In conditions high degree market segmentation any commercial enterprise chooses the field of activity in which it seeks to gain a share of a local or large-scale market, beat competitors and maximize profits. Large enterprises and corporations can operate simultaneously in several areas of business, assigning certain areas or markets to their divisions. The main indicator of the effectiveness of the use of capital, assets, management skills and promotion efforts in the selected market segment is profit from sales. The name of the indicator “profit from sales”, the formula by which it is calculated, define profit from sales as the most important element in assessing the effectiveness of an enterprise’s actions in its main area of ​​activity.

What does the profit from sales indicator measure?

The name of the indicator itself should not be misleading; profit from sales is general indicator for all commercial organizations.

Profit from sales is essentially similar to the term “operating profit”, accepted in international practice, that is, profit from the operating activities carried out on the market by a company.

The term “sales” here is understood in a broad sense and means not only profit from operations in the field of trade, but also any other sales, that is, transactions under contracts for the sale of manufactured products, services provided, and work performed.

The indicator “profit from sales” evaluates the amount of profit extracted by the enterprise during the period from its main activities, legally stated in the organization’s charter.

Formula for calculating profit from sales

The profit from sales is calculated using the following formula:

From the above formula it can be seen that the calculation of profit from sales is made on the basis of the total indicators of income and costs for the creation and sale of the product of its main activity.

To analyze the structure of operating profit, sales profit can be calculated separately for each type of product, service and activity. To do this, commercial and administrative expenses common to the enterprise as a whole should be proportionally broken down based on the criteria that will be most reliable:

• based on the principle of correlating operating costs and specific type products;
• standardization of operating costs based on the share of production in total volume revenue;
• in a mixed way.

How to calculate sales profit from accounting data

The value of profit from sales can be calculated from the data in the accounting registers as follows:

Subaccount 90-2 reflects both the production cost of finished products, works, goods, services, as well as commercial and administrative expenses.

Analytical accounting for the subaccount should ensure that each type of cost is broken down into separate accounts in such a way that it is possible to isolate the amounts for commercial expenses (packaging, storage, transportation and sales) of each type of product and administrative expenses (maintenance of the administrative and managerial apparatus).

Where is sales profit used in mandatory reporting forms?

In mandatory reporting forms, the indicator is reflected as follows:

• profit from sales in the balance sheet - there is no line with this name;
• profit from sales in the income statement - line 2200.

The absence of a separate line (indicator) of sales profit in the balance sheet is due to the fact that the task of the balance sheet is to group the liabilities and assets of the organization according to the principle of their urgency. A balance sheet is a document about the financial position compiled as of a specific date.

The profit and loss statement reflects the financial results accumulated over a period of time (month, quarter, year), divided according to the principle of the type of costs incurred and income generated. Therefore, the presence of the sales profit indicator in this report is due to the fact that this is an indicator characterizing the financial result.

The line according to the internal logic of the form should be calculated as.

General formulas for calculating profit.

Gross profit = revenue - cost of products or services sold

Profit/loss from sales (sales) = gross profit - costs
*costs in this case are commercial and management expenses

Profit/loss before tax= sales profit ± operating income and expenses ± non-operating income and expenses.

Net income (loss = revenue - cost of goods - expenses (administrative and commercial) - other expenses - taxes

Forex. Profit/cost calculator.

On Forex and other trading exchanges, we will consider the number of points earned/lost as profit/loss, and spread and swap as costs.

number of points - number of points won
number of transactions - total number of transactions concluded

This calculator uses 4-digit quotes and a fixed lot

To quickly count points and the number of transactions, we use account monitoring.
For example: a trader made 100 transactions, currency GBPJPY, spread 7 points, working fixed lot - 1, swap amount approximately -$50 (for all transactions),
There were profitable and unprofitable trades, and as a result the trader earned 100 points.
we get: income $8050, net income $950, costs $7050, profit-to-cost ratio 11.88%/ 88.13%, that is, the trader gives almost all the profit to the broker!

The trader must draw appropriate conclusions.
The calculator is designed for superficial evaluation of transactions. The calculator does not take into account the difference in the price of one point for different currency pairs (in this example, for the GBPJPY currency pair, the price of one point with a volume of 1 lot is $12.61, and in the example it is $10). Also, the calculator does not provide calculation capabilities when trading different volumes and when trading several currency pairs with different spreads. In such cases, you can enter average values, but the calculation error will increase.

Accountants. Four ways to calculate profit.

Nuances of calculation in practice (+ examples):

Same percentage for the entire range

The method of calculating gross income based on total turnover is used in the case when a single percentage of the trade markup is applied to all goods. With this option, the gross income, and then a markup.

The accountant must apply the formula given in the document:

VD = T x RN / 100,

where T is the total turnover; RN – estimated trade markup.

The trade markup is calculated using a different formula:

RN = TN / (100 + TN).

In this case: TN – trade markup as a percentage. Turnover refers to the total amount of revenue.
example:
At Biryusa LLC, the balance of goods at sales value (balance on account 41) as of July 1 amounted to 12,500 rubles. The trading margin on the balance of goods as of July 1 (account balance 42) is 3,100 rubles. In July, products were received at the purchase price excluding VAT in the amount of 37,000 rubles. According to the order of the head of the organization, the accountant must charge a trade margin of 35 percent on all goods. Its amount for goods received in July was 12,950 rubles. (RUB 37,000 x 35%). The company earned 51,000 rubles from sales in July (including VAT - 7,780 rubles). Selling expenses – 5000 rub.

Let's calculate the realized trade margin using the formula РН = ТН / (100 + ТН):

35% / (100 + 35%) = 25,926%.

Gross income will be equal to:

VD = T x RN / 100

51,000 rub. x 25.926% / 100% = 13,222 rubles.

The following entries must be made in accounting:

Debit 50 Credit 90-1

– 51,000 rub. – revenue from the sale of goods is reflected;

Debit 90-3 Credit 68

– 13,222 rubles – the amount of the trade margin on goods sold is written off;

Debit 90-2 Credit 41

– 51,000 rubles – the sales value of goods sold is written off;

Debit 90-2 Credit 44

– RUB 5,000 – sales expenses written off;

Debit 90-9 Credit 99

– 442 rub. (51,000 rub. – 7,780 rub. – (–13,222 rub.) – 51,000 rub. – 5,000 rub.) – profit received from the sale.

Each product has its own percentage

This option is needed for those who have different groups goods the markup is not the same. The difficulty here is this: each group includes products with the same markup, so it is necessary to keep mandatory records of turnover. Gross income (IG) in this case is determined by the following formula:
HP = (T1 x RN + T2 x RN + ... + Tn x RN) / 100,
where T is trade turnover and RN is the estimated trade markup for groups of goods.
example:
The accountant of Biryusa LLC has the following data:
Small shops and stalls usually determine the trade margin by calculation - “manually”, since not each of them can afford expensive software. Roskomtorg back in 1996, with its letter dated July 10, 1996 No. 1-794/32-5, approved “ Guidelines on accounting and registration of operations of receipt, storage and release of goods in trade organizations.” In them, the committee proposed several options for calculating the realized trade margin: based on total trade turnover; by assortment of trade turnover; by average percentage; according to the range of remaining goods. Experts from the Moscow Accountant magazine examined these methods in more detail. The method of calculating gross income based on total turnover is used in the case when a single percentage of the trade markup is applied to all goods. With this option, the gross income is first established, and then the markup. The accountant must apply the formula that is given in the document: VD = T x RN / 100, where T is the total turnover; RN – estimated trade markup. The trade markup is calculated using a different formula: RN = TN / (100 + TN). In this case: TN – trade markup as a percentage. Turnover refers to the total amount of revenue. Example 1 At Biryusa LLC, the balance of goods at sales value (account 41 balance) as of July 1 amounted to 12,500 rubles. The trading margin on the balance of goods as of July 1 (account balance 42) is 3,100 rubles. In July, products were received at the purchase price excluding VAT in the amount of 37,000 rubles. According to the order of the head of the organization, the accountant must charge a trade margin of 35 percent on all goods. Its amount for goods received in July was 12,950 rubles. (RUB 37,000 x 35%). The company earned 51,000 rubles from sales in July (including VAT - 7,780 rubles). Selling expenses – 5000 rub. Let's calculate the realized trade margin using the formula РН = ТН / (100 + ТН): 35% / (100 + 35%) = 25.926%. Gross income will be equal to: VD = T x RN / 100 51 000 rub. x 25.926% / 100% = 13,222 rubles. The following entries must be made in accounting: Debit 50 Credit 90-1 – 51,000 rubles. – revenue from the sale of goods is reflected; Debit 90-3 Credit 68 – 7780 rub. – the amount of VAT is reflected; Debit 90-2 Credit 42 (reversal) – 13,222 rubles – the amount of the trade margin on goods sold is written off; Debit 90-2 Credit 41 – 51,000 rubles – the sales value of goods sold is written off; Debit 90-2 Credit 44 – 5000 rubles – sales expenses written off; Debit 90-9 Credit 99 – 442 rub. (51,000 rub. – 7,780 rub. – (–13,222 rub.) – 51,000 rub. – 5,000 rub.) – profit received from the sale. This option is needed for those who have different markups for different groups of goods. The difficulty here is this: each group includes products with the same markup, so it is necessary to keep mandatory records of turnover. Gross income (GI) in this case is determined by the following formula: GD = (T1 x RN + T2 x RN + ... + Tn x RN) / 100, where T is turnover and RN is the estimated trade markup for groups of goods. Example 2 The accountant of Biryusa LLC has the following data: Balance of goods as of July 1, rub. Goods received at purchase price, rub. Trade margin,% Amount of margin, rub. Revenue from the sale of goods, rub. Selling expenses, rub.
Products of group 1 4600 12 100 39 4719 16 800 3000
Products of group 2 7900 24 900 26 6474 33 200
Total: 12,500 37,000 11,193 50,000

It is necessary to determine the estimated trade markup for each group of goods:
For group 1, the estimated trade markup will be:
RN = TN / (100 + TN);
39% / (100 + 39) = 28,057%.
For goods of group 2:
RN = TN / (100 + TN);
26% / (100 + 26) = 20,635%.
Gross income (the amount of realized trade margin) will be equal to:
(16,800 rub. x 28.057% + 33,200 rub. x 20.635%) / 100 = 11,564 rub.
In the company's accounting records, it is necessary to record the following entries:
Debit 50 Credit 90-1
– 50,000 rub. – revenue from the sale of goods is reflected;
Debit 90-3 Credit 68
– 7627 rub. – the amount of VAT is reflected;
Debit 90-2 Credit 42 (reversal)
– 11564 rub. – the amount of trade margin related to goods sold is written off;
Debit 90-2 Credit 41
– 50,000 rub. – the sales value of goods sold is written off;
Debit 90-2 Credit 44
– 3000 rub. – sales expenses are written off;
Debit 90-9 Credit 99
– 937 rub. (50,000 rub. – 7,627 rub. – (–11,564 rub.) – 50,000 rub. – 3,000 rub.) – profit from the sale.

The simplest markup

An average percentage markup can be applied by any company that records goods at sales prices. Gross income based on average interest is calculated using the formulas:
VD = (T x P)/100, where P is the average percentage of gross income, T is turnover.
The average percentage of gross income will be equal to:
P = (TNn + TNp – TNv) / (T + OK) x 100.
The indicators given in the formula mean the following:
ТНн – trade markup on the balance of products at the beginning of the reporting period (account balance 42);
ТНп – markup on goods received during this time;
ТНв - for those retired (debit turnover of account 42 “Trade margin” for the reporting period). In this case, disposal refers to the return of goods to suppliers, write-off of damage, etc.;
OK – balance at the end of the reporting period (account balance 41).
example:
The accountant of Biryusa LLC identified the balance of goods as of July 1 (account balance 41). The sales price was 12,500 rubles. The amount of the trade margin on this balance is 3,100 rubles. During the month, received at the purchase price of goods for 37,000 rubles (excluding VAT). The markup accrued on products received in July is 12,950 rubles. For the month, income from the sale was received in the amount of 51,000 rubles (including VAT - 7,780 rubles). The balance of goods at the end of the month amounted to 11,450 rubles (12,500 rubles + 37,000 + 12,950 – 51,000). Selling expenses - 5,000 rubles.
The realized trade margin should be calculated as follows. First we find out the average percentage gross income:
P = (TNn + TNp – TNv) / (T + OK) x 100;
(RUB 3,100 + 12,950 – 0) / (51,000 + 11,450) x 100% = 25.7%.
The amount of gross income (realized trade margin) will be:
(RUB 51,000 x 25.7%) / 100% = RUB 13,107
The following entries need to be made in accounting:
Debit 50 Credit 90-1
– 51,000 rub. – revenue from the sale of goods is reflected;
Debit 90-3 Credit 68
– 7780 rub. – the amount of VAT is reflected;
Debit 90-2 Credit 42 (reversal)
– 13,107 rub. – the amount of trade margin on goods sold is written off;
Debit 90-2 Credit 41
– 51,000 rub. – the selling price is written off;
Debit 90-2 Credit 44
Debit 90-9 Credit 99
– 327 rub. (51,000 rub. – 7,780 rub. – (–13,107 rub.) – 51,000 rub. – 5,000 rub.) – profit received from the sale (financial result).

Let's count what's left

When calculating gross income based on the assortment of the balance, the accountant needs data on the amount of the trade margin. To obtain this information, you should keep records of the accrued and realized premium for each product item. At the end of each month, an inventory is carried out, determining these amounts.
Calculation of gross income for the range of remaining goods is carried out using the formula:
VD = (TNn + TNp – TNv) – TNk.
The indicators mean the following:
ТНн – trade markup on the balance of goods at the beginning of the reporting period (account balance 42 “Trade markup”);
ТНп – trade markup on products received during the reporting period (credit turnover of account 42 “Trade margin” for the reporting period);
ТНв – trade markup on disposed goods (debit turnover of account 42 “Trade markup”);
TNK – markup on the balance at the end of the reporting period.
example:
The amount of the trade margin related to the balance of goods as of July 1 (account balance 42) is 3,100 rubles. The accrued premium for products received in July is 12,950 rubles. During the month, the company earned 51,000 rubles from the sale. The markup on the balance of goods at the end of the month according to inventory data (account balance 42) is 2050 rubles. Selling expenses - 5,000 rubles. Let's calculate the realized trade margin:
VD = (TNn + TNp – TNv) – TNk;
(3100 rub. + 12,950 – 0) – 2050 = 14,000 rub.
The following entries must be made in accounting:
Debit 50 Credit 90-1
– 51,000 rubles – revenue from the sale of goods is reflected;
Debit 90-3 Credit 68
– 7780 rub. – the amount of VAT is reflected;
Debit 90-2 Credit 42 (reversal)
– 14,000 rub. – the amount of trade margin on goods sold is written off;
Debit 90-2 Credit 41
– 51,000 rub. – the sales value of what was sold is written off;
Debit 90-2 Credit 44
– 5000 rub. – sales expenses are written off;
Debit 90-9 Credit 99
– 1220 rub. (51,000 rub. – 7,780 rub. – (–14,000 rub.) – 51,000 rub. – 5,000 rub.) – profit was received from the sale.

Let's summarize.

To calculate income tax, you need to know the purchase price of goods. It can be determined based on the value of the realized trade margin when using any of these methods (with the exception of the average percentage method). However, we should not forget about possible deviations in the purchase price in accounting and tax accounting. For example, in accounting, interest on loans is included in the cost of goods. For tax accounting such interest is included in non-operating expenses.
When determining the markup using an average percentage, the purchase price of goods sold in accounting may not coincide with the same indicator in tax accounting. This is due to the fact that each group has its own allowance. When calculating the realized markup in accounting, all data is averaged, and in tax accounting, sales proceeds are reduced by the cost of purchased goods (Article 268 of the Tax Code). The latter is determined in accordance with accounting policies.

Only its positive result can indicate that the enterprise is successfully growing and developing. That is why it is important to be able to correctly calculate net profit.

Net profit is considered the basis, implying promising development companies. It reflects the financial condition of the company, its competitiveness, and solvency. Net profit is the final part of the income that remains after all deductions: taxes, salaries, equipment purchases, rent and other expenses.

Thanks to the results net profit it becomes possible to assess the state of the organization, find out how much turnover can be increased/lowered, how much money can be invested in further development enterprises.

Important! If the organization has large debts, then the calculated net profit will be considered a loss, which will reflect the extent to which the existing debt to the creditor can be covered.

Net profit and its calculation (video)

How to correctly calculate net profit

In order to find out your net profit, you don’t need to bother with complex formulas and calculations. In fact, everything is much simpler than it seems. Relatively speaking, to find out your net profit, you need to add up all income and expenses separately, then subtract the amount of expenses from the amount of income. Subtract tax from the resulting amount. So much for your net profit.

Let's look at a simple example.

For example, you decided to become an individual entrepreneur and sell laptops via the Internet. For 3 months of work, the following financial result was achieved:

Now we count:

480,000 (income) – 400,000 (expense) – tax % = Net Profit

In this calculation everything is simple and there is nothing complicated. Based on the results, it can be understood that the individual entrepreneur remained in the black and has income that he can spend on his own needs or invest it in the development of his online store.

Nose large organizations and for enterprises, calculating this type of profit is much more difficult. It is necessary first of all to calculate the components of income and expenses, and only then look for PE (net profit).

There are several options for formulas for calculating net profit. They look different, but the meaning and result remain the same - It is necessary to add up all income and expenses separately, then subtract the amount of expenses from the amount of income, and subtract the tax from the resulting amount.

Basic (expanded) formula:

PP = FP + OP + VP – N, where

PE – net profit;

FP – financial profit. It is calculated as follows: (financial income minus financial expenses);

OP – . It is calculated as follows: (operating income minus operating expenses);

N – tax percentage (according to the law).

For example, consider the situation:

Firm "My Company" calculation of net profit for 2016:

Calculation of gross profit based on table data:

2450000-1256000=1194000

Our financial profit is equal to:

260000-10000=250000

Operating profit:

300000-200000=100000

(250000+1194000)*20%=288800

250000+1194000-288800=1155200

Net profit analysis methods

There are two effective methods analysis of net profit.

Factor analysis of profit

The main point in this analysis - to identify the reasons and their impact on the change in profit in rubles. They are internal and external.

External factors include:

• depreciation of money;
• changes in laws;
• natural conditions;
• change in terms of delivery of raw materials;
• demand structure;
• transport tariffs;
• increase in electricity tariffs;
• increase in prices for raw materials;
• state of the level of competition;
• political regulations and relations.

TO internal factors relate:

• reduction/increase in the number of employees;
• rising rents;
• change in the structure of product output;
• reduction/growth of products (or services);
• changes in product prices;
• volume of taxes.

Factors influencing profit status:

• price (for a product or service);
• cost price;
• commercial and administrative expenses.

Stages of conducting FA:

1. Selection of main factors.
2. Systematization and classification.
3. Modeling relationships.
4. Calculation and assessment of the influence of all factors.

Factor analysis can be performed using the following formula:

∆ChP = ∆B + ∆SS + ∆KR + ∆UR + ∆PD + ∆PR – ∆SNP, where

∆ – sign meaning “change”;

PE – net profit;

B – revenue;

CC – cost;

SNP – current income tax;

KR – commercial expenses;

UR – management expenses;

PD – other income;

PR - other expenses.

Conducting statistical analysis of profits

Main tasks statistical analysis net profit can be considered:

• Analysis of the structure and initial volume of profit generation.
• Studying financial relations.
• Assessment of areas for using funds.
• Analysis and dynamics of profit.
• Study financial stability enterprises.
• Dynamics analysis total amount BP.
• Index analysis of the influence of factors on profit volume.
• Analysis of the structure of BP.

Cost-benefit analysis

To determine the financial condition of an organization and assess its profitability and payback, it is necessary to perform a profitability analysis.

It reflects all the efficiency of using the enterprise’s resources: monetary, material, production, etc.

Using an example, we will analyze the profitability analysis of a fictitious car service center, Optima-Service LLC:

Taxes from profits

Based on the initial data presented in Table 2, we will calculate the profitability of Optima-Service LLC for 2010–2012.

KP

Rn = BP/KP

Calculated profitability indicators for Optima-Service LLC for 2010–2012. For analysis purposes, we summarize them in Table 4.

Return on permanent capital, %

Based on the results, we see that in 2012, compared to 2010, there was an increase in the profitability of Optima-Service. It is important to take into account every comma and unit in the calculations. Otherwise, you risk getting incorrect results. Therefore, it is necessary to double-check and recalculate all calculations.

Enterprise profitability, calculations (video)

In the video below, a specialist competently and in accessible language talks about the profitability of the enterprise and makes calculations.

Distribution of net profit

The procedure for distribution of profits is regulated by the charter of the enterprise and is divided according to the distributed shares of the participants.

For a specific distribution of net profit, it is necessary first of all, and only after acceptance general solution pay sums of money to each of the participants.

If there is only one participant (for example, an individual entrepreneur), then he himself decides where and how the income from the net profit will be realized.

The net profit indicator helps determine the enterprise’s profitability level, efficiency and profitability for a selected period of time (month, quarter, year). But he cannot predict the future state of the company. It is important to choose the right enterprise development strategy, since this factor will significantly affect the level of net profit.

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

Depending on the calculation method used, profitability is divided into several categories. Most significant coefficient in the business world, is income from the sale of manufactured 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, calculated, what situations can influence it, in terms of volumes.

Scope of application

Profit from sales is the final indicator trading activities companies.

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

Information sources for profit analysis:

• Profits and Losses Report;
• enterprise balance sheet (accounting);
• financial plan of the company.

The profit indicator itself is not capable of giving a deep assessment of the situation, because it is nothing more than a figure expressed in value.

It is difficult to give an exhaustive answer to such a question with 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 activity received 150 thousand rubles. Consequently, the profit indicator increased by fifty thousand rubles, or thirty-three percent. Answering the previously posed question, the company was able to show more effective results during the past audit.

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

Where to invest money today? Read about the most profitable options.

A business plan is a necessary project before starting your own business. Here we will go through step by step all the sections that need to be included in your planning.

How to calculate profit from sales?

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

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

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

1. Profit from sales of products – formula: Prpr = Vpr – UR – KR. Where, KR, UR – commercial and managerial waste; Vpr – level of gross profit; Prpr – income from the activities of the company.
2. Formula for calculating a company's gross profit: Vpr = VO – Sbst. Where, Cbst is the cost of selling products; In – volume of revenue.

An example of using the sales profit formula

The company sells household appliances. Over the past reporting time frame, two thousand vacuum cleaners were sold, according to average price five thousand rubles. Revenue for the last audit is:

In = 2000 * 5000 = 10,000,000 rubles.

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

Cost = 2000 * 3300 = 6,600,000 rubles.

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

Let's determine the level of gross profit:

Prv = 10,000,000 – 6,600,000 = 3,400,000 rubles.

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

Prpr = 3,400,000 – 840,500 – 1,450,500 = 1,109,000 rubles.

If you subtract all other expense lines and tax deductions from the profit indicator, you get net income.

What influences the volume of goods sold?

The company's profit is influenced by two key categories: external and internal.

• Level of sales of goods. If the sales volume of goods with a high profitability indicator increases, the profit indicator will increase. If you increase sales of goods with low profitability, the profit margin will decrease.
• Structure of the offered range of goods. The thread of dependence is the same as in the case of volume;
• The cost of goods or services offered. Directly proportional relationship. If the cost of the goods offered increases, profits increase, and vice versa.
• Cost price. In the process of increasing the level of cost of goods, profit falls, and when the level of cost decreases, it increases.
• Business expenses. The thread of dependence is exactly the same as in the case of cost.

It is worth noting that each enterprise has a full range of tools aimed at the continuous regulation of the above factors.

External reasons include the state of the market conditions in which the service/product is sold. No enterprise in the world is capable of significantly influencing such factors.

External reasons include:

1. The indicator of deductions for depreciation.
2. Government regulation.
3. Natural conditions and situations.
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 a product for its subsequent sale on the market.

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

Ways to increase profit ratio

In the light market economy, companies have two in effective ways increasing profit levels.

In particular:

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

The level of income a company receives directly depends on the volume of goods sold, so many managers favor the idea of ​​simply increasing volumes. To effectively implement such an approach, maximum qualitative analysis, determine which products are most in demand among end consumers, and, more importantly, how beneficial they are for the company itself.

If a product has a high profitability rate, but there is low demand, it is necessary to conduct a marketing campaign in order to stimulate growth in demand.

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

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

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

Other, no less effective ways to increase a company’s profitability are the automation of the production process, the introduction of new technologies, and 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.

To accurately calculate future profits, it is important to know at what price it will be sold to the end consumer and how much 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 is used).

1. Calculation of return on sales based on net profit (ROM): ROM = (income 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 profits from sales. Calculation formula: P = K*(C – C). Where, K – volume of goods sold; C – cost of production; C – cost of production, with subsequent sale of the service/product.

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

Conclusion

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

Video on the topic

Profit (gross income) is the main source of cash for any company. Profit goes to the assets of the enterprise in the form of cash and non-cash funds by:

• Sales of products,
• provision of services.

All material costs, paid from these funds, are not included in the concept of profit. Every business should strive to earn the maximum possible amount of profit.

Gross income is an estimate, and even a company that can only cover expenses through its own profits will be considered unprofitable.

Sales profit formula

Profit from sales is determined by subtracting the costs of selling goods from gross profit.

Formula for profit from sales in general view as follows:

P=V-UR-KR

Here P is profit from sales,

B – gross profit,

UR – management expenses,

CR – commercial expenses.

In accordance with gross profit the efficiency of any enterprise is calculated. Gross profit is calculated as the difference between the amount received from the sale of goods and the cost of goods. The formula for sales profit (gross) is as follows:

Pval=V-S

Here Pval is gross profit,

B – revenue from sales of products,

C – production cost.

Marginal profit

Marginal profit is the difference between operating profit and the amount of variable costs (not including value added tax). The sales profit (margin) formula looks like this:

Pmarzh=V – PZ

Here Pmarzh is marginal profit,

B – revenue,

PV – variable costs.

TO variable costs can be attributed:

• salary employee fees,
• costs of production raw materials,
• payment for energy, water, gas, etc.

As production expands, marginal profit will increase and variable costs will decrease. Marginal profit is considered a source for covering the enterprise's fixed costs and generating new profit.

Sales Profit Factors

Before looking for sources of increased profit, it is important to determine the factors on which it depends. Sales profit may be influenced by internal and external factors. Internal factors can be:

• The quantity of goods sold, which is directly dependent on the profitability of sales. So, if profitability is high and sales increase, then sales profit will increase. If profitability is low, then increasing the volume of products sold will lead to a fall in profit margins.
• Assortment structure.
• The cost of the product (if the cost increases, then the profit also increases).
• Cost of production (if the cost rises, then the profit will fall, and vice versa)
• Business expenses.

External factors do not have a direct impact on the profit margin, but the cost and final volume of goods directly depend on them. These factors include:

• Depreciation,
• State regulation of the company's work,
• Natural conditions,
• Market sentiment (the relationship between supply and demand), etc.

Examples of problem solving

EXAMPLE 1

EXAMPLE 2