efficiency of economic activities of any entity is largely dependent on the manner in which it conducted the analysis of the use of profits.These activities are not based on subjective estimates, and on the regulatory framework of the tax legislation, existing guidelines and recommendations developed by the agencies for a specific industry and type of business.
Statistical analysis is the basis for the accounting information on the movement of capital, profits and the value of the use of losses and other.The process, which involves an analysis of the use of the profit includes the study of the determining factors influencing changes in taxable income, the amount of dividends paid as well as interest and tax payments.
As a rule, the tax institutions interested in taxable income because of these indicators, primarily dependent of the tax and net income.The change of this parameter is usually affected by factors that are involved in the formation of profit.As
provides analysis of the use of the enterprise profits, net income is an important indicator of the final results of its activities.Mathematically, it is calculated as a simple difference calculated between a certain amount of profit, and the sum of the terms such as taxes from the profits, economic sanctions and other payments, which are covered by the profits.This value is determined by factors in the dynamics of the total profit, as well as the factors that influence the specific value of net income, determined in relation to the overall profit.For example, to find out how the sum of net income, the change in income that is due to each individual factor is multiplied by the proportion.
When all calculations should take into account that net income can only be used in this way, as it provides the constituent documents of the enterprise.And because its use is regulated and can be directed only at:
- investment of economic development;
- the establishment of reserve funds;
- payment of dividends;
- the formation of the insurance funds.
very important is that the analysis took into account the proportionality of the use of the profit distribution and consumption of capitalized values, because it allows the company to identify and appropriately set:
- investments for the development of the manufacturing enterprise;
- the rate of return to the owners of the enterprise.
This analysis is appropriate to remember that the factors that determine the adequacy of the consideration of proportionality are legal restrictions, tax incentives and benefits, rates of return and the value of the amounts of foreign investment.These factors can be carried to the outside.The internal include: the level of profitability, the availability of profitable investment;the value of leverage, the presence or absence of internal sources of investment, the level of real capacity to pay.It is important that the analysis took into account the need for the company accelerated the completion of projects already underway, as additional and unexpected funding could significantly affect the utilization rates of profit.
For example, such a measure serves the efficiency of the fixed assets of the enterprise.To estimate in the analysis, it is important to show how and by what means varies the value of using the main items of the profit.To optimize these parameters should be set or changed net profit margin, or change the value of a share of this article use.
In short, knowing the exact net profit and its dynamics, the analyst has all the features to accurately determine the extent of their impact on the size and parameters of changes in consumption and capitalized profit.
