Quite often, the population is interested in how to find out if an apartment has been privatized or ...
Send your good work in the knowledge base is simple. Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
Hosted at http://www.allbest.ru/
Moscow Humanitarian University
Course work
"Analysis of the formation and use of net profit"
Moscow, 2015
Table of contents
- Introduction
- 3conclusion
Introduction
In conditions market economy the foundation economic development- profit - the most important indicator of the efficiency of the enterprise, the sources of its vital activity.
Profit growth creates a financial basis for the implementation of expanded reproduction of the organization and the satisfaction of the social and material needs of the founders and employees.
At the expense of profit, the organization's obligations to the budget, banks, and other organizations are fulfilled.
However, it cannot be assumed that planning and profit formation remained exclusively in the sphere of interests of only the enterprise. The state (budget) is no less interested in this, commercial banks, investment structures, shareholders and other holders of securities.
In order to ensure high economic efficiency of production, a state economic policy is needed that would contribute to the formation of an environment conducive to economic activity and focused the enterprise on maximizing profit (income).
Since it is the state that determines the successful functioning of an enterprise, the problems of profit and profitability are currently very relevant.
The main task of analyzing the distribution and use of net profit is to identify trends and proportions that have developed in the distribution of profit for the reporting year compared to the previous year.
Based on the results of the analysis, recommendations are developed on the distribution of net profit and its most rational use.
net income balance distribution
Analysis of the distribution and use of profits is carried out in the following order:
an assessment is made of changes in the amount of funds for each direction of profit use in comparison with the reporting and base period;
a factor analysis of the formation of funds is carried out;
an assessment of the effectiveness of the use of accumulation and consumption funds is given in accordance with the indicators of the effectiveness of the economic potential.
Target term paper: give a quantitative assessment of the reasons causing a change in net profit, tax payments from profit, identify trends and proportions that have developed in the distribution of profit, and also identify the impact of using profit on the financial position of the enterprise.
1. Profit in a market economy
1.1 The economic essence of net profit and its types
In the transition to a market economy leading role in system economic indicators plays profit.
Profit is a generalizing indicator, the presence of which indicates the efficiency of production, a favorable financial condition. In other words, profit is a positive result of the enterprise's activity. Making a profit is the main goal of commercial organizations. From this it is clear that I will consider in the future the activities of a commercial organization.
The financial condition of an enterprise is a characteristic of its competitiveness (ie solvency, creditworthiness), the use of financial resources and capital, the fulfillment of obligations to the state and other organizations (rental fees, etc.).
Profit, which takes into account all the results of the production and economic activities of the enterprise, is called balance sheet profit. It includes - profit from the sale of products (works, services), profit from other sales.
Distinguish between taxable income and non-taxable income. After the formation of profit, the enterprise pays taxes, and the remaining part of the profit, received at the disposal of the enterprise after paying income tax, is called net profit.
Net profit - the difference between balance sheet profit and tax payments due to it. The higher the balance sheet profit, the higher the net profit. The company can dispose of this profit at its own discretion. It can allocate part of the profit to the development of production (for example, the purchase of more technological equipment), social development, employee incentives and stock dividends.
There are no standards approved "from above" for its distribution. Only state tax regulation of labor costs for the main personnel of the enterprise (workers involved in production) is in effect.
The rest of retained earnings can be used to increase equity firms or can be redistributed to self-insurance, i.e. to the reserve fund (in case of force majeure: fires, earthquakes, floods and other disasters), accumulation fund (formation of funds for production development), consumption fund (funds for employee bonuses, etc.), provision financial assistance, social fund development (for various festive events) and other purposes for which the manager wants to transfer this money.
The main indicator of profit used to evaluate production and economic activities is:
balance sheet profit;
profit from the sale of manufactured products;
gross profit;
taxable income;
net profit (remaining at the disposal of the enterprise).
Taxation of corporate profits is determined in accordance with the law Russian Federation"On the income tax of enterprises and organizations".
When determining taxable profit, the amount of deductions to reserve and other similar funds formed by enterprises is excluded from gross profit.
As the profit is received, the enterprise uses it in accordance with the current legislation of the Russian Federation and the constituent documents of the enterprise.
Currently, the profit (income) of the enterprise is used in the following order:
1) profit (income) tax is paid to the budget;
2) deductions are made to the reserve fund;
3) funds and reserves are formed, provided for by the constituent documents of the enterprise.
Profit from the sale of products (works, services) is predominant in the total profit.
The financial result from the sale of products (works, services) is defined as the difference between the proceeds from the sale of products (works, services) without VAT and excises and the costs of production and sale of these products (works, services), included in the cost of production and taken into account when determining the taxable arrived. (Selling expenses, value added tax, excises, fuel tax).
FR= AT - Zpr
where:
FR - financial result from the sale of products (works, services);
B. - proceeds from the sale of products without VAT and excises;
Zpr. - costs of production and sale of products (works, services).
When forming financial results from the sale of products (works, services), the determination of the cost of production has a significant impact.
The cost of purchased products includes: acquisition cost, delivery, storage, sales and other similar expenses.
Profit from other sales includes financial results (profit, loss) from the sale of products, works, services of ancillary and service industries, as well as from the sale of purchased inventory items.
Profit from other sales is defined as the difference between the proceeds from the sale and the cost of this sale.
Proch= ATother - Wother
Proch- profit from the sale of fixed assets and other property, intangible assets (other sales);
ATother- proceeds from other sales;
Wother- expenses for other implementation.
1.2 Distribution of net profit
For tax purposes, the balance sheet profit is adjusted in accordance with tax standards.
It should be noted that the concept of net profit in Russia does not correspond to the concept of net profit international standards, "our" net income, in fact, is not net, but includes significant expenses, which is unacceptable by Western standards.
From the profit remaining at the disposal of the enterprise (net profit), in accordance with the legislation and constituent documents, the enterprise can create an accumulation fund, a consumption fund, a reserve fund and other special funds and reserves. That is, in fact, to make self-insurance in case of force majeure.
The standards for deductions from profits to special purpose funds are established by the enterprise itself in agreement with the founder.
Deductions from profits to special funds are made quarterly. For the amount of deductions made from profit, there is a redistribution of profit within the enterprise: the amount of retained earnings decreases and the funds and reserves formed from it increase.
Under fund accumulation refers to funds allocated for the production development of an enterprise, technical re-equipment, reconstruction, expansion, mastering the production of new products, for the construction and renovation of the main production assets, development new technology and technologies in existing organizations and other similar purposes provided for by the constituent documents of the enterprise (for the creation of new property of the enterprise).
Capital investments in production development are mainly financed at the expense of the accumulation funds.
Under fund ohm consumption refers to funds directed
for the implementation of activities for social development(except for capital investments), material incentives for the enterprise team (one-time bonuses, monetary incentives, etc.), the purchase of travel tickets, vouchers for sanatoriums and other similar events and works that do not lead to the formation of new property of the enterprise.
The consumption fund consists of two parts: the payroll fund and payments from the social development fund.
The wage fund is a source of remuneration for work, any kind of remuneration and incentives for employees of the enterprise.
Payments from the social development fund are spent on recreational activities, partial repayment of loans for a cooperative, individual housing construction, interest-free loans to young families and other purposes provided for by measures for the social development of labor collectives.
Spare fund is designed to ensure financial stability during a period of temporary deterioration in production and financial performance. It also serves to compensate for a number of monetary costs that arise in the process of production and consumption of products.
To improve production efficiency, it is very important that the amount of deductions be optimal when distributing net profit.
The distribution of net profit allows you to expand the activities of the organization at the expense of its own, cheaper sources of financing.
At the same time, the financial expenses of the organization for attracting additional sources are reduced (you can not take loans with an unfavorable interest rate for the organization, but simply calculate the funds from your own accumulation fund for the necessary needs of the organization).
The formation of tax policy should be based on the following principles:
stability of the tax system;
the same taxation of producers, regardless of the sectoral affiliation of the enterprise and the form of ownership;
equal taxation conditions for entrepreneurs engaged in production and consumers.
A means to achieve these goals could be a significant reduction in the overall level of tax withdrawal through lower marginal tax rates and progressive taxation. In this case, the impact on production would be through a change in the tax rate and a system of targeted tax benefits.
2. Theoretical aspects of the analysis of the formation and use of the net profit of the enterprise OAO "NOVATEK".
2.1 Tasks of analysis of the distribution and use of profits
The main task of analyzing the distribution and use of profits is to identify the proportions prevailing in the distribution of profits for the reporting year compared to the previous year.
Based on the results of the analysis, recommendations are developed for changing the proportions in the distribution of profits and its most rational use. The characteristics of the economic activity of the enterprise in a market economy is determined by the amount of net profit and indicators of the financial position.
The most important indicators of the financial performance of the enterprise are presented in form No. 2 annualandquarterly accounting reporting. These include:
profit (loss) from sales;
profit (loss) from financial and economic activities;
profit (loss) of the reporting period; retained earnings (loss) of the reporting period.
2.2 Technical and economic characteristics of the organization
Kind of activity:
wholesale;
storage of inventory items;
transport services.
On the this moment the number of Driver-track LLC is 47 people. The accounting policy of Driver-track LLC is developed in accordance with federal law"On Accounting" No. 129 - Federal Law of 11/21/96 (as amended on 07/29/98) and the Regulation on accounting"Accounting policy of the enterprise" RAS 1/98 dated 09.12.98
The organizational structure of OAO NOVATEK is as follows:
1. Accounting is carried out under the supervision of the chief accountant.
2. The requirements of the chief accountant in the implementation of the chosen accounting policy are mandatory for all employees of the organization.
3. Accounting records of property and business transactions are kept in accordance with the Regulations on Accounting and Reporting in the Russian Federation and the Chart of Accounts in accordance with the journal-order system, with the maintenance of the general ledger.
4. The procedure and terms for conducting an inventory are determined by the director of the organization by a separate order, except for cases when an inventory is mandatory.
Inventory is mandatory in the following cases.
when transferring property for rent, sale;
when changing financially responsible persons;
when revealing the facts of theft or damage to property;
when natural disaster, fire or other emergencies;
before preparing annual financial statements.
5. Depreciation of intangible assets is written off on a monthly basis according to the rates calculated by the organization, based on the initial cost and period of their beneficial use. Depreciation of intangible assets for which it is impossible to determine the useful life is made based on the norms established for 10 years.
6. Accrual of depreciation of fixed assets is carried out in accordance with the unified standards of depreciation for the full restoration of fixed assets, approved by the Decree of the Council of Ministers of the USSR dated October 22, 1990 No. 1072.
7. The actual cost of inventory items written off to production is determined by the average cost of materials.
8. Accounting for goods is carried out at the purchase price.
9. Accounting for production costs is divided into:
1) direct - on account 20 "Main production";
2) indirect - on account 26 "General business expenses".
Write off indirect costs at the end of the reporting period to account 20 without distribution.
10. Expenses incurred in the reporting period, but related to future reporting periods, should be reflected in a separate account 31 "Expenses of future periods" with attribution to the cost price as the period to which they relate comes.
11. For the purposes of taxation, the proceeds from the sale of products, the enterprise determines as it is paid.
For non-cash payments - as funds for goods are received on the company's current account, and for cash payments - upon receipt of funds at the cash desk of the organization.
The proceeds from the sale of products should be understood as the proceeds from actually sold inventory items, confirmed by waybills (when providing services - a signed act on the provision of services or the performance of work).
12. Income received in the reporting year, but related to future reporting periods, must be reflected in a separate account 83 "Deferred income", with attribution to the profit of the reporting period, depending on the period to which they relate.
13. The profit remaining at the disposal of the enterprise should be taken into account with the distribution of funds (accumulation fund, consumption fund, fund social sphere).
14. Accrual and payment of dividends to the founders to be made at the end of the reporting period at the expense of the profit remaining at the disposal of the enterprise.
15. Based on the accounting registers, OAO NOVATEK prepares quarterly reports for submission to tax office. Revenue is determined at the time of payment, which is reflected in the accounting policy.
2.3 Main indicators affecting the financial result
AT modern conditions an indicator that characterizes the financial result of the organization's activities - balance sheet profit or loss.
The balance sheet profit is formed as a financial result from the sale of goods (services), property of the organization (fixed assets, tangible assets, tangible working capital and other assets), as well as income from non-operating operations and represents the difference between the proceeds from the sale of goods, property and the cost of completed works (services) and inventory items reduced by the amount of expenses for these operations:
The bulk of the profit is defined as the difference between the cost of products sold to third parties (partners or counterparties) at sales prices (contractual price) of products sold (or services rendered) without value added tax and the cost of products (or costs for the production of services).
The profit remaining at the disposal of the organization after taxation is called net profit.
This profit is directed to capital investments and the growth of the main and working capital; to cover losses of previous years, to deductions to reserve capital, to social expenses; as well as the payment of dividends and income.
At the end of the year, it is referred from the general account 80 Profit and Loss to account 88 "Retained earnings" (uncovered loss). For this, an entry is made on the debit of account 80 and the credit of account 88.
From the profit remaining at the disposal of the enterprise (net profit), in accordance with the legislation of the Russian Federation and the constituent documents, the enterprise can create an accumulation fund, a consumption fund, a reserve fund and other special funds and reserves.
The standards for deductions from profits to special purpose funds are established by the enterprise itself in agreement with the founder. Deductions from profits to special funds are made quarterly.
For the amount of deductions made from profit, there is a redistribution of profit within the enterprise: the amount of retained earnings decreases and the funds and reserves formed from it increase. At the same time, sub-accounts for accounting for retained earnings of account 88 are debited and sub-accounts of the same account are credited.
Separate sub-accounts are opened for account 88 for separate accounting of each formed accumulation, consumption and reserve fund.
The Regulation on Accounting and Reporting in the Russian Federation provides for the use of two options for determining revenue:
1) upon receipt of funds from the sale (or for the work and services performed) to the current account or cash desk of the organization;
2) for the shipment of products (or performance of work) and the signing of shipping documents (waybills, acts) provided for in sales contracts.
The choice of one or another option for accounting for revenue depends on the business conditions and the nature of relationships with partners and is carried out independently by the organization (according to the accounting policy of the organization).
The cost of products (services, works) is an economic category that reflects the costs of the organization for the acquisition (production) and transfer to the buyer (delivery of work to the customer).
The main factor influencing the cost reduction is the saving of material, labor and financial resources. An important role in solving this problem belongs to accounting, which must ensure the correctness and reliability of cost accounting.
In addition, cost accounting data is used in the analysis process to identify intra-production reserves, as well as in determining the actual financial results of the organization.
3. Analysis of the formation, distribution and use of NOVATEK's net profit
3.1 Analysis of the composition and dynamics of balance sheet profit
The analysis begins with an assessment of the dynamics of indicators of balance sheet profit for the reporting period. At the same time, the main financial indicators for the previous and reporting periods are compared, deviations from the base value are calculated indicators and it turns out which indicators had greatest influence on balance sheet profit.
Table 2.1.
Formation and distribution of balance sheet profit
|
Indicators |
Reporting period |
||
|
1. Revenue (net) from the sale of goods, products, services |
|||
|
2. Cost of (production) sales of goods, products, works, services |
|||
|
3. Gross income |
|||
|
4. Period expenses: commercial management |
423 81 342 |
350 67 283 |
|
|
5. Profit (loss) from sales |
|||
|
6. Balance of operating results |
|||
|
7. profit (loss) from financial and economic activities |
|||
|
8. Balance of non-operating results |
|||
|
9. profit (loss) of the reporting period balance sheet profit |
Revenue from the sale of products (delivery of work to the customer) is determined "on payment", i.e. as they are paid in full at the contractual cost.
The financial result was revealed: profit in 2013 was 150 thousand rubles, and in 2014 - 287 thousand rubles.
Thus, this paragraph considers the formation of the financial result of OAO NOVATEK for 2013 and 2014.
After the formation of balance sheet profit, the enterprise pays taxes to the state budget, and the remaining part of the profit remains at the disposal of the enterprise.
3.2 Analysis of the formation of net profit
The amount of profit remaining at the disposal of the enterprise is affected by all taxes paid by the enterprise, regardless of the tax base.
Part of the tax payments, such as deductions to the road fund, pension fund, health insurance fund, social insurance payments, affect net profit - through the cost of production and profit from sales and are second-order factors in relation to net profit.
Another part of the taxes, such as the property tax, the tax on the maintenance of the housing stock (housing and communal services), the fee for the maintenance of the police (guards), are direct taxes that are deducted from profits.
Thus, the change in net profit under the influence of tax payments consists of the sum of deviations as a result of changes in the tax base and changes in the tax rate.
Table 2.2.
Profit taxes.
The data in Table 2.2 show that taxes from profits have decreased compared to last year by (11 7376: 148347) x 100 - 100 = - 20.9%. The structure of taxes has also changed somewhat: the tax on housing and communal services has been abolished, the tax on the police has increased due to an increase in the minimum wage (from 83.49 rubles to 100 rubles), the amount of property tax has decreased due to a decrease in the average annual value of property subject to taxation.
Table 2.3.
Calculation of the impact of income tax on net profit.
|
Indicators |
Deviations (+, -) |
|||
|
1. Profit from the sale of products and services |
||||
|
2. Profit from other sales |
||||
|
3. Operating income |
||||
|
4. Operating expenses |
||||
|
5. Balance sheet profit |
||||
|
6. Increase (+), decrease (-) in the amount of profit as a result of its adjustment for tax purposes |
||||
|
7. Income tax benefits |
||||
|
8. Taxable income (line 1+line 3-line 4+line 6) |
||||
|
9. Income tax rate |
||||
|
10. Income tax amount |
||||
|
11. Net profit |
The amount of income tax increased by 64 thousand rubles, net profit decreased by the same amount, due to an increase in taxable profit and an increase in the tax rate (from 30% to 35%).
The value of net profit is influenced by f actorfirst level that affects the amount of net profit - taxable profit and income tax rate.
The amount of tax was affected by an increase in taxable income in the amount of:
DN (NB) = DPn ? CH 0 = 164?30 = 49 thousand rubles.
where DP n - increment of taxable profit
CH 0 - income tax rate of the base year.
to see what effect the increase in the tax rate had:
DN (SN) = DCH? Mon\u003d 5? 306 \u003d 15 thousand rubles.
where DSN is the increment of the income tax rate,
Mon - taxable profit of the reporting year.
The amount of net profit is also affected by income taxed at special rates other than income tax and deducted from gross profit when calculating taxable profit. These are the factors secondlevel, affecting the amount of taxable income:
Income taxed at rates other than income tax;
The amount of deductions to the reserve fund;
The amount of privileged deductions from profit.
The enterprise in question had no income that is taxed at special rates, no deductions were made to the reserve fund (the reserve fund was not formed at this enterprise, therefore funds were not directed to replenish the reserve fund) and the enterprise does not have income tax benefits.
So, from table 2.3 it follows that the amount of net profit increased mainly due to the growth of profit from sales. At the same time, the increase in cost caused a decrease in the amount of net profit.
Therefore, looking for ways to increase net profit, this enterprise must first of all pay attention to factors that negatively affect the formation of its value.
3.3 Analysis of the distribution and use of net income
Net profit is distributed in accordance with the Charter of the enterprise.
At the expense of net profit, dividends are paid to the shareholders of the enterprise (in CJSC, OJSC), accumulation and consumption funds, a reserve fund are created, part of the profit is directed to replenish its own working capital.
Let's consider the analysis of the distribution and use of profits using the example of OAO NOVATEK.
The reserve fund at this enterprise is not formed, therefore, no funds were sent to replenish the reserve fund.
Table 2.4.
Data on the use of net profit, thousand rubles.
|
Index |
Reporting year |
Same period last year |
Deviations (+, -) |
|
|
1. Net profit |
||||
|
2 . Distributioncleanarrived: |
||||
|
to the accumulation fund |
||||
|
to the consumption fund |
||||
|
to the social sphere fund |
||||
|
3 . Shareincleanarrived,% |
||||
|
accumulation fund |
||||
|
consumption fund |
||||
|
to the social sphere fund |
Consider in table 2.5 the influence of factors - the amount of net profit and the coefficient of profit deductions on deductions to funds.
Table 2.5.
Calculation of the influence of factors on the amount of deductions to the enterprise's funds.
From the above calculations, it follows that the decrease in the amount of deductions to the accumulation fund, the social sphere was affected by a decrease in the deduction coefficient by 9.
At NOVATEK, most of the profits were directed to the consumption fund and used for social payments. However, the insufficiency of funds allocated for accumulation hinders the growth of turnover, leads to an increase in the need for borrowed funds.
Thus, NOVATEK needs to reconsider how profits are distributed, directing most for the formation of an accumulation fund.
3.4 Recommendations for improving net income
The analysis carried out shows that NOVATEK is doing a lot of work to improve the efficiency of implementation and performance of work. As a result of this, the following results were obtained at the enterprise in 2014:
1. Proceeds from the sale of products (works, services) amounted to 11,375 thousand rubles.
2. Cost of goods sold - 10,656 thousand rubles.
3. Profit from the sale - 296 thousand rubles.
4. On the amount of balance sheet profit, which amounted to 287 thousand rubles. affected by an increase in profit from sales of products, a decrease in operating costs.
5. The profit remaining at the enterprise after paying the tax in accordance with the constituent documents was sent to the accumulation fund - 45 thousand rubles, to the consumption fund - 108 thousand rubles, to the fund of the social sphere - 18 thousand rubles.
As the analysis shows, OAO NOVATEK is seeing an increase in profits from product sales. So in 2013 it amounted to 150 thousand rubles, and in 2014 - 287 thousand rubles.
The following factors influenced the change in profit: cost, type of work performed, sales volume.
An analysis of the use of the profits of the Driver-Track company showed how the funds were distributed to the consumption fund and the accumulation fund.
At NOVATEK, most of the profit was directed to the consumption fund and used for social payments, which led to a slowdown in turnover current assets, limiting the possibility of growth in turnover and profits.
Insufficiency of funds allocated for accumulation hinders the growth of turnover, leads to an increase in the need for borrowed funds.
The direction of funds to the accumulation fund will increase the economic potential, increase the solvency of the enterprise and financial independence, will contribute to the growth of the volume of work performed and sales without increasing the amount of borrowed funds.
Thus, NOVATEK needs to revise the procedure for distributing profits, directing a large part to the formation of an accumulation fund.
To improve the efficiency of the company's production, it is very important that there is a well-defined tax policy, and taxes must be clear and stable.
Thus, in order to increase the positive result in NOVATEK, it is proposed to develop measures that ensure:
1. The main sources of increasing the amount of profit is an increase in the volume of sales of products, a decrease in its cost, an increase in the quality of marketable products, and its sale in more profitable markets.
2. Conducting a large-scale and effective policy in the field of personnel training, which is a special form of capital investment.
3. Increasing the efficiency of the enterprise for the sale of products.
4. Improve the quality of work performed, which will lead to competitiveness and interest in choosing this enterprise.
5. An important role is occupied by an increase in the volume of sales and the provision of services through a more complete use of the production capacities of the enterprise.
6. Reducing costs by increasing the level of labor productivity, economical use of raw materials, materials, fuel, electricity, equipment.
7. The use of the most modern mechanized and automated means to perform work.
The implementation of these proposals will significantly increase the profit received by the enterprise.
3conclusion
Summing up the above, it should be noted that net profit will increase with an increase in balance sheet profit, i.e. there is a direct relationship between balance sheet and net profit, and an inverse relationship is observed between net profit and tax payments paid to the state budget at the expense of the received balance sheet profit.
It follows that far from the last function in the formation of net profit is performed by the taxation policy of the state. After all, the lower the interest rate of income tax, the higher the financial result of the enterprise (meaning profit).
Profit should not only cover the costs of production and sale of goods (carrying out work, rendering services), but also be so significant as to ensure all expanded reproduction, as well as the solution of the tasks facing the enterprise.
The maximum profit from the sale of products is mainly associated with a decrease in production costs for the production and sale of the final product. finished products(works, services).
In the process of doing my course work, another option for making a profit is presented - making a profit from other sales. This option for making a profit is carried out through the sale (sale) of fixed assets of the enterprise (for example, such as production shops with machinery, part of the shares, unless of course it is a joint-stock company, sale of a patent and other assets of an enterprise) to other enterprises and organizations.
Modern production must have great flexibility, the ability to quickly change the services offered, since the inability to constantly adapt to the needs of consumers will doom the enterprise to bankruptcy. To do this, it is necessary to register an enterprise for several types of activity so that it can be reorganized in a matter of time from one (unprofitable, unprofitable) registered type of activity to another (more profitable and of course profitable), of course, a registered type of activity of the enterprise.
The technology of production has become so complicated that it requires completely new forms of control, organization and division of labor.
To improve the technology for the production of final products, it is necessary to carry out technical re-equipment and other improvements at the enterprise (purchase of improved machine tools and other machinery, reconstruction, repair, etc.). To do this, an accumulation fund should be established at the enterprise, which will be replenished with a part of the net profit (specified in the founding document), and funds from this fund will be allocated for capital investments to improve the production efficiency of this enterprise.
Quality requirements have not only increased, but completely changed the character. It is not enough to do a good job, you also need to think about finding new customers, about providing consumers with additional branded services.
It is very important to insure your business activities against the so-called force majeure circumstances either with a professional insurer or carry out self-insurance by establishing a reserve fund at the enterprise (in accordance with the memorandum of association), which will be replenished with a part of our net profit.
By analyzing the financial and economic indicators of the enterprise and implementing the tactics of continuous improvement, it is possible to ensure a steady the economic growth enterprises.
List of used literature
1. Analysis and diagnostics of the financial and economic activities of the enterprise. - T.B. Berdnikova - M: Infra, 2012
2. Practical journal for an accountant and manager No. 10 (122) - M: main book, 2015
3. Economics - S.S. Slyunkov - M: OLMA-PRESS, 2011
4. All accounting provisions - M: Gross-Media Verlag, 2014
5. Analysis of the financial and economic activities of the enterprise. - N.P. Lyubushin, V.B. Leshcheva, V.G. Dyakov - Moscow, 2006
6. Analysis of economic activity. - T.V. Savitskaya - Moscow, 2011
7. Analysis of economic activity. / Ed. Beloborodova V.A. - M.: Finance and statistics, 2002
8. Components of efficiency: From experience industrial enterprise- Baltaksa P.M., Klivets P.G. - M.: Economics, 2012
9. Profit of the enterprise // Finance No. 3 - Belobtetsky I.A., Moscow, 2014
10. Economic assessment of the quality and efficiency of the enterprise - Bogatin Yu.V. - M: Ed. standards, 2011
11. Taxes 95: What and how to pay them: A public book on new taxes in Russia - Vasiliev V.V. - M: Fear. community "Ankip" 2009
12. Accounting for financial results for payment / Bukh. accounting No. 1 - Vonebnikova N.V., Pyakov M.L., 2005
13. Analysis of profit and profitability - Gorbacheva L.A. - M: Economics, 2011
14. Analysis of economic activity developed countries- Zudilin A.P. - Yekaterinburg: "Stone Belt", 2014
15. Taxation of enterprises and citizens of the Russian Federation ( Practical guide: Recommendations and examples of calculations) - Kiperman G.Ya., Belyalov A.Z. - M: Aitolan, 2013
16. Course of economic analysis / Ed. Bokamova N.I., Sheremeta A.D. - M: Finance and statistics, 2010
17. Improving the financial tax system - Loginov V, Novitsky N. - M: The Economist, 2004
18. Making financial decisions: tasks, situations. // Issues of Economics No. 12 - Mayevsky V.V., Vyatkin V.N., Khripton J., Kazak A.Yu. - Moscow, 2009
19. Profit in the new business conditions - Mukhin S.A. - M.: Finance and statistics, 2014
20. Parasochka V.T., Dubovenko L.A., Medvedeva O.V. Self-sufficiency and self-financing (method of analysis). - M: Finance and statistics, 1989. - 144p.
20. On the formation of financial results // Bukh. accounting No. 1 - Sotnikova L.V., Moscow, 2010
21. Comprehensive economic analysis of the activities of enterprises - Sheremet A.D. - M: Economics, 2012
Hosted on Allbest.ru
Similar Documents
The role of profit in a market economy. The economic essence of profit and its types. Problems of analysis of distribution and use of profit. The main indicators influencing the financial result. Analysis of the formation of net profit.
term paper, added 04/29/2007
The procedure for determining the amount of taxable profit and distribution of profit remaining at the disposal of the enterprise. general characteristics LLC "Alnira" Analysis of the formation and distribution of net profit. Ways to improve its use by the enterprise.
term paper, added 03/28/2009
The concept and types of profit. Methodology for analyzing the distribution of net profit. a brief description of BKUTP Wholesale base "Grocery". Factor analysis of the formation of the net profit of the enterprise. Analysis of the distribution and reserves of profits BKUTP Wholesale base "Grocery".
term paper, added 11/02/2008
The concept and types of profit. Ways to increase the profit of the enterprise. General characteristics of LLC "Grand". Analysis of the taxable profit of the enterprise. Analysis of the formation and use of net profit. Ways to optimize the use of profits in a given firm.
term paper, added 05/02/2011
The economic essence of profit. Accounting for income and expenses from ordinary and other activities. Formation of profit: gross, operating, non-operating, balance sheet and net. The procedure for the distribution of profits remaining at the disposal of the enterprise.
term paper, added 11/22/2010
Profit in a market economy, types of profit and distribution. Analysis of the formation, distribution and use of profits of Vityaz LLC. The tasks of analyzing the distribution and use of profits and sources of information, ways to increase profits.
term paper, added 04/29/2010
Types of profit, the basis of its formation. Methodology for analyzing profit reserves for its increase. Analysis of the composition and dynamics of the balance sheet, gross and net profit of the enterprise LLC "DOK No. 1". Factor analysis of the profit of the enterprise LLC "DOK No. 1" and reserves for its increase.
term paper, added 02/25/2008
The economic essence of profit and its types. The procedure for the distribution of profits remaining at the disposal of the enterprise. Problems of analysis of the distribution and use of profits, and sources of information. Improving profit management in a market economy.
thesis, added 02.02.2009
Indicators of profitability and profit of the organization. Analysis of the formation, distribution and efficiency of profit use at 000 "Zapchastsnab". Increasing profitability and ways to reduce costs and organizations funded by net income.
term paper, added 02/04/2008
The concept of profit and profitability of production. Characteristics of the financial and economic activities of the enterprise. Analysis of the distribution and use of net profit on the example of DoorHan. Methods for determining the proceeds from the sale of products (works, services).
Analysis of the net profit of the enterprise as one of the sources of domestic investment activity, an indicator of the success of capital management refers to priority areas financial and economic services. Methods, technologies and algorithms for its implementation are currently formed both at the theoretical and practical levels, and every specialist should be familiar with them.
Existing approaches to the analysis of net profit
The complex of methods for studying the company's net profit consists of several categories that complement each other. It could be:
- horizontal and vertical analysis;
- study of influencing factors;
- determining the quality of profit;
- analysis of profit efficiency.
Despite the apparent diversity, the use of all of the above categories should be preceded by a single preparatory stage of calculations, which involves a comprehensive study of income and costs (their size, composition, structure, as well as the dynamics of change). At the same time, a generalized idea is formed about the influence of these quantities on the volume of net profit as its main constituent elements. Any fluctuations in the size of income and expenses affect the final amount of net profit - and, therefore, are the basic factors causing a change in the financial result.
The starting point in studying the dynamics of net profit is the following mathematical model:
∆FC = ∆D - ∆R,
where ∆PC, ∆D, ∆Р - fluctuations in net profit, income and expenses, respectively.
Indeed, if the company's revenues grow by 4 million rubles, and costs - by only 1.5 million rubles, then the growth in profits will be 4 - 1.5 = 2.5 million rubles.
By dividing each indicator of the formula into its component parts, you can get a more detailed factorial model of changes in net profit. In particular, from income it is possible to single out the share in the amount attributable to the main and other activities. The same can be said for costs. Then the model will look like:
∆FC = (∆D main + ∆D pr.) - (∆Р main + ∆Р pr.) = (∆D main - ∆Р pr.) + (∆D pr. - ∆Р pr.) .
Based on this model, one can get an idea of the impact of the main and other activities of the company on its financial result.
The result of the preliminary work is the identification general trends changes in net income. Further analytical procedures should be aimed at a more in-depth study of the impact of each factor on it.
Studying the dynamics of net profit and indicators affecting its formation
For a more detailed study of the elements that form profits, and their changes over time, vertical and horizontal analysis tools are used. The basis and source of data is a report on financial results organization, and the result should be the identification of the level of impact of each element on the final volume of profit.
In horizontal analysis, the current value of an element is compared with the data of the previous year, indicated in the same line of the report. In other words, the consideration occurs horizontally. The resulting deviations are determined as a percentage.
Example
The company's income in the 1st quarter of 2017 is 200 million rubles, and for the same period in 2016 - 230 million rubles. Then the change will be:
(200 - 230) / 230 × 100% = -13.04%.
That is, in 2017, income decreased by 13%.
Similarly, the results for the period and other profit-generating amounts are considered, such as:
- production costs;
- gross profit;
- administrative and selling expenses;
- sales profit;
- non-operating and extraordinary income and expenses.
In vertical analysis, report data is viewed in a different direction - sequentially from the top line to the bottom. Thus, the composition and specific gravity each element in the scorecard.
As a result, the values of absolute and relative changes of each profit-generating element are obtained, directions of work are determined to improve financial performance by influencing the level of income and expenses.
Factor analysis of net profit
Subsequent analysis of the formation of net profit will consist in consolidating all the factors that can influence it into two blocks:
- External - due to changes in the external environment of the economic entity and do not depend on specific activities carried out within it. The subject cannot influence them in any way, for example: force majeure events, climate fluctuations, etc. This can also include changes in market conditions, the tax policy of the state and the dishonesty of some counterparties.
- Internal - are directly related to the business processes occurring within the company. An economic entity is able to exert a direct influence on them and regulate them.
AT general view The net profit calculation can be represented as follows:
IF \u003d Vyr - Seb - Com.R - Upr.R + Pr.D - Pr.R - NnP,
FC - the amount of net profit;
Vyr - sales volume;
Seb - production cost;
Kom.R, Upr.R - commercial and administrative expenses;
Ex.D - other income;
Pr.R - other costs;
INP - income tax.
With regard to line codes of form No. 2, this algorithm can be represented as follows:
page 2400 = page 2110 – page 2120 – page 2210 – page 2220 + page 2310 + page 2320 – page 2330 + page 2340 – page 2350 – page 2410 ± page 2430 ± page 2450 ± p. 2460.
To perform factor analysis based on income statement data, you can apply the following model:
∆FC = ∆Ver + ∆Seb + ∆Com.R + ∆Control.R + ∆Con.D + ∆Con.R– ∆NnP,
where ∆Vr, ∆Seb, ∆Com.R, ∆Control.R, ∆Pr.D, ∆Pr.R, ∆NnP - changes in all the above indicators, and the value of ∆NnP (changes in the current income tax) is formed from taking into account deferred tax liabilities and assets.
On the basis of the model proposed by us, we study the impact of the results on various parameters of the main and other activities of the company on the net profit at the end of the period.
Study of the quality of net profit and directions for its use
The analysis of the quality of net profit is understood as the study of the ratio of sources of its formation, the dynamics of its change in order to reduce deviations in the amount of profit indicated in the statements from its real volume, supported by cash flows.
In most cases, organizations themselves can influence the amount of net income by changing accounting policies. This may relate to specific ways of accounting for assets, choosing a depreciation method and the procedure for writing off the cost of goods and materials, etc.
It is also extremely important to regularly monitor the parameters of using the net profit received. One of the leading indicators in this case is its volume per share:
PA \u003d (IF - Div) / Va,
PA - earnings per share;
Div - the amount of dividends paid on preferred shares;
Va - the number of ordinary shares.
Any user can carry out such an analysis. financial reporting. Companies that place their securities on open market, are obliged to publish reports in the press indicating 2 mandatory indicators:
- Basic earnings per share - formed on the basis of real data for the period.
- Diluted earnings per share - is formed on the basis of predicted calculated values of earnings, taking into account its negative fluctuations caused by the following reasons:
- conversion of preferred and other securities into ordinary shares;
- acquisition of shares from the placement company at a price lower than the current market value.
Thus, the second indicator characterizes the probable profit per share with an additional increase in the number of company securities that are not secured by a corresponding increase in the company's property.
***
In the process of financial analysis of net profit, a number of basic techniques are used that allow a comprehensive study of its changes, structure, and factors influencing it. In addition, the quality and procedure for using net profit are analyzed. As a result, programs are being formed to increase it by reducing wasteful costs and increasing the volume of proceeds from sales.
6.4. Analysis of the use of net profit.
Net profit is one of the most important economic indicators characterizing the final results of the enterprise. Quantitatively, it represents the difference between accounting profit and the amount of taxes paid to the budget from profits, economic sanctions and other obligatory payments of the enterprise covered by profits. Net profit is used in accordance with the charter of the enterprise. The distribution of net profit is in the exclusive competence of the general meeting of the company's owners (shareholders, participants) and cannot be carried out by the sole order of the head of the organization. In accordance with paragraph 1 of Art. 47 of the Federal Law "On joint-stock companies"annual general meeting shareholders is carried out within the time limits established by the charter of the company, but not earlier than two months and not later than six months after the end of the financial year; the next general meeting of LLC participants is held in accordance with Article 34 of the Federal Law "On Limited Liability Companies" no earlier than two months and no later than four months after the end of the financial year. In accordance with the decision of the general meeting on the distribution of net profit, it can be used in the following areas.
The net profit of the reporting year, as a rule, is divided into two main parts - consumed(dividends on preferred and ordinary shares; social and other payments) and capitalized(reserve and authorized capital; undistributed profit added to the accumulated profit of previous years).
When distributing net profit, it is necessary to achieve optimization of the proportions between the capitalized and consumed amount in order to ensure:
The required amount of investment for industrial development;
The required rate of return on invested capital for the owners of the enterprise.
The factors influencing the proportions of profit distribution are divided into external and internal.
External factors:
Legal restrictions (profit tax rates, interest deductions to reserve funds, etc.);
System of tax incentives for reinvestment of profits;
The market rate of return on invested capital, the growth of which is accompanied by a tendency to increase the share of the capitalized part of the profit, and vice versa, its decrease causes an increase in the share of consumed profit;
The cost of external sources of formation of investment resources (if it is high, it is more profitable to use profit, and vice versa).
Internal factors:
The level of profitability of the enterprise, with a low value of which and, accordingly, a small amount of distributed profit, most of it goes to the creation of mandatory funds and reserves, to the payment of dividends on preferred shares, to social programs, etc.;
Availability of highly profitable investment projects in the company's portfolio;
The need to accelerate the completion of investment projects that have been started;
The level of the financial leverage ratio (the ratio of equity and debt capital), which is one of the indicators of financial risk and one of the factors determining the return on equity;
Availability of alternative internal sources of formation of investment resources (depreciation fund, proceeds from the sale of fixed assets and financial assets, etc.);
The current solvency of the enterprise, at a low level of which the enterprise must reduce the consumed part of the profit.
The issue of using net profit is quite complicated, since its solution is primarily a search for a compromise between the interests of the company's owners claiming dividends and the interests of the company's management (management) interested in reinvesting net profit, since this is the most accessible source of scale growth activity and financial stability. A significant use of profits to meet the needs of shareholders who want to maximize dividend payments may not meet the urgent needs of business development, a stable source of which could be the reinvestment of net profit. In addition, conflicts of financial interests may also exist among the owners themselves, some of which, being large majority shareholders, may tend to minimize dividend payments, since the capitalization (reinvestment) of profits increases net assets, and therefore increases the market value and investment attractiveness of the company, which actually belongs to them. Minority shareholders who own a relatively small number of shares, on the contrary, tend to maximize dividend payments, since for such a category of owners, current income is preferable to its deferred receipt for an indefinite period. Therefore, the decision of the meeting of shareholders on the use of net profit must be justified by a detailed analysis of its financial and economic consequences.
In the process of analyzing the use of profit, it is necessary to study the dynamics and implementation of the plan for the use of net profit, for which the actual data on the use of profit in all directions is compared with the data of the budget and previous years, after which the reasons for the change in each direction of profit use are found out (Table 6.4.1 .).
Table 6.4.1.
Analysis of the use of net profit in OJSC "Granit"
|
Index |
Amount, thousand rubles |
Growth rate, % |
Specific gravity,% |
||||||
|
change- (+ - |
Change (+/-) |
||||||||
|
1. Net profit | |||||||||
|
2. Use of net profit - Total Including on: | |||||||||
|
covering losses of previous years | |||||||||
|
replenishment reserve capital | |||||||||
|
payment of dividends | |||||||||
|
3. Capitalization of retained earnings - Total Including for the purpose of generating sources: | |||||||||
|
working capital | |||||||||
|
capital construction | |||||||||
It follows from the data in the table that due to a significant increase in net profit in 2011, OJSC "Granit" received more opportunities, both in terms of capitalization of net profit, and for the payment of dividends to shareholders. In 2010, the company, having received 3264 thousand rubles. net profit, was forced to send 684 thousand rubles. to cover the losses of previous years, so the decision to pay dividends was not made. Apparently, the owners took this step, taking into account the need to accumulate (reinvest) net profit in order to finance fixed production assets. Net profit in 2011 amounted to 5468 thousand rubles, of which 1340 thousand rubles. was directed to the payment of dividends, 28 thousand rubles. - to replenish the reserve capital and 4100 thousand rubles. was capitalized. The high share of capitalization of net profit is due to the strategic tasks facing the company related to the strengthening of the production base, in particular with capital construction. At the same time, the owners of the company decided to increase the level of financial stability of the company, for which 2,000 thousand rubles were allocated. to finance current assets, which allows to significantly increase the level of security of current assets with own sources of funds.
Special attention it is necessary to pay attention to the dividend policy of the enterprise, which has a great influence not only on the capital structure, but also on the investment attractiveness of the enterprise. If dividend payments are high enough, then this is one of the signs that the company is working successfully and it is profitable to invest in it. But if at the same time a small share of the profit is directed to the renewal and expansion of production, then the situation may change. In the process of analysis, they study the dynamics of dividend payments, share prices, net profit per share over a number of years, determine the rate of their growth or decrease, the influence of factors on the change in their value.
One of the most important indicators used to characterize the market activity of an organization is profit per ordinaryshare indicating how much net profit earned in the reporting period falls on one ordinary share.
The basic formula for determining this indicator:
Profit = Net income - Dividends on preferred shares
for one _________________________________________________
per share Number of ordinary shares outstanding
Joint-stock companies whose shares are traded on the securities market disclose information on earnings per share in the form of two indicators: basic earnings (loss) per share and diluted earnings (loss) per share.
Basic earnings (loss) per share is the ratio of the basic profit (loss) of the reporting period to the weighted average number of ordinary shares outstanding during the reporting period. The basic profit (loss) of the reporting period is the amount of net profit reduced by the amount of dividends on preferred shares accrued for the reporting period.
The weighted average number of ordinary shares in the reporting period is determined by summing up the number of ordinary shares on the first day of each month and dividing the resulting amount by the number of months in the reporting period.
Diluted earnings (loss) per share shows the maximum possible degree of decrease in profit (increase in loss) attributable to one ordinary share of a joint-stock company in the following cases:
conversion of all convertible securities (preferred shares and other securities) of the joint-stock company into ordinary shares;
when executing contracts for the sale and purchase of ordinary shares from the issuer at a price below their market value.
Profit dilution is understood as its decrease (increase in loss) per one ordinary share as a result of a possible issue of additional ordinary shares in the future without a corresponding increase in the company's assets.
In order to calculate the maximum possible decrease in earnings (increase in loss) per share, it is necessary to determine the sums of the possible increase in basic profit and the weighted average number of ordinary shares. These amounts are calculated for each type and issue of convertible securities, as well as for each agreement on preferential sale of shares.
When determining the possible increase in the underlying profit, all expenses and incomes related to convertible securities or to executed contracts for their preferential sale are taken into account.
Such expenses can be:
Dividends on preferred shares, which, in accordance with the terms of their issue, can be converted into ordinary shares;
Interest on own convertible bonds;
The amount of write-off of the difference between the placement price of convertible securities and the par value, if they were placed at a price lower than the par value.
Such income can be:
The amount of write-off of the difference between the placement price of convertible securities and the par value, if they were placed at a price higher than the par value;
Other similar income.
1.4.5 Analysis of the net profit of the enterprise
The net profit of an enterprise is defined as the difference between the taxable profit of the reporting period and the amount of income tax (under the standard taxation system) or as the difference between the total taxable income and the single tax (under the simplified taxation system). Thus, net profit depends on the taxable base and the income tax benefits used.
Directions for the use of net profit are determined by the enterprise independently. The main areas for using profits are as follows: deductions to the reserve fund, formation of accumulation funds, consumption funds, social sphere fund, diversion for charitable and other purposes, in joint-stock companies - payment of dividends.
The distribution of net profit in joint-stock companies is the main issue of the dividend policy of enterprises. The most important indicators of the company's dividend policy are:
· the level of capitalization of net profit, i.е. its distribution to accumulation funds;
· the level of dividend output, i.е. the share of profit allocated for the payment of dividends on shares (shares).
The capitalization of the enterprise's profits makes it possible to expand its activities at the expense of cheaper sources of financing and maintain the former system of control over the activities of the enterprise, since the number of owners does not increase.
The stability of dividend payments is an indicator of the profitable activity of the enterprise, evidence of its financial stability. All this, in turn, reduces the level of risk for investors, stimulates demand for shares in this enterprise, and leads to an increase in the market value of shares.
1.4.6 Profitability analysis
Profitability indicators characterize the efficiency of the enterprise as a whole, the profitability of various activities, cost recovery, etc. They more fully than profit reflect the final results of the enterprise's economic activity, because their value shows the ratio of the effect to cash or used resources. They are used to evaluate the performance of an enterprise (also for a comparative assessment of the performance of two or more enterprises) and as a tool in investment policy and pricing.
Profitability indicators can be grouped into three main groups:
1. indicators characterizing the cost recovery;
2. indicators characterizing the profitability of the sale;
3. indicators characterizing the profitability of the company's assets (involved in non-current and working capital);
4. indicators characterizing the return on capital, the payback of investment projects.
Economic profitability (return on costs) is the ratio of profit from the sale of services (P r) or net profit (NP) to the amount of costs for the sale of services (C):
P = P p / C x 100% (total profitability);
P=PE / C x 100% (estimated profitability).
It shows how much the company has profit from each ruble spent on the production and sale of services.
From the above formulas it follows that the main factors affecting the level of profitability production activities, are the profit from the sale of services (net profit) or the amount of costs from the sale of services. To assess the specific impact of each factor on the performance indicator, you can use the conditional profitability, which is calculated as the ratio of the profit of the reporting period to total amount costs of the base period or plan. For the purposes of this analysis, the indicator of conditional profitability must be compared with the profitability indicators in each of the considered periods.
Commercial profitability, or profitability of sales (turnover), is the ratio of profit (sales profit, profit before and after taxation, net profit or net income) to the amount of revenue received (B):
P \u003d P p / B x 100%.
Return on sales indicators characterize the effectiveness entrepreneurial activity, i.e. how much profit the company has from each ruble of sales (volume of sales of services). They can be calculated as a whole for the enterprise and for individual types of services.
Economic profitability, or return on assets, is the ratio of profit to the total value of the property of an enterprise, represented by non-current (A vn) and current (A about) assets:
P \u003d P / (A vn + A about) x 100%.
Financial profitability or profitability (profitability) of capital, - the ratio of profit to the amount of equity (K c), reflected in section 3 of the balance sheet:
P=P/K with x 100%.
Return on equity indicators characterize the degree of use by the enterprise financial leverage to increase profitability. They, as a rule, do not coincide with each other, as they reflect different values. These indicators are also specific in that they meet the interests of all participants in the business of the enterprise: the managers of the enterprise are interested in the profitability of the entire aggregate capital; potential investors and creditors - return on invested or borrowed capital; owners of the enterprise - the return on equity.
Each indicator of return on capital can be represented as a factor model. For example:
P / C with \u003d P / V x V / K,
where P / V is the profitability of sales;
В/К - capital turnover.
The economic relationship between the return on capital, its turnover and return on sales is obvious. Consequently, the ways to increase the return on capital are to increase the profitability of sales and accelerate the turnover of capital.
The same way the absolute efficiency (payback) of investment projects is determined and analyzed: the received or expected profit from the project refers to the amount of investment in this project.
In the process of further analysis of profitability, the dynamics of all profitability indicators should be studied and compared with similar indicators of competing enterprises.
The main sources of reserves for increasing the level of profitability of services are an increase in the amount of profit from the sale of services and a decrease in the cost of services.
Analysis and evaluation of the use of net profit
Net profit quantitatively represents the difference between the total amount of profit and the amount of taxes paid to the budget from profits, economic sanctions and other obligatory payments of the enterprise covered by profits. Its value depends on the factors of change in the total amount of profit and the factors that determine the share of net profit in the total amount of profit, namely: the share of taxes, economic sanctions, etc. others
Directions for the use of profits and the principles of distribution are determined by the enterprise independently and are reflected in the accounting policy. At the same time, the economic entity proceeds from the scale of profit, specific areas of activity and prospects for the development of the economy, therefore, individual areas of profit use may vary depending on the specific situation.
The necessary information for analysis is reflected in form No. 2 and form No. 3 (in the calculation of contributions to funds). In accordance with the legislation and constituent documents, the company distributes net profit in the following areas of use:
Contributions to the reserve fund,
Contributions to the social sphere fund,
For charitable and other purposes,
In joint-stock companies - payment of dividends.
During the year, an economic entity allocates profits for current needs in accordance with their purpose, that is, spends the profits of previous years.
Part of the profit may be retained - this is an additional financial reserve that can be used to replenish funds and increase the authorized capital.
When analyzing net profit, it is necessary to compile an analytical table that reflects the directions for using net profit (the actual distribution of profit). Based on the data reflected in the table, it is necessary to find the absolute deviation, identify the causes of deviations, determine the percentage of profit according to the plan, in fact, find the relative deviation, draw conclusions based on the results of the calculations. Particular attention should be paid to the formation and use of the accumulation fund and the amount of retained earnings, i.e., reinvested earnings.
In joint-stock companies, the distribution of profits is a matter of the dividend policy of an economic entity.
Capitalization of net profit allows you to expand production through own funds. This reduces the cost of servicing external sources of financing (credits, loans). The size of the capitalization of net profit makes it possible to assess not only the growth rate of the capital of an economic entity, but also to assess the margin of financial strength (profitability of sales, turnover of all assets). The rate of increase in equity capital is an important limiter to the growth rate of the enterprise. The growth rate of production depends not only on the demand of the sales markets, the capacity of the enterprise, but also on the capital structure.
The growth rate of own capital characterizes the potential of an economic entity to expand production. The pace of sustainable growth in the future depends on current activities that determine the amount of profit. The value of current assets is mobile and depends on the scale of the business:
industry affiliation,
