How to find profit from sales formula. How to find net profit - formula

500,000 rubles - for goods; 27,000 rubles - all costs to sell the goods;

Gross revenue (Vo) is 650,000 rubles.

The difference between gross income and the cost of selling a product forms the sales profit.

Prpr = Vpr - UR - KRUr, Kr = 5,000 (delivery of goods) +5,000 (rental of premises) = 10,000 Prpr = 150,000-10,000 = 140,000 (profit from sales)

To calculate net profit, you need to subtract taxes and other expenses from the profit indicator.

Net Pr=140,000 - (7000+10,000)=123,000 rub. Thus, Kuznetsov will receive 123,000 rubles of net profit.

Formula for calculating profit from sales

Let's calculate the profit from the sale of vacuum cleaners: Prpr = 3,400,000 – 840,500 – 1,450,500 = 1,109,000 rubles. If you subtract all other expense lines and tax deductions from the profit indicator, you get net income. back to contents What influences the volume of goods sold? Before you find out the sources of increased profit, it is worth understanding why it depends in the first place. There are two key categories that influence a company's profit: external and internal.
The internal category includes values used in the process of calculating profit, namely:

Level of sales of goods. If the sales volume of goods with a high profitability indicator increases, the profit indicator will increase. If you increase sales of goods with low level profitability, the profit margin will decrease.
Structure of the offered range of goods.

How to correctly calculate the net profit of an organization?

Why is the indicator used? The amount of net profit most reliably characterizes the efficiency of the enterprise. An increase in this amount compared to the previous period indicates the high-quality work of the company, a decrease indicates an incorrect policy of management personnel. The indicator is used by many internal and external users of information about the organization:

Owner and shareholders.
Using this data, the company owner evaluates the results of the enterprise's activities and the effectiveness of the selected management system. This amount is also used to calculate dividends and attract individuals as investors in the authorized capital.
Director. He evaluates financial stability companies, correctness management decisions, and also develops new development strategies.

Four ways to calculate profit

For example, last year, the company, as a result of its economic activity earned 150 thousand rubles. Consequently, the profit indicator increased by fifty thousand rubles, or thirty-three percent. Answering the previously posed question, the company was able to show more effective results during the past audit.

back to contents How to calculate profit from sales? During the profit calculation process entrepreneurial activity, a formula is used in which the coefficient acts as the difference between expenses and gross profit. Gross profit from sales is the difference between expenses (required to sell and create products) and flow revenue. Cost of sales includes only those expense lines aimed at the direct sale of the manufactured product or service offered.

Profit from sales of products - formula: Prpr = Vpr – UR – KR.

How to calculate profit margin

TO external reasons relate:

The indicator of deductions for depreciation.
Government regulation.
Natural conditions and situations.
The level of difference between supply and demand (market sentiment).
The initial price of raw materials and materials necessary for the production of a product for its subsequent sale on the market.

External factors do not have a direct impact on the profitability of the enterprise, but they can put pressure on the cost, as well as the final volume of goods sold. to contents Ways to increase profit ratio In light of market economy, companies have two in effective ways increasing profit levels.

What is enterprise profit and its types

The indicator directly affects profitability, which is why analysis of the balance of available funds is important for top managers.

Suppliers. It is especially important for them that the organization is able to pay for raw materials, and the indicator is used to assess the stability of the company. If she has little money, then some suppliers may refuse to enter into an agreement because they will not be sure of payment for services and materials.
Investors.

Based on the indicator, they consider the possibility of financial investments. The higher the amount of free income, the more attractive the company is for investors. First of all, they plan to receive additional income from shares.
Creditors.

Borrowers determine the solvency of the company. Money has the greatest liquidity, that is, the ability to be quickly sold.

Company profit: concept, types, calculation formula

Info

VAT; Debit 90-2 Credit 42 (reversal) – 13,222 rubles – the amount of the trade margin on goods sold is written off; Debit 90-2 Credit 41 – 51,000 rubles – the sales value of goods sold is written off; Debit 90-2 Credit 44 – 5000 rubles – sales expenses written off; Debit 90-9 Credit 99 – 442 rub. (51,000 rub. – 7,780 rub. – (–13,222 rub.) – 51,000 rub. – 5,000 rub.) – profit received from the sale. This option is needed for those who have different groups goods the markup is not the same. The difficulty here is this: each group includes products with the same markup, so it is necessary to keep mandatory records of turnover.

Gross income (GI) in this case is determined by the following formula: GD = (T1 x RN + T2 x RN + ... + Tn x RN) / 100, where T is turnover and RN is the estimated trade markup for groups of goods. Example 2 The accountant of Biryusa LLC has the following data: Balance of goods as of July 1, rub.
Trade turnover is understood as the total amount of revenue. Example: At Biryusa LLC, the balance of goods at sales value (account 41 balance) as of July 1 amounted to 12,500 rubles. The trading margin on the balance of goods as of July 1 (account balance 42) is 3,100 rubles. In July, products were received at the purchase price excluding VAT in the amount of 37,000 rubles.

Attention

According to the order of the head of the organization, the accountant must charge trade margin at the rate of 35 percent. Its amount for goods received in July was 12,950 rubles. (RUB 37,000 x 35%). The company earned 51,000 rubles from sales in July (including VAT - 7,780 rubles).

Selling expenses – 5000 rub. Let's calculate the realized trade margin using the formula РН = ТН / (100 + ТН): 35% / (100 + 35%) = 25.926%. Gross income will be equal to: VD = T x RN / 100 51 000 rub. x 25.926% / 100% = 13,222 rubles.

How to calculate profit as a percentage formula

As a result, this amount will be the result of his trading activities stationery supplies per month. This is the most basic example of calculating profit. In practice, a number of other indicators are used that help more accurately determine profit. These include exchange rates, seasonality, inflation and others. All this can significantly affect the profitability of the organization.

What affects sales profit? To develop options for increasing profits, you need to find out what it depends on. Profit is subject to internal and external factors. Key internal factors are:

trading revenue;
volume of sales;
cost of goods;
cost of goods;
costs of selling goods;
management expenses.

Entrepreneurs can influence these factors and change them if necessary.

With this option, the gross income is first established, and then the markup. The accountant must apply the formula that is given in the document: VD = T x RN / 100, where T is the total turnover; RN – estimated trade markup. The trade markup is calculated using a different formula: RN = TN / (100 + TN).

In this case: TN – trade markup as a percentage. Turnover refers to the total amount of revenue. Example 1 At Biryusa LLC, the balance of goods at sales value (account 41 balance) as of July 1 amounted to 12,500 rubles. The trading margin on the balance of goods as of July 1 (account balance 42) is 3,100 rubles.

In July, products were received at the purchase price excluding VAT in the amount of 37,000 rubles. According to the order of the head of the organization, the accountant must charge a trade margin of 35 percent on all goods. Its amount for goods received in July was 12,950 rubles. (RUB 37,000 x 35%).

Let's say there are raw materials, they are made from them finished product. The cost of raw materials, work, and other processes is 8,000 rubles, and the sold product costs 48,000 rubles. It turns out that the cost of the product is 8,000 rubles, it is sold for 48,000 rubles, the net profit is 40,000 rubles. How to calculate the profitability of the entire production as a percentage? And how to calculate the profitability of sales?

To avoid confusion, you need to separate income from profit. In this example, income is 48,000. We subtract the cost of 8,000 from the income of 48,000 and get a profit of 40,000. To determine profitability, divide the profit by the cost and multiply by 100, we get a profitability of 500. In this example, the profitability of production is 500 percent, but this is somewhere overseas. You need to incur business expenses, pay for delivery, other services, and the profitability may turn out to be much less. Some novice merchants are very surprised when customs does not allow their cheap goods to pass through, since they are too cheap and they take payments not according to the actual cost, but according to the cost of the goods from reference books, and the planned profitability drops significantly.

Dear commentators and the author of the question! But the question is tricky. The commentators drew the correct formulas. But, let's go down to the sinful earth and take a look at two documents - the balance sheet of the enterprise and the report on financial results. And what do we see there? And the income tax base (in the report) does not at all correspond to the amount of money in the account (the active part of the balance sheet). And, as a rule, the income tax base is much greater than the money in the account. But the money to pay the tax is withdrawn from the company’s account, which reflects the availability of money, but not from the account where the accountant entered the result of the activity. So what is the amount that should be considered profit? As soon as you understand this problem, then you can move on to calculating the profitability value. So think about it!

“Physical9 meaning of PROFITABILITY of a product: how many rubles of profit does each ruble of funds invested in the production and sale of this product bring.

In this case, P = [(48000 - 8000) / 8000] x100% = 500%

Everything here is quite simple if you consider the profitability of products, this is the ratio of profit to cost and express it as a percentage, multiply by 100%, and in this case 40000/8000*100%=500%, i.e. for every ruble invested in production it turns out 5 rubles. The figure is more than worthy.

Profitability products sold:

ROM = (profit from sales of products, works, services / Cost of products sold) * 100%

Return on sales (Margin on sales, Return on sales) is the ratio of operating profit (profit from sales, EBIT) of a company to its revenue (Sales).

ROS = EBIT/SALES = operating profit/Revenue × 100%

How to calculate interest on a deposit - the formula for calculating income for replenished, non-replenished and with capitalization

Happy holders of their own bank deposits could earn more on a bank investment if they did not neglect publicly available information on how to calculate interest on a deposit. After assessing the main parameter - the interest rate, you need to pay attention to other conditions on which capitalization depends. To do this, you need to understand the difference between simple percentages and complex ones. specific examples familiarize yourself with the calculation of the income amount for various types of savings.

According to the classic definition of finance, interest is understood as profit (remuneration) accrued and paid to the investor for the use of his funds. The purposes of use may be investments or any other activity involving the temporary alienation of these funds in favor of an interested party. Credit organizations make accruals in accordance with concluded agreements, using simple and the hard way calculation.

With simple accrual, the profitability of the deposit is determined by calculating percentages at a time for the entire account period or regularly at intervals, for example, once a month. The amount of monthly profit made according to this accrual scheme is accumulated in a special account, separate from the main body of the deposit without return. Simple % can be withdrawn at the end of each contract period.

When calculating compound interest when opening deposits, the investor's profit is formed by calculating interest on the amount increased by adding to the current deposit body the interest yield of the previous period (frequency of capitalization). At a fixed rate, compound interest is more profitable for the investor than simple interest. The disadvantage is that banks use restrictions in the deposit agreement when making withdrawals. This carries risks. For example, while the client is waiting for the end of the contract, a surge in inflation can eat up the entire return on a deposit of any size.

How to calculate interest on a deposit using a simple formula

if you have urgent need If you manage your funds by opening an investment at simple interest, it is best to calculate the profitability yourself according to the formula for calculating simple interest. In practice, you may encounter two types of bank savings based on replenishment: replenishable and non-replenishable by balance. How to calculate the numbers for each type is described below.

With payment of simple interest at the end of the contract term

S = (P x I x (T / K))/100;
S – profit margin;
P – investment size;
indicator I – annual rate;
T – placement period (calculate in days);
K – number of days in the current year;
Suppose a citizen decides to invest money for 180 days at an annual interest rate of 12%, the savings amount is 100,000 rubles, according to the above formula, the profitability can be calculated as follows: (100,000*12* (180/365))/100 = 5,916 rubles.

Calculation of deposit with capitalization

Sometimes circumstances allow you to receive additional money that you would like to save and increase by bank deposit. There is no need to open a new separate account. If there is an appropriate clause in the agreement, you can add money to the existing deposit. To check the correctness of the accrual with replenishment, use the formula that will help calculate the amount of the deposit with capitalization:

S = ((P x I x (T / K))/100) + ((P 1 x I x (T 1 / K))/100);
where the first and each subsequent component differ from each other by the variables P and T (the size and period of placement of the main body of the account).

Suppose a citizen invested money for 60 days at 12% per annum with the possibility of replenishment. The initial amount is 50,000 rubles. On the 20th day, the citizen tops up the account with 10,000 rubles. It turns out that 50,000 rubles were on deposit for 19 days (T). Starting from the 20th to the 60th day (20 days, T1), the body of the account amounted to 60,000 rubles. Interest on the deposit must be calculated as follows: ((50,000*12*(19/365))/100+((60,000*12*(20/365))/100 = 312.33+394.52=706.85 rubles

How to calculate income on a deposit with interest capitalization

Those who have come across microcredit organizations (MFOs) in their lives know that these creditors like to charge their debtors every day with interest on the balance, which inflates the amount of debt. A simple bank depositor cannot count on the same returns, but the profit from the bank's accrual of the amount to which the value of interest for the previous period (capitalization) is added is of particular interest. It is better to calculate the interest on the deposit amount yourself. This requires mastery of complex calculation formulas.

When assessing the offer of a credit institution and the size of the loan, which implies a non-replenishable account with monthly capitalization of interest, it is necessary to use the compound interest algorithm. If MFOs set a frequency of once a day, then banks start with three months and less often with one. If capitalization is carried out every quarter or month, profitability increases more significantly. Interest on deposits made at compound interest is calculated using the basic formula:

S = (P x I x (G / K))/100;
S – profit amount;
P – investment size;
I – annual interest rate;
G – period after which capital is replenished;
K – number of days in the current year.

Next, the resulting amount of profitability is added to the original body of the deposit, and the resulting figure is put into circulation again. For example, a citizen invested 100,000 rubles for a period of 90 days at 10% per year. Capitalization period is 30 days. The calculation of annual interest on deposits in rubles will be as follows:

The first month of interest accrual when the deposit is opened: (100,000*10*(30/365))/100=822.
Second month: ((100,000+822)*10*(30/365))/100=829.
Third month: ((100 822+829)*10*(30/365))/100=835.

Deposit with replenishment during the term of the agreement

An investment agreement with replenishment implies that after each separate period a certain amount of funds is added to the initial investment. The partial complexity of the formula for calculating income led to the development of special online deposit calculators for the profitability of replenished savings. If it is important for you to know how to calculate income, then check out the formula:

S = P additional*M / I*((1+I / M) M*n-1)+P*(1+ I / M) M*n;
S – amount of income;
P – initial amount of bank deposit;
P add. – replenishment amount;
I – annual interest rate (in hundredths, that is, it must be divided by 100);
M – number of capitalization periods;
n – deposit term (number of years);
Suppose a citizen deposits 100,000 rubles in the bank for one year. at 12%, he can afford to replenish his savings by 4000 monthly; upon expiration of the contract, the bank will have to return the amount: 4000*12/0.12*((1+0.12/12)12*1-1)+100000 *(1+012/12)12*1=163,412.52 rubles.

How to calculate deposit income taking into account the effective rate

Often, when assessing the profitability of savings, people pay attention to just one parameter - the advertised interest rate, written in huge font. IN best case scenario Some citizens have an understanding that % can be added to the balance and create a more effective accumulation than when accrued based on the results of the entire period. This is a superficial understanding that leads to an underestimation of one's benefits.

What is the effective deposit rate

This term is used by professionals financial market who understand that the bank attracts the client not only with one figure of the nominal interest rate, but also with the possibility of capitalization of interest, as well as bonuses for fulfilling conditions. The total high interest income, taking into account all the nuances, is called the effective rate. This parameter differs from the nominal rate specified in the contract. With a regular investment, the interest can be mechanically calculated, accrued and withdrawn at the end of the contract period.

good general idea How to calculate the effective interest rate can be obtained by analyzing the following calculation formula taking into account capitalization:

calculate the effective rate = ((1+(nominal rate/12) T-1)*12 / T;
T – number of months of investment;
for example, a citizen wants to place an investment for a period of two years with the condition of monthly capitalization, at a nominal rate &%;
The effective rate is: ((1+9%/12)24-1)*12/24)*100 = 9.82%.

Which deposits are taxable?

The method of calculating income tax on a deposit in rubles occurs if the interest rate exceeds the Central Bank refinancing rate by 10%. It is equal to 8.25, plus 10% will be 18.25%. If your investment earns more, you will have to pay tax. If the client has foreign currency savings, the tax is deducted at 9%, residents (35%) and non-residents (30%) are taxed. Money is paid only from the difference - if the rate is 20% per annum, then the tax will be calculated from 1.75%. There is no need to calculate the amount and fill out a declaration; the bank itself will deduct the money when paying income.

Net profit is a concept that applies to both small businesses and large corporations. Increasing this part of income is the main task of every businessman. To correctly calculate profit, you need to know its main indicators and be able to use a special formula.

This article will serve you step by step guide in net income calculation and data analysis.

Net profit: definition

Net profit is part of . This is the balance of funds after paying all mandatory taxes, fees, deductions and other payments. Due to the net share of profits, you can increase working capital, create various funds and reserves, as well as invest.

Net income is the main source of the enterprise’s budget, as well as its cash savings. This indicator allows you to stimulate the team and expand production. There are many ways to use this indicator. The management’s task is to correctly distribute available finances so that they continue to bring dividends.

Net profit indicators

In order for net profit indicators to work for the benefit of the company, they must be analyzed. This will help determine the effectiveness of each of them and the business as a whole. Based on the data obtained, you will be able to determine prospects for growth, equipment modernization and product range renewal.

It will also be possible to track how production volumes affect net profit. But first things first.

Revenue for the specified period

Analysis of this indicator is called horizontal. To study, you will need the current balance sheet of the enterprise, profit statements, financial plan companies. In some cases, it will be necessary to use other accounting documents.

You can analyze revenue for a month of operation, a quarter, or a year. It all depends on the scale of the business and the area in which it is represented. If these are direct sales, then every hour of work and the profit from it is important. If you are engaged in production, then it is enough to conduct such an analysis once a quarter or a year.

Thus, the revenue indicator within a certain time frame makes it possible to determine the profitability of the enterprise and develop an optimal strategy for further development.

Product cost

– an important comprehensive indicator that makes it possible to judge the effectiveness of the company’s use of its available resources and the level of organization of work at the enterprise.

The cost price is expressed in monetary format and allows you to determine the cost per unit of production. Typically, the final amount includes pre-production, manufacturing and distribution costs.

Analysis of the indicator makes it possible to determine at what stage production costs reach their maximum value and reduce them. This directly affects net profit, which can only be increased by reducing costs.

In reality, this could be the purchase of cheaper raw materials or free delivery of some components. It could also be benefits for electricity or water supply.

Calculation of net profit. Formula

Net profit is calculated within a certain period. The same as with the indicator total revenue it could be a quarter, a year or a month.

All data for calculating net profit is taken exclusively within the selected period of time.

The formula for calculating net profit is quite simple:

PP = AF + VP + OP – CH, Where

PE – net profit,

FP – financial profit,

VP – gross profit,

OP – operating profit,

VP = revenue – production cost;

FP = financial income – financial expenses;

OP = operating income – operating expenses.

Also, net profit can be displayed in the form of the following formulas:

PP = B (revenue) – SP (product cost) – Administrative and selling expenses – Other expenses – Taxes

PE = Profit – Taxes

The economic meaning of each of the formulas is the same, so you can use the one that seems most convenient to you. The first in this case is more detailed and will allow you to calculate all components of your income.

According to statistics, the normal net profit in business is about 14%. If this value is less, then the enterprise can be considered unprofitable. If the net profit is completely negative, then the business is definitely operating at a loss.

However, this is considered normal when a startup has just embarked on its development path and has not yet managed to return the invested funds.

Calculation example

We offer you a simple example of a business - a small publishing agency. The total profit from the books sold for the month was $20 thousand. The rights to publish some works and some custom advertising materials were also sold. This brought in another $7 thousand and $3 thousand respectively.

The company's total profit was:

$20 thousand + $7 thousand + $3 thousand = $30 thousand

The publishing house's total expenses for the current month amounted to $13 thousand.

Based on these data, you can determine net profit (NP) by simple subtraction.

$30 thousand - $13 thousand = $17 thousand.

The company received a net profit of $17 thousand.

Case Study

A company's income can be very different. This includes the sale of products and the sale of services. Also, income can be interest on deposits, etc. In our case, the publishing house receives income not only from the sale of books, but also the rights to various materials, custom advertising production.

It is worth considering that if any of the clients needed to pay monetary compensation, the amount would be deducted from the total profit.

In number total costs many indicators are also included. Include all funds spent during the reporting period. Using the example of a publishing house, this means purchasing raw materials, paying workers, electricity, renting space, etc.

As for the net profit received, in the publishing house it can be used to purchase new equipment, for example, printing presses. This will lead to an increase in the number of products produced and, in the future, to additional profits.

Thus, a one-time investment turns into a long-term investment, which in the future will help increase net profit.

Conclusion

Net profit is not just money earned, but effective tool to develop your business. If used correctly, you will ensure rapid growth and development for the company.

Net profit can be used for the following purposes:

replenishment of inventories;
innovation development;
renewal of production assets;
creating reserves;
investments;
charity;
staff development.

Return at least part of the net profit received to the business. This will lead to a stable increase in the indicator up the chart.

By tracking the dynamics, over time you will be able to enter the international arena and attract foreign investors to your project.

Business is endless statistics and graphics. Control your net profit and other indicators of your income and your business will flourish!

Noskova Elena

I have been in the accounting profession for 15 years. She worked as a chief accountant in a group of companies. I have experience in passing inspections and obtaining loans. Familiar with the fields of production, trade, services, construction.

Revenue from sales

The main goal of any business activity is to obtain maximum profit minimal costs in terms of time and resources. This is why it is important to look for ways to improve profitability and profitability from sales. In order for the data obtained to be as relevant as possible, you should understand the main factors influencing the key ones.

The possible amount of monetary benefit from is a key indicator in any project, because with its help you can determine whether it will be beneficial to its creator, otherwise there is no point in launching production and sales if they do not bring the desired result.

Calculating possible profits before starting production will help adjust the business plan taking into account new circumstances and factors, and minimize possible risks and unexpected.

It also helps solve the following problems:

reduce commercial and administrative expenses,
reduce or remove unprofitable goods from production,
amend the business plan,
maximize sales levels.

After making calculations using the chosen method, you can get the possible amount, but it does not fully understand whether the business is successful or not. For this, it is much more important to know the return on sales, which is a percentage of the income received per unit of expenditure (how much you can earn by spending 1 ruble).

Most often in practice, the so-called combined method is used, which is a combination of direct or analytical methods.

Profitability leverage

This method consists of calculating a critical indicator, having crossed which, the enterprise begins to receive net income. This is a coefficient that takes into account factors (cost, assortment, production volume) under which the activity does not generate income, but does not incur losses.

Formula: Profitability Leverage Ratio = Contribution Margin/Total Profit.

Based on this coefficient, the company draws up its business plan so that the invested resources bring maximum benefit in its pure form.

Enterprise profitability factors

The first group is internal factors, which are taken into account in the primary calculation of profit and depend on the company’s decisions:

cost per unit of production - the higher this indicator, the higher the profit;
sales volumes;
assortment - the higher the production of unprofitable products, the lower the profit and vice versa;
related expenses necessary for the sale of goods;
cost - a low indicator increases the level
external factors are conditions in the sales market that do not depend on the company’s actions;
market conditions – the level of supply and demand for a specific product;
economic climate in the country;
cost of raw materials (in case of own production);
the amount of regular payments and deductions (loan payments, debts, etc.);
natural factors influencing the production and sales process;
force majeure circumstances preventing the timely release or delivery of goods;
state policy in relation to – the amount of taxes, restrictions, fines, benefits, etc.

All these reasons are interconnected and influence each other. For example, reducing the cost and increasing the price of a product can have the opposite effect: instead of increasing, the level of sales will fall, because no one will buy a low-quality product at inflated prices. Especially if there is a wide variety of similar products on the market. affordable price from competitors.

Calculation for the planning period

When forecasting profit for the planning period, it is important to take into account the amount desired, so that on the basis of this data it is possible to determine the volume of product production and the cost of one unit.

Most affordable way such calculation - taking into account profitability. Knowing the profitability ratio, you can begin to calculate profitability:

P = B * C * P, where B is the quantity of products produced in the planning period, C is the price at which one unit of goods is sold, P is the profitability of this product as a percentage.

Ways to improve performance

Increased profit margins

You can increase your profit ratio in one of two ways: increasing sales or decreasing.

First of all, you can go by increasing the range and volume of products. During production, determine which product from the entire array has highest profitability and popularity with customers, and concentrate on its implementation. However, this method will be effective only if there is constant demand for the product.

A more common situation is when there is no demand for a product that is profitable in terms of profitability - in this case it is worth looking for additional sales routes:

involve advertising agencies;
introduce promotions and special offers;
find new partners;
open points of sale;
improve appearance products, etc.

If an entrepreneur produces his product himself, you can try to reduce costs: find cheap raw materials, optimize labor costs by automating production and introducing new technologies, as well as establishing fast and affordable transportation of products to points of sale.

Whatever option you choose to calculate possible monetary benefits, it is worth remembering that these are just approximate data that need constant adjustment and clarification, taking into account factors that arose directly during the implementation.

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Answer

Any company is opened for the purpose of making profit and earning money. However, this concept itself is quite vague, so it is worth considering it from different angles in order to separate each meaning from each other.

A good manager must have a good understanding of the terms and be able to independently calculate the profitability of the enterprise. Initially, such work may seem difficult, but in reality this is not entirely true.

What is profit?

Profit or, in other words, gross income is the main source Money any enterprise. It enters the company’s assets in the form of cash and non-cash funds through:

sales of goods;
provision of services.

All material costs, which are paid from these funds, are not included in the concept of profit. Any company should strive to obtain the largest volume of it.

Gross income is an estimate. Even an enterprise that can only cover expenses with its own profits will be considered unprofitable. In this case, the very meaning of the existence of such an organization is lost.

This situation gives rise to only two solutions:

carrying out fundamental reforms;
closure of the enterprise.

In addition, we should not forget that profits provide profitability to the state through direct taxation.

Income tax is widespread throughout the world and differs only in rates for various categories of taxpayers.

If we talk about income in general, then they perform certain functions:

They act as a criterion for assessing the activities of a particular company (the higher the profit, the better the company operates in its segment).
Act as a development incentive (any entrepreneur strives to increase profits, which means to work better and with greater efficiency).
Determine the difference between spending and earning.

With high and stable profits, the enterprise, as a rule, develops: new equipment is purchased, new specialists are hired, areas are expanded, and new technologies are introduced. And this ensures the growth of the state’s economy.

Main types of profit

Let's talk about different types of profit. These concepts must be clearly separated.

Gross

The most important indicator of a company's development is gross profit. It is according to its value that the work efficiency is calculated.

Gross profit is the difference between the amount received from the sale of goods and services and their cost.

It is calculated using the formula: VP=Vyr-Seb, where:

VP - gross profit;
Seb - the cost of goods and services.

For example, consider data from financial report one of the enterprises. They are shown in the table below.

We calculate gross profit: 220,000 - 75,000 = 145,000 rub.

Profit analysis is a very important issue. Any large company interested in its development in the market carefully studies all types of profit and considers their dynamics as the main indicator of stability.

Marginal

Another concept of profit lies behind the word “marginal”. This income is essentially the difference between the profit from the sale of goods and services of the company (excluding value added tax) minus variable costs. The calculation formula is as follows:

MP=Vyr-PZ

MP - marginal profit;
Vyr — revenue from the sale of goods and services;
PZ - variable costs.

Accounting in Russia does not allow for the allocation of variable costs to a certain volume of production. That is why technological costs are taken for them.

An example of the calculation is as follows: if it is known that the cost was 40,000 rubles, and the revenue was 120,000, then the marginal profit = 120,000 - 40,000. Total is 80,000 rubles.

If everything is very clear with revenue, then the concept of variable costs should be clarified. So, they mean the following expenses:

payment wages employees;
funds spent on raw materials for production;
payment for electricity, gas and water;
other expenses.

As production expands, marginal profit increases and variable costs decrease. This concept is often called the coverage contribution, since it is a source for:

formation of new profit;
coatings fixed costs for the work of the company.

The size of the marginal profit directly affects the amount of net income of the company.

operating room

This type of profit is not typical for accounting and economic accounting at Russian enterprises, however, having come to us from Western analytics, this concept has become stronger today. Let's figure out what exactly is meant by this definition.

Economists are increasingly encountering the concept of EBIT. It denotes operating income, and is literally translated as profit before interest and taxes are paid. The indicator is determined using the following formula:

OP=VP-KR-UR-OtherR+PVyp+OtherD

OP - operating profit;
VP - gross profit;
KR - commercial expenses;
UR - management costs;
ProchR - other expenses;
ПВйп — interest payable;
ProchD - other income.

Let's look at an example of a calculation based on a table with row codes. Based on it, it is very convenient to calculate the results.

Index	Code	2015
Gross profit	2100	200 000
Management costs	2220	30 000
Commercial costs	2210	11 000
Other expenses	2350	5 000
Other income	2340	3 000
Interest payable	2330	17 000

Let's perform a simple calculation using the formula: 200,000 - 11,000 - 30,000 - 5000 + 17,000 + 3000 = 174,000 rubles.

The definition of operating income is very difficult for us to understand, but if you understand it, you can calculate the effectiveness of any type of company activity.

Below we will look at the term balance sheet profit, which is directly related to operating profit. If balance sheet income is known, then the formula for calculating operating income will be simple:

OP=BP+PVyp, where:

OP - operating profit;
BP is book profit;
ПВйп — interest payable.

The calculations here are directly related to the interest payable, and if there is none, then it is advisable to calculate the balance sheet income.

Balance sheet

The balance sheet profit indicator is extremely important when paying taxes. It is very similar to the operating room. This is the type of income that is received before taxes are paid.

Balance sheet income is an indicator of a company's performance and financial results. The formula is:

BP=Vyr-Seb+ProchR+ProchD

BP - balance sheet profit;
Vyr - revenue;
Seb - all costs of production costs;
ProchR - other expenses;
ProchD - other income.

As an example, consider financial statements with row numbers according to the table. And we will solve the problem using the existing formula.

We calculate: 200,000 - 60,000 + 5000 + 1000 = 146,000 rubles.

This indicator is reflected in the reporting. If calculated incorrectly, it can not only distort the results, but also cause fines to be imposed.

Clean

The definition of net profit is quite simple. It reflects income received after paying taxes and other expenses. Calculation formula:

PE=Vyr-Seb-UR-KR-ProchR-Tax, where:

PE - net profit;
Vyr — revenue from the sale of goods and services;
Seb - cost of goods and services;
KR - commercial expenses;
UR - management costs;
Other — other expenses.

You can take another formula as a basis, based on profit values:

PE=FinP+VP+OP-Tax, where:

PE is pure profit;
FinP is financial profit;
OP - operating profit;
VP - gross profit.

Let's look at an example:

Index	Code	2015
Revenue	2110	200 000
Cost price	2120	60 000
Commercial costs	2210	11000
Management costs	2220	13000
Other income	2340	5 000
Other expenses	2350	1 000
Balance sheet profit	2300	146 000
Income tax	2410	15100

We calculate: 200,000 - 60,000 - 13,000 - 11,000 - 1000 - 15100 = 99,900 rubles.

According to the concept, the amount of net profit is the balance in the company’s account, which will be an indicator of its efficient work. The higher this indicator, the more significant the growth. If this indicator falls over time, this indicates a decrease in efficiency.

Net profit is analyzed by two popular methods:

Statistical. According to this analysis you can make a forecast of changes in the profitability indicator.
Factorial. Essentially, it defines the most important factors influencing the growth of net profit.

The ratio of types of profit

Direct relationship between various types profits are obvious. Even on the basis simple formulas calculations, you can see that often one indicator is correlated with another. This is no coincidence.

When conducting accounting losses and profits are reflected in a document of a certain form “Report on Financial Results”. This information should always be on hand. The calculation of one type of income may depend on the estimate of another. For example, income from the sale of goods is directly related to gross profit.

How to calculate profit from sales?

Return on sales is calculated based on profit. It is very important to understand what percentage profit a company receives by spending certain amounts. The formula used for this is:

Pp=VP-UR-KR, where:

Pp - profit as a percentage;
VP - gross profit;
KR - commercial expenses;
UR - management costs.

Below is a table based on the example of the sale of one unit of goods for the billing period:

To determine the amount of net profit, you need to subtract tax deductions and other expenses from the amount of profit from sales.

Factors on which the amount of profit depends

It is economically justified to divide all factors affecting profit into two main groups:

external;
internal.

They are considered separately, since they have little connection with each other. Let's talk about external factors.

Among them are:

the general situation on the market, the level of supply and demand (in other words, market conditions);
influence of government policy (tax rates, regulation of tariffs, fines, provision of benefits, etc.);
natural conditions;
market price level;
norms of depreciation expenses.

As for internal factors, they are divided into production and non-production. The first ones are those that directly relate to objects labor activity And financial resources. And the latter depend on the activities of supply and sales, as well as the parameters of working conditions.

Among the internal factors are:

competitiveness of goods and services on the market;
labor productivity;
quality of management;
planning efficiency;
level of labor organization and management;
rational use of resources.

Some factors affect profitability directly, while others indirectly.

Analysis of the results obtained

Economic analysis in manufacturing is very important. Even if a company is just getting on its feet, it is necessary to carefully study the profits made and, if possible, make forecasts.

All this is the work of an accountant. Analysis of the activities of any company is accompanied by a tax report for each period. In this case, the enterprise should be considered as a separate entity. Another thing is how well the market was initially analyzed based on:

cost of goods;
its value on the market;
influence of competition, etc.

The quality indicator, which is income, directly depends on this. How the company will develop in the future depends on the competence of management and economists. Analysis allows you to find the right solutions for any development of the situation.

Any enterprise operates with the goal of generating income. Knowledge on this topic is never superfluous. Today the market is developing rapidly, a huge number of factors can influence this. This is why it is so important to analyze and always keep your finger on the pulse.