplying the additional proceeds from sales received in connection with the improvement of the economic activity of the organization on the profitability of sales in the previous year, i.e.
where Qrep. - revenue in the reporting period, Qpr.pr. - revenue in the previous period, Re - profitability of sales, determined by dividing profit from sales by the amount of revenue in previous periods.
3) The impact of cost price changes on sales profit is determined by the formula:
, (2.10)
where is the cost of the reporting period;
Cost of the previous period;
Revenue of the reporting period;
Revenue from the previous period;
4) The effect of changes in selling expenses on sales profit is determined by the formula:
, (2.11)
where - commercial expenses of the reporting period;
Selling expenses of the previous period.
5) The impact of changes in administrative expenses on sales profit is determined by the formula:
, (2.12)
where - management costs of the reporting period;
Administrative expenses of the previous period.
According to these formulas, we will carry out factor analysis profit from sales of JSC. The results are presented in table 2.2.
Table 2.2- Analysis of profit from sales
1) Changes in profit from water sales influenced by changes in the price index.
Gross margin can be a useful metric in many cases; investors can see a quick snapshot of how much money a company is making in relation to spending. However, this is only a snapshot and context is necessary for accurate interpretation.
Gross margin becomes negative when production costs exceed total sales. This may indicate a firm's inability to control costs. On the other hand, it may be a natural consequence of industry or macroeconomic difficulties beyond the control of the company.
What is gross margin?
Accountants and financial analysts measure profit to find out how effective a company is at making profit. In almost all cases, the profit margin is compared to the company's past performance and to the profits of other firms in the same industry.
Profit margin is an analysis of the relationship with the data obtained from the profit and loss statements of the company. Gross profit is calculated by subtracting the value of goods sold from revenue. If the total gross margin is divided by revenue, you are left with a gross margin. This number shows what percentage of income ultimately becomes gross profit.
Negative gross profit margins occur when costs exceed income. There are several possible reasons for which the company may have negative gross profit.
Increase in the cost of raw materials
The only deviation from the gross margin calculation is the cost of goods sold, which is an expense associated with the manufacturing process. If the commodity experiences a price increase sufficient to exceed the gross margin, then the margin becomes negative.
In the short term, these factors are largely outside the control of any single firm. The increase in production costs should become an incentive for adjusting the input resources.
Technology disruption
In a business setting, "disruption" describes the phenomenon of new technologies or technologies entering the market and harming the profits of large firms. For example, the development of the internal combustion engine and the introduction of automobiles caused severe damage to the buggy. It is also largely independent of any particular firm.
Macroeconomic shock
The recession tends to reduce profits in a number of industries, as consumers cut costs and undertake operations to reduce the volume of transactions. For example, most large construction companies experienced negative gross margins after the 2007 housing crash.
However, a recession is not necessary to reduce profits. When interest rates rise rapidly, some companies may experience negative gross margins. Products that provide loans, such as cars, experience a decline in consumer demand when rates rise.
How to interpret negative gross margin.
As with almost any figure derived from the income statement, the gross profit margin should be interpreted in the context of the industry as a whole and the performance of the past company. Otherwise, negative margins can mislead you into thinking that management made mistakes or did not control costs.
The analysis of gross profit begins with research and dynamics, both in terms of the total amount and in the amount of components and elements. This is the so-called horizontal (time) analysis. In this case, each reporting item is compared with the analytical indicators of the base period. Then a vertical analysis is carried out, which reveals the structure of changes in the composition of gross profit of the influence of each reporting item on the result as a whole.
Comparison of the rate of change of such constituent elements of the balance sheet profit as profit from product sales, profit from financial and economic activities is very important. It allows you to determine the factors that had a greater and lesser impact on the final financial result - balance sheet profit.
The main objectives of the analysis of the financial results of the enterprise are: assessment of the dynamics of profit indicators, the validity of education and the distribution of their actual value; identifying and measuring action various factors at a profit; assessment of possible reserves for profit growth based on optimization of production volumes and costs.
Profit is the final financial result of an enterprise's activities, in a generalized form characterizing the effectiveness of its work. Profit stands the most important factor stimulating the production and entrepreneurial activity of the enterprise and creates a financial basis for its expansion. Income tax is one of the main sources of formation of state budget revenues. At the expense of the profit, the company's debt obligations to creditors and investors are paid off. The profit received by an enterprise is determined by the volume of sales of products or services, their quality and competitiveness, the level of costs, the efficiency of enterprise management, including its production, marketing, financial, technological, personnel and investment strategies.
Consequently, profit is the most important generalizing indicator in the system of estimated indicators of the efficiency of production, commercial and financial activities of the enterprise.
Profit is characterized by following functions:
1.characterizes the economic effect obtained as a result of the activities of the enterprise;
2. has a stimulating function;
3.profit is one of critical sources formation of the budget.
The main objectives of the analysis of the financial results of the enterprise are:
1.systematic control over the implementation of the plan for the sale of products and profit;
2. determination of the influence of both objective and subjective factors on financial results;
3. Revealing reserves, increasing the amount of profit and profitability;
5. development of measures for the use of the revealed results.
The basis for determining the final, "net" result of the enterprise is a clear classification of income and expenses, profits and losses. Classification is required for:
Determination of the source from which the main part of the income of the profit of the reporting period is received;
Separation of the production cost of products and non-production costs, including the costs of management and sales, as well as the costs of financial activities;
Separation of fixed and variable costs for analysis purposes.
To determine the sources of profit, all activities of the enterprise are divided into:
1) main or operational activity (production and sale of products, works, services);
2) non-sales activities (operations not related to the main activity), including:
a) financial activities (obtaining loans and issuing them to other enterprises; participation of the enterprise in the activities of other companies; operations of the enterprise in the financial markets, including those associated with fluctuations in exchange rates;
b) other non-sales activities (operations that are not typical for the activities of the enterprise and are of an extraordinary nature).
This division is very important, since it allows you to determine what the specific weight of income received both from the main activity of the enterprise (sale of products, works, services), and from other sources, including those that are not characteristic of of this enterprise and cannot be regarded as a permanent source of income.
Hence it follows that in the system financial management and analysis, the following indicators of income and profit are applied:
Net proceeds from the sale of products (works, services) Is the gross proceeds from sales net of VAT and excise taxes. It is this indicator that is the real basis for the subsequent calculation of profit indicators and assessing the profitability of the enterprise.
Gross profit from sales- net proceeds from sales less production costs for products sold. This indicator allows you to analyze the efficiency of the production activities of the enterprise.
Profit (loss) from sales- gross profit from sales less management and distribution costs. This indicator reflects the impact of management and sales costs on the financial result from the sale.
Profit (loss) from financial activities- the balance of income and expenses for financial activities. This indicator is necessary in order to separate the profit from the production and economic activity of the enterprise from such sources of profit as the receipt of interest and dividends by the enterprise, operations with foreign currency, etc.
Balance sheet profit (loss), or profit before tax- the sum of profit from financial and economic activities and profit (loss) from other non-operating transactions.
This figure is the point of transition from accounting profit to taxable profit. Accounting profit is profit calculated in accordance with the requirements accounting... It reflects the efficiency of the enterprise for the reporting period.
Taxable profit- balance sheet profit, adjusted in accordance with the tax legislation of the country.
Net income (loss)- profit after tax remaining at the disposal of the enterprise. In a market economy, this is the most important indicator of an enterprise's performance. It is in the center of attention of management and financial markets, the very existence of the enterprise, jobs for its employees, and the payment of dividends in a joint-stock company depend on its dynamics.
In the analysis of the dynamics and composition of profits, the data contained in the Profit and Loss Statement (form No. 2) are used, which allow you to analyze the financial results obtained from all types of enterprise activities, to establish the profit structure.
For an example, we will use the data in Table 15.
Table 15. Analysis of the composition, dynamics of profit (thousand rubles).