Housing and communal services 

The ratio of possible profit and loss. How to increase profit

Any action, planned or performed, implies a certain result, regardless of the type of activity. The work of any enterprise is no exception to the rule, with the only difference that the result here is of a commercial nature and acts as a profit. In order to intelligibly explain the principles of making a profit of a certain enterprise, it is first necessary to find out what lies under the concept of "profit".

Economic dictionaries say that profit is the ratio of the costs of producing goods (services) to the income from their sale. Usually, profit is calculated for a certain period (for a quarter, a year, etc.). You can give a lot of ways and formulas for calculating profit, depending on its type and specific conditions, but the main task of all calculations is to find out how much income exceeded expenses. Profit is one of the most important indicators of the quality of an entrepreneur's activity and the effectiveness of his strategy.

Profit classification

In its role as an economic indicator, profit is divided into two groups:

Compensation for potential losses;

Other payments (decided by the management or board of shareholders of the company).

In addition, there is a capitalization of profits, that is, an increase in funds in circulation. This allows you to significantly expand the productivity of the enterprise at its own expense, without attracting assets from outside, which in turn allows you to save money.

Profit can be used to develop the company's infrastructure or meet the needs of the staff in the social plan. It takes into account the human factor and one of the most important assets, and this eliminates the frequent savings and retention of funds to meet this expense item. Otherwise, it will have a very negative impact on the workflow, and on future profit margins.

When calculating profit, rely on inflation indicators, which will be equal to the product of the sum of real profit and the inflation indicator that is relevant for a given time period. There is also the so-called "extraordinary" type of profit, characteristic of countries with well-developed economies. The sources of this profit may be non-standard points of sale for the enterprise, for example, branches.

Finally, the main indicator that sums up the final line under the company's activities is unprofitability. After all, profit can be negative, which means that all measures for the development, implementation of innovations, as well as the use of various production systems and labor technologies have not justified themselves in economic terms. Especially if there are no upward trends in the indicator.

Profit is not only an indicator of quantity, but also of quality, which is typical for many other economic and financial phenomena. Having consistently analyzed the financial, investment and operating profit, you can trace the dynamics of its growth and analyze the sources. This will allow building both short-term and long-term prospects for the further development of the company.

Profitability indicators of an enterprise can carry a hidden negative meaning. Often, in order to manipulate and simplify the conduct of business activities of the company, the volume of its profits is distorted. This can be done in order to mislead potential shareholders or investors, as well as for the sake of tax evasion.

Profit volumes make it possible to analyze the efficiency of the enterprise, its prospects in terms of development and the feasibility of investing capital from outside, and, of course, the prospects for expanding potential. It is only important to analyze profit not in general, but to disassemble each element of its structure separately, to trace the dynamics. In addition, it is important to carry out the formation in accordance with categories, distribute and comprehensively use.

The study of profit from the inside involves all indicators, and therefore usually belongs to the category of trade secrets of the enterprise. Superficial analysis allows other organizations to also study the company's profits. Such organizations include the tax inspectorate, insurance companies, audit firms, credit and banking structures. The analysis is carried out on the basis of accounting and reporting documents.

Profit analysis is carried out within the framework of the enterprise, which is divided into:

Complete activities;

The activity of a separate structural element;

A single action or operation.

A thematic analysis that studies specific factors influencing profit volumes is carried out in order to find weaknesses in the company's activities. Such areas as the tax policy of the company, the bonus system for personnel, and profit capitalization are subjected to analysis.

Enterprise Profit Management

Considering this or that category of profit, one should take into account its types and sources, as well as methods of management, so that production processes can be optimized. Rational profit management is achieved with the obligatory observance of a number of rules.

1. You need to be involved in the overall system of the enterprise.

2. Use an integrated approach to the formation and approval of decisions related to management activities.

3. Maintain the dynamics of management at a sufficiently high level.

4. Develop a diversified approach to the formation and implementation of solutions.

5. Keep a course on the main directions of growth and development of the company.

The main goal of profit management is to ensure the greatest welfare of the company's management at the same time as maintaining the interests of the company's service personnel, as well as the interests of the state, at the required level. This concept includes the optimal ratio of the maximum possible profit and minimum risks for the enterprise with the proper quality of profit, the optimal volume of financial and material resources, the provision of capital from profit and the competitiveness of the company's value in the market.

Optimally competent profit management is achieved by developing a special strategy, systematization and a certain course of action. Regarding the orientation of management, they are divided into two types: the influence on the formation and the impact on the use (distribution). The profit management complex is affected by a lot of factors:

State regulation;

Market system;

Internal mechanisms of the enterprise;

external mechanisms.

In the management process, one of several types of analysis can be used (for each specific case): vertical, horizontal, comparative, integral, factorial, and risk/ratio analysis.

Profitability and Profit Planning

When studying profits, it is important to keep profitability in mind. This factor indicates the effectiveness of the enterprise's use of resources and funds. The ratio between profit and the average market value of funds of all types indicates the overall profitability of the company. This indicator is determined from the ratio of net profit to turnover or capital. It is expressed as a percentage and is aimed at identifying the amount of income that the company receives from one financial unit of turnover. Profitability is calculated both for the enterprise as a whole and for the resources, sales and activities of the company in particular.

Profit successfully lends itself not only to analysis and management, but also to planning. This process is assigned to a certain group of people who introduce the human factor into the financial and settlement processes. This allows you to consider all prospects and make forecasts subjectively, but on the other hand, it allows you to create a more realistic picture of changes in profits in the future. Like many other procedures, planning is applied to several items: the profit of the entire company, the profit of a separate division, the profit of a single operation. Planning can be short term and long term.

A full range of procedures relating to the profit of the enterprise, first of all, contribute to its optimization, a qualitative increase in positive indicators, a decrease in risks related to the activities of the enterprise and an increase in the well-being of the management, staff and the entire state. Do not forget, in order to competently understand the issues of profit, you need to read our separate publications "" and "".

The owners of the company can use the net profit to pay dividends, to bonuses to employees, to increase the authorized capital, or for other purposes. In this article, we will look at how to account for transactions related to the distribution of profits and pay taxes.

The right to distribute profits belongs to the owners of the company (subclause 3, clause 3, article 91, clause 4, clause 1, article 103 of the Civil Code of the Russian Federation). To do this, they must hold a general meeting. In a joint-stock company, it is carried out no earlier than two months and no later than six months after the end of the financial year (clause 1, article 47 of the Federal Law of December 26, 1995 No. 208-FZ "On Joint-Stock Companies", hereinafter - Law No. 208 -FZ). In limited liability companies, the period for holding annual meetings is shorter - from March 1 to April 30 (Article 34 of the Federal Law of February 8, 1998 No. 14-FZ "On Limited Liability Companies", hereinafter - Law No. 14-FZ).

The decision must be documented in the minutes of the general meeting of shareholders (participants). It is clear that in companies created by a single founder, minutes of general meetings are not drawn up (Article 39 of Law No. 14-FZ, clause 3 of Article 47 of Law No. 208-FZ). The sole founder determines the directions of spending the net profit by his written decision.

What can you spend your net income on?

Undistributed (net) profit can be directed:

  • for the payment of dividends;
  • increase the authorized capital;
  • formation of reserve capital;
  • repayment of losses of previous years;
  • various employee benefits;
  • financing of capital investments;
  • other goals.

Let us consider in more detail the procedure for distributing profits for some of these purposes.

We pay dividends

The payment of dividends is the main direction of profit distribution.

When Not to Pay Dividends

Before making a decision to pay dividends, you need to check whether the company has the right to do so.

Recall that it is impossible to distribute profits between owners if:

  • share capital not fully paid up. In other words, if there is a debt in the debit of account 75 “Settlements with founders”, then profit cannot be distributed;
  • at the time of the decision to pay dividends, the value of the company's net assets is less than its authorized capital and reserve fund or will become less as a result of such a decision;
  • the company meets the signs of insolvency (bankruptcy) or if such signs appear due to a decision on the distribution of profits. Signs of bankruptcy are given in the Federal Law of October 26, 2002 No. 127-FZ "On Insolvency (Bankruptcy)". In particular, these include a situation in which the company, within three months from the date of the due date for the fulfillment of monetary obligations under contracts, including taxes and fees, will not be able to satisfy these requirements (clause 2, article 3 of Law No. 127-FZ ).

So, if at least one of these criteria is met, then the amounts paid to the founders are not recognized as dividends, since they were accrued in violation of the law. And they will have to charge taxes from them not at "dividend" rates, but at the usual ones (letter of the Ministry of Finance of Russia dated 10/14/2005 No. 03-03-04 / 1/276).

What documents are used to pay dividends

To calculate dividends, the following documents are required (letter of the Federal Tax Service for Moscow dated February 14, 2007 No. 20-12/013749a):

  • a registered charter that provides for the payment of dividends;
  • minutes (decision) of the general meeting of shareholders (participants) approving the payment of dividends for a certain year in a certain amount;
  • documents confirming the number of shares or share in the authorized capital of each recipient of dividends;
  • financial statements, according to which the company has a net profit in the amount necessary for payment.

The payment of dividends is confirmed by a payment document.

Is it possible to pay dividends from the profits of previous years

The regulatory authorities recognize that the company has the right to pay dividends from the profits of previous years (letters of the Ministry of Finance of Russia dated 03.20.2012 No. 03-03-06 / 1/133, the Federal Tax Service of Russia for Moscow dated 08.06.2010 No. 16-15 / [email protected], dated June 23, 2009 No. 16-15/063489).

This position is also supported by the judges (decisions of the Federal Antimonopoly Service of the North Caucasian District of January 23, 2007 No. 08-7128/2006, of the East Siberian District of August 11, 2005 No. А33-26614/04-С3-Ф02-3800/05-С1).

Attention!

It makes sense to mention the possibility of distributing the net profit of past years in the charter of the organization.

By the way, according to the Ministry of Finance, dividends from the net profit of previous years can be paid only if this profit was not previously directed to the formation of funds. For example, a fund for the corporatization of employees of a joint-stock company. Otherwise, dividend payments are not considered and, accordingly, are taxed at the usual rates (clauses 1, 2, article 35 of Law No. 208-FZ, letter of the Ministry of Finance of Russia dated 03/20/2012 No. 03-03-06/1/133, dated 04/06/2010 No. 03-03-06/1/235).

Accounting when accruing dividends

When accruing dividends (both annual and quarterly), the following entries are made in accounting:

Debit 84 Credit 75-2

Dividends accrued to the founder, who is not an employee of the organization;

Debit 84 Credit 70

Dividends are accrued to the founder, who is an employee of the organization.

If dividends are accrued but not paid

It happens that the company accrued dividends, but for some reason did not pay. Accrued but not paid dividends must be restored as part of net profit three years after the dividend payment deadline established by the general meeting (a longer period may be specified in the charter, but not more than five years) (clause 5, article 42 of Law No. 208- Federal Law, clause 3, article 28 of Law No. 14-FZ).

The lines will be like this:

Debit 75-2 Credit 84 sub-account "Retained earnings of the reporting year"

Unclaimed dividends were reinstated as part of net income.

When calculating income tax, dividends unclaimed by shareholders (participants) restored as part of profit are not included in income (subclause 3.4, clause 1, article 251 of the Tax Code of the Russian Federation).

We increase the authorized capital

Net profit can also be used to increase the authorized capital, although in practice such use of net profit is quite rare.

Three conditions for increasing the authorized capital at the expense of profit

When increasing the authorized capital of an LLC at the expense of property, the following requirements must be met (Article 18 of Law No. 14-FZ, clause 9 of the joint resolution of the Plenum of the Supreme Court of the Russian Federation No. 90 and the Supreme Arbitration Court of the Russian Federation No. 14 of 09.12.99):

1. The decision to increase the authorized capital in this way must be taken by the general meeting of participants on the basis of the data financial statements company for the year preceding the year during which such a decision was made. At least 2/3 of the LLC participants must vote for it (if the need for a larger number of votes to make such a decision is not provided for by the charter);

2. With an increase in the authorized capital, the nominal value of the shares of all participants in the company increases proportionally without changing the size and ratio of their shares.

3. The amount of the authorized capital increase must not exceed the difference between the value of the company's net assets and the amount of the company's authorized capital and reserve fund.

Example 1

The authorized capital of the company is 1,100,000 rubles. Reserve fund - 400,000 rubles. As of January 1, 2013, the value of net assets was equal to 3,010,152 rubles, the amount of retained earnings was 3,100,000 rubles. The maximum amount of the authorized capital increase is 1,510,152 rubles. .

It is clear that the authorized capital, the size of which the company is going to increase, must be fully paid by the founders.

As for joint-stock companies, the procedure for increasing the authorized capital at the expense of net profit will be slightly different.

The authorized capital of a JSC can be increased by increasing the nominal value of shares or by placing additional shares (clause 1, article 28 of Law No. 208-FZ).

The decision to increase the authorized capital by increasing the nominal value of shares is taken by a simple majority at the general meeting of shareholders. And the decision to place additional shares can be made either by a simple majority at the general meeting of shareholders or by the company's board of directors unanimously, if the company's charter allows it (Article 28 of Law No. 208-FZ).

Documentation with an increase in the Criminal Code

An increase in the authorized capital of a company provides for the need to amend the charter.

The procedure for making changes is provided for by Federal Law No. 129-FZ dated 08.08.2001 “On state registration legal entities and individual entrepreneurs" (hereinafter - Law No. 129-FZ).

So, documents must be submitted to the registration authority (clause 1, article 17 of Law No. 129-FZ):

  • application for state registration of amendments to the charter, in the form No. P13001 (approved by order of the Federal Tax Service of Russia dated January 25, 2012 No. ММВ-7-6 / [email protected]). It must be signed by the person exercising the functions of the sole executive body of the company;
  • decision to amend the articles of association;
  • changes made to the constituent documents of a legal entity, or constituent documents of a legal entity in a new edition in two copies;
  • document confirming the payment of state duty in the amount of 800 rubles. (signature 3, clause 1, article 333.33 of the Tax Code of the Russian Federation).

Taxation when increasing the authorized capital

The organization itself, when increasing the authorized capital at the expense of its own property, including at the expense of retained earnings, does not generate income (subclause 3, clause 1, article 251 of the Tax Code of the Russian Federation, letter of the Ministry of Finance of Russia dated 04/09/2007 No. 07-05-06 / 86).

Let's figure out how the increase in the authorized capital of the company will affect its founders. More precisely, whether it will be considered income for tax purposes:

  • for LLC participants - the difference between the new and old nominal value of the share;
  • for JSC shareholders - the difference between the nominal value of new shares and the original ones.

JSC shareholders - legal entities will not have taxable income, this is expressly stated in subpara. 15 p. 1 art. 251 of the Tax Code of the Russian Federation. According to this norm, when determining the tax base, income in the form of:

  • the cost of additional shares received by the shareholder organization, distributed among shareholders by decision of the general meeting in proportion to the number of shares they own;
  • the difference between the nominal value of new shares received in exchange for the original shares and the initial shares of a shareholder in the event of distribution of shares among shareholders upon an increase in the authorized capital of a joint-stock company (without changing the shareholder's share in this company).

But with LLC participants - legal entities, the situation is different. About them in the sub. 15 p. 1 art. 251 of the Tax Code of the Russian Federation is not mentioned. There are clarifications from the Ministry of Finance that when increasing the authorized capital at the expense of retained earnings of previous years, participants receive non-operating income, from which income tax must be paid (letters of the Ministry of Finance of Russia dated May 30, 2013 No. 03-03-06/1/19742, dated 09/26/2011 No. 03-03-06/1/588).

However, judges in some decisions express the opinion that the participants do not receive any income from an increase in the authorized capital at the expense of net profit. They note that the profit in this case does not go to the participants, but remains a separate property of the company. Participants only increase the nominal value of their shares. Shareholders will receive real economic benefit only when any of the property rights is realized.

This means that the organization - a member of the company does not have economic benefits and income, as well as a taxable base for calculating profits, because an increase in capital due to the retained earnings of the company, which does not change the actual shares of participants in the authorized capital, does not lead to a change in their property (obligatory ) rights (Resolution of the Federal Antimonopoly Service of the Volga District dated February 16, 2009 No. A65-11409 / 2006). However, relying on this court decision is risky - so far we are not talking about established practice on this issue or any trend.

For LLC participants - individuals, when capital is increased due to retained earnings of previous years, income arises in the form of the difference between the initial and new nominal value of their shares.

The date of receipt of income is the date of state registration of the increase in the authorized capital of the company. On this date, the organization that is the source of income must calculate, withhold from the taxpayer and pay the amount of personal income tax in the general manner (letters of the Ministry of Finance of Russia dated January 26, 2007 No. 03-03-06 / 1/33, dated December 19, 2006 No. 03-05- 01-04/336). The same is true for JSC shareholders.

It will be quite problematic to challenge this opinion in court. Previously, the courts supported taxpayers. The judges pointed out that an increase in the nominal value of a share in the authorized capital of an LLC due to retained earnings in relation to a participant cannot be regarded as income received by an individual (Decree of the Federal Antimonopoly Service of the Ural District dated May 28, 2007 No. F09-3942 / 07-C2, East Siberian District dated 07/25/2006 No. A33-18719 / 05-F02-3629 / 06-S1, Moscow District dated 02.26.2009 No. KA-A41 / 1046-09).

However, in Ruling No. 81-O-O of January 16, 2009, the Constitutional Court of the Russian Federation expressed a different position. The court recognized that exemption from taxes by its nature is a benefit, which is an exception to the principles of universality and equality of taxation arising from the Constitution of the Russian Federation, by virtue of which everyone is obliged to pay a legally established tax from the corresponding object of taxation. Establishing the benefits is the exclusive prerogative of the legislator. And with an increase in the authorized capital at the expense of retained earnings, the benefit is not provided. Arbitration courts began to follow this trend.

Thus, the Federal Antimonopoly Service of the Volga District decided that income in the form of the difference between the initial and new nominal value of the share formed in connection with the increase in the authorized capital of the company due to retained earnings of previous years, as well as the contribution of the participant, is subject to personal income tax (Decree No. 10.02.2011 A78-928/2010).

Accounting with an increase in the Criminal Code

When the authorized capital is increased, the following entries are made in accounting:

Debit 84 Credit 80

The increase in the authorized capital at the expense of net profit after the registration of the change is reflected.

We form reserve capital

Reserve capital - part of the equity allocated from the profits of the organization to cover possible losses and losses. The amount of reserve capital and the procedure for its formation are determined by the legislation of the Russian Federation and the charter of the organization.

Joint-stock companies are obliged to create a reserve fund (capital) at the expense of net profit. At least 5% of net profit must be directed to the reserve fund (capital) annually. Deductions may be terminated when the reserve fund (capital) reaches the amount stipulated by the charter of the joint-stock company. Minimum size reserve fund (capital) of JSC - 5% of the authorized capital (clause 1, article 35 of Law No. 208-FZ).

The reserve fund of a JSC is intended to cover its losses, as well as to redeem the company's bonds and buy back the company's shares (clause 1, article 35 of Law No. 208-FZ).

An LLC can also create a reserve fund (capital), but it is not obliged to do so. The society determines its size and the order of formation independently (Article 30 of Law No. 14-FZ).

There is no mandatory contribution requirement for LLCs.

Accounting when forming a reserve fund

When forming the reserve capital in accounting, the following entries are made:

Debit 84 Credit 82

The net profit was directed to the formation of a reserve fund (capital) in accordance with the standards approved by the charter.

We cover the losses of previous years

When directing net profit to cover losses of previous years, the following entries are made in accounting:

Debit 84 subaccount "Retained earnings of the reporting year" Credit 84 subaccount "Uncovered loss of previous years"

Directed net profit to pay off losses of previous years.

We use net income to purchase property

At the general meeting, shareholders of a joint-stock company or participants in an LLC may decide to allocate part of retained earnings for the acquisition of non-current assets. Owners have the right to make such decisions. But the question arises, what should an accountant do with account 84 “Retained earnings (uncovered loss)”. In the Instructions for the Application of the Chart of Accounts (approved by order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n), in the provisions on accounting, as well as in other regulations, there are only a few cases when it is possible to make a posting with the debit of account 84:

1) dividends have been accrued to shareholders or members of the company;

2) a reserve fund was created (replenished) on account 82 “Reserve capital”;

3) a loss was received based on the results of the reporting period;

4) after the approval of the annual reporting, a significant error was corrected (clause 9 PBU 22/2010 “Correction of errors in accounting and reporting”);

5) a significant change in accounting policy is retrospectively reflected (clauses 14, 15 of PBU 1/2008 "Accounting policy of the organization");

6) the authorized capital of a JSC or LLC has been increased at the expense of the company's property.

For other cases, the Instructions for the Application of the Chart of Accounts provide for the reservation of retained earnings.

To track the direction of the use of funds, you need to organize analytical accounting for account 84. Sub-accounts are created for it.

The total balance of this account at the time of acquisition does not change, since investments from net income do not lead to a decrease in the balance sheet currency. Analytical accounting on account 84 “Retained earnings (uncovered loss)”, namely: “Profit to be distributed”, “Use of profit” allows you to control the presence and expenditure of retained earnings:

Debit 84 sub-account "Profit to be distributed" Credit 84 sub-account "Use of profit"

The use of net profit is reflected (the date of reflection of property in accounting).

Example 2

JSC "Kometa" for 2012 received a net profit of 4,000,000 rubles. On April 30, 2013, at the general meeting of shareholders, it was decided to distribute part of the net profit received for 2012, namely: net profit in the amount of 590,000 rubles. was used to finance capital investments. On May 15, 2013, at the expense of these funds, the organization purchased commercial equipment worth 590,000 rubles. (including VAT 90,000 rubles).

The following entries were made in the accounting of JSC "Komety".

Debit 08 Credit 60

- 500,000 rubles. - Purchased production equipment;

Debit 19 Credit 60

- 90,000 rubles. - "input" VAT is taken into account;

Debit 60 Credit 51

- 590,000 rubles. - transferred to the supplier funds for commercial equipment;

Debit 84 sub-account "Profit to be distributed" Credit 84 sub-account "Use of profit"

- 590,000 rubles. - reflects the use of net profit aimed at financing capital investments;

Debit 01 Credit 08

- 500,000 rubles. - the equipment was put into operation;

Debit 68 subaccount "VAT settlements" Credit 19

- 90,000 rubles. - submitted for the deduction of "input" VAT on commercial equipment.

Thus, the balance of retained earnings for 2012 is 3,410,000 rubles. (4,000,000 rubles - 590,000 rubles). The founders can use this amount at their discretion.

The key goal of each enterprise is to extract the maximum possible profit, with minimal operating costs.

Depending on the calculation method used, profitability is divided into several categories. The most significant coefficient in the world of business is the income from the sale of products or services.

Each company in the course of its activities is looking for new and unexplored ways to achieve the maximum level of profitability. But in order to realize this, it is necessary, first of all, to understand how profit is formed, it is calculated, what situations can influence it, in terms of volumes.

Scope of application

Profit from sales is the end result trading activities firms.

The management of the company should strive to ensure that the end result of the activity, although not the maximum level of profit, is sufficient for the further continuation of work, under normal conditions.

Information sources for profit analysis:

  • report about incomes and material losses;
  • enterprise balance sheet (accounting);
  • the company's financial plan.

By itself, the profit indicator is not capable of giving a deep assessment of the situation, because it is nothing more than a figure expressed in value. For example, for the past audit, the company received an income of about 200 thousand rubles. How good or bad is this indicator?

It is difficult to give an exhaustive answer to such a question, having only a figure of 200,000 rubles. One solution may be to compare the company's performance with its previous reporting periods.

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

What other calculations need to be made to track the activities of the enterprise? , read carefully.

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How to calculate profit from sales?

In the process of calculating the profit of entrepreneurial activity, a formula is used in which the coefficient acts as the difference between expenses and gross profit.

Gross profit from sales is the difference between the costs (required to sell and create products) and the cash flow.

Cost of sales includes only those lines of expenditure aimed at the direct sale of the product or service offered.

  1. Profit from the sale of products - the formula: Prpr \u003d Vpr - UR - KR. Where, KR, UR - commercial and administrative waste; Vpr - the level of gross profit; Ppr - income from the activities of the company.
  2. The formula for calculating the company's gross profit: Vpr = VO - Sbst. Where, Сbst is the cost of selling products; In - the amount of revenue.

Example of using the sales profit formula

The company is engaged in the implementation household appliances. Over the past reporting period, two thousand vacuum cleaners were sold, at an average price of five thousand rubles. The revenue for the last audit is:

Vo \u003d 2000 * 5000 \u003d 10,000,000 rubles.

The cost level of one vacuum cleaner is three thousand three hundred rubles, and all products:

Cost price \u003d 2000 * 3300 \u003d 6,600,000 rubles.

Administrative and commercial expenses amount to 1,450,500 and 840,500 rubles, respectively.

Determine the level of gross profit:

Prv \u003d 10,000,000 - 6,600,000 \u003d 3,400,000 rubles.

Let's calculate the profit from the sale of vacuum cleaners:

Prpr \u003d 3,400,000 - 840,500 - 1,450,500 \u003d 1,109,000 rubles.

If all other lines of expenses and tax deductions are subtracted from the profit indicator, then you get net income.

What affects the volume of goods sold?

Before you find out the sources of increasing profits, it is worth understanding why it is primarily dependent.

There are two key categories that affect a company's profits: external and internal.

  • The level of sale of goods. In the case of an increase in sales of goods with a high rate of profitability, the profit rate will increase. If you increase sales of goods with a low level of profitability, then the profit margin will decrease.
  • The structure of the proposed assortment of goods. The dependency thread is the same as in the case of volume;
  • The cost of the goods or services offered. Directly proportional relationship. If the cost of the offered product increases, the profit increases, and vice versa.
  • Cost price. In the process of increasing the level of the cost of goods - profit falls, with a decrease in the level of cost - increases.
  • Business expenses. The dependency thread is exactly the same as in the case of cost.

It should be noted that each enterprise has a full range of tools aimed at the in-line regulation of the above factors.

External reasons include the state of the market situation in which the sale of a service / product takes place. No company in the world is able to have a significant impact on such factors.

External causes include:

  1. Depreciation rate.
  2. State regulation.
  3. Conditions and situations of a natural nature.
  4. The level of difference between supply and demand (market sentiment).
  5. The initial price of raw materials and materials necessary for the production of goods, for its subsequent sale on the market.

External factors do not have a direct impact on the profitability of the enterprise, but they can put pressure on the cost price, as well as the final volume of goods sold.

Ways to increase the profit ratio

In the light market economy, companies have two effective ways to increase profits.

In particular:

  • Reducing the cost of the service / product (in the process of creation and subsequent implementation).
  • Increasing the volume of sales of manufactured products.
  • Diversification of the production process.
  • Entering new markets.
  • Elimination of losses and non-production expenses.
  • Optimization of the consumption of economic resources.

The level of income received by the company is directly dependent on the volume of goods sold, many managers favor the idea of ​​simply increasing volumes. To effectively implement this approach, it is necessary to conduct the highest quality analysis, determine which products are most in demand among end users, and more importantly, how beneficial they are for the company itself.

If the product has a high rate of return, but there is low demand, it is necessary to carry out marketing company to stimulate demand growth.

It is important to find the target audience, change a number of product characteristics, design solutions.

The more consumers you manage to attract to your product, the higher the final profit will be.

Another effective way, as mentioned above, is to reduce the cost of production. To implement this plan, it is necessary to find suppliers with lower price thresholds in terms of primary raw materials and materials.

Other, no less effective ways to increase the company's profitability are the automation of the production process, the introduction of new technologies, innovative solutions.

Calculation of profit from the sale of goods: methodology

In the process of planning a development strategy, companies are required to take into account the expected level of profit.

For a qualitative calculation of future profit, it is important to know at what price it will be sold to the end consumer, what volume will be sold.

The easiest way to predict the level of future profit is to calculate the profitability ratio (data for the past time interval are used).

  1. Calculation of return on sales by net income (ROM): ROM = (revenue from the sale of goods / cost * 100 percent.
  2. Profit before tax - formula: income from goods sold + income / expenses (operating) + income and expenses (non-operating).
  3. Often resort to factor analysis of profit from sales. Calculation formula: P \u003d K * (C - C). Where, K - the volume of goods sold; C - the cost of production; C - the cost of production, with the subsequent sale of the service / product.

Also, today a wide list of various financial and analytical programs is available that allow you to make a high-quality forecast, taking into account all known factors. The best profit planning approach is achieved with a long-term time frame.

Conclusion

Calculation and analysis of the level of profitability of the company is a key element of business management. In small firms, such work does not take much money and time, and the manager himself can carry out the simplest calculation of the company's profit. But with a rigorous approach, positive changes will manifest themselves immediately, in the form of increased income and levels of efficiency.

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An integral part of economic costs is " normal profit"- income from the use of entrepreneurial talent. Normal profit appears when the total income of the firm is equal to the total economic costs. In these conditions the firm's economic profit is zero. A normal profit is necessary to keep the entrepreneur in this field of activity.

Net economic profit

If a firm uses its available resources in the most efficient way and total income exceeds total, then there is a positive economic profit. Depending on the market structure and the ratio of elements of monopoly and competition in a particular market, economic profit can be maintained for a more or less long period.

The presence of positive or negative economic profit in the industry stimulates the inflow of new enterprises into the industry or the corresponding outflow of firms into other areas of activity.

Profit calculation example:

3. Accounting profit (1 - 2) = 1000 - 800 = 200

4. Economic profit (1 - 2 - 3) = 1000 - 800 - 250 = -50

Conclusion: with positive accounting profit, economic profit turned out to be negative, i.e. the entrepreneur needs to analyze the possibility of alternative use of his funds.

Analysis of operating profit

Profits and losses are the financial results of the business activities of the enterprise.

The main objectives of profit analysis are:
  • verification of the validity of the planned profit. The plan for profit should be linked to the volume of products sold and its cost;
  • assessment of the implementation of the business plan for profit;
  • calculation of the influence of individual factors on the deviation of the actual amount of profit from the planned one;
  • identification of reserves for further growth of profits and ways to mobilize (use) these reserves.

The most important sources of information for profit analysis are:

  • (F. No. 1 reporting),
  • (F. No. 2 reporting),
  • accounting register - journal-order No. 15 for accounting for profit and its use,
  • organizations.
The profit of the organization consists of three main elements:
  • profit (or loss) from the sale of products, works and services;
  • profit (or loss) from other sales;
  • operating, non-operating and extraordinary income and expenses. The main part of the profit is profit from the sale of products, works, services.
In Form No. 2 of the financial statements "Profit and Loss Statement" the following types of profit are given:
  • gross profit. It is defined as the difference between sales revenue and cost of goods sold;
  • revenue from sales. It is calculated as the difference between revenue, cost, selling and administrative expenses;
  • profit before tax is calculated taking into account the presence of operating and non-operating income and expenses;
  • net income is determined by subtracting deferred tax assets and current income tax from profit before tax and deferred tax liabilities.

Let us analyze the profit received from the main activity of the enterprise, i.e. profit from the sale of products (works, services).

Profit from product sales- this is the financial result obtained from the main activity of the enterprise, which can be carried out in any form, fixed in its charter and not prohibited by law. The financial result is determined separately for each type of activity of the enterprise related to the sale of products, the performance of work, the provision of services. It is equal to the difference between the proceeds from the sale of products at current prices and the costs of its production and sale.

Pr \u003d Bp - C / s,

  • Bp - sales proceeds;
  • С/с - (production and sales costs).

Revenue is taken into account without value added tax and excises, which, being indirect taxes, go to the budget. The amount of markups (discounts) received by trade and supply and marketing enterprises involved in the sale of products is also excluded from the proceeds.

Enterprises engaged in export activities, when accruing profits, also exclude export tariffs directed to state revenue.

Revenue from sales of products is determined either as:

  • its payment (for non-cash payments - to bank accounts; for cash - at the cash desk of the enterprise);
  • upon shipment and presentation by the buyer of settlement documents.

In physical terms, the calculation of profit from the sale of products includes the balance of finished products at the beginning of the reporting period (On.), unsold in the previous period, and the release marketable products reporting period (TP) minus that part of the products that cannot be sold at the end of the reporting period (Ok.).

Etc. = He. + TP - Ok.

A period is a quarter or a year.

The composition of the balances of unsold products at the beginning and end of the period depends: on the method of accounting for revenue chosen by the enterprise - on receipt of money to the settlement account (cash) of the enterprise or on the shipment of products, settlement documents for which are presented to the buyer.

Table No. 8 (in thousand rubles)

Indicators

According to the plan for actually sold products

Actually

1.Production cost of goods sold

2. Selling expenses related to products sold (sales expenses)

3. Total cost of goods sold

4. Proceeds from sales in sales prices, excluding VAT and excises)

5. Financial result - profit (p. 4 - p. 3)

So, the profit from the sale of marketable products increased compared to the plan by the amount: 3376 - 3174 = + 202 thousand rubles. The following factors influenced this overfulfillment:

1. increase against the plan for the volume of sales. In the analyzed enterprise, the plan for the volume of sales (sales) of products was fulfilled by 101.6%. Multiplying the planned profit from sales by the percentage of overfulfillment of the plan in terms of sales volume, we find how much profit was received due to the growth in sales volume: (3174 * 1.6%) / 100% = + 50.8 thousand rubles. Consequently, due to the increase in the volume of sold products, the profit received from the sale increased by 50.8 thousand rubles;

2. An increase against the plan in the production cost of goods sold reduced profits.

Let's compare the actual and planned cost of actually sold products, i.e. let's compare the fourth column of the table with the third column on the first line: 19552 - 19491 \u003d - 61 thousand rubles. This result means that due to the increase in the production cost of goods sold, the profit decreased by 61 thousand rubles;

3. commercial (administrative) expenses, as well as production costs, have an inverse effect on profit. However, in this example, their value did not change and did not affect the profit. To establish this, let's compare the actual and planned values ​​of commercial expenses attributable to the actual volume of sales of products, i.e. compare the fourth column of the table with the third column in the second line: 144 - 144 = 0

4. We establish the impact of changes in wholesale prices on profit from the sale of products by comparing the actually sold products in the current wholesale prices (excluding VAT and excises) and the actually sold products in planned prices (excluding VAT and excises).

To this end, let's compare the fourth column of the table with the third column on the fourth line: 23072 - 23087 \u003d - 15 thousand rubles. This result means that the wholesale prices for products sold decreased by 15 thousand rubles, which reduced profit by the same amount;

5. the impact of changes in the structure of sold products on profit is calculated by the balance method, i.e. as the difference between the sum of the deviation of the actual profit from sales from the plan and the sum of the influence of all other (already known) factors: 202 - (50.8 - 61 + 0 - 15) = + 227.2 thousand rubles. This result means that a shift in the structure (change in the structure) of sold products towards an increase in the share of more profitable types of products increased the profit from sales by 227.2 thousand rubles.

The total influence of all factors (balance of factors) is: + 50.8 - 61 +0 - 15 - + 227.2 = + 202 thousand rubles.

In this way, the above-planned profit from product sales was obtained mainly due to a shift in the structure of products sold towards an increase in the share of more profitable types of products, as well as due to an increase in the volume of product sales. At the same time, an increase in the cost of goods sold and a decrease in wholesale prices for products reduced profits. The amount of selling expenses did not change and did not affect the profit.

It is also important to analyze the "quality" of profits. Profit quality is a generalized characteristic of the structure of sources of profit formation. With a high "quality" of profit the volume of products produced increases, its cost decreases. With a low "quality" of profit there is an increase in sales prices for products in combination with the absence of an increase in the volume of production in physical terms.

The main thing in improving the "quality" of profit is to reduce. This is an intensive direction of increasing profits by mobilizing available reserves.

Marginal income

When analyzing profit from the sale of marketable products, it is necessary to determine such an indicator as marginal income. Marginal income is the difference between the proceeds from the sale of products and the variable costs of its production and sale. In other words, marginal income is the sum of fixed costs and profits from sales.

Based on this, the profit from the sale of marketable products is equal to marginal income minus fixed costs. It follows that the company will make a profit only if the fixed costs are reimbursed by the proceeds from the sale of a certain volume of manufactured products. This revenue should be sufficient to offset variable costs and generate profits. The analysis here allows you to establish, due to which particular costs (fixed or variable) included in the cost of goods sold, the profit changes.

Operating leverage effect

It is also necessary to consider such an indicator as operating leverage effect (production leverage). It is characterized by the ratio of marginal income and profit. The effect of operating leverage shows how much profit increases due to a change in revenue from product sales. The fact is that the effect of increasing sales revenue on the amount of profit depends on the ratio of variable and fixed costs. Therefore, the value of the operating leverage depends on this ratio. The higher the proportion of fixed costs, the greater the difference between marginal income and profit, and the higher the ratio between them. With the help of operating leverage, you can assess the degree of influence of revenue from the sale of products on profit. The greater the operating leverage, the greater the increase in profits provides each percentage increase in revenue from product sales.

An important aspect of profit analysis is definition of break-even(critical) volume of production and sales of products. There is a breakeven output if equals(or if marginal income is equal to the sum of variable costs as part of the cost of production). In this case, the organization does not receive any profit or loss from the sale of products. This situation is called the critical (break-even) volume of production and sales, or otherwise, the critical point (break-even point), as well as threshold.

The critical volume of production can be defined as the quotient of the amount of marginal income. Therefore, the threshold of profitability can be determined by the following formula:

(sum of variable costs/sum of marginal income) * 100%.

To reach the critical point, it is necessary to produce and sell so many products that both the variables and the given organization are covered by the proceeds from the sale. In order to make a profit, you should increase sales. If the value of production decreases, then the organization will receive a loss.

All the factors listed in this paragraph that affect the amount of profit received should be attributed to the number internal factors . In addition to them, there are external factors, which also determine the amount of profit received by the organization.

External factors include:
  • socio-economic conditions in which the organization operates;
  • degree of development of foreign economic relations;
  • transport conditions;
  • the level of prices for production resources, etc.

Analysis of profit from the sale of assets, operating, non-operating and extraordinary income and expenses

Reserves for increasing profits and increasing the level of profitability

Enterprises can receive financial results (profits or losses) that are not related to the sale of products, works and services. This includes, in particular, gains and losses from so-called other sales, i.e. from the sale of property (assets) of the enterprise. For example, there may be a sale (of funds), materials, and other types of enterprise assets.

When analyzing financial results from other sales, it is necessary to check the reliability of the valuation of the assets being sold, as well as to compare the possible income from the sale of assets with the estimated costs of these operations. Then, already in the process of subsequent analysis, the actual financial result from other sales should be compared with the envisaged result.

When selling fixed assets, one should compare the possible profit from their sale with the income that can be received by the enterprise if these fixed assets continue to operate. If the profit from the sale of an object of fixed assets exceeds the amount of possible profit from the continuation of the operation of this object for a certain standard period, then the sale of this object of fixed assets should be carried out.

In addition to profits and losses from other sales (from the sale of assets), organizations may also have non-operating financial results that are not related either to the sale of products or to the sale of assets (property).

Non-operating financial results are divided into three types:

  • operating income and expenses;
  • non-operating income and expenses;
  • emergency income and expenses.
Operating income and expenses include:
  • interest receivable;
  • Percentage to be paid;
  • income from participation in other organizations;
  • other operating income and expenses.
Non-operating income and expenses include: See below: Extraordinary income includes:
  • insurance indemnities;
  • the cost of material assets remaining from the write-off of assets unsuitable for restoration and further use, i.e. fixed assets.

Extraordinary expenses arise as a consequence of extraordinary circumstances of the economic activity of the enterprise (floods, fires, accidents, or nationalization of property, etc.)

Operating, non-operating and extraordinary financial results are generally not planned. Therefore, the main method of their analysis is to compare their actual value for the reporting period with the amounts for previous reporting periods, i.e. study of the dynamics of these quantities. When analyzing for each type (item) of these incomes (profits) and expenses (losses), it is necessary to find out the reasons for their occurrence, to establish whether measures were taken to pay off the debt in a timely manner, to identify the persons guilty of missing the statute of limitations, etc.

Analysis of non-operating financial results makes it possible to assess the organization of the functioning of marketing and financial services, as well as the degree of compliance with contractual discipline.

In conclusion of the analysis, it is necessary to develop specific measures aimed at reducing or even completely preventing losses from non-sales operations.

The analysis of profit formation should be completed with a summary calculation of the reserves for increasing profits identified as a result of the analysis.

The main reserve for profit growth is the reduction in the cost of manufactured and sold products.

The process of formation and distribution of profits of the enterprise

Analysis of the use of profits

The amount of profit remaining at the disposal of the enterprise (net profit) is primarily affected by the amount of taxable profit, as well as the income tax rate.

If taxable income changes, then net income changes in the opposite direction. So, with an increase in the amount of taxable profit, the amount of profit remaining at the disposal of the enterprise will decrease.

With regard to income taxed at rates different from the income tax rate, these incomes are deducted from gross income when determining the amount of taxable income. The considered types of income, with the exception of taxes, increase the amount of profit remaining at the disposal of the enterprise.

The amount of deductions from profit in has the opposite effect on the amount of net profit: with an increase in these deductions, the profit remaining at the disposal of the enterprise decreases, and with a decrease in these deductions, net profit increases.

When analyzing the use of profit, it is necessary to compare its actual distribution for the reporting period with the distribution provided for in the financial plan of the enterprise, as well as with the corresponding data for previous periods, that is, in dynamics. Based on the analysis of the use of profit, conclusions can be drawn about the need for changes in its use in order to achieve optimal ratios between the individual directions of its distribution.

The constituent documents of each organization determine the procedure for using the net profit remaining after making tax payments to the budget, as well as the list of funds formed from this profit.

In the process of analyzing the use of profits, the following main tasks should be solved:
  • establish how the amounts and shares of specific areas of profit use have changed compared to financial plan and values ​​of the previous period;
  • to analyze the formation and use of reserve capital and other special funds;
  • evaluate the efficiency of profit use;
  • determine ways to optimize the use of profits and the main activities aimed at improving the use of profits.

In the process of formation and use of special purpose funds at the expense of the profit remaining at the disposal of the organization, the stimulating role of profit is carried out.

The following questions should be considered when reviewing special funds:
  • change in the amount of funds allocated to special funds;
  • the influence of individual factors on this amount;
  • the procedure for using special funds for the relevant purposes;
  • how the amounts of deductions from net profit to special funds and the amounts of use of the funds of these funds change in dynamics, i.e. over time;
  • what are the reserves for optimizing the size of special funds and their use.

When analyzing the formation of special-purpose funds at the expense of net profit, a formula should be used to determine the degree of change in deductions to special funds due to changes in net profit:

∆SF = ∆CHP K,

  • ∆SF— increase in the value of special funds, i.е. accumulation or consumption fund by changing the amount of profit remaining at the disposal of the enterprise;
  • ∆CHP- an increase in the amount of profit remaining at the disposal of the enterprise;
  • To— coefficient of deductions from net profit to this fund (basic value).

The amounts of contributions to special purpose funds are also influenced by changes in the value of the coefficient of contributions from net profit. The influence of this factor can be determined by the following formula:

∆SF \u003d (K 1 - K 0) PE 1,

  • ∆SF- increase in the value of special purpose funds due to changes in the coefficient of deductions from net profit;
  • K 1 , K 0- respectively, the actual and basic coefficients of deductions from net profit to special-purpose funds;
  • PE 1— net profit of the given enterprise for the reporting period.

An increase in the amount of profit remaining at the disposal of the enterprise accordingly increases the amount of deductions to special funds, and a decrease in net profit reduces the amount of these deductions. Similarly, i.e. the change in the coefficient of deductions from net profit also directly affects: with an increase in this coefficient, the amount of deductions to special-purpose funds increases, and with a decrease in the value of the coefficient, the amount of deductions to special funds decreases.

In the process of analyzing the use of special funds, it is necessary to compare the actual expenditures of funds with the planned and expenditures of previous reporting periods. Thus, the funds of accumulation funds are directed, as a rule, to the development of production, i.e. to increase (funds), as well as to fill current assets. It is advisable to analyze how the use of the funds of the accumulation fund affected the structure of the property of the enterprise, as well as technical condition fixed assets (funds).

Consumption funds are spent to make various payments social character. It is advisable to analyze the use of these funds in conjunction with such indicators of the state and use of labor resources, such as turnover rates for hiring and dismissal, full turnover, turnover, indicators of average tariff category, labor productivity. The use of profit for the formation and spending of consumption funds is justified if it is interconnected with the improvement of the listed labor indicators.

Giving a general assessment of the use of the organization's profits, it is necessary to state how it contributes to the increase in the scale of the organization's activities, the growth of its economic potential, the replenishment of equity, as well as the optimization of the structure of the organization's assets and liabilities.

Every entrepreneur should know what is the income and profit of the enterprise, as well as how they differ from revenue.

Profit and income are the main financial indicators of the economic activity of various organizations, regardless of the form of ownership. They can give an idea of ​​the overall profitability of the enterprise.

The costs of social and industrial development of the firm must be financed from profits. The source of financing of the state budget is the corporate income tax.

What is revenue (turnover)

Proceeds - funds received (proceeded) by an enterprise, firm, entrepreneur from the sale of goods and services, sales proceeds. That is, this is the entire amount of money that turned out after the sale of the goods.

Example of revenue (turnover), Petya sold 100 phones for 10,000 rubles. The revenue will be 100 * 10,000 = 1,000,000 rubles.

Revenue from the sale of certain products is divided into two main types - net and gross:

  • Under Net Revenue implied amount Money after all possible deductions, taxes, discounts and the value of the returned goods.
  • Gross revenue- is the total amount of cash receipts after the sale of certain products or services.

Income \u003d is revenue (turnover) - the cost price (or purchase price) of goods or services. Taxes are also deducted from this amount. Material costs are the funds that have been spent on the purchase of products or necessary equipment. Such costs include a variety of social contributions. extradition wages has nothing to do with this category.

Income Example, let's say the cost of Petya's phones is 5000 rubles. Only 100 pieces, which he sold for 10,000 rubles each. Then income \u003d 100 * (10,000 - 5,000) \u003d 500,000 rubles.

Labor costs and profits are the main components of the income of a particular enterprise. The market value of the goods and the general market conditions have a direct impact on the level of income of the organization. Possible receipts from individuals and legal entities do not belong to the revenue side of the company.

If the income is subject to tax payments, then after their deduction there remains an amount that includes the following elements:

  • insurance and investment income. These are the amounts received in the course of investment activities and the cost of insurance premiums.
  • Consumer funds whose activities require spending on the social sphere.

Income can be marginal, total and average.

  • marginal revenue is the difference by which the total income of the organization changes after the sale of a certain unit of goods. Demonstrates the overall payback of the company.
  • Total income- this is the final result of the economic activity of the company, the difference between the cost of goods and production costs.
  • Average income received after the sale of one unit of goods. It is equal to the price of a particular sold product.

Experts also distinguish the concept of other income. These include a variety of penalties, interest for placing a deposit.

What is profit

Profit is the difference between costs and revenues, where the latter are an indicator of financial activity.

Profit example, Petya's income from the sale of phones amounted to 500,000 rubles. But you still need to pay taxes, pay the salary of the manager, pay the rent, etc.

Maximizing profits has always been one of the main goals of a successful businessman. It is considered the most important estimated generalizing indicator of the activity of a particular company.

This concept includes the following main components:

  • Profit from the sale of property and the sale of material assets.
  • Funds that were received from additional (non-core) activities of the organization. This refers to securities, dividends, funds from the rental of real estate.
  • The difference between the funds that were received from the sale of a certain product and its present value.

If it was found that the profit of the enterprise is zero, the costs can be considered the result of such economic activity. The limiting indicator of this concept can be obtained by selling an additional copy of the product.

There are several main functions of the profit of the enterprise:

  • Provides funds for the development of the company.
  • Forms taxes on the profits of commercial enterprises.
  • Shows the final economic result of the activities of a conventional enterprise.

For productive profit management, experts recommend taking into account its marginal indicator, which you need to focus on. Some heads of firms actively practice lowering the price policy. But this should not be exacerbated. With a large demand for goods, the profitability of the enterprise as a whole can drop catastrophically.

Experts advise offering their customers inexpensive analogues of goods and services that are considered the most in demand. Such measures will help maintain the attractiveness of products and the normal price category.

This financial indicator has several classifications. As a result of economic activity:

  • Minimum allowable and maximum possible, which occurs at minimum cost and maximum profit.
  • Regulatory- This is the standard minimum indicator provided by the enterprise.
  • under-received- a loss that was formed due to the fact that one of the participants in the transaction violated its obligations.

Profits may or may not be taxed. It is differentiated into economic and accounting, depending on the costs. The first is the difference between accounting profit and additional, forced expenses.

As for the second option, it is positioned as the difference between the costs incurred and the income of the enterprise.

Gross profit is the difference between the total income of a particular organization and the amount of costs. Net income can be calculated by subtracting all related expenses from gross income.

About EBIT and EBITDA earnings

These are two more types of profit, which should be separately emphasized.

Profit EBIT is positioned as an intermediate value between gross and net indicators. Some believe that this is operating profit and are mistaken. This concept can also include non-operating profit. The amount of EBIT profit can be calculated based on the sum of profit and loss before taxes. This indicator must be positive.

The value of profit directly depends on the depreciation rate and how it is calculated.

EBITDA is earnings before interest, depreciation and taxes, showing only cash inflows. This analytical indicator is calculated on the basis of the financial statements of an organization and is the main indicator of how profitable the company's activities are as a whole, regardless of various debts and depreciation methods.

Having determined EBITDA, it is possible to calculate the organization's debt burden. To do this, the debt indicators are divided by the nominal profit.

The indicated values ​​of EBIT and EBITDA are reduced to one - "reduction to a common denominator" of economic indicators of organizations from different countries. The tax systems of different states are not similar to each other. This means that income tax rates will also not be equivalent. The introduction of EBIT and EBITDA profits into accounting practice makes it possible to correct this situation.

Experts in the economic field have a generalized point of view on how to maximize profits for a particular firm. Marginal revenue must be equalized with marginal cost. In this case, the profit of the enterprise should be maximum. But still it is individual for different organizations.