Net profit increase over the previous year. Increasing the profit of the enterprise

Each enterprise should provide for planned activities to increase profits.

In general terms, these activities can be of the following nature:

• increase in output;
• improvement ;
• sale or lease of surplus equipment and other property;
• reduction of production costs due to more rational use of material resources, production capacities and areas, labor force and working time;
• diversification of production;
• expansion of the sales market, etc.;
• rational use of economic resources;
• reduction of production costs;
• boost ;
• liquidation of non-production expenses and losses;
• raising the technical level of production.

In a market economy, the importance of profit is enormous. The desire to obtain it directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. However, economic instability, the monopoly position of commodity producers distort the formation of profit as a net income, lead to the desire to receive income, mainly as a result of price increases.

Despite the fact that profit is the most important economic indicator of the enterprise, it does not characterize the efficiency of its work. To determine the effectiveness of the enterprise, it is necessary to compare the results (in this case, profit) with the costs or resources that provided these results.

The main factors for increasing the profit of the enterprise

As you know, sales profit is the difference between sales revenue and the total cost of products, works, services. Thus, there are two ways to influence (increase, decrease) the profit of the enterprise:

• the first way is cost reduction;
• the second way is to increase revenue, i.e. sales volume.

Consider an example of the interaction of these paths (Fig. 13.1). To increase profit by 100 thousand rubles, it is necessary either to reduce costs by 100 thousand rubles, or to increase sales by 594 thousand rubles. (2994 - 2400).

Obviously, the most profitable option is to reduce costs, since:

Rice. 13.1. Ways to increase profits:

1 - initial version; 2 - the first way, cost reduction; 3 - the second way, increase sales

reducing costs by 4.1% is much easier than increasing sales by almost 25%;

an increase in production volume requires additional costs, including working capital;

increasing sales requires conquering certain market segments.

It should be noted that cost reduction for the enterprise is an objective process. At the same time, not only because of the increase in profits, but also in connection with the competition and the need to reduce prices for manufactured products in certain situations. In these cases, in order to reduce or increase profits, it is necessary to switch to the release of new products in a timely manner.

The main factors influencing the cost reduction of the enterprise:

• Achieving an appropriate level of labor productivity.
• Ensuring the appropriate turnover of the company's funds and, above all, working capital and their sources.
• Optimization of enterprise variable costs.
• Optimization of fixed costs, i.e. overhead, general business and commercial expenses.
• Optimization of the capital structure of the enterprise, own and borrowed funds.
• Implementation of management accounting, improvement of budgeting.
• Supply cost optimization.
• Cost management.
• Other factors.

• Decreased stock levels.
• Elimination of all kinds of losses and unproductive expenses.

The main factors for increasing sales and revenue:

I. Factors - management requirements.

• Flexible production, allowing a constant increase in its volume, timely updating of products, expanding the range.
• Compliance with concluded agreements.
• Optimization of prices and pricing.
• Ensuring the highest quality of products, works, services.
• Periodic review of commercial lending policy.
• Other factors.

II. Factors related to possible reserves.

• Conquest and development of new markets.
• Dealer network expansion.
• Effective activity of the enterprise for the sale of products.
• Other factors.

The purpose of enterprise profit management: optimization of profit planning; obtaining at least the planned profit; optimization of profit distribution in terms of business efficiency.

It should be noted that all activities of the enterprise are aimed at realizing the goal of profit management. Part of this activity is focused on the implementation of another, no less important goal - ensuring the liquidity and solvency of the enterprise.

A profitable policy is as follows.

Analysis of actual financial results:

• the relationship between the income and expenses of the enterprise and its profit,
• financial analysis of revenue, profit and profitability of types
• profit - from sales, balance sheet, taxable, net;
• analysis and optimization of enterprise costs in the process of developing the cost, including the cost of goods sold, commercial and administrative expenses;
• marginal analysis and evaluation of marginal indicators;
• analysis of the capital structure and the financial leverage associated with it, its impact on the return on equity according to the Dupont formula;
• analysis of indicators of the turnover of the company's funds and its impact on the profitability of the company's own funds according to the Dupont formula;
• assessment of profit per share in joint-stock companies.

Analysis and assessment of the role and place of profit in internal financial relations, in the centers of financial responsibility.

Development and justification of a business plan (financial plan), financial budgets of the enterprise, including a forecast profit and loss statement based on the results of the analysis and other economic calculations. Types of documents and their content are determined by the enterprise.

Development of a profitable enterprise policy related to the distribution of net profit, including:

• dividend policy;
• investment policy;
• relation to the consumption fund;
• relation to the reserve fund at the expense of net profit;
• assessment of other payments from net income.

Development of the organizational plan of the enterprise, a kind of profit management regulation, including the principles of operational activities for the implementation of the planned profit.

In addition to the main provisions of the profitable policy outlined above, other provisions may be reflected in the relevant documents.

Every company that produces any product needs a thoughtful approach to its marketing. Only specialists should deal with such issues, because improper sales planning can lead to a decrease in profits and even bankruptcy of the enterprise. Knowing how to increase sales revenue, any start-up company will be able to quickly recoup its costs and begin to receive the first profit.

Ways to increase profits, focused on the production process

Profit is the difference between the income received and the amount spent on the manufacture of the product. That is, only net revenue is taken into account, without any material costs. These include not only the purchase of products and materials necessary for production, but also the purchase of machine tools, their maintenance, the payment of wages to workers, advertising costs, etc. Therefore, to increase revenue, it is necessary to take a number of measures regarding equipment, labor and technological processes:

These are the main ways to increase sales profit by adjusting the production process.

Increasing profit outside of production

Equipment, personnel and the purchase of resources are the basis for obtaining products in cheaper ways. However, in order to increase revenue, sales are needed. Without the sale of goods, there will be no profit. Therefore, it is required to increase sales, and they depend on:

1. Product quality. The higher, the more people will want to buy such a product;
2. Market expansion. This item is the most important, thanks to it, the manufacturing company has many new customers, which means sales increase. There are several ways to expand the sales market, but it is advisable to combine them in order to achieve a result. For example, you need to organize an advertising campaign that will attract the attention of potential buyers, and at the same time establish relationships with wholesale customers - owners of their own trading platforms.

A well-thought-out advertising campaign can attract the attention of many buyers, and as a result, increase revenue. But, if the first point (quality) is not observed, people will very soon be disappointed in the product and stop buying it. To get regular customers, you need to take care of your reputation and not offer them low-quality goods.

Small note

Not all entrepreneurs have their own production and trade their own goods. Some prefer to limit themselves to supply only (network marketing, distributors of some brands, etc.). In this case, only advertising can increase profits. Usually at this level of business, its owners create their website and run an advertising campaign on the Internet.

By investing in business development, buying stocks, real estate or bonds, an entrepreneur expects to increase investments, that is, to get a gain. To figure out how to calculate growth, you need to understand what it is. Growth is an increase in the value of fixed capital, which provides for the receipt of more funds (profit) during its implementation. Until the asset is sold, it is considered that the income is not received.

The calculation will require the values ​​of the current price and the previous one. The results of the calculation are used to manage financial and economic activities, as well as to maintain statistics. The growth value allows you to determine whether income, the number of customers or any other indicator has increased or decreased over the period under review.

Types of growth

• Implemented- it is received in the event that the investment objects were sold and a profit was made on them.
• Unrealized- occurs when there are investments that are not realized, but can bring profit after the sale.

Management

For the calculation, you will need to set the time interval and determine the initial (base) point. It can be the beginning of a year, a month, or another time period.

The increase can be absolute. Its value is equal to the difference between the indicators of the current and base (or previous) periods. For example, the cost of producing a unit of output at the beginning of the year was 150 rubles, and at the end - 175 rubles. The absolute increase in value amounted to 175-150=25 rubles.

Growth is often considered in relative terms (growth factor). To do this, the value of the current indicator is divided by the base or previous value. For example, 175/150=1.16. This suggests that the cost of production has increased by 1.16 times. To get the value as a percentage, you need to multiply the result by 100%. In our example, this will be 16%.

To analyze the effectiveness of activities or investments, it is required to determine the growth rate. To do this, determine the indicators corresponding to the start and end points. For example, the value of shares at the beginning of 2014 was 250 thousand rubles, and by the end of the year - 420 thousand rubles. Then, the initial value is subtracted from the value of the final indicator (420000-250000=170000). The result must be divided by the initial value and multiplied by 100%. (170000/420000*100=40%). In the considered example, the rate of increase in the value of shares for the year was 40%.

To generalize the results over a long period (for example, several years), the average absolute increase is calculated. To do this, find the difference between the final and initial indicators, then it must be divided by the number of periods.

Growth can be negative. For example, if the value of shares by the end of the year amounted to 210 thousand rubles, then the increase will be equal to:
(210000-250000)/210000*100=-19%.

Depending on the purpose of calculating the absolute increase, the basic or chain methods are used. The basis of the basic method is the comparison of indicators of any period with the base. In the chain method, current indicators are compared with previous ones.

Question: How to calculate profit growth?
Answer: The absolute value is the difference between the current and the baseline (or previous) value. Relative - the result of dividing the current indicator by the base (or previous).

Question: How to get the average monthly increase if several different periods are taken into account?
Answer: To do this, the indicators for each month are calculated separately. Then they need to be added and divided by their number.

Question: When calculated, it received a negative value. What does it mean?
Answer: This means that the investment did not bring profit, but became unprofitable.

The growth rate is used in the analysis of any series of dynamics. The growth rate formula is often used in statistics and economics in conjunction with such an indicator as the growth rate (as a percentage).

DEFINITION

Growth rate shows how many times the indicator has changed compared to the baseline, and rate of increase reflects how much the investigated value has changed.

If the result of the calculation is a positive value, then we can talk about an increasing growth rate, while a negative value results in a decrease in the rate of the studied value, if compared with the previous (base) period.

The growth rate formula is often used in the analysis of investment projects. Also, this indicator is often used by municipal organizations in the calculations:

• calculation of population growth;
• future need for buildings;
• volume of services, etc.

Growth rate formula

To calculate the growth rate, you need to find the ratio of the indicator under study to the previous (base), then subtract one from the result. The final result is multiplied by 100 to express the total as a percentage. The formula for the growth rate according to the first method looks like this:

Tp \u003d ((Pip / Pbp) -1) * 100%

Here Tp is the growth rate,

In the case when instead of the actual value of the analyzed indicators, only the value of the absolute increase is known, an alternative formula is used. At the same time, the percentage ratio of the absolute increase to the level in comparison with which it was calculated is found.

Tp=((Pip-Pbp)/Pbp)*100%

Here Tp is the growth rate,

Pbp is an indicator of the base period,

Pip is an indicator of the period under study.

A great difficulty for students is the difference between the growth rate and the growth rate. Let's single out several provisions in which the difference between these values ​​lies:

1. The growth rate formula and the growth rate formula are calculated using different methods.
2. The growth rate reflects the percentage of one indicator relative to another, and the growth rate shows how much it has grown.
3. Based on the calculations using the growth rate formula, it is possible to calculate the growth rate, while the growth rate is not calculated using the growth rate formula.
4. The growth rate does not take a negative value, while the growth rate can be both positive and negative.

Examples of problem solving

EXAMPLE 1

Profitability - the amount of profit in percentage terms, which the organization extracts in relation to costs. Profitability is calculated by dividing net profit by total revenue and multiplied by 100%. An indicator of 8-10% is considered normal. With a lower value of the organization's profitability, you need to think about measures to increase it. Formula Sales profit is calculated using a formula. It is defined as the difference between expenses and gross profit. Gross profit is determined by subtracting the cost of sales from the sales proceeds. Selling expenses (cost of sales) - only those expenses that go directly to the implementation of sales. So, the formula: Prpr = Vpr - SD - KR Where, KR, SD - expenses of a commercial / managerial nature; Vpr - gross profit; Ppr - income from the activities of the company.

Revenue Formula

Profit Growth Calculation Profit growth is calculated as the difference between the amounts of profits based on the results of the previous and current periods. The reasons for the increase in profits may be a decrease in cost, an increase in production, a change in the purchase cost of products. 1. If profit has increased due to a decrease in production costs, then the increase is calculated by multiplying the volume of production of the current period by the resulting difference in production costs.
In this case, the increase corresponds to the amount of savings from cost reduction, based on the planned wholesale cost in this period. ΔP \u003d (Сb - Co) q, where ΔP is the increase in profit, Сb is the cost of manufacturing one product in the base period, Co is the cost of manufacturing one product in the reporting period, q is the actual number of products. 2.

Formula: sales revenue. How to calculate sales revenue?

It is impossible to issue a copy of SZV-M to a retiring employee. According to the law on accounting, an employer, upon dismissal of an employee, is obliged to give him copies of personalized reports (in particular, SZV-M and SZV-STAZH). However, these reporting forms are list-based, i.e. contains information about all employees. This means that the transfer of a copy of such a report to one employee is the disclosure of personal data of other employees.
< … Компенсация за неиспользованный отпуск: десять с половиной месяцев идут за год При увольнении сотрудника, проработавшего в организации 11 месяцев, компенсацию за неиспользованный отпуск ему нужно выплатить как за полный рабочий год (п.28 Правил, утв. НКТ СССР 30.04.1930 № 169). Но иногда эти 11 месяцев не такие уж и отработанные. < …

Profit from product sales

Based on the data below, it is necessary to determine what the profit from the sale of products that the enterprise will receive in the planned year will be, and it is also necessary to calculate how much the increase in profit in the reporting year will be compared to the previous period: - the volume of output by the enterprise is 440 thousand . things; - the price of a unit of production, which is produced, is 670 dollars; - variable costs of this enterprise per unit of output - $ 420 - fixed costs for the production of marketable products are equal to 2,070,000 thousand dollars; Additionally, it is indicated that in the planned period, the analyzed enterprise intends to increase its profit from the sale of products by 18%. Solution: 1.

Profit Growth

This means that in order to answer the question of how to find the proceeds from the sale of products, the formula can be represented as follows: B \u003d C1 * K1 + C2 * K2 + ... + CN * KN, where B is the total revenue for all types of products sold; ЦN is the price of the N-th type of product (including VAT); KN is the quantity of the N-th type of sold products. Accounting for revenue from the sale of products (works, services) Revenue in accounting is usually reflected in the following entry (Order of the Ministry of Finance dated October 31, 2000 No. 94n): Debit of account 62 “Settlements with buyers and customers” - Credit of account 90 “Sales”, subaccount “Revenue »In retail trade, account 62 is often not used, and account 90 directly corresponds with the cash account: Debit of account 50 "Cashier" - Credit of account 90 Thus, from the point of view of accounting, revenue is the credit turnover of account 90 from debit accounts 62, 50. In this case, we are talking about revenue, including VAT.

Sales Profit Formula

Additional nuances It should be noted that the receipt of revenue on time is one of the key tasks for any organization in market conditions, because this is the main factor determining its position in terms of finances. But its receipt untimely can lead to unpleasant consequences, including: delay in the payment of funds to employees of the organization, the occurrence of arrears in the payment of tax and other mandatory payments, delays in settlements with suppliers, and so on. For tax purposes, proceeds from sales (the formula is below) or from the sale of property rights are considered income.

It is formed on the basis of receipts that are directly related to payments for the sold product (work, services) or property rights, which can be expressed both in cash and in kind.

Revenue from product sales

This is the revenue received from buyers and customers for the product sold.

• As a result of investment activities (sale of fixed assets or other assets that are out of circulation, interest and dividends on securities).
• As a result of the financial activity of the enterprise, which is associated with the placement of bonds and shares among investors, the repayment of loans and credits previously provided to other business entities.

Revenue planning In the process of financial and economic activity, any enterprise carries out revenue planning (the formula "sales revenue" will be discussed in detail below), which occurs, as a rule, in accordance with three methods.
The indicator under consideration is the most important source involved in the formation of any organization's own financial resources. In other words, sales revenue is one of the key definitions of the financial and economic life of an economic structure. Sales revenue (calculation formula shown below) is usually calculated for a specific period of time.

In the process of realization of the product (works, services), the considered indicator allows to determine the final result of the company's activity. It should be noted that in the accountant's report, the presentation of revenue is organized with the condition of deducting taxes. Accounting for revenue In the life of any economic entity, the most important role is played by the fact that revenue is recorded in the form of a sum of money.

Formulas total increase in sales revenue

Another formula for revenue is determined by multiplying the selling price of a product (service) by the quantity of goods sold: B = St-t * Q Formula for revenue from sales The formula for revenue from the sale of goods for the corresponding period is calculated by taking into account sales volumes and prices. The sales proceeds formula is as follows: B=Q*P Here B is the proceeds from the sale of products, Q is the quantity of goods sold, P is the price of goods sold. Types of revenue Proceeds from the sale of goods (services) consist of cash or other property in monetary terms, which are received or are to be received from the sale of goods (products, services, works) at prices, tariffs in accordance with the concluded agreement.

Info

Calculation of gross profit: Вpr \u003d VO - СbstWhere, Сbst - the cost of selling products; In - the amount of revenue. If all other expenses and taxes are subtracted from the profit value, the net profit will come out. An example of using the sales profit formula.

Sales Analysis and Management Decisions Why analyze product sales? This allows you to further explain the decline or, much better, growth trends in sales that are already mapped out. Moreover, the analysis provides information on the sale of which goods it is necessary to make some efforts, and also helps in the development of specific and targeted management decisions regarding the sale of products (works, services). So, for the first stage of this analysis, it is necessary to calculate the growth rate of sales proceeds according to the following formula: - TpN = N1 / N (growth of sales proceeds; formula).

- N1 - proceeds from the sale of the product (works, services) in the reporting period. - N - proceeds from the sale of the product (works, services) in the base (previous) period.