What is profit, types. Profit

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 provide you with a step-by-step guide to net income calculation and data analysis.

Net income: definition

Net income is a part of . This is the balance after payment of all mandatory taxes, fees, deductions and other payments. Due to the net share of profits, you can increase working capital, form various funds and reserves, and invest.

Net income is the main source of formation 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 task of management is to correctly distribute the 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 the prospects for growth, equipment modernization and assortment renewal.

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

Revenue for the defined period

The analysis of this indicator is called horizontal. To study in, you will need the current balance sheet of the enterprise, income statements, and the financial plan of the company. In some cases, it will be necessary to use other accounting documents.

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

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

Production cost

- an important complex 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 terms and allows you to determine the cost per unit of production. As a rule, the final amount includes the costs of preparation for production, manufacture and sale.

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

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

Calculation of net profit. Formula

The calculation of net profit is carried out within a certain period. As well as with the indicator of total revenue, this can be a quarter, a year or a month.

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

The formula for calculating net income is quite simple:

PE \u003d FP + VP + OP - CH, where

PE - net profit,

FP - financial profit,

VP - gross profit,

OP - operating profit,

VP \u003d revenue - cost of production;

FI = financial income - financial expenses;

OP = operating income - operating expenses.

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

NP = B (revenue) - SP (production cost) - Management 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 one in this case is more detailed and will allow you to calculate all the components of your income.

According to statistics, the normal net profit in business is about 14%. If this value is less, then the company 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 the path of its development and has not yet managed to return the invested funds.

Calculation example

We offer you a simple business example - a small publishing agency. The total profit from books sold for the month was $20,000. The rights to publish some works and some promotional materials to order were also sold. This brought in another $7,000 and $3,000, respectively.

The company's total profit was:

$20K + $7K + $3K = $30K

The total expenses of the publishing house for the current month amounted to $13,000.

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

$30K - $13K = $17K

The company made a net profit of $17,000.

Example Analysis

The income of the company can be very different. This is both the sale of products and the sale of services. Also, interest on deposits, etc., can act as income. In our case, the publishing house receives income not only from the sale of books, but also the rights to various materials, and the production of advertising to order.

It should be borne in mind that if any of the clients needed to pay monetary compensation, then the amount would be deducted from the total profit.

The number of total costs also includes many indicators. Include in them all the funds spent during the reporting period. On the example of a publishing house, this is the purchase of raw materials, the remuneration of workers, electricity, the lease of space, and so on.

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 profit.

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

Conclusion

Net profit is not just earned money, but an effective tool for developing your business. With proper use, you will ensure the rapid growth and development of the enterprise.

Net income can be used to:

• replenishment of inventory;
• development of innovations;
• renewal of production assets;
• creation of reserves;
• investments;
• charity;
• staff development.

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

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 net profit and other indicators of your income and your business will flourish!

Profit is the main and most important financial indicator of the economic activity of the enterprise.

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The effectiveness of its work, as well as solvency and liquidity, depend on it. In addition, profit is a source of self-financing of the organization, and to a large extent affects the pace of modernization and automation of production.

Definition of profit

Any commercial activity is aimed at generating income, which largely covers the losses incurred. It is the “net” income received from any type of activity that is called profit. Many people mistakenly believe that revenue equals profit.

Revenue and profit are a significant difference, so you should not equate them to each other.

If we consider a narrow concept, then profit is the difference between the proceeds from the sale of products and the costs incurred for its production and sale. However, in fact, the concept of profit is much broader, since its final result is made up of a set of “net” income from various types of activities. Therefore, in all enterprises, importance is attached to the structure of profits.

Structure of the indicator

As noted above, the total profit of the organization consists of individual elements.

These include:

• profit from the sale of products and services in which production specializes;
• profit from the sale of other goods and services that may be obtained as a result of side activities;
• results of operations with fixed assets and other property of the organization;
• profit or loss from non-operating activities (results of currency revaluation, transactions with the company's securities, etc.).

The most important component is the profit from the main activity, i.e. from the sale of goods and services.

It is on this indicator that the final result of the activity largely depends. This indicator is subject to careful analysis and, as a result, the identification of ways to increase it.

Functions

In order to conduct a successful analysis of economic activity and to understand the definition of profit more deeply, it is important to know the main functions that it performs.

1. The first thing to know is that profit characterizes the final result of activity. Those. in other words, if there is a profit, then this directly indicates the efficiency of the enterprise and its stability, which is its economic essence.
2. The next function is stimulating. Since profit is the main source of cash injections, the organization is interested in maximizing it. Maximization of "net income" will effectively affect the growth of wages of employees, the rate of renewal of fixed assets and the introduction of new technologies, as a result of which the level of production will increase, which will give an even greater effect in the end.
3. The amount of profit plays a significant role not only for the organization itself, but also for the state, since it is at the expense of the formation of budgets of different levels. Since taxes are paid from profits, they go to the budget of the country, as well as to the budgets of local levels, which contributes to their full formation and use for social needs. Such a function is called fiscal.
4. In the conditions of market relations, profit can also have an estimated function, since the size of its value directly proportionally affects the market value of the organization, and, consequently, its competitiveness in a particular industry.
5. You can also highlight the control function of profit. If it is absent, this means that the company incurs losses. This signals the immediate need to take measures to optimize the financial situation and re-profiling production.

See also the video, which tells in detail about the concept of profit

Types and their differences

The end result of financial activity can be of different types, according to which it is classified depending on various characteristics.

For example, from the sources of its formation are distinguished:

• sales profit,
• profit from operations with securities,
• non-operating profit,
• profit from investment and financial activities, etc.

You can also structure the concept according to other criteria:

• Depending on the method of calculation used by organizations. You can find indicators such as marginal, net and gross profit.
• According to the nature of the payment of taxes: separate taxable and non-taxable profits.
• To analyze financial activity: use such concepts as profit of past years, profit of the reporting and planning period, nominal and real profit.
• By nature of use: allocate capitalized and distributed profits.

Each individual indicator is calculated according to a specific formula and is used in each specific document. Therefore, it is important for a good specialist to know all aspects of calculating any type of profit.

Some may argue that income is a form of profit, but it is not.

Income differs from profit in that it does not include deductions for the costs and expenses of the business.

On what does its value depend?

Profit is a variable value, and various factors influence its size to one degree or another. Some of them indirectly reduce or increase the amount of profit, this value depends on others directly.

Factors

All factors influencing the change in profits are usually divided into two main groups: external and internal.

Internal are further subdivided into two subgroups - production and non-production.

• The very definition of "production" indicates the influence of precisely those factors that are associated with the production activities of the enterprise. These include the level of technology used, the volume of products, its quality, the qualifications of production personnel, capacity utilization, product turnover, etc.
• Non-production factors indirectly affect the final result of the activity, but they also need to be given special attention. These include the level of interaction between employees of the organization at various levels of the hierarchy, the speed of staff response to changes in production conditions, the work of the supply and logistics structure, effective management, and much more.

External factors that affect the amount of profit include those that are outside it. They also have an indirect value, but can significantly affect the efficiency of the firm.

These include:

• demographic situation in the country
• market conditions,
• the inflation rate and the monetary policy pursued by the state,
• the level of taxation
• remoteness from the necessary raw materials,
• the level of socio-economic development of the country.

As you can see, the amount of profit depends on a huge number of factors, many of which are quite unpredictable.

Therefore, each organization should conduct a thorough analysis to study the factor, as well as assess the degree of their influence on the final result of the activity.

Artificial measures to increase

The main task of the organization's management is profit maximization. To do this, it is necessary to develop a set of measures to achieve the greatest efficiency at the lowest cost.

Methods to increase profits include the following:

1. Optimization of inventory and stock balances. It is necessary to analyze the range of manufactured products and identify products that are least in demand and take measures to withdraw them from circulation.
2. Development of an effective management system that will increase sales. Here, special attention should be paid to segmenting the market depending on the purchasing power of the subjects, which will allow each type of product to be sold in the region where it will be in greatest demand.
3. Implementation of automated production systems that will help reduce personnel costs, as well as increase productivity and output.
4. Implementation of a waste-free production system.
5. Analysis of the rationality and efficiency of the use of enterprise funds.

These and many other methods will significantly increase the amount of profit received, as well as increase the important financial indicators of the organization.

How to calculate profit?

Calculation formulas

Let's give an example of calculating various types of profit.

As already noted, the most common indicator is the gross profit (Pv).

The calculation formula is as follows:

Pv \u003d Vyr - C / s;

where vyr- is the proceeds from the sale of products, works, services;

S/s- cost of goods sold.

Based on the gross profit, you can calculate the profit from sales (Ppr):

Ppr \u003d Pv - Ru - Rk;

where RU– administrative expenses;

Rk- business expenses.

The total profit (Po) from all types of activities is calculated as follows:

Po \u003d Pv + Pi + Pf + Pin;

where Pi, Pf and Pin– profit from investment, financial and other activities.

Taxable income (Pn) is calculated according to the following formula:

Mon \u003d Po - Nn - Plg;

where Hn- property tax;

Plg- discounted income.

After paying all taxes and other payments, the company has at its disposal the net profit that it can spend on its own needs.

Net profit (NP) is calculated by the formula:

ChP \u003d Po - Np (+/-) Pd / r;

where Np- the amount of income tax;

Pd/r- other income and expenses.

What does the analysis of the indicator give?

Profit analysis is an important step in financial and strategic planning. It is necessary for an objective assessment of the activities of the enterprise, as well as for the development of measures to reduce costs, thereby increasing net income. In the course of the analysis, indicators are calculated that are "reference points" for making certain financial decisions.

The most common is the factor analysis of profit. It shows what has the greatest impact on the final result. In the course of this, a multifactorial model is compiled, on the basis of which it is calculated how profit will change when a certain factor is exposed.

In any case, profit analysis allows you to develop measures to increase it.

For example, by analyzing the profit from sales, possible ways to reduce the cost of production, as well as expand the sales market, which will increase revenue, and, accordingly, net income, are explored.

Often, such a concept as marginal income is used for analysis. This indicator reflects the required amount of revenue that will cover all costs, i.e. shows "zero profit".

Based on the marginal income, the break-even point of the enterprise and the possible effect of using financial leverage are calculated.

All the data that is necessary for analysis is reflected in accounting in the balance sheet and income statement.

Accounting aspects of the issue

In accounting, the profits and losses of the enterprise are reflected in a special form “Report on financial results” of form No. 2. It serves to record profits from all types of activities, as well as to calculate the taxable and net profit remaining at the disposal of the enterprise.

Formation

This is the most important stage of financial planning in the enterprise. It starts from the moment the products are launched into production and ends with the receipt of funds to the enterprise's account. Here it is important to correctly balance the upcoming income and expenses of the organization in order to predict its future work.

At the planning stages, certain conditions should be observed that will allow the rational use of funds:

• to study the need to additionally attract borrowed funds to increase profits;
• determine the most priority areas for the use of financial resources, depending on the needs of the organization;
• develop effective ways to use capital investments to increase the profitability of the entire production as a whole;
• establish threshold values ​​for the minimum profit received, which will allow you to quickly respond to any changes in economic activity.

Taxation

Profit as a qualitative indicator of the efficiency of the enterprise, characterizes the rationality of the use of means of production, financial, labor and resources. An enterprise that does not make a profit in a market economy will deplete resources and go bankrupt.

The goal of any business is profit. Profit is a qualitative indicator of the effectiveness of the enterprise, which characterizes the rationality of the use of the means of production by the enterprise, as well as financial, labor, material resources.

An enterprise can make a profit only by producing goods or services that are in demand and satisfy the needs of society. Moreover, the price of these goods and services will play a significant role - it must correspond to the solvency of consumers.

As for the enterprise itself, pricing for it is carried out taking into account costs. An acceptable price for the company's products is possible only if the company does not exceed a certain level of costs. As a result, the amount of consumed resources and costs should be less than the revenue received. This will mean that the company is operating at a profit.

If an enterprise operates without making a profit, then, in a market economy, it will deplete its resources and leave the production sector, becoming bankrupt.

Profit reflects the net income of the enterprise and performs the following functions:

• characterizes the economic effect of the enterprise. If the enterprise makes a profit, this means that all production costs are covered by income;
• has a stimulating function, as it is the basis for further expansion of production, its improvement, as well as for increasing the wages of employees and paying dividends to owners and shareholders;
• is a source of replenishment of budgets of different levels, forming the financial resources not only of the enterprise itself, but also of the state as a whole.

Maximum profit and its sustainable growth is the most important condition for the prosperity of not only a particular enterprise, but also the national economy as a whole. Thanks to profit, the company can increase its scale, strengthen its position in the market. As a rule, this process is accompanied by the renewal and improvement of the enterprise itself. This is the general purpose of entrepreneurship.

In the economic sense, profit is calculated as the difference between cash receipts and payments, in the economic sense - as the difference between the property status of the enterprise in question at the end and beginning of the billing period. Since there is a difference between the economic and accounting approach to the costs of the enterprise, a distinction is made between economic and accounting profit.

• Accounting profit is equal to the total income of the enterprise minus accounting (explicit) costs;
• Economic profit is equal to total income minus economic (explicit + implicit costs),
• Economic profit equals accounting profit minus implicit costs.

There are different types of profit:

• Gross profit is the amount of profit (loss) of an enterprise from the sale of all types of enterprise products (services, works, property), as well as income from non-sales operations (minus the amount of expenses on them). Gross profit is an indicator of production efficiency.
• The profit (loss) from the sale of products is equal to the proceeds from the sale (excluding VAT and excises, as well as indirect taxes and fees) minus the costs of production and sale (included in the cost of this product). If, under conditions of stable wholesale prices, the profit of the enterprise increases, this indicates a decrease in the total individual costs of the enterprise for the production and sale of products. Sales profit is an indicator of the main activity of the enterprise, i.e. activities for the production and sale of their products.
• Profit before taxation (or balance, accounting profit) - is reflected in the balance sheet of the enterprise, is the final financial result of the enterprise; is revealed through the accounting of all its business transactions and the evaluation of balance sheet items. Accounting profit is an indicator of the effectiveness of all economic activities of the enterprise.
• Taxable income is calculated during tax accounting within the framework of the current legislation, is the basis for determining the taxable base.
• Net profit (loss) for the reporting period (or profit for distribution) is that part of the profit that remains with the enterprise after paying all taxes and obligations and is used for the needs of the enterprise (production development, social needs, etc.).

In addition to those listed, many other types of profit are used in the scientific economic literature. Specialists pay much attention to the analysis of profit, that is, the analysis of the financial results of the economic activity of the enterprise, using various approaches and the degree of detail.

Financial performance indicators clearly demonstrate the effectiveness of the enterprise in absolute terms, which is important not only for the enterprise itself, but also for those interested in its activities. For example, this analysis will help the management of the enterprise to identify the prospects for the further development of the enterprise, since the most important source of financing for these purposes is profit.

The main tasks of profit analysis:

• justification of the planned profit in accordance with the volume and cost of products sold;
• profit assessment in accordance with the business plan;
• calculation of the influence of various factors on the deviation of the actual profit from the planned one;
• identification of reserves for profit growth and ways to use them.

The analysis of financial results is carried out in several directions:

• horizontal analysis consists in studying changes in the value of indicators for the analyzed period;
• vertical analysis is an analysis of the structure of profit indicators, as well as their structural dynamics;
• factor analysis, consists in identifying factors and sources of profit growth and their quantitative assessment;
• assessment of profitability indicators in dynamics.

The following sources are used to analyze profits: the balance sheet of the enterprise, the income statement, the accounting register and the financial plan of the enterprise.

Important for the enterprise is the analysis of the "quality" of profit, that is, the structure of the sources of its formation.

The high "quality" of profit means an increase in production volumes with a simultaneous decrease in its cost. With a low “quality” of profit, there is no growth in the volume of manufactured products; at the same time, there is an increase in selling prices for these products.

For the enterprise it is necessary to strive to reduce the cost of production in order to improve the "quality" of profit. Thus, the "quality" of profit characterizes the effectiveness of the company's use of available reserves. The most important aspect of profit analysis is the determination of the break-even, or critical, volume of production and sales. The volume will break even if the total cost of production is equal to the proceeds from its sale. In this case, the company does not receive any loss or profit from the sale of products.

This situation is also called the profitability threshold or the break-even point (critical point). To achieve the threshold of profitability, it is necessary to produce and sell such a volume of products that, due to the amount of proceeds from sales, cover the variable and fixed costs of the enterprise.

To make a profit, you need to increase production and sales. If this volume is less than the critical one, then the enterprise will receive a loss. Only on the basis of profit analysis it is possible to develop the right management decisions, develop business plans, etc. This is true for any enterprise, regardless of their size, type and scale of activity, as well as the form of ownership.

This article is devoted to deciphering concepts that seem to be synonyms. It will be about profit, revenue and their types.

Definition and calculation formula

profit It is customary to call the difference between the proceeds from the sale of goods / services and the costs of their production / provision.

Profit is an important economic indicator that serves to reflect the effectiveness of entrepreneurial activity.

Profit and revenue are not the same thing. The formula for calculating profit is very simple:

Revenue - Expenses = Profit

Net profit

Net profit is the money that remains with the enterprise after various deductions, taxes and other payments are deducted from the balance sheet profit. Net profit is a source of financing for production processes. It also forms reserve funds, and it is due to it that working capital increases.

The main factors affecting the volume of net profit are:

• the amount of tax and other payments;
• company's income from the sale of goods/services;
• cost price.

How to Calculate Net Income

The volume of net profit is calculated in several stages.

1. 1. The first step is to calculate how much money was spent on the production of goods (the cost of the material is also taken into account).
2. 2. Then you should make a calculation. Gross income is the result of subtracting production costs from revenue (i.e., funds received by the enterprise as a result of the sale of goods).
3. 3. This is enough to find out the amount of net profit:

   To calculate net income, you need to subtract mandatory deductions (taxes, etc.) from gross income.

Gross profit

To calculate gross profit, you need to subtract the cost of goods from the amount received by the enterprise as a result of its sale.

What is the difference between gross profit and net profit? And the fact that all tax and other deductions are “included” in the gross.

For the correct calculation of gross profit, it is necessary to accurately calculate the amount of expenses, including and.

Cost price is the company's cost of producing the product.

Factors affecting profit

Factors affecting the volume of gross profit are divided into two groups: internal and external. Internal depend on the management of the enterprise. Here they are:

• trading performance;
• improving the quality characteristics of the goods;
• increase in production volume;
• reduction of production costs;
• rational (most efficient) use of production capacities;
• work to expand the range;
• effective advertising campaign.

As for external factors, management cannot influence them. Let's list them:

• location of the enterprise;
• ecological situation in the region;
• natural features;
• business support by the state;
• political situation in the country and the world;
• features of the economy (country and world);
• provision of transport and necessary resources.

What is the revenue

Revenue is what a business receives from the sale of goods or services. It is no wonder that any company seeks to receive revenue. Revenue and profit, as already mentioned, are not identical concepts, because profit is the difference between revenue and expenses.

Sources of income may vary. There are the following types of revenue (based on its source):

1. 1. Revenue from the sale of a product or service. It includes all the funds received by the enterprise as a result of the sale of its products within a certain period.
2. 2. Investment income.
3. 3. Revenue received as a result of financial transactions.

total revenues is the sum of funds received from all these sources.

About gross revenue

Gross revenue is the total income received by the company as a result of the sale of goods, as well as other operations not related to the sale. However, the main component of gross revenue is sales revenue. The following formula is used to determine gross revenue:

BB = Quantity of item * Unit price of item

Since gross revenue does not take into account production costs, it cannot be considered the main indicator of the company's performance. But when it comes to a comprehensive assessment of performance, gross revenue is also taken into account.

To summarize, let's look at the formula again. So:

Profit = Revenue - Expenses

This formula shows that profit and revenue are not synonymous. When calculating profit, all expenses of the enterprise are taken into account, and not just the cost of goods. In addition, the profit can be negative.

The main indicator reflecting the financial result of the functioning of the organization is profit. There are several basic types of profit, on the basis of which an enterprise development strategy is built.

Like any absolute indicator, profit reflects a specific value that cannot be compared with the results of other enterprises. But it is convenient to analyze profit in dynamics for several periods.

Types of profit

Russian accounting allocates and accepts the following types of profit for taxation purposes:

• revenue;
• gross;
• from sales;
• before tax;
• clean.

European microeconomics brings two more types of profit into Russian practice – marginal and operating.

The base indicator is , because it reflects the primary income of the enterprise. Next in decrease is (minus variable costs), (minus the cost of technological), from sales (minus the cost of full), (minus other expenses with the addition of other income and interest payable), (minus other expenses with the addition of other income (excluding taxes).

How to calculate the profit of an enterprise

All types of profit are calculated on the basis of revenue, which is equal to the product of the volume of sales and the price of a unit of production. Certain items of expenditure are deducted from the primary income and thus each type of profit is found.

General calculation formulas

Revenue is calculated using the following formula: TR = P*Q, where

P (price) – price, rub.;

Q (quantity) - the number of products, rub.

Marginal profit is equal to: MP=TR-VC, where

MP (marginal profit) – marginal profit, rub.;

TR (total revenue) – revenue, rub.;

VC - variable costs for the volume of production, rub.

Gross profit can be found using this formula: GP = TR – TC tech, where

GP (gross profit) - gross profit, rub.;

TR (total revenue) – revenue, rub.;

TC tech (total cost) - technological cost, rub.

RP=TR-TC, where

RP (realization profit) - profit from the sale, rubles;

TR (total revenue) – revenue, rub.;

TC (totalcost) - total cost, rub.

The balance sheet profit is equal to: BP = RP - OE + OR, where

RP (realization profit) - profit from sales, rubles;

OR (other revenue) – other income, rub.;

OE (other expenses) - other expenses, rub.

OP=BP+PC, where

BP (balanced profit) – balance sheet profit, rub.;

NP=BP-T, where

NP (net profit) – net profit, rub.;

BP (balanced profit) – balance sheet profit, rub.;

T (taxes) - the value of the tax burden, rub.

Balance calculation formulas

The data for the calculation are given in the statement of financial results. The available information from the financial statements allows us to calculate the following two types of profit using one formula.

Marginal and gross profit can be found using this formula: line 2100 = line 2110 – line 2120, where

line 2100 - gross profit, rub.;

line 2110 - revenue, rubles;

line 2120 - technological cost, rub.

Sales profit is as follows: line 2200 = line 2110 – (line 2120 + line 2210 + line 2220), where

line 2200 - profit from sales, rubles;

line 2110 - revenue, rubles;

(line 2120 + line 2210 + line 2220) - full cost, rub.

The balance sheet profit is equal to: line 2300 = line 2200 – line 2350 + line 2340, where

line 2200 - profit from sales, rubles;

line 2340 - other income, rubles;

line 2350 - other expense, rub.

Operating profit is calculated using this formula: OP=BP+PC, where

BP (balanced profit) – balance sheet profit, rub.;

PC (percent) – interest payable, rub.

Net profit is found as follows: line 2400 = line 2300 – line 2410, where

line 2400 - net profit, rub.;

line 2300 - balance sheet profit, rubles;

line 2410 - the amount of the tax burden, rub.

Calculation examples

Ekran LLC is engaged in the production of drills for milling machines. The financial statements for the last 2 years contain the following data:

For this example, for 2013:

Marginal profit: MP = TR - VC = 70,000 - 25,000 = 45,000 rubles

Gross profit: GP = TR - TCtech = 70,000 - 25,000 = 45,000 rubles

Sales profit: RP = TR - TC = 70,000 - (25,000 + 4,000 + 13,000) = 28,000 rubles

Balance sheet profit: BP = RP - OE + OR = 28,000 - 3,000 + 800 = 25,800 rubles

Operating profit: OP = BP + PC = 25,800 + 4,000 = 29,800 rubles

Net profit: NP \u003d BP - T \u003d 29,800 - 29,800 * 0.2 \u003d 23,840 rubles

For 2014:

Marginal profit: MP = TR - VC = 130,000 - 45,000 = 85,000 rubles

Gross profit: GP = TR - TCtech = 130,000 - 45,000 = 85,000 rubles

Sales profit: RP = TR - TC = 130,000 - (45,000 + 6,000 + 18,000) = 61,000 rubles

Balance sheet profit: BP = RP - OE + OR = 61,000 - 2,000 + 1,000 = 60,000 rubles

Operating profit: OP = BP + PC = 60,000 + 6,000 = 66,000 rubles

Net profit: NP = BP - T = 60,000 + 60,00 * 0.2 = 48,000 rubles

Profit of the enterprise as a financial result of its activities

Each type of profit is necessary to solve certain problems. Without taking them into account, a full-fledged analysis of activity is impossible. Profit is a financial result and an absolute indicator.

In other words, it can only be used for internal needs. Strategy development is based on the types of profit.

If it is necessary to compare with the activities of other organizations, then profit indicators cannot be used; instead, performance indicators are used, for example,.

Video - how the profit of the enterprise is connected with money: