In this article, we will consider net profit, the calculation formula, the definition and its role in the financial analysis of the enterprise. Knowing the meaning net profit allows managers of enterprises to evaluate the effectiveness of activities for the reporting period. Net income has big influence for the future development of the enterprise, its competitiveness, investment attractiveness, solvency and financial reliability.

Net profit. Definition

Net profit(EnglishNetIncome,Netprofit,Netearnings) - is the most important indicator of financial analysis and represents the final rate of return, which remains after deducting all costs, including taxes.

The formula for calculating the net profit of an enterprise

To calculate the net profit, all costs and taxes of the enterprise must be deducted. The formula has a single economic meaning, but can be reflected in different ways:

Net profit = Revenue – Cost of goods – Administrative and selling expenses – Other expenses – Taxes;

Net profit= Financial Profit + Gross Profit + Operating Profit - Amount of Taxes;

Net profit= Profit before tax - Taxes;

Net Income= Total Revenue – Total Expenses.

Net profit is also called “the bottom line” (bottom line), because it is reflected in the balance sheet as the last line. In the balance sheet until 2011, net profit was reflected in line 190 of Form No. 2 (Profit and Loss Statement), after 2011, the net profit indicator is reflected in line 2400.

The formula for calculating net profit on the balance sheet

Let's write in more detail the formula for calculating net profit through the balance lines.

Net income (line 2400)= Revenue (line 2110) - Cost of sales (line 2120) - Selling expenses (line 2210) - Administrative expenses (line 2220) - Income from participation in other organizations (line 2310) - Interest receivable (line 2320) – Interest payable (line 2330) – Other income (line 2340) – Other expenses (line 2350) – Current income tax (line 2410)

The figure below shows a part of the balance sheet of the enterprise OJSC “Surgutneftekhim” and its reporting for 5 years. As you can see from the balance sheet in Excel, in order to get net profit, you must first calculate: gross profit (marginal profit), profit from sales and profit before tax.

The place of net profit in the enterprise income system

Net profit occupies a key position in the income system of the enterprise. In order to understand, consider its relationship with other types of income. The figure below shows the types of profit and their relationship. Each type of profit allows you to evaluate the effectiveness. So marginal profit shows the effectiveness of sales and sales of products. (You can learn more about this type of profit in the article: ““) Operating profit reflects the efficiency of production or another type of core activity of the enterprise Profit before tax is profit without taking into account other costs / income from non-core activities. As a result, net profit, cleared of all costs and expenses, shows the integral result of the functioning of the enterprise.

Purposes and directions of using the net profit indicator

The amount of net profit characterizes the efficiency of the entire company / enterprise and is used for various purposes by various external and internal stakeholders (persons, users).

User/stakeholder	Purpose and directions of use
Investors	Purpose: assessment of investment attractiveness Assessment of the size and dynamics of changes in the net profit of the enterprise to analyze its investment attractiveness. The more an enterprise can generate net profit at the end of the reporting period, the higher its profitability.
Lenders	Purpose: creditworthiness assessment Assessment of the size and dynamics of changes in net profit to analyze the solvency and creditworthiness of the enterprise. Money is the fastest liquid type of asset, and the more cash the company has left after paying all tax deductions, the higher its ability to calculate its obligations in the short and long term.
Owner/Shareholders	Purpose: assessment of the effectiveness of activities in general The analysis of net profit is an integral indicator of the activity of an enterprise/organization and characterizes the effectiveness of all management decisions for the reporting period. The larger the net profit, the more effective was the management of the organization. Growth in net income increases the size of dividend payments and allows attracting additional buyers/shareholders.
Suppliers	Purpose: assessment of the sustainability of functioning The net profit of an enterprise serves as an indicator of its sustainable development. The higher the net profit for the reporting period, the higher the ability to pay suppliers and contractors for raw materials on time.
Top managers	Purpose: assessing the sustainability of financial development The size of net profit and the dynamics of its change serve as a guideline for developing strategies and plans to increase it at the operational level. Planning of deductions to reserve funds, payroll funds and production funds.

Methods for analyzing the net profit of an enterprise

Consider various methods analysis of the net profit of the enterprise. The purpose of this analysis is to determine the factors, causal relationships between indicators that affect the formation of net profit as the final performance indicators of the enterprise.

We can distinguish the following methods of analysis, which are most often used in practice:

• Factor analysis;
• Statistical analysis.

These types of analysis are opposite in nature. So factor analysis focuses on determining the significant factors that affect the formation of the net profit of the enterprise. Statistical analysis focuses on the use of time series forecasting methods and is based on an analysis of the nature of changes in net profit by years (or other reporting periods).

Factor analysis of the net profit of the enterprise

The main factors in the formation of net profit are presented in the formula described earlier. To assess the influence of factors, it is necessary to evaluate their relative change for 2013-2014 and absolute. This will allow the following conclusions to be drawn:

• How did the factors change during the year?;
• What factor had the maximum change in net income?

In financial analysis, these approaches are called "Horizontal" and "Vertical analysis", respectively. The factors that form the amount of net profit and their relative and absolute changes during the year are shown below. The analysis was made for the enterprise OJSC "Surgutneftekhim".

As we can see, during 2013-2014, other expenses and other income changed to the maximum. The figure below shows the change in the factors that form the net profit for 2013-2014 at OJSC “Surgutneftekhim”.

Consider the second method of evaluation and analysis of the net profit of the enterprise.

Statistical method for analyzing the net profit of an enterprise

To assess the future size of net profit, various forecasting methods can be used: linear, exponential, logarithmic regression, neural networks, etc. The figure below shows the net profit forecast based on an analysis of the change in the indicator over 10 years. Forecasting was carried out using linear regression, which showed a downward trend in 2011. The accuracy of forecasting economic processes using linear models has an extremely low degree of reliability, so the use of linear regression can serve more as a guideline for the direction of profit change.

Comparison of net profit with other performance indicators of the enterprise

In addition to evaluating and calculating the net profit of an enterprise, it is useful to conduct a comparative analysis with other integral indicators that characterize the efficiency and effectiveness of the enterprise. These indicators include: sales revenue (net of VAT) and net assets. Net assets show the financial stability of the enterprise and its solvency, revenue reflects its production and sales performance. The figure below shows a graph of a large Russian enterprise OJSC ALROSA and the ratio of its three most important indicators. As can be seen, there is a close relationship between them, in addition, it can be noted that there is a positive growth trend net assets enterprises, this suggests that the funds are directed to expand production capacity, which in the future should increase the amount of net profit received.

Is a company's credit rating and net income related?

In my study, I analyzed the relationship between the amount of net profit for the Rosneft enterprise and the credit rating of the international agency Standard & Poor's. There is a close relationship and correlation shown in the figure below - this proves the importance of such an indicator as net profit as a criterion for investment attractiveness not only in the national space, but also in the international arena.

Summary

Net profit is the most important indicator of the effectiveness and efficiency of the enterprise. Net profit reflects investment attractiveness for investors, solvency for creditors, sustainable development for suppliers and partners, efficiency/performance for shareholders and owners. For the analysis of net profit, two methods are used: factorial and statistical. Based on the factor analysis method, the absolute and relative impact of various indicators on the formation of net profit is estimated. The statistical method is based on forecasting time series of changes in net profit. The study of the tightness of the relationship between the credit rating of the international rating agency Standard & Poor's proves the importance of the net profit indicator in assessing an enterprise in the international financial arena.

Directions for the use of net profit are determined by the organization independently. At the expense of net profit, a reserve fund is created (5% of the UK ≤ reserve fund ≤ 25% of the UK), consumption and accumulation funds are formed. In the event that the enterprise is created in the organizational and legal form joint-stock company, income on shares is paid out of net profit - dividends (first on preferred, then on ordinary); owners of enterprises operating in other organizational and legal forms are paid profit on their contribution to the total amount equity enterprises (similar to dividends).

Analysis of the use of net profit is carried out using horizontal and vertical methods of economic analysis. Horizontal at the same time allows you to evaluate the change in the indicators of the same name over time (the absolute deviation of the value of the indicator from that prevailing in the base period is determined, the rate of growth or growth - depending on the goals of the analysis - as a relative deviation). Vertical analysis of the use of net profit involves the calculation of the percentage of deductions for each of the areas of use of profit, while 100% is taken as the value of net profit in the period under review.

As the initial information for the analysis, information from the form No. 3 of the financial statements "Statement on the movement of capital" and section 8 "Social indicators" of the form No. 5 "Appendix to the balance sheet" can be used. It is advisable to carry out the analysis in the following table (Table 9):

Indicators	Reporting period	Same period last year	Deviations
absolute	relative
Net profit	480,6		136,6	39,7%
	100%	100%
Including sent to:
to the reserve fund				41,1%
	5%	5%
to the accumulation fund				154%
	19,6%	10,8%
to the consumption fund				8,6%
	7,9%	10,2%
to the social sphere fund				15%
	19,1%	23,2%
dividends				7,1%
	31,2%	40,6%
Charitable and other purposes	82,6		47,6	136%
	17,2%	10,2%
Equity

Table 9. Horizontal and vertical analysis of the use of net profit (conditional data).

During the analysis, 3 coefficients are calculated for the reporting and base (with which they compare) periods:

1) capitalization ratio (Kkapit):

kcapit= , where

P res.f. – deductions to the reserve fund from the net profit of the reporting year;

P f.accum. – deductions to the accumulation fund from the net profit of the reporting year;

P net - the value of the net profit of the reporting year;

P capital - capitalized profit of the reporting year.

2) Consumption factor (Kcons.): K consumption=100% - Kcapit.;

3) The rate of sustainable growth of equity capital (Tust.r).:

T set=

For the considered example:

1. Capitalization ratio:

For the reporting year (24 + 94)/480.6 = 24.6%;

For the year preceding the reporting year (17 + 37)/344 = 15.7%

2. Consumption ratio:

For the reporting year - 75.4%;

For the year preceding the reporting one - 84.3%.

Including dividends:

For the reporting year - 31.2%;

For the year preceding the reporting year - 40.6%.

3. The rate of sustainable growth is determined by the formula:

For the reporting year - T UR1 =

For the year preceding the reporting year - Т UR2 =

Thus, despite the growth of net profit by almost 40%, the growth rate of equity capital decreased from 7 to 3%. This is due to the fact that the consumption factor occupies too high a share in the net profit of the organization. At the same time, only half of the consumed profit falls on the payment of dividends, and the rest is cash and social payments to employees. The share of capitalized profit for the analyzed period decreased from 24.6% to 15.7%.

A more detailed assessment of the current situation can be carried out using the method of chain substitution (factorial analysis).

The growth (decrease) of the listed coefficients cannot be interpreted unambiguously. The growth of the value of capitalized profit (and, accordingly, the capitalization ratio) means an increase in the possibilities of expanded reproduction, i.e. financing of the main activity of the enterprise on an ever-increasing scale at the end of each financial cycle. Other things being equal, this is assessed positively, because:

a) expansion of the scope of activities involves an increase in the amount of profits received, satisfaction more the needs of buyers (or an increase in the level of satisfaction of needs, in any case, a possible increase in the usefulness of products delivered to consumers) and an increase in the amount of tax deductions to the budget and extra-budgetary funds due to an increase in the tax base (in which the state is interested);

b) scaling up activities will be financed from own, not borrowed sources. The enterprise will not have to pay interest for the use of its own funds, as under a bank loan agreement or loan agreements with organizations in the non-banking sector.

c) financing of expanded reproduction precisely at the expense of net profit allows the enterprise not to increase the number of shareholders as co-owners of its property, the majority of which (holders of ordinary shares) have the opportunity to manage the activities of the enterprise.

However, an increase in capitalized (accumulated) profit with a fixed amount of profit at the disposal of the enterprise cannot but mean a decrease in possible deductions to the consumption fund, through which the social needs of the enterprise's employees are met and income is paid on shares, shares, etc. The stability of dividend payments increases the level of attractiveness of the enterprise from the point of view of current and potential shareholders and creditors, leads to an increase in demand for shares and an increase in their price in accordance with the law of demand.

The solution to the question of the direction of use of net profit and the specific amount of deductions, therefore, is the dilemma of "profit consumed or profit capitalized". Options for its solution are reduced to three types of dividend policy of the enterprise, under which broad sense it is necessary to understand the mechanism of formation of the share of profit paid to the owner in accordance with the share of his contribution to the total amount of the enterprise's own capital.

dividend policy.

There are three main approaches to the formation of dividend policy - "conservative", "moderate" ("compromise") and "aggressive". Each of these approaches corresponds to a certain type of dividend policy (Table 10):

Table 10. Main types of dividend policy of a joint-stock company

1. Residual dividend policy assumes that the dividend payment fund is formed after the need for the formation of its own financial resources is satisfied at the expense of profit, ensuring the full realization of the investment opportunities of the enterprise. If for existing investment projects the level of the internal rate of return exceeds the financial profitability ratio, then the main part of the profit should be directed to the implementation of such projects, since it will ensure a high growth rate of the owners' capital. The advantage of this type of policy is to ensure high rates of development of the enterprise, increase its financial stability. The disadvantage of this policy lies in the instability of the size of dividend payments, the complete unpredictability of their size in the coming period, and even the refusal to pay them during a period of high investment opportunities, which negatively affects the formation of the level of the market price of shares. Such a dividend policy is usually used only in the early stages of the life cycle of an enterprise related to high level his investment activity.

2. Policy of stable dividend payments involves the payment of a constant amount of them over a long period (at high inflation rates, the amount of dividend payments is adjusted for the inflation index). The advantage of this policy is its reliability, which creates a sense of confidence among shareholders in the invariance of the amount of current income, regardless of various circumstances, determines the stability of the share price on stock market. The disadvantage of this policy is its weak connection with the financial results of the enterprise, and therefore, during periods of unfavorable market conditions and low profits, investment activities can be reduced to zero. In order to avoid these negative consequences, a stable amount of dividend payments is usually set at a relatively low level, which classifies this type of dividend policy as a conservative one, minimizing the risk of a decrease in the financial stability of an enterprise due to insufficient equity growth rates.

3. The policy of the minimum stable amount of dividends with a premium in certain periods(or the policy of "extra-dividend") is widely believed to be the most balanced type of it. Its advantage is a stable guaranteed payment of dividends in the minimum prescribed amount (as in the previous case) in close connection with the financial results of the enterprise, which allows increasing the amount of dividends during periods of favorable economic conditions without reducing the level of investment activity. Such a dividend policy gives the greatest effect at enterprises with unstable profit margins. The main disadvantage of this policy is that with the continued payment of the minimum dividend, the investment attractiveness of the company's shares decreases and, accordingly, their market value falls.

4. Policy of a stable level of dividends provides for the establishment of a long-term normative coefficient dividend payments in relation to the amount of profit (or the ratio of profit distribution to consumed and capitalized parts of it). The advantage of this policy is the simplicity of its formation and close connection with the amount of generated profit. Its main disadvantage is the instability of the size of dividend payments per share, determined by the instability of the amount of generated profit. This instability causes sharp fluctuations in the market value of shares separate periods, which prevents the maximization of the market value of the enterprise in the process of implementing such a policy (because it indicates a high level of risk economic activity given enterprise). Even with high dividend payouts, such a policy does not usually attract risk-averse shareholders. Only mature companies with stable profits can afford to implement this type of dividend policy; if the size of profit varies significantly in dynamics, this policy generates a high risk of bankruptcy.

5. Policy of constant increase in the amount of dividends(carried out under the motto "never reduce the annual dividend") provides for a stable increase in the level of dividend payments per share. The increase in dividends in the implementation of such a policy occurs, as a rule, in a firmly established percentage of growth in relation to their size in the previous period. The advantage of such a policy is to ensure a high market value of the company's shares and the formation of its positive image among potential investors in case of additional issues. The disadvantage of the policy is the lack of flexibility in its implementation and the constant increase in financial tension - if the dividend fund grows faster than the amount of profit, then the investment activity of the enterprise is reduced, and the financial stability ratios are reduced (ceteris paribus). Therefore, only really prosperous joint-stock companies can afford the implementation of such a dividend policy - if this policy is not supported by a constant increase in the company's profit, then it is a sure way to its bankruptcy.

Taking into account the considered principles, the dividend policy of a joint-stock company is formed according to the following main stages (Fig. 13).

Fig.13. The sequence of formation of the dividend policy of the joint-stock company.

1. Assessment of the main factors that determine the formation of the dividend policy. In the process of such an assessment in the practice of financial management, all factors are usually divided into four groups:

A. Factors characterizing the investment opportunities of the enterprise

· the stage of the life cycle of the company (in the early stages of the life cycle, the joint-stock company is forced to invest more in its development, limiting the payment of dividends);

· the need for a joint-stock company to expand its investment programs (during periods of increased investment activity aimed at expanding the reproduction of fixed assets and intangible assets, the need for profit capitalization increases);

· the degree of readiness of individual investment projects with a high level of efficiency (individual prepared projects require accelerated implementation in order to ensure their efficient operation under favorable market conditions, which necessitates the concentration of own financial resources during these periods).

B. Factors characterizing the possibilities of generating financial resources from alternative sources. The main factors in this group are:

· sufficiency of own capital reserves formed in the previous period;

the cost of raising additional equity capital;

the cost of attracting additional borrowed capital;

availability of loans in the financial market;

The level of creditworthiness of a joint-stock company, determined by its current financial condition

B. Factors related to objective limitations. The main factors in this group include:

level of taxation of dividends;

the level of taxation of property of enterprises;

· the achieved effect of financial leverage, due to the prevailing ratio of used own and borrowed capital;

· the actual amount of profit received and the return on equity.

D. Other factors. These factors can include:

· the conjuncture cycle of the commodity market, in which the joint-stock company is a participant (during the rise in the conjuncture, the efficiency of profit capitalization increases significantly);

the level of dividend payments by competing companies;

· urgency of payments on previously received loans (maintenance of solvency is a higher priority in comparison with the growth of dividend payments);

· the possibility of losing control over the management of the company (a low level of dividend payments can lead to a decrease in the market value of the company's shares and their massive “dumping” by shareholders, which increases the risk of financial capture of the joint-stock company by competitors).

2. Choosing the type of dividend policy is carried out in accordance with the financial strategy of the joint-stock company, taking into account the assessment of individual factors.

3. Profit distribution mechanism joint-stock company in accordance with the chosen type of dividend policy provides for the following sequence of actions:

At the first stage the amount of net profit shall be deducted from the mandatory contributions to the reserve and other mandatory special purpose funds provided for by the charter of the company. The "cleaned" amount of net profit is the so-called "dividend corridor" within which the appropriate type of dividend policy is implemented.

At the second stage the remaining part of the net profit is distributed to the capitalized and consumed parts. If a joint-stock company adheres to the residual type of dividend policy, then in the process of this stage of calculations, the priority task is the formation of a production development fund, and vice versa.

At the third stage the consumption fund formed at the expense of profit is distributed to the dividend payments fund and the consumption fund of the personnel of the joint-stock company (providing for additional material incentives for employees and satisfaction of their social needs). The basis of such distribution is the chosen type of dividend policy and the obligations of the joint-stock company under a collective labor agreement.

4. Determining the level of dividend payments for one simple the action is carried out according to the formula:

where UDV PA - the level of dividend payments per share;

FDV - dividend payout fund, formed in accordance with the chosen type of dividend policy;

VP - dividend payment fund to holders of preferred shares (according to their envisaged level), K PA - the number of ordinary shares issued by the joint-stock company.

5. Evaluation of the effectiveness of the dividend policy joint-stock company is based on the use of the following indicators:

a) the dividend payout ratio. It is calculated according to the formulas:

K DV = or K DV =

where K DV - dividend payout ratio

FDV - dividend payout fund, formed in accordance with the chosen type of dividend policy;

PE - the amount of net profit of the joint-stock company;

Yes - the amount of dividends paid per share

PE a - the amount of net profit attributable to one share

b) price-to-earnings ratio per share. It is determined by the formula:

where K c / d - the ratio of price and income per share;

РЦ a - market price of one share;

D a - the amount of dividends paid per share.

In assessing the effectiveness of the dividend policy, indicators of the dynamics of the market value of shares can also be used.

COURSE WORK

"Analysis of the profit of the enterprise"

PENZA - 2010

INTRODUCTION……………………………………………………………….3

Chapter 1

1.1 Essence, value and classification of profit…………………...4

1.2 Factor analysis of profit………………………………………....9

1.3 Methods of analysis of the income statement…………………...12

CHAPTER 2. PROFIT ANALYSIS ON THE EXAMPLE OF JSC “Moloko”…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

2.1Financial and economic characteristics of Moloko OJSC……..13

2.2 Factor analysis of the profit of Moloko OJSC……………………...16

2.3 Analysis of the profit and loss statement of Moloko OJSC for 2009..20

3.1 Profit as the most important economic task………………….28

3.2 Factors affecting the amount of profit of the enterprise………..32

CONCLUSION…………………………………………………………35

REFERENCES……………………………………………....38

APPENDICES…………………………………………………………40

INTRODUCTION

The market economy determines the specific requirements for the enterprise management system. A faster response to changing economic conditions is needed in order to maintain

sustainable financial condition and continuous improvement of production in accordance with changing market conditions. The enterprise independently plans (on the basis of contracts concluded with consumers and suppliers material resources) its activities and determines the prospects for development, based on the demand for manufactured products and the need to ensure industrial and social development. Income became independently planned indicator among others. However, it cannot be assumed that planning and profit formation remained exclusively in the sphere of interests of only the enterprise. The state (budget), commercial banks, investment structures, shareholders and other holders of securities are no less interested in this.

The purpose of this work is to analyze the profit of the enterprise. To achieve this goal in the course work, it is necessary to solve the following tasks:

Analyzed the profit and loss statement of the enterprise

Given the financial characteristics of the enterprise

The object of the study is JSC "Moloko". The subject of the study is the financial activity of the enterprise.

The formation of a mechanism of fierce competition, the volatility of the market situation made it necessary for the enterprise to effectively use the internal resources at its disposal, on the one hand, and on the other hand, to respond in a timely manner to changing external conditions, which include: the financial and credit system, the tax policy of the state, the pricing mechanism, relationships with suppliers and consumers. As a result of these reasons, the directions of analytical activity are also changing. To ensure high, economic efficiency of production, a state economic policy is needed that would contribute to the formation of an environment favorable for economic activity and orient the enterprise to maximize profit (income). Since it is the state that determines the successful functioning of an enterprise, the problems of profit and profitability are currently very relevant.

CHAPTER 1

1.1 Essence, value and classification of profit.

A necessary element of the analysis of the financial condition is the study of the results of the financial and economic activities of the enterprise, which are characterized by the amount of profit or loss.

The economic essence of profit is as follows

It characterizes the financial result of the enterprise, which depends on the level of cost, quality and quantity of products, labor productivity, the degree of use of production assets, management organization, logistics, and also how the product meets the needs of the consumer, i.e. is it in demand?

It is the basis of the economic development of the enterprise. Profit acts as one of the main sources of expanded reproduction. Thus, profit is part of the net income that enterprises directly receive after the sale of products as a reward for invested capital and the risk of entrepreneurial activity.

As a financial result of the enterprise, profit is characterized by a multidimensional role and a variety of forms in which it appears. Types of profit can be systematized according to certain criteria.

According to the sources of formation, profit from the sale of products, works, services and profit from other sales are distinguished. Profit from the sale of products, works, services is the main type of profit in the enterprise, directly related to the industry specifics of the enterprise. Profit from other sales represents income from the sale of unused fixed assets, intangible assets, as well as income from participation in joint ventures, income from shares, bonds and other securities, fines, penalties and forfeits received, etc.

By type of activity, they allocate profit from operating, investment and financial activities. Operating profit is the result of production and marketing or the main activity for this enterprise. The result of investment activity is partially reflected in the form of income from participation in joint activities, from the ownership of securities and deposits, and partially - in profit from the sale of property. In addition, the results of investments are reflected in operating profit, when investments are converted into real assets for the expansion, renewal and modernization of production. Profit from financial activities refers to the indirect effect of raising capital from external sources on terms more favorable than the average market conditions. In addition, in the process of financial activity, a direct profit on invested equity capital can be obtained by using the effect of financial leverage.

According to the composition of the included elements, marginal (gross) profit, profit before tax, net profit are distinguished. Marginal profit is the difference between net revenue and direct production costs for products sold. Profit before tax characterizes the overall financial result of the enterprise. Profit before tax is the sum of the financial result from ordinary activities and other income and expenses. Net profit is the amount of profit that remains at the disposal of the enterprise after paying income tax.

According to the nature of use, net profit is divided into capitalized and consumed. Capitalized profit, part of the net profit directed to finance the growth of the company's assets. Consumable profit - that which is spent on the payment of dividends to shareholders and founders of the enterprise.

According to the nature of taxation, taxable and non-taxable are distinguished. Such a division of profits plays an important role in the formation of tax policy, as it allows us to evaluate alternative business transactions from the standpoint of their effect. The composition of income that is not subject to taxation is regulated by tax legislation.

According to the nature of the inflationary cleaning of profits, there are nominal and real profits, adjusted for the rate of inflation in the reporting period.

For the formation period under consideration, the profit of the reporting year, the profit of the previous year and the planned profit are distinguished.

The above list of classification features does not reflect the whole variety of types of profit used in scientific terminology and practice of the enterprise.

By types of economic activity, there are: profit from the main (operating) activity, which includes profit from the sale of products and other operating income and expenses; profit from investment activities; profit from financial activities.
According to the composition of the included elements, there are: marginal (gross) profit; profit from the sale of products; the total financial result of the reporting period before interest and taxes (gross profit); profit before tax; net profit. Marginal profit is the difference between revenue (net) and direct production costs for products sold. Profit from the sale of products is the difference between marginal profit and fixed costs of the enterprise. Gross profit includes financial results (before interest and taxes) from operating, financial and investment activities, non-operating and extraordinary income and expenses. It characterizes the overall financial result earned by the enterprise for all interested parties (the state, creditors, owners, hired personnel). Profit before tax is the result after paying interest to creditors. Net profit is the amount of profit that remains at the disposal of the enterprise after paying all taxes, economic sanctions and other mandatory contributions.
Depending on the nature of the activity of the enterprise, profit from ordinary (traditional) activities and profit from emergencies, unusual for a given enterprise, which must be allocated from the total profit for a correct assessment of the work of the enterprise.
By the nature of taxation, taxable income and tax-free (preferential) income are distinguished in accordance with tax legislation, which is periodically reviewed.
According to the degree of accounting for the inflationary factor, nominal profit and real profit, adjusted for the inflation rate in the reporting period, are distinguished.

According to the economic content, profit is divided into accounting and economic. Accounting profit is defined as the difference between income and current explicit costs reflected in the system of accounts. Economic profit differs from accounting profit in that when calculating its value, not only explicit costs are taken into account, but also implicit ones that are not reflected in accounting (for example, the cost of maintaining fixed assets, owned by the owner firms).
According to the nature of use, net profit is divided into capitalized (undistributed) consumed. Capitalized profit is a part of net profit, which is used to finance the growth of the company's assets. Consumable profit - that part of it that is spent on the payment of dividends to the shareholders of the enterprise.

In a market economy, the value of profit for an enterprise is enormous. The desire to make a profit directs the enterprise to increase the volume of sales of products needed by the consumer, reduce the cost of implementation. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. For the entrepreneur, profit is a signal that indicates where the greatest increase in value can be achieved, creates an incentive to invest in these areas.

1.2 Profit Factor Analysis

The final financial result of the enterprise, the balance sheet profit or loss, is the algebraic sum of the result (profit or loss) from the sale of marketable products (works, services), the result (profit or loss) from other sales, income and expenses from non-sales operations. The formalized calculation of balance sheet profit is presented below:

R B = ± R R ± R PR ± R VN,

where
R B - balance sheet profit or loss;

R PR - result from other implementation;
Р ВН - the result (income and expenses) from non-sales operations.

The financial results of the enterprise's activities are also characterized by indicators of revenue (gross income) from the sale of products, the amount of value added tax.
The proceeds from the sale of products indicates the completion of the production cycle of the enterprise, the return of the enterprise's funds advanced for production into cash and the beginning of a new round in the turnover of funds. After deducting from the proceeds from the sale of products the amount of value added tax and excises, as well as the costs of manufacturing the sold products, we get the net result (profit or loss) from the sale. Profit from sales can be calculated using the formula

P P \u003d N P - S P - P D,

where
Р Р - the result from the sale of marketable products (works, services);
N P - proceeds (gross income) from product sales;
S P - production costs of sold products;
P D - value added tax and excises.

Indicators of financial results characterize the absolute efficiency of the management of the enterprise.

Factor analysis of profit from the sale of products (works, services)

Profit from the sale of marketable products in the general case changes under the influence of such factors as changes in: the volume of sales; product structures; selling prices for sold products; prices for raw materials, materials, fuel, tariffs for energy and transportation; the level of costs of material and labor resources.

1) Calculation of the total change in profit (Р) from the sale of products:

P \u003d P 1 - P 0,

where
P 1 - profit of the reporting year;
P 0 - profit of the base year.

2) Calculation of the impact on profit of changes in selling prices for products sold:

Р 1 = N p1 - N p1,0 = p 1 q 1 - p 0 q 1,

where
N p1 \u003d p 1 q 1 - sales in the reporting year at the prices of the reporting year (p - product price; q - number of products);
N p1,0 = p 0 q 1 - sales in the reporting year at the prices of the base year.

3) Calculation of the impact on profit of changes in the volume of production (P 2) (actual volume of production in the assessment of the planned (base) cost):

P 2 \u003d P 0 K 1 - P 0 \u003d P 0 (K 1 - 1),

where
P 0 - profit of the base year;
K 1 - coefficient of growth in the volume of sales of products;

K 1 \u003d S 1.0 / S 0,

where

S 0 - the cost of the base year (period).

4) Calculation of the impact on profit of changes in the volume of production due to changes in the structure of products (R 3):

R 3 \u003d R 0 (K 2 - K 1),

where
K 2 - coefficient of growth in the volume of sales in the assessment at selling prices;

K 2 \u003d N 1.0 / N 0,

where
N 1.0 - sales in the reporting period at prices of the base period;
N 0 - implementation in the base period.

5) Calculation of the impact on profit of savings from reduction in the cost of production ( R 4 ):

P 4 \u003d S 1.0 - S 1,

where
S 1.0 - the actual cost of goods sold for the reporting period in prices and tariffs of the base period;
S 1 - the actual cost of sales of the reporting period.

6) Calculation of the impact on profit of changes in cost due to structural shifts in the composition of products (R 5):

Р 5 \u003d S 0 K 2 - S 1.0.

A separate calculation based on accounting data determines the impact on profit of changes in prices for materials and tariffs for services (R 6), as well as savings caused by violations of economic discipline (R 7). The sum of factor deviations gives the total change in profit from sales for the reporting period, which is expressed by the following formula:

R \u003d R 1 - R 0 \u003d R 1 + R 2 + R 3 + R 4 + R 5 + R 6 + R 7,

where
P - total change in profit.

1.3 Income Statement Analysis Methods

Analysis of the income statement involves a consistent study of all report items. The analysis begins with the study of revenue as income from ordinary species activities and related expenses – cost of goods sold; Special attention given to trends in these indicators. Various types of operating and other income and expenses are considered as factors influencing profit (loss) indicators. The ultimate goal of the analysis is to explain the reasons for the change and the quality of net income - the source of capital gains and dividend payments. The results of the analysis of the profit and loss statement of a particular business entity are used in comparative analysis, which is important for creditors, shareholders, stock market participants and other users who make business decisions based on the choice of options. In addition, the results of the analysis are used in forecasting financial results in both internal and external external analysis.

In analytical practice, several methods are used that are used in the analysis of any form of reporting: vertical, horizontal, trend analysis of indicators, calculation of financial ratios, comparative analysis, factor analysis. In assessing the quality of profit great importance attached to accounting methods. Statistical methods are used in forecasting financial results. The standard methods of reporting analysis include horizontal and vertical analysis of the formation of financial results, which is performed in analytical tables using relative dynamics indicators, structure indicators and structure dynamics.

Vertical analysis of the income statement is an analysis of the structure of the formation of financial results in comparison with the previous period. Horizontal analysis is aimed at studying the growth rates (growth) of indicators, which explains the reasons for changes in their structure. Trend analysis is possible if there are comparable data for several years, which implies a long period of operation of the organization, the stability of accounting methods PI established forms of accounting, the ability to take into account the impact of inflation on accounting indicators. The base year data serve as the starting point for the calculation and are taken as 100%. The change in the income statement indicators (sales volume, cost, various income and expenses, financial performance indicators) is calculated for each indicator as a percentage of the base year. When studying a sufficiently long period, the data can be averaged, for example, averages for every three years are calculated. Another approach is to calculate the structural indicators of the income statement for a number of years. Thus constructed trends are studied to identify trends in financial results.

CHAPTER 2. PROFIT ANALYSIS ON THE EXAMPLE OF OAO Moloko

2.1 Financial and economic characteristics of OAO Moloko

Company performance indicators for 2009 reflects the downward trend in production and sales volumes and the growth of prime cost.

Table 1 - Indicators of the main activities of Moloko OJSC.

Indicators
				gain(+)
				decline(-)
Revenue from the sale of goods, total
including:
from milk processing
From the production of kvass
On the implementation of agricultural products
from the sale of purchased goods
From rent
from the sale of catering products
Cost price
including:
Cost of products from milk processing
Production cost of kvass
The cost of agricultural products
Cost of purchased goods
Rental cost
Catering cost
Gross profit
Selling expenses
Revenue from sales
Interest receivable
Percentage to be paid
Other income
other expenses
Profit (loss) before tax
income tax
Tax sanctions
Net profit of the reporting year

A noticeable increase in revenue in 2009 (Table 1) allowed the company to strengthen its position in the market, increased the range of products, and helped to reduce the amount of debts on loans. Basically, the growth was due to the improvement in the quality of products and the increase in demand for them, in connection with this, the management of the enterprise increased the price of products, which could not but bring benefits.

Figure 2 - Information about the debt of JSC "Moloko"

The growth of receivables is associated with the terms of the contract, some counterparties are provided with a payment deferral of up to 10 banking days. Most of the enterprise's accounts payable consist of debts to state farms for raw milk. The company repays this debt with the help of bank loans.

2.2 Factor analysis of profit.

The main source of profit formation is the main activity of the enterprise, for the purpose of which it was created. The nature of this activity is determined by the specifics of the industry sector of the enterprise. It is based on industrial and commercial activities, which are complemented by financial and investment activities.

Profit from the sale of products, works, services is defined as the difference between the proceeds from the sale of products, works, services (minus value added tax, excises and similar obligatory payments), the cost of goods sold, works, services, commercial and administrative expenses. The assessment of the above factors is possible using the factor analysis method. For external analysis, the accounting (financial) statements “Profit and Loss Statement” (Form No. 2) are used as a source of information.

Analysis of profit from the sale of products, works, services can be carried out on the basis of the following data (Table 2).

Table 2 - Performance indicators of OAO Moloko for 2008-2009.

indicators	for the previous year	for the reporting year	absolute growth	in % for the previous year
Proceeds from the sale of products, works, services
C/C products
Selling expenses
Management expenses
Profit from the sale of products, works, cond.
Price change index
The volume of real-ii in comparable prices

Let's determine the influence of factors on the amount of profit according to the following algorithm.

1) To determine the impact of sales volume on profit, it is necessary to multiply the profit of the previous period by the change in sales volume. The main methodological difficulty in determining this factor is associated with the difficulties in determining changes in the physical volume of products sold. It is most correct to determine changes in the volume of sales by comparing the reporting and basic indicators, expressed in natural or conditionally natural meters. This is possible when the products are homogeneous. In most cases, the products sold are heterogeneous in composition and it is necessary to make comparisons in terms of value. To ensure comparability of data and exclude the influence of other factors, it is necessary to compare the reporting and base sales volumes expressed in the same prices (preferably in prices of the base period).

To bring the sales volume of the reporting period to a comparable form, it is necessary to know the index of price changes for products, works, services. The recalculation is carried out by dividing the volume of sales of the reporting period by the index of changes in sales prices. Such a calculation is not entirely accurate, since prices for products sold change throughout the reporting period.

In our example, the volume of sales for the reporting period in the prices of the base period amounted to 47,122 thousand rubles. (54190/1.15). Taking this into account, the change in sales volume for the analyzed period amounted to 81.525% (47122/57800*100%), i.e. there was a decrease in the volume of sold products by 18.475%.

Due to the decrease in the volume of sales of products, the profit from the sale of products, works, services decreased:

8540 * (-0.18475) = -1577 thousand rubles

2) The impact of the structure of the range of products sold on profit is determined by comparing the profit of the reporting period, calculated on the basis of prices and prime cost of the base period, with the basic profit, recalculated for the change in sales volume.

The profit of the reporting period, based on the cost and prices of the base period, can be determined with some degree of conventionality as follows:

Proceeds from the sale of the reporting period in prices of the base period 47122;

Actually sold products, calculated at the basic cost (41829 * 0.81525) = 34091;

Selling expenses of the base period 2615; - administrative expenses of the base period 4816;

Profit of the reporting period, calculated at the basic cost and basic prices (47122–34091–2615–4816) = 5600. Thus, the impact of shifts in the assortment structure on the amount of profit from sales is equal to:

5600 - (8540 * 0.81525) \u003d -1362 thousand rubles.

The calculation shows that the proportion of products with a lower level of profitability has increased in the composition of sold products.

3) The impact of changes in the cost of goods sold on profit can be determined by comparing the cost of sales of products of the reporting period with the costs of the base period, recalculated for changes in sales volume:

39780 - (41829 * 0.81525) \u003d 5690 thousand rubles.

The cost of goods sold increased, therefore, the profit from the sale of products decreased by the same amount.

4) The impact of changes in commercial and administrative expenses on profit will be determined by comparing their values ​​in the reporting and base periods. Due to the reduction in selling expenses, profit increased by 1,140 thousand rubles. (1475 - 2615), and by reducing the amount of management expenses - by 1051 thousand rubles. (3765 - 4816).

5) To determine the impact of sales prices of products, works, services on the change in profit, it is necessary to compare the sales volume of the reporting period, expressed in the prices of the reporting and base periods, i.e.:

54190 - 47122 \u003d 7068 thousand rubles.

The total influence of all these factors is equal to:

Change in sales volume -1577;

Changing the structure of the range of products sold -1362;

Cost price change -5690;

Change in commercial expenses +1140;

Change in the amount of management expenses + 1051;

Change in selling prices +7068;

The total influence of factors +630.

A significant increase in the cost of goods sold occurred mainly due to an increase in prices for raw materials and supplies. In addition, a decrease in sales volume, negative shifts in the structure of products led to a decrease in profits. The negative impact of these factors was offset by an increase in the level of prices for sold products, as well as a decrease in administrative and commercial expenses. Consequently, the reserves for the growth of the enterprise's profit are the growth in sales, the increase in the share of more profitable types of products in the total sales volume and the reduction in the cost of production.

2.2 Analysis of the profit and loss statement of Moloko OJSC for 2009 (

When constructing analytical tables, it must be taken into account that the object of analysis is a heterogeneous set: income and expenses, profits and losses, the final indicator (be it profit before tax or net profit) is formed not only from sales proceeds. It is not always convenient to use sales volume to determine the total indicator in the table. In order to study the factors that influenced the net profit in the reporting year compared to the previous one, it is necessary to analyze several steps in the formation of financial results. Therefore, it seems appropriate to present data on the formation of financial results in several tables, the number and content of which are determined by the content of profit and loss accounting.

Usually, the tables combine the absolute values ​​of the analyzed indicators, according to which deviations are calculated, data on the structure of the set of indicators and its change, relative indicators of the dynamics of financial results indicators. The condensed profit and loss statement1 reflects generalized information on the formation of net profit. In the reporting year, profit before tax increased by 86.1%, net profit - by 77.4% compared to the previous year. Profit from the sale of products is the predominant share of profit before tax. In the previous year, the share of profit from sales in the total profit before tax was 113%, which indicates the excess of other expenses over other income and means loss of profit from the sale of products (goods, works, services). In this case, as well as with a declining share of profit from sales, a detailed analysis of the structure of the organization's income and expenses in the context of ordinary and other expenses is necessary. It is necessary to trace the dynamics of the ratio of income and expenses for three adjacent years or more. Table 4, compiled according to the income statement, provides information on the income and expenses of OAO Moloko for two years. In the structure of income (expenses) of Moloko OJSC, more than 90% are incomes (expenses) from ordinary activities, which mainly form net profit. The profitability of current activities (the relative excess of ordinary income over expenses) decreased from 10.8% to 10.0%. Operating income exceeded expenses for two years: in the previous year by 8.7%, in the reporting year - by 15.4%. In general, the growth rate of income is higher than the growth rate of expenses. Unfavorable trends are higher growth rates of expenses for ordinary activities compared to the growth rates of the corresponding income, as well as loss of profit due to non-operating losses.

Table 3 - Information on income and expenses of OAO Moloko. (Some kind of incomprehensible table, with an incorrect name)

Indicators	Past period	Reporting period	Deviation
Excess of income from ordinary types of activities over expenses from ordinary types of activities, thousand rubles.
The same in % to expenses for ordinary types of activities
Excess of operating income over operating expenses, thousand rubles
The same as a % of operating expenses
Excess of non-sales income over non-operating expenses, thousand rubles
The same as a percentage of non-operating expenses

In the previous year, the ratio of the share of non-operating income and non-operating expenses was (in percent) 0.1:1.9; in the reporting year - 1:1.2. (Table 3). These incomes and expenses have an insignificant share, but in absolute terms, the excess of expenses over income is tangible. In the previous and reporting years, it amounted to 81,022 and 4,186 thousand rubles, respectively, i.e. 94% and 8.3% of non-operating expenses were not covered by income, which reduced profit before tax.

If we accept the percentage of the tax burden in the previous and reporting years, respectively, at the level of the income tax rate, then the loss of net profit is equal to:

Previous year: 81,022

- (1 - 0.24) = 61,576.72 thousand rubles;

In the reporting year: 4186

- (1 - 0.24) = 3181.36 thousand rubles.

These losses reduce the organization's ability to finance expanded reproduction and pay dividends. The most significant part of profit before tax is profit from sales, so special attention is paid to the analysis of its formation. For this, the methods of horizontal and vertical analysis are used, financial ratios are calculated - sales profitability (based on sales profit), gross profit ratio, the factors that influenced the change in sales profit are studied. You can use different options for constructing analytical tables that allow you to realize the goals of the analysis (Table 4). From the above data, it can be seen that the total cost of production and sale of products (goods, works, services) increased at a faster rate (55.6%) than the volume of sales (54.6%).

The share of expenses for ordinary activities in revenue, expressed as a percentage, is the cost per ruble of sales, expressed in kopecks (90.3 kopecks in the previous year and 90.9 kopecks in the reporting year). The share of profit from sales in sales proceeds, expressed as a percentage, characterizes the profitability of products, calculated on the profit from sales. An increase in costs per ruble of sales (0.6 kopecks) simultaneously indicates a decrease in profit - by 0.6 kopecks. per one ruble of sales and profitability by 0.6 percentage points, which in this case is explained by a significant change in the value of selling and administrative expenses. Changes occurred in the structure of expenses for ordinary activities due to a significant increase in commercial (212.4%) and administrative (133.4%) expenses. When an increase in these costs is justified by the organization's development strategy and is associated with the active promotion of goods on the market, then in the long term this will contribute to an increase in sales profits. But the main aspect of the analysis when studying these articles is the feasibility of increasing commercial and administrative expenses, the correspondence of the growth rates of these expenses to the growth rates of sales.

Table 4 - Selling and administrative expenses of OAO Moloko.

Indicators				Growth rate, % (gr.3/gr.1*100)	Structure, %
	Previous year		Deviation (column 2-column 1)		Previous year		Deviation (column 6-column 5)
Proceeds from the sale of products (goods, work, services)
C / c prod-ii (goods, workers, services)
Gross profit
Selling expenses
Management expenses
Profit from the sale of products (goods, workers, services)

In our example (Table 4), an increase in selling and administrative expenses reduced sales profit and profit before tax. If we consider acceptable growth rates of commercial and administrative expenses at the level of growth rates of sales proceeds, then the unjustified increase was: for commercial expenses - 143,155.6 thousand rubles, for management - 270,225.2 thousand rubles. Therefore, the decrease in net profit in the reporting year was due to:

Increase in selling expenses: RUB 119,534.9 thousand;

Increase in administrative expenses: 225,638 thousand rubles.

The increase in the production cost of products (goods, works, services) is 44.6%, which reduced the share of production costs in sales from 80.8 to 75.6%. As a result, the gross profit ratio (share of gross profit in sales proceeds) increased from 19.2% to 24.4%. The indicator of gross profit is included in the profit and loss account to improve the analyticity of accounting information. It is a calculated indicator and is defined as the difference between the proceeds from the sale of goods, products, works, services and the cost of goods, products, works, services sold. The coefficient (norm) of gross profit characterizes the profitability of economic activity when comparing sales volume and production cost of products. It reflects the dynamics of sales volume and the dynamics of cost. As a coverage ratio, it characterizes the organization's ability to cover ordinary and other operating expenses and significantly affects the amount of net profit.

The value of the gross profit ratio depends on the method of determining the cost of goods sold (goods, works, services), the structure of the assortment, pricing policy. Therefore, its assessment depends on the availability of information about the accounting, marketing and pricing policies of the organization. For an external user of accounting information, the possibilities for conducting a detailed analysis of the absolute and relative value of gross profit are limited. But the evaluation of these indicators in dynamics is necessary. The analysis of the formation of financial results is supplemented by an assessment of profitability indicators calculated according to the income statement. In addition to the profitability of current activities and the profitability of products (by profit from sales), the indicator of profitability of sales is determined, calculated by net profit (net profit / sales proceeds).

In table. 6 shows the profitability indicators of OAO Moloko for two adjacent years.

Table 5 - Profitability indicators of Moloko OJSC for 2 adjacent years.

Indicators	Calculation algorithm	Previous year
Gross profit ratio	Gross Profit / Sales Revenue
Profitability of current activities	Profit from sale/Expenses from ordinary activities
Profitability of sales based on sales profit	Profit from sale/Proceeds from sale
Overall profitability	Profit before tax/Proceeds from sales
Return on sales based on net profit	Net income / Sales proceeds

Comparative analysis also consists in comparing the indicators of the profit and loss statement of the analyzed organization with the industry average values ​​and indicators of the reports of other organizations. This helps to evaluate the strategy of companies and the effectiveness of management decisions of its management.

The sales volume of the analyzed organization is estimated from the standpoint of its growth (decrease) over several periods in comparison with the sales of the main competitors and leaders in this industry or in the corresponding market segment. The assessment of the sustainability of sales growth indicators is supplemented by an assessment of the share of the sales volume of the analyzed company, since it is possible that an increase in sales is accompanied by a decrease in the share of sales in the market. In a comparative analysis, it is necessary to take into account the unequal conditions of activity of different companies, for example, seasonality, geographical location.

Moloko increased its sales by more than 3.6 times (Table 5), which indicates a desire to increase its share in the dairy products market. But this was not accompanied by a corresponding growth in net profit, as the profit margin on sales decreased from 21 to 9.1%, the profit margin on net profit - from 16.3 to 8.6%. The cost of production grew at a faster rate than revenue. Income from participation in other organizations is insignificant - less than 1% of sales. Summarizing the results of the analysis, we can assume a decrease in the efficiency of the economic activities of OAO Moloko. A comparative analysis of expenses for ordinary activities is possible if the annual report contains enough detailed information on the methods for estimating reserves and accounting for commercial and administrative expenses, methods for calculating depreciation, etc., which is prescribed to be disclosed in an explanatory note in accordance with the accounting regulations. In Russian practice, comparative analysis is difficult for many reasons, one of them is the lack of a reliable information base for comparison. The practice of other countries uses data prepared by information companies and agencies. The assessment of the composition and structure of other income and expenses is approached from the standpoint of the materiality of these items as factors in increasing net profit. In foreign practice, analytical indicators are used, calculated on the basis of the income statement - operating profit indicators and financial ratios that are used to assess the effectiveness of economic activity, the ability to cover costs and generate profits.

CHAPTER 3

3.1 Profit as the most important economic task.

The development of market relations increases the responsibility and independence of enterprises in the development and adoption of managerial decisions to ensure the effectiveness of their activities. The efficiency of the production, investment and financial activities of the enterprise is expressed in the achieved financial results. The most important among them are profit indicators, which in a market economy form the basis of the economic development of the enterprise.

Currently, to study profits, analysis is used on two conditions: microeconomic (the level of the enterprise) and macroeconomic (the level of the economy as a whole). Each of them corresponds to a certain type of reporting. The reporting of an enterprise (firms, companies, partnerships, etc.) makes it possible to consider the process of profit formation, and the national accounting system makes it possible to identify the place of profit in the country's income. In market conditions, profit orientation is an indispensable feature of entrepreneurial activity, a criterion for choosing the best directions and methods of this activity, an indicator of the commercial effect achieved by the enterprise. Profit acts as one of the forms of expression of commodity-money relations used in the system of economic management, it is an important economic result of the enterprise. Profits are created productive labor in the field of material production. The source of profit is surplus labor, and its material basis is the surplus product. The monetary value of the surplus product is net income, which is mainly in the form of profit and value added tax. Thus, profit is part of the newly created value in the sphere of material production. Along with other cost categories (price, credit, etc.), profit acts as an economic lever of influence on the entire reproduction process. The turnover of production assets proceeds through two spheres (the process of industrial production and circulation) and three stages (the acquisition of means of production and the attraction of labor, the production process itself, the sale of marketable products). The profit of the enterprise, received as the difference between the proceeds from the sale of marketable products and production costs, is the most important final economic result of this process. It would be wrong to say that the release and sale of products characterizes the economic effect of the use of production assets. From the point of view of creating consumer value, this is a useful, but not an economic effect. To determine the latter, it is necessary to compare production costs, or production costs, with the proceeds from the sale of marketable products. The resulting mass of profit (net income), which contains the newly created value of the surplus product, as well as savings (or overspending) on ​​raw materials and materials, fuel and energy, semi-finished products and components, maintenance and operation of equipment, wages, workshop and general factory expenses , is the economic effect of using the production assets of the enterprise. The movement of production assets is considered as a joint movement of their fixed assets and working capital in the process of turnover. Such an assessment takes into account the process of production and circulation, i.e., the main industrial activity of the enterprise, the result of which is produced in the required volume and sold commercial products. However, from an economic point of view, the most important result and essential feature of this process is total weight profit (net income). Determining the income (profit) of an enterprise is one of the most difficult issues. In the Middle Ages, when trade was considered as a non-productive sphere of activity, its purpose was not to make a profit, but to cover expenses.

Firstly, it is a control function, since profit is one of the main indicators characterizing the effectiveness of the economic activity of an enterprise and reflecting the final financial result.

Secondly, profit performs a stimulating function, being the main source financial resources enterprise, formation of incentive funds and social development of the enterprise team.

Thirdly, profit as one of the main sources of financing for expanded reproduction has a reproductive function. The share of net profit remaining at the disposal of the enterprise after paying taxes and other obligatory payments should be sufficient to finance the expansion of production activities, scientific, technical and social development of the enterprise, material incentives for employees.

Fourthly, profit is one of the sources for the formation of budgets of various levels and the repayment of the enterprise's debt obligations to banks, other creditors and investors.
Summarized, the most important indicators of the financial results of the enterprise's activities are presented in the form of 32 annual and quarterly financial statements "Report on financial results", in form No. 1 "Balance sheet" and in form No. 5 "Appendix to the balance sheet". These include:

Profit (loss) from the sale of products (works, services);

Profit (loss) from other sales;

Income and expenses from unrealized transactions;

balance sheet profit;

Net profit, etc.

In a market economy, profit is the basis of an economic enterprise. Profit growth creates a financial base for self-financing, expanded reproduction, and solving the problems of social and material needs of labor collectives. Part of the obligations to the budget, banks and other enterprises are also fulfilled at the expense of profit. Thus, profit indicators become the most important for assessing the production and financial activities of enterprises. They characterize the degree business activity and financial well-being. Profit determines the level of return of advanced funds and the profitability of investments in the assets of the enterprise.

3.2 Factors affecting the amount of profit of the enterprise

Changes in the socio-economic development of the state during the transition to market relations lead to qualitative structural shifts towards the intensification of production, which leads to a constant increase in monetary savings and, mainly, the profits of enterprises of various forms of ownership.

The change in profit is influenced by two groups of factors: external and internal. Internal factors of change in profit are divided into main and non-main. The most important in the main group are: gross income and income from the sale of products (sales volume), the cost of production, the structure of products and costs, the amount of depreciation, the price of products. Non-primary factors include factors related to violation of economic discipline, such as price violations, violations of working conditions and product quality requirements, other violations leading to fines and economic sanctions. External factors affecting the profit of the enterprise include:

Socio-economic conditions;

Prices for production resources;

The level of development of foreign economic relations;

Transport and natural conditions.

The most important factors in the growth of profits are the growth in production and sales of products, the introduction of scientific and technical developments, an increase in labor productivity, and an improvement in product quality.

The interest of enterprises in the production and sale of high-quality products that are in demand on the market is reflected in the amount of profit, which, other things being equal, is directly dependent on the volume of sales of these products. The costs of production and sale of products, which determine the cost, consist of the cost of natural resources used in the production of products, raw materials, basic and auxiliary materials, fuel, energy, fixed assets, labor resources and other production costs, as well as non-production costs.

The amount of profit as the final financial result of the work of the enterprise also depends on the second, no less important value - the volume of the gross income of the enterprise. The size of the gross income of the enterprise and, accordingly, profit depends not only on the quantity and quality of manufactured and sold products (work performed, services rendered), but also on the level of prices applied. The types and level of applied prices ultimately determine the volume of the gross income of the enterprise, and hence profits.

The next factor affecting the amount of profit is the depreciation of fixed assets and intangible assets. The amount of depreciation is determined based on the book value of fixed assets and the current depreciation and amortization rates for intangible assets, based on the useful life of such intangible assets, but not more than 10 years of continuous operation. This takes into account the accelerated depreciation of the active part of fixed production assets, which is expressed in higher depreciation rates established by law for the corresponding types of fixed assets.

Thus, the profit of the enterprise is formed under the influence of the following main factors: the gross income of the enterprise, the income of the enterprise from the sale of products, the gross expenses of the enterprise, the level of current prices for the products sold and the amount of depreciation.

The most important of these is the amount of gross expenditures. Quantitatively, in the price structure, costs occupy a significant share, so the reduction in costs has a very noticeable effect on the growth of profits, all other things being equal.

In the analysis of factors affecting the amount of profit, there are reserves for increasing the profit of the enterprise, the main of which are:

1) Ensuring the growth of production volume on the basis of its technical renewal and increase in production efficiency.

2) Improving the conditions for the sale of products, including by improving settlement and payment relations between enterprises.

3) Changing the structure of manufactured and sold products by increasing the share of more profitable.

4) Decrease in gross expenses for production and circulation of products.

5) Establishment of a real dependence of the price level on the quality of products, their competitiveness, demand and supply of similar products by other manufacturers.

6) Increasing profits from other activities of the enterprise (from the sale of fixed assets, other property of the enterprise, currency values, securities, etc.).

CONCLUSION

The analysis carried out shows that JSC "Moloko" conducts great job to improve the efficiency of production, sales and distribution. As a result of this, the following results were obtained at the enterprise in 1997:

1) Proceeds from the sale of products (works, services) amounted to 323,595 thousand rubles.

2) Cost of goods sold - 39780 thousand rubles. rub.

3) Profit from sales - 20325 thousand. rub.

4) On the amount of balance sheet profit, which amounted to 7254 thousand. rub. affected by income received from non-sales operations - 1621 thousand. rub. The profit remaining at the enterprise after paying the tax in accordance with the constituent documents was sent to the accumulation fund - 1300 thousand rubles, to the consumption fund - 3400 thousand rubles. for charitable purposes - 462 thousand rubles. and other purposes 1118117 thousand rubles.
As the analysis shows, OJSC Moloko is seeing an increase in profits.
The following factors influenced the change in profit: cost, assortment, sales volume. A wide range of product range strengthens Moloko's position in the market and expands its sales volume.
The increase in prices for input resources and finished products, the reduction in demand in the market, the rupture of economic ties, nevertheless led to a reduction in the volume of production of some products, but since the joint-stock company conducts diversified activities, this allows highly profitable products to maintain on average low-margin products and obtain stable profit. However, the analysis also showed that the production reserves were not fully used in the work of the joint-stock company. These include non-production costs and losses that lead to a decrease in production efficiency, so their reduction is an important factor in managing profit and profitability. It should also be noted that OJSC “Moloko” has not sufficiently developed a system of operational accounting. Documentary operational accounting of production costs is not maintained. In fact, production costs are calculated at the end of the month, which does not give the economic effect that can be expected in the daily accounting of production costs. Profit management should also be of a state nature. A well-established tax policy is needed, and taxes must be clear and stable. It is stability that will lead to an increase in the profit (income) of the enterprise. Therefore, it is necessary to improve the tax policy, since the current tax system does not meet the main tasks for which it is aimed. It is unstable and very complex. Studies have shown that during recent years observed the introduction of taxes in the cost price, wholesale price and profit per unit of production. In the course work, calculations were made that showed how much these indicators increased, taking into account taxes on social needs, from labor costs included in the cost of production. Moreover, the state receives a predetermined amount from the cost, and the enterprise has an unearned part of the profit (income). Thus, in order to improve the economic mechanism of profit management, it is proposed to develop measures that provide:

1) Strict observance of the concluded contracts for the supply of products. It is especially important to interest the enterprise in the production of prestigious and most needed products for the market.

2) Conducting a large-scale and effective policy in the field of personnel training, which is a special form of capital investment.

3) Increasing the efficiency of the enterprise for the sale of products. First of all, it is necessary to pay more attention to increasing the speed of circulation of working capital, reducing all types of stocks, and striving to move finished products from the producer to the consumer as quickly as possible.

4) Reducing non-production costs and losses.

5) Introduction into practice of operational accounting of production costs.

6) The use of the most modern mechanized and automated tools for solving problems of profit analysis.

7) Make a shift of emphasis in profit management to enterprise income management. The implementation of these proposals will significantly increase the efficiency of profit management in the enterprise.

BIBLIOGRAPHY

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In accordance with the current regulation, the profit received by the organization is distributed in the following order.

First of all, a tax is paid from it to the budgets (federal, subjects of the Russian Federation and local). To determine taxable profit, the profit of the reporting year is reduced by the amount of: income in the form of dividends, interest received on shares, bonds and other securities owned by the enterprise; income received from equity participation in the activities of other enterprises, except for income received outside the Russian Federation; gambling business income; profits from intermediary operations, insurance activities, individual banking operations; profits from the sale of agricultural products of own production; benefits provided in accordance with applicable law.

The net profit of an enterprise is determined as the difference between the profit of the reporting year and the amount of tax, taking into account benefits. Directions for the use of net profit are determined by the enterprise independently. The main areas of profit use are as follows:

Deductions to the reserve capital,

Formation of accumulation and consumption funds,

Distraction for charitable and other purposes,

JSCs pay dividends.

Information on the distribution of profits is contained in form No. 2 and form No. 3 in the calculation of contributions to funds. Based on these sources, the actual distribution of profits is analyzed, deviations and their causes are identified. For this purpose, an analytical table 20 is compiled.

Table 20
Use of net profit (thousand rubles)

As can be seen from Table 20, the net profit of the reporting period increased by 136.6 million rubles compared to the same period last year. There was also an increase in deductions from net profit to accumulation funds (by 56.6 million rubles), to the social sphere fund (by 12 million rubles) and consumption funds (by 82 million rubles). However, the share of reinvested profit (that is, directed to accumulation funds and retained earnings) in the reporting period amounted to only 21% of net profit, which is 5% lower than the previous period.

The distribution of net profit in joint-stock companies is the main issue of the organization's dividend policy. At the center of the dividend policy may be the question of regulating the price of the company's shares or the question of the size and growth rate of the organization's social capital, or the question of the size of attracted external sources of financing.

The complexity of solving these problems lies in the fact that there is no unambiguous evaluation criterion. There are obvious, calculated advantages both in terms of capitalization of net income, i.e. its distribution to accumulation funds, and from the point of view of the stability of dividend payments.

Capitalization of net profit allows you to expand the activities of the organization at the expense of its own, cheaper sources of financing. This reduces the financial costs of the organization to attract additional sources, to issue new shares. The former system of control over the activities of the organization is also preserved, since the number of owners does not increase. The size of net profit capitalization makes it possible to evaluate not only the growth rate of the organization's own capital, but also, through the disclosure of the factor structure of this growth, to assess the financial strength of such important indicators as return on sales, the turnover of all assets.

This analysis is based on factorial models of profitability, which reveal the most important causal relationships between indicators of the financial condition of the enterprise and financial results. Therefore, they serve as an indispensable tool for "explanation" (evaluation) of the current situation. In general, for all indicators there is a single factor space, defined by a set of 11 interconnected blocks key indicators formation of financial results.

Factor profitability models are also controlled models for predicting the financial stability of an enterprise. The need to foresee the immediate and distant development prospects is an urgent task for enterprises. Production growth rates depend not only on demand, sales markets, enterprise capacities, but also on the state of financial resources, capital structure and other factors.

The most important limitation of the planned growth rate of the enterprise is the rate of increase in its own capital, which depends on many factors, but primarily on the profitability of sales (factor x 1); turnover of all capital (balance sheet currencies - factor x 2); financial activity of the enterprise to attract borrowed funds (factor x 3); profit distribution rates for development and consumption (factor x 4).

Thus, the growth rate of equity capital, which characterizes the enterprise's ability to expand production, can be represented by a multiplicative model of the relationship of the listed factors:

where y is the equity growth ratio (equal to the ratio of profit on savings to equity capital);

The model reflects the effect of tactical (factors x 1 and x 2) and strategic (factors x 3 and x 4) financial decisions. Correctly chosen pricing policy, expansion of sales markets lead to an increase in sales and profits of the enterprise, increase the rate of turnover of all capital. At the same time, an irrational investment policy and a decrease in the share of borrowed capital can reduce the positive result of the first two factors.

This model is remarkable in that it can easily be extended to include new factors. Moreover, when such important indicators of the financial condition of the enterprise as liquidity, the turnover of current (mobile) assets, the ratio of term liabilities for calculating a sustainable growth rate are in the field of view of the manager, it looks as follows:

where y is the equity growth factor;

x 1 - capital structure:

x 2 - the share of term liabilities in the capital of the enterprise:

x 3 - current liquidity ratio:

x 4 - turnover of current assets:

x 5 - financial result from the sale of products per unit of sales (profitability of sales):

x 6 - the rate of distribution of profit on savings:

Sustainable growth models find practical application in planning the development of an enterprise, taking into account the risk of bankruptcy.

It is known that one of the criteria for bankruptcy is an unsatisfactory balance sheet structure, determined by the current liquidity ratio, the ratio of current assets to own funds and the amount of debt to equity capital. If we take all these coefficients at the normative level, and the rate of distribution of profits on savings equal to 1.0, then the optimal sustainable growth rate will be 2.0 return on current assets or 0.2 return on equity working capital. This means that the pace of sustainable growth in the future depends on rather unstable parameters or factors of current activity. After all, the value of current assets (current assets) is very mobile and depends on many factors: the scale of the business; industry affiliation of the organization; the pace of product sales; working capital structures; share of added value in the price of the product; inflation; accounting policy of the organization; payment systems.

The stability of dividend payments is an indicator of the profitable activity of the organization, evidence of its financial well-being. In addition, the stability of dividend payments reduces uncertainty, i.e. level of risk for investors. Information about stable income initiates an increase in demand for the shares of this firm, i.e. leads to an increase in the price of its shares.

Questions for self-examination:

1. What forms of financial statements serve as a source of information in the analysis of the use of profits?

2. What factor models of equity growth do you know? Expand the essence of any sustainable growth model of your choice (list the factors in their relationship).

3. What are the benefits of capitalization of the company's profits? Give a complete answer.

Economic analysis Klimova Natalia Vladimirovna

Question 50 Analysis of the use of net profit

Analysis of the use of net profit

Control over the distribution of profits in practice is carried out through the submission of appropriate reports. However, the calendar year for which reporting is presented is part of the overall development period of the organization. That's why outward manifestation indicators can distort reality. Due to the lack of completeness of the reflection, financial statements do not allow a detailed analysis of the distribution of profits. Meanwhile, the following areas of profit use can be distinguished: deductions to the budget in the form of taxes, to reserve or similar funds, payment of income to members of the organization and for business development. The latter includes the expansion of production, the renewal of fixed assets, technical re-equipment, the introduction of innovations, material incentives for employees of the organization, social development team, etc.

In the process of analyzing the use of profit, it is necessary to establish the validity of the structure of its distribution in each area in conjunction with the indicators: profitability of production and sales, the amount of profit and investment per employee and per ruble of fixed assets, the coefficient of financial stability and self-sufficiency working capital. Financial performance management involves an economically justified impact on factors that contribute to increasing profits. For example, an increase in selling expenses is justified under the condition of an increase in turnover and active promotion of goods to markets.

The distribution of net profit in joint-stock companies is the main issue of the company's dividend policy.

Dividend policy is an element of corporate culture that increases the confidence in the joint-stock company on the part of potential shareholders; it has a positive effect on the investment attractiveness of the company, contributing to the growth of market prices for its shares.

The validity of the dividend policy, its openness is evidence of the observance by the management of the joint-stock company of the interests of shareholders, owners of both large and small blocks of shares.

The dividend policy is developed and approved by the general meeting of shareholders in accordance with the Law "On Joint Stock Companies" and describes in detail the rules for declaring dividends, as well as the forms and terms of their payments. Thus, the dividend policy, as a rule, contains provisions on the share of net profit directed to the payment of dividends (in percentage terms), on the regularity of payments, on the dependence of dividends on the amount of net profit, etc.

One of the most important indicators is earnings per ordinary share, which indicates how much net profit earned in the reporting period falls on one ordinary share.

Joint-stock companies whose shares are traded on the securities market disclose information on earnings per share in the form of two indicators: basic earnings (loss) per share and diluted earnings (loss) per share.

Basic profit (loss) per share is the ratio of the basic profit (loss) of the reporting period to the weighted average number of ordinary shares outstanding during the reporting period.

The basic profit (loss) of the reporting period is the amount of net profit reduced by the amount of dividends on preferred shares accrued for the reporting period.

Basic earnings per share are determined on the basis of actual data, while diluted earnings (loss) per share are forecast and show the maximum possible degree of decrease in profit or increase in loss attributable to one ordinary share in the following cases:

Conversion of all convertible securities (preferred shares and other securities) of a joint-stock company into ordinary shares;

Execution of contracts for the sale and purchase of ordinary shares from the issuer at a price below their market value.

Profit dilution is understood as its decrease or increase in loss per one ordinary share due to the possible issue of additional ordinary shares in the future without a corresponding increase in the company's assets.

The analysis of earnings per share is based primarily on the results of the analysis of the net profit of the reporting period, during which the main factors that influenced the financial result are evaluated. When using earnings per share to evaluate the attractiveness of an issuer's shares, an investor must first assess the stability of future earnings per common share. Interested in assessing the "quality" of the profit received, he must analyze the components of the financial result obtained.

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