Financial results are formed as a result of all activities of the enterprise for a certain period of time, usually for a quarter or a year and are determined on the basis of accounting estimates, i.e. on the basis of realized income and costs incurred (accrual or cash basis) at current prices.
In this regard, they significantly depend on the accounting policy of the enterprise and do not take into account the change in the value of money over time.
There is a need for a clear system of profit distribution, especially at the stage preceding the formation of net profit.
Under the conditions of commodity-money relations, net income takes the form of a positive financial result - profit. In the commodity market, enterprises and organizations act as separate commodity producers. Organizations, having set a price for their products, sell it to the consumer, while receiving revenue, which does not mean making a profit. To determine the financial result, it is necessary to compare revenue (income) with the costs of production and sale of products or services, which take the form of product costs.
If the revenue (income) exceeds the cost (expenses), the financial result indicates a profit. There is also an opinion that "a positive financial result (profit) is calculated as the difference between the proceeds from the sale of a product of economic activity and the sum of the costs of production factors for this activity in monetary terms."
If the revenue (income) is equal to the cost (expenses), then it was only possible to reimburse the costs of production and sales of products. The implementation took place without losses, but there is no profit as the main goal of commercial organizations and a source of development and prosperity of the company. In the case when the costs (expenses) exceed the revenue (income), the organization receives losses - a negative financial result, which puts it in a rather difficult financial situation.
An economically justified system of profit distribution should first of all guarantee the fulfillment of financial obligations to the state and maximally ensure the production, material and social needs of enterprises and organizations. Note how the balance sheet profit is adjusted in the distribution process.
The balance sheet profit is reduced by the amount of profit taxable at various income tax rates, deductions are made to reserve or other similar funds, and amounts of profit for which tax benefits are established are excluded.
The balance sheet profit remaining after these adjustments is subject to taxation and is referred to as taxable profit. After paying the tax, what remains is the so-called net profit. This profit is at the complete disposal of the organization and is used by it independently.
The financial result of the enterprise's work reflects its balance sheet profit or loss: profit (loss) from sales finished products(works, services), profit (loss) from other sales and the amount of non-operating income and losses.
To manage profit, it is necessary to reveal the mechanism of its formation, to determine the influence and share of each factor of its growth or decrease.
The efficiency of economic activity is characterized by a relatively small number of indicators. But each of them is influenced by a whole system of factors, i.e. reasons for these changes. Factors of the first, second ... "n" order differ.
Factors in economic analysis are classified according to different criteria. Based on the objectives of the analysis, all factors can be divided into internal (main and non-main) and external.
Internal key factors determine the results of the enterprise. Internal non-core - determine the work of the organization, but are not related to the essence of the indicator under consideration: structural shifts in the composition of products, violations of economic and technological discipline.
External factors do not depend on the work of the enterprise, but quantitatively determine the level of use of its production and financial resources (Fig. 1.1).
Figure 1.1 Factors affecting the amount of profit
Identification in the process of analysis of internal and external factors affecting profitability, makes it possible to "clear" performance indicators from external influences.
Let us first consider the factors directly related to the activities of the enterprise, which it can change and regulate depending on the goals and objectives set for the enterprise, i.e. internal factors that can be divided into production factors directly related to the main activity of the enterprise, and non-production factors that are not directly related to the production of products and the main activity of the enterprise.
Non-productive factors include supply and marketing activities, i.e. timeliness and completeness of fulfillment by suppliers and buyers of obligations to the enterprise, their remoteness from the enterprise, the cost of transportation to the destination, and so on; environmental measures that are necessary for enterprises in a number of industries, such as the chemical, engineering industries, and entail significant costs; fines and sanctions for late or inaccurate fulfillment of any obligations of the company, for example, fines to the tax authorities for late settlements with the budget. The financial results of the company's activities, and, consequently, the profitability are indirectly affected by the social conditions of work and life of employees; financial activities of the enterprise, i.e. management of own and borrowed capital at the enterprise and activity in the market valuable papers, participation in other enterprises, etc.
Factors of production include the availability and use of means of labor, objects of labor and labor resources. These factors are the main factors in the growth of profits and profitability of the enterprise, it is with the increase in the efficiency of their use that the processes of intensification of production are associated.
Depending on the content of the indicators and the algorithm for their calculation, first-order factors are distinguished that directly determine the size of the effective indicator (an increase in the number of workers, production volumes, etc.). Second-order factors affect the outcome through first-level factors, and so on.
With the help of factor analysis, unused reserves are established, so the classification of factors is the basis for classifying reserves.
Reserves are unused opportunities of the enterprise, which are grouped according to the following criteria:
1) by the nature of the impact on production: intensive and extensive;
2) production sign: on-farm, sectoral, regional, nationwide;
3) temporary sign: current and prospective;
4) stage of the life cycle of the product: production stage, operational.
Economic factors may reflect the quantitative or qualitative side of the enterprise. Signs of quantity are reflected in the indicators of output and sales of products, the range of products, in the number and area of \u200b\u200bpremises, the amount of equipment, etc. The increase in production volumes characterizes the expansion of the enterprise's activities and can be provided along with the listed factors of production and factors for the use of working time (this is the number of days worked, shifts, working hours), as well as labor resources (number of employees by category, type of activity, etc. ).
Information about quantitative factors, as a rule, is accumulated in accounting and reflected in the financial statements.
The influence of production factors on the result of activity can be assessed from two positions: as extensive and as intensive. Extensive factors are associated with a change in the quantitative parameters of the elements of the production process, they include:
- a change in the volume and operating time of the means of labor, i.e., for example, the purchase of additional machine tools, machines, the construction of new workshops and premises, or an increase in the operating time of equipment to increase the volume of production;
- change in the number of objects of labor, unproductive use of labor tools, i.e. an increase in stocks, a large proportion of scrap and waste in the volume of products;
- change in the number of workers, the fund of working time, unproductive costs of living labor (downtime).
A quantitative change in production factors must always be justified by a change in the volume of output, i.e. the enterprise must ensure that the rate of profit growth does not decrease relative to the growth rate of costs.
Intensive factors are understood as a reflection of the degree of efforts of the enterprise and its employees to improve the activities of the enterprise, which are reflected in the system of various performance indicators, not only in content, but also in terms of meters. Measures of intensive factors can be absolute values in value and physical terms, relative values expressed in coefficients, percentages, etc. In particular, labor productivity can be expressed in cost or quantity of production per employee per unit of time; profitability level - in percent or coefficients, etc.
Since the intensification factors reflect the degree of efficiency of the enterprise, they are also called qualitative factors, since they largely characterize the quality of the enterprise.
Intensive production factors are associated with an increase in the quality of the use of production factors, these include:
– improving the quality characteristics and productivity of equipment, i.e. timely replacement of equipment with a more modern one with greater productivity;
– use of progressive materials, improvement of processing technology, acceleration of material turnover;
- improving the skills of workers, reducing the labor intensity of products, improving the organization of labor.
Figure 1.2 Classification of factors in economic analysis
In addition to internal factors, the profitability of an enterprise is influenced by indirect impact and external factors that do not depend on the activities of the enterprise, but often quite strongly affect the result of its activities. This group of factors includes: the geographical location of the enterprise, i.e. the region in which it is located, the remoteness of the enterprise from raw materials sources, from regional centers, natural conditions; competition and demand for the company's products, i.e. the presence in the market of solvent demand for the company's products, the presence on the market of competing firms that produce a product similar in consumer properties, the situation in related markets, for example, in the financial, credit, securities market, commodity markets, since a change in profitability in one market entails a decrease in profitability in another, for example, an increase in the yield of government securities leads to a reduction in investment in the real sector of the economy; state intervention in the economy, which manifests itself in a change in the legislative framework for the activity of the market, a change in the tax burden on enterprises, a change in refinancing rates, etc.
These factors affect profit not directly, but through the volume of products sold and the cost, therefore, in order to identify the final financial result, it is necessary to compare the cost of the volume of products sold and the cost of costs and resources used in production.
Profit from the sale of products, works, services occupies the largest share in the structure of the balance sheet profit of the enterprise. Its value is formed under the influence of a number of factors, the most important of which are: cost, sales volume, the level of current prices.
The most important of these is the cost. The cost of production is understood as all the costs of the enterprise for the production and sale of products, namely: the cost of natural resources, raw materials, basic and auxiliary materials, fuel, energy, fixed production assets, labor resources and other operating costs.
Quantitatively, the cost price occupies a significant share in the price structure, so it significantly affects the growth of profits, other things being equal.
The indicators of cost reduction include the following indicators:
- indicators associated with an increase in the technical level of production (introduction of new advanced technology, equipment modernization, changes in the design and technical characteristics of products);
- indicators related to improving the organization of labor and management (improving the organization, maintenance and management of production, reducing management costs, reducing losses from marriage, improving labor organization).
The main objectives of the analysis of the cost of industrial products are:
- establishing the dynamics of the most important cost indicators;
- determination of costs per ruble of marketable products;
– identification of reserves to reduce costs.
An analysis of production costs by elements and costing items is carried out in order to identify deviations, determine the composition of the elements and costing items, the share of each element in the total cost of production, study the dynamics over a number of past years, identify factors that caused changes in the elements and items costs and affected the cost of production.
An important factor affecting the amount of profit from the sale of products is the change in the volume of production and sales of products. A fall in output under current economic conditions, apart from a number of counteracting factors such as rising prices, inevitably entails a reduction in profits. This leads to the conclusion that it is necessary to take urgent measures to ensure the growth of production volume on the basis of technical renovation and increase in production efficiency.
The dependence of the amount of profit on the volume of sales, other things being equal, is directly proportional. As a result, the indicator of changes in the balances of unsold products is of no small importance in market conditions; the higher it is, the less profit the company will receive. The amount of unsold products depends on a number of reasons due to the current market conditions, production and commercial activities of the enterprise, the conditions for the sale of products. First, capacity this market always has a marginal value, and, as a result, there is a risk of commodity glut; secondly, an enterprise can produce more products than it sells due to an inefficient marketing policy. In addition, the proportion of more profitable products may increase in the unsold balances of finished products, which will lead to a total increase in these balances in value terms based on lost future profits. In order to increase profits, the company must take appropriate measures to reduce the balance of unsold products, both in kind and in monetary terms.
The amount of proceeds from the sale of products and, accordingly, profit depends not only on the quantity and quality of manufactured and sold products, but also on the level of prices applied.
Free prices in the conditions of their liberalization are set by the enterprises themselves, depending on the competitiveness of this product, the demand and supply of similar products by other manufacturers (with the exception of monopoly enterprises, the level of prices for whose products is regulated by the state). Therefore, the level of free prices for products to a certain extent is a factor depending on the enterprise.
The main feature of the division of costs for the general classification is the place of occurrence of costs and the ratio of costs to various areas of the enterprise. This classification is used to order the costs within the income statement of the enterprise and for subsequent comparative analysis certain types of enterprise costs. The main types of costs according to the general classification are shown in Figure 1.3.
Rice. 1.3 Classification of costs
According to this classification, all costs are divided into production and non-production. In turn, production costs consist of:
– costs associated with the use of direct materials;
- direct labor costs
- manufacturing overhead costs.
The cost of direct materials includes the amount of costs incurred by the enterprise for the purchase of raw materials and components, i.e. those physical substances that are directly used in production and pass into finished products.
Direct labor costs represent the payment of the main production personnel (workers), whose efforts are directly (physically) connected with the production of the finished product. The labor of equipment adjusters, shop foremen and managers in terms of costs is attributed to production overhead costs. It should be noted that these definitions are somewhat arbitrary in modern conditions, when "truly direct" labor is beginning to play an ever smaller role in modern highly automated production. There are fully automated industries for which direct labor, as such, is completely absent. However, in the general case, the concept of "main production workers" remains valid and their wages are related to direct labor costs.
Production overhead includes other types of costs that provide the stage of production in the enterprise. The structure of these costs can be very complex, and their number is large. The most characteristic types of production overheads are indirect materials, indirect labor, electricity and heat, repair and maintenance of equipment, utilities, depreciation of production premises and equipment, a certain part of taxes included in the number of so-called gross costs, and all other costs that are immanently connected with the production process at the enterprise.
The costs associated with the sale of products include all the costs of the enterprise associated with maintaining finished products in stock, promoting the product to the market and delivering the product to the consumer.
Administrative costs include the total amount of costs associated with the general management of the enterprise, i.e. the content of the "apparatus" of management, including accounting, planning and financial department and other management units.
Very important is the way in which the total cost fits into the production cost of goods sold.
The classification discussed above is directly adjacent to the classification of costs in relation to the finished product. All costs of the enterprise are divided into two groups:
- costs related to the finished product (Product Costs),
- costs related to the period of time (Period Costs).
A sign of cost sharing according to this classification is the way in which costs are attributed to the cost of goods sold. The costs of the first group are included in the cost of goods sold only when the finished product, which included these costs, is sold. Until the sale, these costs as part of the inventory of the enterprise represent its assets, i.e. they are materialized as part of work in progress or finished goods and are stored in a warehouse. The costs of the second group are included in the income statement, i.e. are taken into account in calculating the profits of the enterprise, during the period when they were actually incurred. A typical example of the second group are the costs associated with the general management of the enterprise.
According to this scheme, the resources of the enterprise, which form the costs related to the product, are the assets of the enterprise until the enterprise sells the finished product. At the same time, costs relating to a period of time are recognized as the costs of the enterprise in the period in which they were incurred, regardless of whether the finished product was sold or not.
The main feature is the dependence of changes in costs in connection with a change in any base indicator. As the latter, the volume of goods sold is usually used. In accordance with this feature, costs are divided into two types: fixed (fixed) and variable. Variable costs are those costs that change (in general) in direct proportion to the increase or decrease in the volume of production and sales (assuming that the costs per unit of output remain almost constant, stable). Fixed costs are those costs that do not change when the level of production and sales changes over a certain period of time (for example, a year). Variable costs include the cost of raw materials and materials, energy and utilities (used in the production process), sales commissions (if determined by the volume of sales), salaries of workers (provided that it can be increased or decreased with an increase or decrease in volume production). Examples of fixed costs are depreciation of buildings and equipment, depreciation of pre-operating expenses, rent and lease (which do not change with changes in sales and production), interest on loans, salaries of employees, managers, controllers (which are assumed to not change with changes in production level), general administrative costs.
Some of these costs, such as salaries or general administrative expenses, may not vary in direct proportion to volume and at the same time may not be constant. They can be designated as mixed (semi-variables). Such costs can be broken down into variable and fixed components and considered separately. Let us consider the classification of costs in more detail, giving this consideration a quantitative content. In this analysis, we will be primarily interested in those characteristics of costs that remain unchanged in the process of changing the volume of production and sales. These characteristics are called invariants. Due to their lowland, invariants are the basis for solving planning problems.
Fixed costs can change with a significant change in the volume of production. Moreover, this change is, as a rule, spasmodic in nature. For example, an increase in production may require the lease of additional production space and the purchase of new equipment, which will increase the fixed costs of the rent of new premises, as well as operating and depreciation costs for new equipment. Taking into account the noted feature of fixed costs, the concept of a relevant interval of change in the volume of sales of products is introduced, during which the value of total fixed costs remains unchanged.
In the conditions of market relations, there are profit growth factors that are important to take into account during the economic analysis. In the current situation for the organization, a negative feature is the growth of receivables and payables, it is the imbalance that has become an important factor in generating profits.
Based on the results of factor analysis, it is possible to assess the quality of profit. The quality of profit from the main activity is considered high if its increase is due to an increase in sales volume and a decrease in the cost of production. The low quality of profit is characterized by an increase in sales volumes due to an increase in prices for products without an increase in the physical volume of sales and a decrease in costs per ruble of products.
Invariable factors influencing the profit of the organization are:
Change in the volume of sales (affects an increase in sales of profitable products, which leads to an increase in the amount of profit, and vice versa);
Realization price;
Number and composition of personnel;
Economic incentives for personnel.
To date, the method of profit analysis does not sufficiently take into account the influence of an important factor - time. As a rule, this is done by discounting costs to profit, i.e. allocation of costs to one point in time. When the state establishes temporary restrictions on the payment of taxes, the timing of the sale of products and the allocation of costs to the production process, the time factor is becoming more and more versatile in the modern economy. Consequently, it is not time itself that affects the results of financial activity, but various factors of production and financial activity that manifest themselves in a certain period of time.
In a market economy, the main goal of any private organization is to make a profit. The profit of the organization is influenced by various factors, which can be divided into: external and internal.
TO external factors include natural conditions, state regulation of tariffs, interest, tax rates and benefits, penalties. Such factors do not depend on the activities of the organization, but significantly affect its profit.
Internal factors are divided into production and non-production. Production factors characterize the availability and use of means and objects of labor, labor and financial resources. Non-production factors include marketing and environmental activities, social conditions of work and life, etc.
The main factors affecting the profit of the organization is the price of products, the level of fixed and variable costs, the influence of the state and competitors.
When setting a price, an enterprise must take into account the level of demand for a product, prices from competitors, the influence of a political situation, etc. An enterprise must set a price that will be acceptable to consumers, and, at the same time, sufficient to cover all costs and make a profit in the amount necessary for the development and improvement of production.
The main sources of reducing the costs of production and sales of products by the organization include a decrease in the consumption of raw materials, materials, fuel and energy per unit of output; reduction of wage costs per unit of output; reduction of administrative costs and overheads; raising the technical level of production; improving the organization of production and labor and changing the volume of production.
For effective enterprise management, in addition to studying the results of their activities, it is necessary to thoroughly study the activities of competitors and compare them with the results of their activities.
To ways of implementation state regulation The following types of policies can be attributed to the market: tax, investment, antimonopoly, financial, anti-inflationary, foreign trade, etc. The profit of the organization is the main source of financing for the development of the organization, improving its material and technical base, providing all forms of investment. All activities of the organization are aimed at ensuring profit growth or its stabilization at a certain level. A number of the above factors should be the subject of careful consideration and justification regarding the formation of profits. Without due attention to this problem and each factor in particular, the effective operation and profitability of any of the enterprises is impossible. In order for the organization of Russia in modern market conditions to work stably and make a profit, we can offer the following main factors for its increase:
Increasing the volume of production and sales of products;
Implementation of measures to increase the productivity of their employees and the application of the system of participation of employees in the formation of profits of the organization;
Reduced production or application costs modern methods cost management, one of which is management accounting;
Qualified implementation of the pricing policy, since the market is dominated by free (contractual) prices;
Competent construction of contractual relations with suppliers, intermediaries and buyers;
Improving the marketing system at the enterprise;
Grouping their products on the basis of profitability - focusing on those products that are highly profitable, improving products with an average level of profitability, and removing low-profit products from production;
Organization production process in such a way that it is adapted for quick changeover;
Constant holding scientific research analysis of the market, behavior of consumers and competitors.
To improve the efficiency of enterprises, it is of paramount importance to identify reserves for increasing production and sales volumes, reducing production costs, and increasing profits.
To determine the main directions of the search for reserves to increase profits, we single out the factors influencing its receipt, classified according to various criteria.
External factors include:
natural conditions;
State regulation of prices, tariffs, interest, tax rates and benefits, penalties, etc.
These factors do not depend on the activities of enterprises, but can cause a significant impact on the amount of profit.
Production factors are characterized by the presence and use of means and objects of labor, labor and financial resources, and, in turn, are divided into extensive and intensive.
Extensive factors influence the process of making a profit through quantitative changes. These changes include:
The volume of funds and objects of labor,
Financial resources,
equipment operating time,
Number of staff,
Working time fund, etc.
Intensive factors affect the process of making a profit through "qualitative" changes. These changes include:
Improving the productivity of equipment and its quality,
The use of progressive types of materials and the improvement of their processing technology,
Accelerating the turnover of working capital,
Improving the qualifications and productivity of personnel,
Reducing the material consumption of products,
Improving the organization of labor and more efficient use of financial resources, etc.
Non-production factors include, for example, marketing and environmental activities, social conditions of work, life, etc.
Summing up, it must be said that profit plays a decisive role in entrepreneurial activity and is one of the main performance indicators of the organization. It characterizes the possibility of innovative development, reconstruction and modernization of its production. Profit is defined as one of the goals of the activity and development of the organization, as a result of work, motivation, economic security and a quantitative measure of the success of the organization. An important point is not only quantitative indicators of profit, but also its structure, long-term and quality.
The whole set of factors can be divided into internal and external. They are closely related. Internal factors include:
- volume of retail trade turnover . With a constant share of profit in the price of goods, an increase in the volume of sales of goods allows you to receive a large amount of profit;
- commodity structure of retail trade turnover . The expansion of the range contributes to the growth of trade. An increase in the share of goods of higher quality, which are prestigious, in the turnover makes it possible to increase the share of profit in the price of goods, since buyers more often purchase these goods precisely because of their prestige and in the hope of greater ease of use. This improves profitability;
- organization of goods distribution . Accelerated promotion of goods in the trading network helps to increase turnover and reduce operating costs. As a result, the mass and the level of profits increase.
- rationalization of trade -technological process of selling goods . To make a profit, it is necessary to use progressive methods of selling goods: self-service, selling goods according to samples and catalogs. This contributes to the growth of the volume of trade, as well as reducing its cost intensity;
- number and composition of employees . A sufficient number at a certain level of technical equipment of labor allows you to fully implement the program of the enterprise to obtain the required amount of profit. Great importance has a level of qualification of employees;
- forms and systems of economic incentives for workers . The influence of this factor can be assessed through the indicator of labor costs, as well as through the indicator of profitability of labor costs. At present, the role of moral encouragement of workers, their satisfaction from their work is increasing;
- productivity of employees of the enterprise . The growth of labor productivity, other things being equal, entails an increase in the mass of profits and an increase in the profitability of the enterprise;
- capital-labor ratio and technical equipment of workers . The higher the equipment of workers with modern equipment, the higher their productivity;
- financial condition -technical base of the enterprise. An enterprise that has a more modern and developed material and technical base has the prerequisites for a constant increase in retail turnover in the long term. This entails an increase in the mass of profits and an increase in profitability;
- state and development of the trading network, its territorial location . The location and structure of the trading network has a direct impact on the amount of profit and profitability. The development of not only a stationary store network, but also a small retail, parcel and mobile network can have a serious impact on profit indicators;
- moral and physical depreciation of fixed assets . This factor is very important for increasing the profitability of the enterprise. The use of worn-out fixed assets, obsolete equipment does not allow us to count on an increase in profits in the future;
- return on assets . With an increase in capital productivity, retail turnover increases per 1 ruble. funds invested in fixed assets;
- the amount of working capital . The greater the amount of working capital the enterprise has, the greater the mass of profit it receives as a result of their one turnover;
- applicable pricing procedure . The amount of profit received depends on the size of the costs included in the price of the goods. A constant increase in the share of costs in the price of goods can lead to the opposite result. The same effect is exerted by the amount of profit included in the price of the product - a constant increase in the share of profit in the price of the product can lead to a decrease in the total mass of profit;
- organization of work on the collection of receivables . Timely collection of receivables contributes to the acceleration of the turnover of working capital, therefore - to an increase in profits;
- organization of claim work with clients, as well as work with containers . This factor directly affects the amount of profit from non-sales operations;
- implementation of economy mode . Allows you to relatively reduce the current costs of the enterprise and increase the amount of profit received. The economy regime is understood not as an absolute, but as a relative reduction in current costs;
- business reputation of the enterprise . It represents the opinion formed by consumers about the potential of the enterprise. high business reputation allows the company to receive additional profit, increase profitability.
TO major external factors that affect the formation of the profit of the enterprise, the following can be attributed:
- market volume. The retail turnover of the enterprise depends on it. The larger the market capacity, the wider the enterprise's ability to make a profit;
- state of competition. The stronger it is, the greater its negative impact on the amount and level of profit, since it leads to averaging the rate of profit. Competition requires certain additional costs that reduce the amount of profit received;
- the value of prices set by suppliers of goods. In a competitive environment, price increases by suppliers do not always lead to an adequate increase in selling prices. Companies often tend to work less with intermediaries, choose among suppliers those who offer goods of the same quality level, but at lower prices;
- prices for the services of transport, utilities, repair and other organizations. An increase in prices and tariffs for services increases the current costs of enterprises, reduces profits and reduces the profitability of production and trading activities;
- development of the trade union movement. Businesses seek to limit spending on wages. the interests of workers are expressed by trade unions that are fighting for higher wages, which creates the prerequisites for reducing the profits of the enterprise;
- development of activity of public organizations of consumers of goods and services;
- state regulation of enterprises . This factor is one of the main ones that determine the amount of profit and profitability.
Profit distribution - This the order of its direction to various funds of the enterprise, determined by the legislation. Profit distribution is based on compliance three principles:
Ensuring the material interest of employees in achieving the highest results at the lowest cost;
Accumulation of own capital;
Fulfillment of obligations to the state budget.
In a market economy, a significant portion of profits is withdrawn in the form of taxes. Currently in Russia income tax(meaning gross taxable profit) is 24%, which the state allocates to replenish budget revenues.
Withdrawal to the budget of the economic sanctions provided for by law is carried out at the expense of the profit left at the disposal of the enterprise after the tax has been charged.
One of the directions of distribution of profits - repayment of the state target loan received from the target extra-budgetary fund for replenishment of working capital, within the terms of return. The repayment of the overdue target loan and the payment of interest on it is carried out at the expense of the profit remaining at the disposal of the enterprise.
The scheme of distribution and use of the profit of a trading enterprise is shown in Figure 1.
Figure 1 - Scheme of distribution and use of profit
The distribution of profit predetermines the process of its use. Target profit distribution analysis- to establish how rationally the profit is distributed and used from the standpoint of self-expansion of capital and self-financing of a commercial enterprise. At the same time, directions for using the profit remaining at the disposal of the enterprise are necessarily investigated.
IN general view profit remaining at the disposal of the enterprise is distributed to accumulation funds and consumption funds. These funds differ in belonging to the owners and their intended purpose.
accumulation funds combine that part of the profit remaining at the disposal of the enterprise, which is directed to the construction and acquisition of fixed assets, that is, to the creation of new property of the enterprise.
Facilities consumption funds are intended to finance the costs of social needs and material incentives for the staff of the enterprise. At the expense of funds, employees are paid bonuses that are not related to production results, different kind incentives, social and compensation payments, material assistance, treatment and recreation, purchase of medicines.
All consumption funds, even such savings as investments in the social sphere, do not belong to equity.
According to the economic content, the funds are the net profit of the reporting year or previous years, distributed among the funds for its intended use - for the purchase of new machinery and equipment, social activities; financial incentives and other needs.
The Board of Founders has the right to direct the funds of the funds to cover losses, redistribute the funds of the funds between them, direct part of the funds to increase the authorized capital and finance other activities.
If a company makes a profit, it is considered profitable. Profitability indicators used in economic calculations characterize relative profitability. There are indicators of profitability of products and profitability of the enterprise.
Product profitability are used in three versions: profitability of sold products, marketable products and an individual product:
- profitability products sold – this is the ratio of profit from the sale of products to its full cost;
- profitability marketable products characterized by the cost of monetary unit(1 rub.) Marketable products or its reciprocal;
- profitability products – is the ratio of profit per unit of product to the cost of this product. Profit on a product is equal to the difference between its wholesale price and cost.
Profitability \u003d (T-C) / C × 100, where:
T - commercial products in the wholesale prices of the enterprise;
C is the total cost of the product.
Profitability of the enterprise (total profitability) defined as the ratio of balance sheet profit to the average cost of fixed production assets and normalized working capital.
In other words, level of overall profitability reflects the profitability of the enterprise. This is a key indicator in the analysis of the profitability of an enterprise, reflecting the growth of all invested capital (assets). It equals (in %) earnings before interest divided by assets and multiplied by 100.
But if it is required to more accurately determine the development of an enterprise based on the level of its overall profitability, it is necessary to calculate two additional indicators: the profitability of turnover and the number of capital turnover.
Profitability of turnover reflects the relationship between the gross revenue (turnover) of the enterprise and its costs and is calculated by the formula:
Ro = P / V . 100,
Where Ro - profitability of turnover
P - profit before interest
B - gross revenue
The greater the profit compared to the gross revenue of the enterprise, the greater the profitability of the turnover.
The number of capital turnover reflects the ratio of the gross proceeds (turnover) of the enterprise to the value of its capital and is calculated by the formula:
H = V / A . 100,
Where H is the number of turnovers of capital
B - gross revenue
A - assets
The higher the company's gross revenue, the more number turnover of its capital. As a result, it follows that:
Y = R . H,
Where Y is the level of overall profitability
P - profitability of turnover
N - the number of turnovers of capital
Indicators of profitability and profitability have a common economic characteristics, they reflect the final efficiency of the enterprise and its products. The main indicator of the level of profitability speaks the ratio of the total amount of profit to production assets.
There are many factors that determine the amount of profit and the level of profitability. These factors are divided into internal and external - they have already been listed above. In this regard, the tasks of economic analysis include:
§ identification of the influence of external factors;
§ determination of the amount of profit received as a result of the action of the main internal factors that reflect the labor contribution of the employees of the enterprise and the efficiency of the use of production resources.
Indicators of profitability (profitability) reflect the final financial result and are reflected in the balance sheet and reporting on profit and loss, product sales, income and profitability.
Profitability is the result of the production process, it is formed under the influence of factors associated with increasing the efficiency of the use of working capital, reducing costs and increasing the profitability of products and individual products. The overall profitability of an enterprise must be considered as a function of the following factors: the structure and return on assets of fixed production assets, the turnover of normalized working capital, the profitability of sales.
There are two main methods for analyzing the overall profitability:
By efficiency factors;
Depending on the size of profit and the value of production factors.
The final financial result of the production and financial activities of an enterprise can be both a balance sheet (total) profit and a loss (such an enterprise will become unprofitable). The total profit (loss) consists of profit (loss) from the sale of products, works and services and non-operating profits and losses.
Therefore, the range of tasks of profitability analysis includes:
Evaluation of the dynamics of the profitability indicator since the beginning of the year;
Determination of the degree of implementation of the plan;
Identification and evaluation of factors affecting these indicators, and their deviation from the plan;
Identification and study of the causes of losses and damages caused by mismanagement, errors in management and other omissions in the production and economic activities of the enterprise;
Search for reserves of a possible increase in profits or income of the enterprise.
Organizational finance – this is a set of monetary relations associated with the formation of primary income and savings, their distribution and use. Since the predominant part of financial resources is concentrated with enterprises, then the stability financial system generally depends on the soundness of their finances.
The life of the enterprise is based on financial relations, the result of which are financial resources accumulated in various funds of the enterprise. Any enterprise can function only if financial resources are available.
In order for the company to carry out its activities, it needs financial resources. Enterprise financial resources represent collection of all kinds Money, financial assets that an economic entity has and can dispose of. They are the result of the interaction of receipts, expenditures and distribution of funds, their accumulation and use. The financial resources of the enterprise include only those funds that remain at its disposal after the fulfillment of all obligations for payments and contributions, deductions and financing of current expenses.
Financial resources are formed as a result of:
Production and sale of goods, works and services;
Distribution and redistribution of proceeds from sales.
IN composition of financial resources (financial capital) enterprises include equity and borrowed funds:
- equity consists of: contributions of the founders (authorized or share capital); own funds accumulated by the enterprise (including the reserve cash fund and special-purpose funds) and other contributions (for example, donations). cumulative equity has three sources:
Profit from production and financial activities (it is accumulated in the form of reserve capital, retained earnings of the previous and reporting years and accumulation funds);
Depreciation deductions;
The increase in the cost of the fixed capital of an enterprise when it is revalued as a result of inflation ( Extra capital).
- borrowed funds, the main sources of which for Russian enterprises are short-term loans from banks and other commercial organizations and commercial loans issued in the form of promissory notes.
Loan is an agreement under which one party (the lender) grants ownership to the other party (the borrower) of money or other things defined by generic characteristics, and the borrower undertakes to return to the lender the same amount of money or an equal amount of things of the same kind and quality received by him. In this case, the contract is considered concluded from the moment of transfer of money or other things.
Credit in economic theory means a system of economic (monetary) relations regarding the provision of temporarily free funds for use for the needs of production on the terms of urgency, repayment and payment.
The loan does the following features:
Provides an elastic mechanism for the transfer of capital from one industry to another;
It turns idle money capital into active one, significantly speeds up its circulation, therefore, contributes to the growth of the mass of profit, the renewal of fixed capital, and the saving of social production costs;
Contributes to the acceleration of the concentration and centralization of capital.
LIST OF SOURCES
1. State educational standard higher professional education. Specialty 351100 "Commodity research and examination of goods (by areas of application)". - M., 2000.
2. Undergraduate practice. program and guidelines for students of the 5th year of the full-time department of the specialty 351100 "Commodity science and examination of goods (in the field of production and circulation of agricultural raw materials and food products)" / Comp. Donskova L.A., Gayanova M.Sh. Ekaterinburg: USUE. - 2004. - 20 p.
3. Kartashova V.N. Prikhodko A.V. Economics of the organization (enterprise). – M.: Prior-izdat, 2004.-160 p.
With the development of market relations, enterprises have the right to use the received profit at their own discretion, except for that part of it that is subject to mandatory deductions, taxation and other areas in accordance with the law.
Thus, there is a need for a clear system of profit distribution, primarily at the stage preceding the formation of net profit (profit remaining at the disposal of the enterprise).
An economically justified system of profit distribution should first of all guarantee the fulfillment of financial obligations to the state and ensure the production, material and social needs of the enterprise as much as possible.
The object of distribution is the taxable profit of the enterprise. Its distribution is understood as the direction of profit to the budget and according to the items of use in the enterprise. Legislatively, the distribution of profits is regulated in that part of it that goes to the budgets. different levels in the form of taxes and other obligatory payments. Determining the directions of spending the profit remaining at the disposal of the enterprise, the structure of the articles of its use is within the competence of the enterprise.
When distributing the profits of an enterprise, it is necessary to take into account the basic principles of distribution, which can be formulated as follows:
The profit received by the enterprise as a result of production, economic and financial activities is distributed between the state and the enterprise as an economic entity.
Profit is accumulated in the relevant budgets (currently in local budgets) in the form of income tax, the procedure for calculating and paying it to the budget is established by law and the rate of which cannot be arbitrarily changed.
The value of the profit of the enterprise, remaining at its disposal after paying taxes, should not reduce its interest in increasing the volume of production and improving the results of production and economic activities.
The profit remaining at the disposal of the enterprise, in the first place, should be directed to accumulation, which ensures its further development, and only in the rest - for consumption.
The distribution of net profit should reflect the process of formation of funds and reserves of the enterprise to finance the needs of production and the development of the social sphere.
In modern economic conditions, the state does not establish any standards for the distribution of profits, but through the procedure for taxing the profits of an enterprise, it stimulates expenses for the reproduction of production and non-production assets, expenses for charitable purposes, financing of environmental protection measures, expenses for the maintenance of objects and institutions of the social sphere, etc.
Distribution of net profit- one of the directions of intra-company planning, the importance of which in a market economy is increasing. The procedure for the distribution and use of profits at the enterprise is fixed in the charter of the enterprise. The main expenses financed from profits are expenses for the development of production, social needs of the labor collective, material incentives for employees and charitable purposes.
In accordance with this, as they become available, the net profit of enterprises is directed: to finance research and development, as well as work on the creation, development and implementation of new technology; to improve technology and organization of production; for the modernization of equipment; improvement of product quality; technical re-equipment, reconstruction of existing production. Net profit is a source of replenishment of working capital.
Along with the financing of production development, the profit remaining at the disposal of the enterprise is directed to meet social needs. Thus, one-time incentives and benefits for those retiring, as well as supplements to pensions, are paid out of this profit; dividends on shares and contributions of members of the labor collective to the property of enterprises. Expenses are incurred to pay for additional vacations in excess of the duration established by law, housing is paid, material assistance is provided. In addition, expenses are made for free meals or meals at reduced prices.
Profit capitalization is the conversion of funds into capital.
In joint-stock companies, the main purpose of distributing the profit of an enterprise is to ensure the necessary proportionality between the current dividend payments and ensuring the growth of the market value of the company's shares due to the capitalization of part of the profit.
Providing production, material and social needs at the expense of net profit, the enterprise should strive to establish the optimal ratio between the fund of accumulation and consumption in order to take into account market conditions and at the same time stimulate and encourage the results of the work of employees of the enterprise.
The expansion of the processes of reforming the economy in the direction of creating full-fledged market relations is accompanied by the expansion of operations by business entities by securities market. Enterprises of various forms of ownership can invest (invest) part of their net profit in the acquisition of shares joint-stock companies, bonds (both other enterprises and municipal, state). Alternative forms of investing net profit can be investments in joint ventures (including those with foreign capital participation), their placement on banking deposits, in other forms of financial investments.
The profit remaining at the disposal of the enterprise serves not only as a source of financing for production, social development and material incentives, but is also used in cases of violation of the current legislation by the enterprise to pay various fines and sanctions. In cases of concealment of profits from taxation or contributions to off-budget funds, penalties are also collected, the source of which is net profit.
In the conditions of transition to market relations, it becomes necessary to reserve funds in connection with risky operations and, as a result, the loss of income from entrepreneurial activities. Therefore, when using net profit, enterprises have the right to create a financial reserve, i.e. risk fund.
The size of this reserve should be from 5 to 15% of the authorized capital. Every year, the reserve fund must be replenished by deductions from the profits remaining at the disposal of the enterprise. In addition to covering possible losses from business risks, the financial reserve can be used for additional costs for the expansion of production and social development, the development and implementation of new technology, the increase in working capital and filling their shortage, for other costs due to the socio-economic development of the team.
With the expansion of sponsorship, part of the net profit can be directed to charitable needs, assistance to theater groups, organizing art exhibitions and other purposes.
So, the presence of net profit, which creates stimulating conditions for the economic development of the enterprise during the transition to the market, is an important factor in the further strengthening and expansion of entrepreneurial activity.
5. Factors affecting the amount of profit
Changes in the socio-economic development of the state during the transition to market relations lead to qualitative structural shifts towards the intensification of production, which leads to a constant increase in monetary savings and, mainly, the profits of enterprises of various forms of ownership.
The change in profit is influenced by two groups of factors: external and internal. Internal factors of change in profit are divided into main and non-main. The most important in the main group are: gross income and income from the sale of products (sales volume), the cost of production, the structure of products and costs, the amount of depreciation, the price of products. Non-primary factors include factors related to violation of economic discipline, such as price violations, violations of working conditions and product quality requirements, other violations leading to fines and economic sanctions.
The external factors affecting the profit of the enterprise include: socio-economic conditions, prices for production resources, the level of development of foreign economic relations, transport and natural conditions.
The most important factors in the growth of profits are the growth in production and sales of products, the introduction of scientific and technical developments, an increase in labor productivity, and an improvement in product quality.
The main source of cash savings of enterprises- the income of the enterprise from the sale of products, namely that part of it that remains minus the costs of material, labor and other cash costs associated with the production and sale of these products. In the context of a radical change in the management of the economy, the indicator of income from the sale of products is becoming one of the most important indicators of the activities of enterprises. This indicator creates interest labor collectives not so much in the growth of the quantitative volume of output, but in the increase in the volume of products sold. And this means that such products and goods should be produced that meet the requirements of consumers and are in demand in the market.
For this purpose, it is necessary to study market conditions management and the possibility of introducing manufactured products to the market by expanding the volume of its sale. With the development of entrepreneurship and increased competition, the responsibility of enterprises for the fulfillment of their obligations increases. Thus, the indicator of income from the sale of products meets the requirements of commercial calculation and, in turn, contributes to the development of production and economic activities.
The interest of enterprises in the production and sale of high-quality products that are in demand on the market is reflected in the amount of profit, which, other things being equal, is directly dependent on the volume of sales of these products.
Costs for the production and sale of products, which determine the cost, consist of the cost of natural resources used in the production of products, raw materials, basic and auxiliary materials, fuel, energy, fixed assets, labor resources and other production costs, as well as non-production costs.
Rice. 4. Factors affecting the change in profit.
The composition and structure of costs depend on the nature and conditions of production under a particular form of ownership, on the ratio of material and labor costs, and other factors.
So, profit as the main form of monetary accumulation depends, first of all, on reducing the costs of production and circulation of products, as well as on increasing the volume of sales of products.
The amount of profit as the final financial result of the work of the enterprise also depends on the second, no less important value - the volume of the gross income of the enterprise. The size of the gross income of the enterprise and, accordingly, profit depends not only on the quantity and quality of manufactured and sold products (work performed, services rendered), but also on the level of prices applied.
The types and level of applied prices ultimately determine the volume of the gross income of the enterprise, and hence profits.
The problem of pricing occupies a key place in the system of market relations. The price liberalization carried out in Ukraine led to a sharp reduction in the influence of the state on the process of price regulation, which resulted in an increase in prices for almost all manufactured goods. With the help of high prices, enterprises compensate for any production costs, which by no means contribute to improving product quality and production efficiency.
The next factor affecting the amount of profit is the depreciation of fixed assets and intangible assets. The amount of depreciation is determined on the basis of the book value of fixed assets and the current depreciation and amortization rates for intangible assets, based on the useful life of such intangible assets, but not more than 10 years of continuous operation. This takes into account the accelerated depreciation of the active part of fixed production assets, which is expressed in higher depreciation rates established by law for the corresponding types of fixed assets.
Thus, the profit of the enterprise is formed under the influence of the following main factors: the gross income of the enterprise, the income of the enterprise from the sale of products, the gross expenses of the enterprise, the level of current prices for the products sold and the amount of depreciation.
The most important of these is the amount of gross expenditures. Quantitatively, costs occupy a significant share in the price structure, so the reduction in costs has a very noticeable effect on profit growth, all other things being equal.
In the analysis of factors affecting the amount of profit, there are reserves for increasing the profit of the enterprise, the main of which are:
Ensuring the growth of production volume on the basis of its technical renewal and increase in production efficiency.
Improving the conditions for the sale of products, including by improving settlement and payment relations between enterprises.
Changing the structure of manufactured and sold products by increasing the share of more profitable.
Decrease in gross expenses for production and circulation of products.
Establishment of a real dependence of the price level on the quality of products, their competitiveness, demand and supply of similar products by other manufacturers.
Increasing profits from other activities of the enterprise (from the sale of fixed assets, other property of the enterprise, currency values, securities, etc.).
6. Profitability indicators
Profitability indicators are relative characteristics of the financial results and performance of the enterprise. They measure the profitability of an enterprise from various positions and are grouped according to the interests of the participants in the economic process, market exchange. Relative indicators derived from profit make it possible to evaluate the effectiveness of invested funds and are used in economic calculations and financial planning. The types of profitability indicators are divided into four main groups: the profitability of the enterprise, the profitability of products, the profitability of production assets, the profitability of the capital (assets) of the enterprise.
The profitability of an enterprise is an indicator that is an important characteristic of the factor environment for the formation of an enterprise's profit. Based on this, this indicator is a mandatory element of comparative analysis and assessment of the financial condition of the enterprise.
This group of profitability indicators is formed on the basis of calculating the levels of profitability (profitability) in terms of profit, gross expenses and gross income of the enterprise, and is calculated as the ratio of profit to gross income or profit to gross expenses. The calculation of this group of indicators can be presented schematically (Fig. 5.).
Rice. 5. Calculation of indicators of profitability of the enterprise.
Rice. 6. Calculation of profitability indicators for certain types of products.
The profitability of products can be calculated for all products sold and for its individual types. In the first case, it is defined as the ratio of profit from the sale of products to the costs of its production and circulation. Profitability indicators for all sold products give an idea of the effectiveness of the current costs of the enterprise and the profitability of the products sold. In the second case, the profitability of individual types of products is determined. It depends on the price at which the product is sold to the consumer, and the cost of this type of product. Schematically, the calculation of this group of indicators is shown in fig. 6.
The profitability of production assets is calculated as the ratio of profit to the average annual cost of fixed assets and working capital. This indicator can be calculated both on taxable and net income. Schematically, the calculation of this group of indicators is shown in fig. 7.
Rice. 7. Calculation of indicators of profitability of production assets.
The return on capital (assets) of an enterprise is determined by the value of the property at its disposal. This group of profitability indicators is formed on the basis of calculating the levels of profitability depending on the change in the size and nature of the advanced funds: all assets of the enterprise; investment capital (own funds + long-term liabilities); share (own) capital.
Rice. 8. Calculation of indicators of profitability of capital (assets) of the enterprise.
The discrepancy between the levels of profitability for these indicators characterizes the degree to which the enterprise uses borrowed funds to increase profitability: long-term loans and other borrowed funds.
These indicators have practical application, as they meet the interests of the participants of the enterprise. So, the administration of the enterprise is interested in the return (profitability) of all assets (total capital); potential investors and creditors - return on invested capital; owners and founders - return on shares, etc.
Each of the listed indicators is easily modeled by factor dependencies. Consider the dependence shown in Fig. 9.
Rice. 9. Factorial dependence of net profit on the value of the company's assets and sales volume.
This dependence reveals the relationship between the profitability of all assets (or production assets), profitability of sales and capital productivity (an indicator of the turnover of production assets). The economic connection lies in the fact that the above dependence directly indicates ways to increase profitability: with a low profitability of sales, it is necessary to strive to accelerate the turnover of production assets.
Consider another factorial model of profitability.
Rice. 10. Factorial dependence of net profit on the value of equity capital, equity capital and sales volume.
As you can see, the return on equity (equity) capital depends on changes in the level of profitability of products, the rate of turnover of total capital and the ratio of equity and borrowed capital. The study of such dependencies is important for assessing the financial condition of the enterprise.
The variety of profitability indicators determines the alternative search for ways to increase it. Each of the initial indicators is decomposed into a factor system with a different degree of detail, which sets the boundaries for identifying and evaluating production reserves.
When analyzing ways to increase profitability, it is important to separate the influence of external and internal factors. Indicators such as the price of a product and a resource, the volume of resources consumed and the volume of production, profit from sales and profitability (profitability) of sales are closely functionally related to each other and depend on the organization and management of the enterprise. Therefore, it is important to control changes in internal factors: reducing the material consumption and labor intensity of products, increasing the return on fixed assets, etc.
7. Profit planning
Profit planning- an integral part of financial planning and an important area in the financial and economic work of the enterprise. In the process of developing plans for profit, it is important not only to take into account all the factors that affect the magnitude of possible financial results, but also, having considered the options for the production program, choose those that provide maximum profit. With relatively stable prices and projected business conditions, profit is planned for a year within the current financial plan. The current economic situation in Ukraine makes annual planning extremely difficult, and enterprises can make more or less realistic profit plans by quarter. Since at present profit planning is "tied" to the calculation of advance payments for income tax and the procedure for making them to the budget, the preparation of quarterly plans becomes necessary. Profit tax payers are interested in the fact that the difference between the amount of advance tax payments declared by them and the actual payments is minimal. However, the more important goal of profit planning is to determine the ability of the enterprise to finance its needs.
At present, due to the constantly changing business conditions and the fact that profit is determined as a whole for the enterprise, based on the volume of gross income, gross expenses and depreciation, the most appropriate for profit planning is the analytical method.
The essence of this method is that according to the actual cost and income from the sale of products known in the previous period, the basic profitability is determined. For example, the actual cost in the base year is UAH 1300 thousand, and the income from the production and sale of products is UAH 1800 thousand, then the profitability is 27% ((1800-1300) : 1800).
With the help of basic profitability, the profit of the planned period is roughly calculated on the volume of gross income of the planned period. For example: the basic profitability is 27%, the gross income of the enterprise in the planned period is expected to be 2000 thousand UAH, then the planned profit will be 540 thousand UAH. (2000x0.27).
In such a calculation of the planned profit, only the influence of the first factor, the volume of gross income, will be taken into account. To take into account other factors, further calculation is carried out in a certain sequence:
the change (+, -) of gross expenses in the planned period is calculated due to changes in prices for raw materials, materials, other factors of the enterprise's gross expenses of the planned period compared to the base period (for example, +100 thousand UAH);
the change in depreciation charges is calculated due to the movement of fixed assets and intangible assets of the enterprise, the use of accelerated depreciation (for example, UAH 10 thousand);
the influence of changes in the assortment, quality, grade of products is determined, based on its profitability (for example, by increasing the share of more profitable products, an increase in profit for the planned period by 20 thousand UAH is expected);
after substantiating the price for the products of the planned period, the impact of price changes is determined (for example, due to a fall in prices, a decrease in profit by 10 thousand UAH is expected);
the impact on profit of all these factors is determined by their summation. In our example, 640 thousand UAH. (540 + 100-10 + 20-10), i.e., the profit of the planned period will be 640 thousand UAH;
if we take into account the change in profit in unsold balances of finished products at the beginning and end of the planned period (for example, -30 thousand UAH), then the final value of the planned profit will be 610 thousand UAH. (640-30).
The analytical method of profit planning shows the impact various factors on the amount of profit, but it does not sufficiently take into account the impact of all changing business conditions on financial results and does not ensure their reliability, primarily due to constantly changing business conditions.
Module 7.3. The main sources of profit. Factors and ways to increase it
For most enterprises, the main source of profit is related to its production and entrepreneurial activities. The effectiveness of its use depends on the knowledge of the market situation and the ability to adapt the development of production to a constantly changing environment. The amount of profit depends on the correct choice of the production profile of the enterprise for the production of products (the choice of products that are in stable or high demand); from creating competitive conditions for the sale of their goods and services (price, delivery time, customer service, after-sales service, etc.); on the volume of production (the higher the volume of production, the more mass arrived); from lower production costs.
In addition to production and entrepreneurial activities, a source of profit formation for an enterprise can be its monopoly position in the production of a particular product or the uniqueness of a product. This source is supported by continuous improvement of technology, updating of products, ensuring its competitiveness.
The change in profit is influenced by two groups of factors: external and internal. External factors include natural conditions; transport conditions; socio-economic conditions; the level of development of foreign economic relations; prices for production resources, etc.
The main factors (sales volume, product cost, product and cost structure, product price) can be internal factors for changing profits; minor factors associated with violation of economic discipline (incorrect price setting, violations of working conditions and product quality, leading to fines and economic sanctions, etc.).
When choosing ways to increase profits, they are guided mainly by internal factors that affect the amount of profit. An increase in the profit of an enterprise can be achieved by increasing output; improving product quality; sale or lease of surplus equipment and other property; reducing the cost of production through a more rational use of material resources, production capacity and space, labor force and working time; production diversification; expansion of the sales market, etc.
Changes in the socio-economic development of the state during the transition to market relations lead to qualitative structural shifts towards the intensification of production, which leads to a constant increase in monetary savings and, mainly, the profits of enterprises of various forms of ownership.
The change in profit is influenced by two groups of factors external and internal.
Internal factors of change in profit are divided into main and non-main. The most important in the main group are gross income and income from the sale of products (sales volume), the cost of production, the structure of products and costs, the amount of depreciation, the price of products. Non-primary factors include factors related to violation of economic discipline, such as price violations, violations of working conditions and product quality requirements, other violations leading to fines and economic sanctions.
External factors affecting the profit of the enterprise include socio-economic conditions, prices for production resources, the level of development of foreign economic relations, transport and natural conditions.
The most important factors in the growth of profits are the growth in production and sales of products, the introduction of scientific and technical developments, an increase in labor productivity, and an improvement in product quality.
The main source of cash savings of enterprises is the income of the enterprise from the sale of products, namely that part of it that remains minus the costs of material, labor and other monetary costs associated with the production and sale of these products. In the context of a radical change in the management of the economy, the indicator of income from the sale of products is becoming one of the most important indicators of the activities of enterprises. This indicator creates the interest of labor collectives not so much in the growth of the quantitative volume of output, but in the increase in the volume of products sold. And this means that such products and goods should be produced that meet the requirements of consumers and are in demand in the market.
To this end, it is necessary to study the market conditions of management and the possibility of introducing manufactured products to the market by expanding the volume of its sale. With the development of entrepreneurship and increased competition, the responsibility of enterprises for the fulfillment of their obligations increases. Thus, the indicator of income from the sale of products meets the requirements of commercial calculation and, in turn, contributes to the development of production and economic activities.
The interest of enterprises in the production and sale of high-quality products that are in demand on the market is reflected in the amount of profit, which, other things being equal, is directly dependent on the volume of sales of these products.
Costs for the production and sale of products, which determine the cost, consist of the cost of natural resources used in the production of products, raw materials, basic and auxiliary materials, fuel, energy, fixed assets, labor resources and other production costs, as well as non-production costs.
The composition and structure of costs depend on the nature and conditions of production under a particular form of ownership, on the ratio of material and labor costs, and other factors.
So, profit as the main form of monetary accumulation depends, first of all, on reducing the costs of production and circulation of products, as well as on increasing the volume of sales of products.
The amount of profit as the final financial result of the work of the enterprise also depends on the second, no less important value - the volume of the gross income of the enterprise. The size of the gross income of the enterprise and, accordingly, profit depends not only on the quantity and quality of manufactured and sold products (work performed, services rendered), but also on the level of prices applied.
The types and level of applied prices ultimately determine the volume of the gross income of the enterprise, and hence profits.
The problem of pricing occupies a key place in the system of market relations. The price liberalization carried out in Ukraine led to a sharp reduction in the influence of the state on the process of price regulation, which resulted in an increase in prices for almost all manufactured goods. With the help of high prices, enterprises compensate for any size production costs which does not contribute to the improvement of product quality and production efficiency.