Profit is the main and most important financial indicators of the company's business.
It is from her that it depends on the effectiveness of its work, as well as solvency and liquidity. In addition, profits are a source of self-financing of the organization, and largely affects the pace of modernization and automation of production.
Definition of profit concept
Any commercial activity Directed to receive income, which largely covers incurred losses. It is the "pure" income received from any type of activity, and is called profits. Many mistakenly believe that revenue equals profits.
Revenue and profit - the difference is essential, so it is not worth equating them.
If we consider a narrow concept, then the profit is the difference between the revenue from the sale of products and costs incurred on its production and implementation. However, in fact, the concept of profit is much wider, since its final result is made up of the totality of "clean" income from different species Activities. Therefore, at all enterprises important Downt the profits structure.
Structure of the indicator
As noted above, the overall profit of the organization develops from individual elements.
These include:
- profit from the sale of products and services on which production specializes;
- profit from the implementation of other goods and services that can be obtained as a result of side activities;
- results of operations with basic funds and other property of the organization;
- profit or loss from non-dealerization activities (currency revaluation results, operations with securities firms, etc.).
The most important component is the profit from the main activity, i.e. from the sale of goods and services.
It is from this indicator that the final result of the activity depends largely. This indicator is subject to careful analysis and, as a result, detecting ways to increase it.
Functions
In order to conduct a successful analysis of economic activities and more deeper to understand the definition of profits, it is important to know the basic functions that it performs.
- The first thing worth knowing - the profit characterizes the final result of the activity. Those. In other words, if there is profit, it explicitly indicates the efficiency of the enterprise and its stability, which is its economic essence.
- The following function is stimulating. Since the profit is the main source of money infants, the organization is interested in maximizing it. Maximization of "net income" effectively affects the growth of wages of workers, the pace of updating fixed assets and the introduction of new technologies, resulting in the production level of production, which will give an even greater effect in the end.
- The magnitude of the profit plays a significant role not only for the organization itself, but also for the state, because due to her the formation of budgets of different levels. Since taxes are paid from the profits, they enter the country's budget, as well as in local level budgets, which contributes to their full formation and use on social needs. This function is called fiscal.
- In conditions market relations, profit can also have an estimate function, since its size of its size directly proportionally affects market value Organizations, and, consequently, on its competitiveness in a particular industry.
- You can also select the control function of profits. If it is absent, it means that the company is losses. This signals the immediate need to take measures to optimize the financial situation and reproduction of production.
See also the video in which the concept of profits is detailed
Types and their differences
Final result financial activities May be different species by which it is classified depending on the various signs.
For example, the sources of formation are allocated:
- profit from sales,
- profit from securities operations,
- income profit
- profit from investment and financial activities, etc.
You can also structure the concept of other criteria:
- Depending on the method of calculation on the organizations. You can meet such indicators as margin, clean and gross profit.
- By the nature of paying taxes: Allocate taxable and income, not subject to taxation.
- For financial analysis: We use such concepts as the profit of past years, the profit of the reporting and planning period, nominal and real profit.
- By the nature of the use: Allocate capitalized and distributed profits.
Each individual indicator is calculated according to a specific formula and is used in each specific document. Therefore, it is important for a good specialist to know all aspects of the calculation of any kind of profits.
Some may argue that income is one of the types of profits, but it is not.
The income is different from profit by the fact that it does not include the deductions for the costs and costs of the enterprise.
What does its value depend on?
Profit - the value is non-permanent, and for its sizes to one degree or another affects various kinds of factors. Some of them indirectly reduce or increase the amount of profits, on the other this value directly depends on.
Factors
All factors affecting the change in profits are usually divided into two main groups: external and internal.
Internal are divided into two more subgroups - production and non-production.
- The determination of "production" indicates the influence of precisely those factors that are related to the production activities of the enterprise. Such can be attributed to the level of technology used, the volumes of products, its quality, qualifications of production personnel, capacity loading, product turnover, etc.
- Energous factors indirectly affect the final result of the activity, but they also need to be given special attention. These include the level of interaction of the organization's employees at various levels of hierarchy, the speed of responding to personnel on the change in production conditions, the work of supply and logistics structure, effective management and much more.
External factors affecting the magnitude of the profit include those that are abroad. They are also indirect value, but largely can affect the efficiency of the company.
These include:
- demographic situation in the country
- market conjuncture
- inflation rate and state monetary policy
- tax level,
- remote from the required raw materials
- the level of socio-economic development of the country.
As can be seen, the magnitude of profits depends on the huge number of factors, many of which are quite unpredictable.
Therefore, each organization should conduct a thorough analysis of the study by a factor, as well as evaluating the degree of their influence on the final result of the activity.
Artificial measures to increase
The main task of the management of the organization is to maximize profits. To do this, it is necessary to develop a set of measures to achieve the greatest efficiency at the lowest costs.
Methods for increasing profits include the following:
- Optimization of inventories and remains in warehouses. It is necessary to analyze the range of products and identify the goods that are less in demand and take measures to bring them out of turnover.
- Development of an effective management system that will increase sales volumes. Here, special attention should be paid to the segmentation of the market depending on purchasing power Subjects, which will sell each type of product in the region where it will use the greatest demand.
- The introduction of automated production systems that will help reduce the cost of the work of personnel, as well as improve productivity and production volume.
- The introduction of waste-free production system.
- Analysis of the rationality and efficiency of the use of the company's funds.
These, and many other methods will greatly increase the amount of profit, as well as increase the important financial indicators of the organization.
How to calculate profit?
Formulas calculation
We give an example of calculation different species arrived.
As already noted, the most common indicator is gross profit (PV).
The calculation formula is as follows:
PV \u003d VIS - C / C;
where VIS - this is a revenue from the sale of products, works, services;
C / C - Cost of realized products.
On the basis of gross profits, you can calculate sales profit (PPR):
PPR \u003d PV - RK;
where RU – management expenses;
RK. - Commercial expenses.
The total profit (software) from all types of activity is calculated so:
By \u003d PV + PI + PF + PIN;
where PI, PF and PIN - Profit from investment, financial and other activities.
Taxable profit (PN) is calculated from the following formula:
Mon \u003d PO - PLG;
where NN. - property tax;
PRG - Refilled profit.
After paying all taxes and other payments, the enterprise remains at the disposal net profitwhich it can spend on his own needs.
Net profit (PE) is calculated by the formula:
PE \u003d np (+/-) PD / P;
where NP. - the amount of income tax;
PD / R. - Other income and expenses.
What gives the analysis of the indicator?
An important stage in financial and strategic planning is a profit analysis. It is necessary for an objective assessment of the company's activities, as well as to develop measures to reduce costs, thereby increasing net income. During the analysis, indicators are calculated that are "reference points" for the adoption of certain financial solutions.
The most common is factor analysis arrived. It shows that the most affects the final result. During this, a multifactor model is drawn up, on the basis of which it is calculated how the profit will change when exposed to a certain factor.
In any case, profit analysis allows you to develop measures to increase it.
For example, analyzing profits from sales, possible ways to reduce production costs, as well as expanding the sales market, which will increase revenue, and, accordingly, net income.
Often, such a concept as margin income is used for analysis. This indicator reflects the necessary amount of revenue, which will allow to cover all costs, i.e. Shows "zero profit."
Based on margin income, the break-even point of the enterprise and the possible effect of using the financial lever is calculated.
All data that is needed for analysis is recorded in Accounting in accounting balance And report on profit and loss.
Accounting aspects of the issue
IN accountingThe profit and losses of the enterprise are reflected in the form "Report on Financial Results" of Form No. 2. It serves to take into account the profit from all activities, as well as the calculation of taxable and net profit, remaining at the disposal of the enterprise.
Formation
This is the most important stage of financial planning in the enterprise. It begins from the moment the production is launched and ends with the receipt of funds to the company's account. It is important here to correctly compile the balance of the upcoming income and expenses of the organization in order to predict its further work.
At the planning stages, some conditions should be observed that will allow rational to use cash:
- learn the need to additionally attract borrowed money to increase the resulting profit;
- determine the most priorities of the use of monetary resources, depending on the needs of the organization;
- develop effective ways to use capital investments to increase the profitability of all production in general;
- set the threshold values \u200b\u200bof the minimum profit, which will allow you to respond quickly to any changes in economic activity.
Taxation
Article.
Wiring
General information about profits received or loss in accounting is reflected in the account "99". Depending on the operations carried out, the data is reflected either by debit or on the credit account. Here are some examples:
Dt 90 - CT 99 - the amount of profit received on the results of the main activity of the enterprise is reflected;
Dt 91 - CT 99 - the profit received from non-core activities;
Dt 99 - CT 90/91 - reflected by the company's profit from the main / minor activity;
DT 99 - CT 94 - writing off net profit (unallocated) reporting period.
Net profit - important element Analysis of the efficiency of the enterprise. This is the balance of gross profits after taxation. Simply put, these are those cashs that remain in the free order of the organization.
The company forms a reserve capital due to these finances, increases working capital, buys new equipment, acquires shares of other companies. Part is spent on encouraging employees: premiums, corporate events, vouchers, gifts, help in acquiring housing or treatment.
The size of the indicator depends on several factors:
- revenue value;
- production cost;
- tax amount;
- other income and costs.
Negative profits are called net loss. Many enterprises are unprofitable, despite the successful activity during the year. Conversely, a small firm without a huge turnover and a wide range of products can bring colossal sums.
How to calculate it? Options formulas
It is possible to calculate this indicator in several formulas. The meaning of all methods is the same, and the final amount will not differ, so you can use any of them.
Formula in deployment
PP \u003d FP + VP + op - nwhere
- PE - net profit;
- FP - Financial Profit. Calculated by subtracting from the income from the financial activities of similar costs;
- VP - gross profit. Calculated as revenue from the sale minus the cost of production;
- OP - Operating Profit. Expenses are deducted from other activities;
- H - the amount of taxes.
Example calculation. For example, LLC "Firm" in 2015 implemented products in the amount of 600 thousand rubles, the cost of which is 400 thousand rubles. One of the premises was also leased, revenue amounted to 100 thousand rubles. Revenues S. financial investments In other enterprises - 70 thousand rubles. The remaining costs are 100 thousand rubles.
- Calculate gross profits: 600 - 400 \u003d 200.
- Financial profits: 70 thousand rubles.
- Operating profit: 100 - 100 \u003d 0 rub.
- Tax: (200 + 70) * 20% \u003d 54 thousand rubles.
- Net profit will be: 70 + 200 - 54 \u003d 216 thousand rubles.
Simplified formula
PE \u003d B + PD - SP - UR - Pr - Nwhere
- In - revenue;
- PD - other income;
- SP - the cost of production;
- UR - management costs, advertising costs;
- Pr - spending on other activities;
- N is the amount of taxes paid.
Data for calculating this method can be taken from the report on the financial results of the firm for the required period.
Example calculation. Suppose in the reporting of the shop "Ship" these amounts are indicated:
- Net profit will be: 150 + 2 - 60 - 15 - 20 - 1.5 - 11.1 \u003d 44.4 thousand rubles.
Formula
PE \u003d P - Nwhere
- P - profit;
- H - the amount of taxes.
In this embodiment, the difference between the general income of the organization and the costs for the reporting period is understood.
Example calculation. Let the income of the Organization LLC in the reporting year amounted to 500 thousand rubles. Cost - 300 thousand rubles. The machine was implemented for 20 thousand rubles. The remaining costs are 100 thousand rubles.
- First you need to calculate all revenues: 500 + 20 \u003d 520 thousand rubles.
- Next, we determine the costs: 300 + 100 \u003d 400 thousand rubles.
- Determine the outcome profit: 520 - 400 \u003d 120 thousand rubles.
- Calculate income tax: 120 * 20% \u003d 24 thousand rubles. to the budget.
- Size of net profit: PE \u003d P - N \u003d 120 - 24 \u003d 96 thousand rubles.
Balance calculation formula
P. 2400 \u003d p. 2300 - p. 2410where
- p. 2400 - Net profit;
- p. 2300 - Profit before taxation;
- p. 2410 - the amount of income tax.
Data for this method of calculation must be taken from the report on financial results.
Example calculation.Suppose the accounting reports of LLC Enterprise Contains these data:
| Indicator | Line | 2015 (thousand rubles) |
|---|---|---|
| Revenue | 2110 | 150 |
| Cost price | 2120 | 60 |
| Commercial costs | 2210 | 15 |
| Management costs | 2220 | 20 |
| Other income | 2340 | 2 |
| Other expenses | 2350 | 1.5 |
| Balance profit | 2300 | 55.5 |
| Profit Tax | 2410 | 11.1 |
Net profit will be:
- (150 - (60 + 15 + 20) + 2 - 1.5) - 11.1 \u003d 44.4 thousand rubles.
- 55.5 - 11.1 \u003d 44.4 thousand rubles.
What is the indicator
The amount of net profit most reliably characterizes the efficiency of the enterprise. An increase in this amount compared to the previous period indicates the qualitative work of the company, a decrease in the incorrect policy of management personnel.
The indicator is used by many internal and external users of information about the organization:
- Owner and shareholders. With this data, the company's owner assesses the result of the company's activities, the effectiveness of the selected management system. Also, this amount is used to calculate dividends, attracting individuals as depositors to share capital.
- Director. It evaluates the financial stability of the company, the correctness of management decisions, and also develops new development strategies. The indicator does not directly affect the profitability, which is why the analysis of the balance of free funds is important for top managers.
- Suppliers. It is especially important for them that the organization can pay for raw materials, and the indicator is used to assess the stability of the company. If she has little money, some suppliers may refuse to enter into an agreement, as they will not be confident in payment of services and materials.
- Investors. Based on the indicator, they consider the possibility of financial investments. The higher the amount of free income, the more attractive an enterprise for investors. First of all, they plan to receive additional income from stocks.
- Lenders. Borrowers define the platform of the company. Money has the greatest liquidity, that is, the ability to be quickly sold. The more the organization remains at the organization in the free disposal, the faster it can pay with debts. Accordingly, more chance to get a loan in the bank.
Net profit is a concept that is used in small and large organizations. It is this part of the profits seek to increase businessmen, introducing new technologies or developing plans for production optimization. In order to correctly calculate the net profit indicator, it is necessary to know its features used by the coefficients and formula.
The concept of pure profits
Net income is the balance of money after payment of all required state taxes, fees and other payments. Net profit gives the opportunity to extend current funds, form backup budgets to ensure the organization's foundation.In the accounting balance of PE, it seems in the lower line. It is its size that reflects the profitability of the business project. For example:
- Potential investors appreciate the prospects and attractiveness of net profit;
- Private and state lenders assess the company's ability to repay CP-based debts;
- Shareholders and owners of the firm analyze the rate of net income in order to evaluate the effectiveness of the plan constructed;
- Supplier organizations analyze the net profit and evaluate the sustainability of the business and the potential of its development, after which there are plans for further cooperation with the company.
Net profit is the gross income component, at the expense of which the budget of the company is formed. The size of this indicator allows you to raise wages Employees, invest in other projects and expand the scale of production itself.
Functions of pure profits
PE plays important role both in micro and macrosystem of the organization. IN modern economy Pure income allocate a number of the following functions:- Adjusting . Due to the fact that PE is distributed over all funds and units of the organization, this type of income makes it possible to regulate all the financial flows of the company;
- Stimulating . Each company seeks to take its place in the market and get high income. In order to increase net profit, the company seeks to improve its production, develop or implement new technologies, thereby developing not only itself, but also the industry;
- Controlling . The availability of net profit information allows you to give a clear business characteristic and predict further development.
Comment. In order to ensure effective production growth, it is necessary to invest about 70% of net profit in the business.
Indicators applied to net profit
Net profit is an integrated concept that includes several components. The main indicators that form the net income of the company, two:- Production cost;
- Revenue for a certain period.
Revenue for the period
Revenue for a specific period - a component that is analyzed by a horizontal way. In order to start learning revenue for a specific period, the following information is necessary:- This company's balance sheet;
- Reports in which profit data are presented;
- Financial plan of the company.
Depending on the scale and age of business, it is possible to analyze the revenue for a month, six months or year. This condition depends on production. So, if the organization is engaged in direct sales, it is important to analyze every hour. And if the company is engaged in production, then analyze activity just once a year.
Cost of goods or services
The cost of products is one of the main criteria, on the basis of which it can be concluded about the efficiency and optimality of the use of resources available from the company.Cost, as an indicator, is expressed in money equivalent. This component of net profit makes it possible to determine the following: how many costs for the manufacture of one unit of goods were made. As a result of settlements, the company receives information on the cost of production, preparation, manufacture and sale of goods or services in the market.
The main purpose of the indicator is to find out at what production stage costs achieve the highest value. After the entrepreneur receives this data, he will be able to begin a reduction in costs by entering new technologies, optimizing the work plan, the change of the supplier to cheaper, etc.
Formula for calculating net income
All data necessary for calculating net profit must be taken exclusively for the period under review.Formula:
CH \u003d FP + VP + OP - CH, where
- CHD - Net income to find;
- FP - profit of financial type;
- VP - gross type profit;
- Op - profits from all production excluding additional payments (operating profit);
- SN - The final value of tax payments that state establishes.
In addition to the above formula, net income can be expressed in the following forms:
PE \u003d Shared Revenue - Cost - Commercial Costs - Additionalities - Taxes
CH \u003d Profit - Taxation
Each of the formulas has the same economic meaning, so any of them can be used. The main formula (first) has a revealed structure and makes it possible to calculate not only net income, but other types of profits, making a business picture more understandable.
Statistics show that in Russia net profit is about 14% - this is a normal indicator to which all new firms seek. If the BF is below 14%, then the production is considered unprofitable. But if this indicator is negative, then the business works in minus.
Distribution of net income
The order and periods of the distribution of pure revenues between the participants regulates the Federal Law No. 14 of paragraph 1. Article 28. In accordance with this act, the organization has the right to distribute PP times a quarter, half a year and a year.The decision on the distribution of net income is adopted by the Board of Directors or the head of the Organization. Legislative acts Does not establish a list for which the company is obliged to spend net profit - it solves the meeting of the Company or the director of the company.
Comment. Management has the right to distribute profits on any need, not contrary to the legislation of the Russian Federation.
Video: What you need to know about net profit?
A detailed story about net profit with all the nuances and the characteristics of the calculation:Net profit is not only one of the most important indicators of business efficiency, but also best tool For its development. Distributing a clean revenue correctly, the head will be able to ensure the stable growth and development of its company, improving competitiveness and entering new markets.
The proposed article reveals the essence of net profit, explanation, methods for calculating net profit on balance. The leaders and owners of the enterprise, knowing the amount of net profit and competently analyzing the amount obtained, are able to evaluate how effective the functioning of the organization for a certain period of time. Such an important indicator is able to provide a strong impact on the development of the enterprise: to be competitive, attractive for investors, solvent, cost-effective, liquid and financially reliable.
Definition of the indicator
Net profit is the only amount per part of the organization's income that belongs to her after calculations with fees, deductions, taxes and other binding payments. Net income remains the most important source of the creation of income and cash savings of the organization.
The identified outcome of the company's work is transferred to the accounting reporting - line 2400 "Net profit (loss)" (line of financial results report).
This company's performance indicator displays how effective the work of all structural divisions of the organization is.
Important! It cannot be confused with the concept of "Economic Profit" - the result of the company's activities for the whole reporting period.
Net profit finds its application in:
- Building current means companies;
- Creating funds, reserves;
- Investment in production with the purpose of its expansion;
After counting the indicator, you should move to the calculation of such indicators as financial stability, profitability liquidity.
The indicator is used during the development and compilation of techniques that are aimed at assessing such conditions as credit and solvency, bankruptcy and investment attractiveness.
The formula for calculating net profit on balance
At the beginning of work, the reporting period is determined, for which the result will be supplied. All indicators should be taken in one period of time, otherwise the result is incorrect.
As mentioned earlier, all expenses and taxes of the enterprise should be deducted from net profit. The calculation formula itself has a single economic meaning, but it can be submitted differently. 
Clean profit or loss of the reporting period is called the final result of financial activities, which is detected at the time of summarizing the results of the reporting period. To this end, collect data accounting For all operations and evaluation of all articles. In paragraph 2 of Art. 42. Federal Law dated December 26, 1995 No. 208-FZ "On joint Stock Company»Installed the work schedule. Gross profit and final amount tax payments Directly have its impact on this indicator.
- The calculation of gross profits occurs in revenue for a certain period and cost of products. The required amount is the difference between the indicators;
- Operating profit seems to be the difference between operating expenses and income;
- Financial - the difference between financial expenses and income.
After all the necessary indicators were calculated, the calculation of net profit is calculated. If this figure is negative, this indicates a loss of the enterprise.
The implementation process involves three main scenarios:
- Revenue covers the actual cost - the profit is obtained;
- Revenue on a par with the cost price, respectively, the amount of the amount will be enough to cover costs - the profit is obtained either quite small or no one at all;
- Revenue does not cover the amount of production costs and implementation - loss.
It is the cost that costs a significant impact on the amount of financial results.
A more detailed calculation of net profit on the balance contains all indicators from the financial results report:
- Revenue decreases on the amount of sales costs, commercial and managerial expenses;
- This amount increases by the amount of income from participation in other organizations, interest on receiving and other income;
- We reduce the amount of interest to pay and other expenses;
- The result is called profit before tax, which must be adjusted to the amount of current income tax and other lines;
- The final amount is net profit.
Current income tax is adjusted for the amount of deferred changes. tax assets and tax liabilities.
Regulatory regulation
PBU 18/02 "Accounting for income tax costs" indicates the procedure for calculating net profit. This indicator is also determined by the following documents of accounting and tax accounting:
- PBU 9 and 10, "Revenues of the Organization" and "organization expenses", respectively;
- PBU 1 " Accounting policy organization ";
- PBU 4 " Financial statements organization ";
- GL 25. Tax Code RF.
The Ministry of Finance 31.10.2000 issued an order No. 94, where he approved the plan for accounting accounts. According to him, 99 "profits and losses" are used to summarize general Information about how the final financial results Enterprise activities.
How can I spend net profit
The organization has the right to use pure profits in any directions. A rather frequent solution among the management is the decision to spend this amount for reimbursement of expenses that the company carries this moment. The second frequent way of using is to use it for charitable purposes, if the company's financial position has to this.
Business owners seek to manage profit, as their well-being is currently dependent and in perspective.
Spending free money begins only after making decisions by owners / participants / shareholders of the organization. The solution may concern such calculation options as:
- Dividends;
- Repayment or reduction of losses for past periods;
- Method of increasing the authorized capital;
- Prize to employees, financial assistance;
- Fund of scientific and technical and industrial development;
- Payment of vouchers to employees (in the case of payment of the organization or compensation for the cost, if the employee buys);
- Reduced organization needs, etc.
The payment of dividends is relied on retained earnings - is in the balance sheet (line 1370). Clean and retained profits are distinguished by the magnitude and reporting period. If unallocated is reflected in the reporting by a growing result of the company in the entire level of the company, then net profit - in one reporting period (calendar year). Do not assume that these indicators are the same.
Retained earnings there is a sum retained profits last period and net income less dividends. That is, this is part of the organization's profits, which is not paid to founders / shareholders in the form of dividends.
It is necessary to take care of how to distribute the resulting net income. This process should be prescribed in the Charter of the Organization.
Each organization puts the main goal - creating a net income in order to hold competitiveness in the market. The next step is to extract the maximum profit from the enterprise activities. That is why the organizations are so carefully followed the dynamics of net profit. This indicator stimulates the expansion, improvement of production. And he creates additional financial resources not only by the company, but also the state as a whole.
Net profit is one of of essential factorswhich affects the profitability of a business entity. A reliably analyzing this indicator may answer the question about whether the company should continue to continue the path, or search other income opportunities.
Net profit is the remaining organization part of the income received after all the costs produced for the production and sale of costs, as well as paying mandatory payments and taxes. Its purpose is to stimulate the collective and the expansion of production processes. The amount of net profit affects the shareholders of the Company intended as remuneration. It is used as a source for the formation of reserves and foundations, as well as for the growth of non-current assets and reinvestment in the production of products.
Net profit is the most important indicator For any enterprise. Her value is the result of the activities of the business entity. Successes in the work of the Company are reflected in growth, and failures - the fall of this indicator.
Pure which is an important point To analyze the activities of the enterprise, begins with the establishment of the size of gross income. This indicator is the amount of revenue received from the sale of services, goods, works taking into account discounts and does not include the cost of goods that were returned by buyers. At the next stage, it is calculated all the costs incurred for the manufacture of products and the provision of expenditure services. After that, the gross profit is determined, which is the difference in gross income and cost. The magnitude of other expenses is determined. It includes the following costs:
To search for markets for sales and new partners;
At the conclusion of new transactions;
For force majeure;
At payment of fines, penalties and interest on loans received.
Net profit is the difference between gross income and cost, as well as other income and taxes. If the amount received is with a "minus" sign, this will indicate the unprofitable work of the enterprise.
Using the amount of net profit depends on the decision of the head of the organization. Most often, it is directed to the formation of various reserves and funds, and also remains for accumulation purposes. At the expense of clean can have a charity, listened to its percentage of social needs.
average value Normal net profit indicator, derived economic services Britain, should be fourteen percent. Enterprises that get the value of the smaller number, in their opinion, can be considered unprofitable.
Net profit refers to the group of the most significant financial indicators of the reporting of the business entity. Data on the size of this value is of paramount interest for external users. If in the dynamics of the period under consideration, the net profit indicator has significant fluctuations, this fact will cause a wary attitude among investors. In this case, the organization will have to provide detailed explanations of the reasons that caused these changes.
It is not possible with high accuracy to evaluate the work of the enterprise, proceeding only from one indicator - net profit. which also affect the opinion of the effectiveness of the business entity - these are two more components of income. Their values \u200b\u200bare reflected in the attachment to the balance. It is possible to find them in the income statement. The methodology for reflecting these indicators and the procedure for their accounting is contained in IFRS 8. These include profits (loss) from common activity, as well as results from extraordinary circumstances.
