company's activities shall be subject to continuous and comprehensive study and control.This can be called a necessary condition for making correct and effective management decisions.Most attention should be paid to the profit earned by the company as it is the most important absolute indicator of the effect of the operation of the company.In this regard, I would like to see exactly how it is possible to analyze the income from sales and other earnings.
analysis of sales profit, and any other type of income is advantageously carried out on the data that can be easily found in the statement of income.This is due to the fact that it is this form of statements contains information about the factors that affect the amount of profit, and also reflects the process of its formation.There are several types of analysis that allow full consideration the profits earned by the company.
first step is to "up and down" to examine the specified reporting form, that is to hold the horizontal and vertical analysis.The so-called horizontal analysis allows us to study the dynamics of the indicators presented in the report.By calculating the absolute and relative changes, you can identify trends specific to a particular type of income or expense or to the profit as a whole.Thus it is possible to analyze the profit from sales of products, taking into account the dynamics of the only factors or net income, if you study the full report.Most often, it is exploring the full report.
vertical analysis is the study of the structure.In the process of determining the share of each of the indicators, as well as the change of the specific gravity of the periods.Obviously, to determine the specific gravity is necessary to choose a figure that will be the basis of comparison.Normally such indicator is the proceeds from the sale, and that it shall be equal to one hundred percent.
following procedure, which we consider to be the analysis of the profit from sales and net income, known as factor.This analysis is done on the basis of the same report.Factors that affect a particular type of income, it is obvious.It is understood that the profits from the sales of the most directly dependent on the revenue and cost, as well as the realization of commercial and administrative expenses.It should be noted that revenue is determined by the price and volume of sales.These factors must be considered separately.The effect of the factors that represent expenditures determined by examining changes in their relative weights.Net income affects several more factors, since it is necessary to take into account the result from other activities, as well as income tax.The impact of these factors taken into account by the calculation of absolute changes.In general, this technique will be sufficient, however, if it is possible, it is advisable to take into account sectoral characteristics or features of a particular company.Thus, analysis of profit commercial enterprises should be carried out with a more detailed view of changes in selling expenses, since their value is likely to be significant.
As you can see, the analysis of the profit from sales of products, the value of net profit and other similar indicators is a very important aspect of the study of the company.However, it should be borne in mind that the study is not enough profit to make the right decisions.It is important to have an idea about other facets of the business.It is necessary to study the financial stability of the organization, its liquidity and the level of business activity.In addition, the company's activity should be studied not only from a financial point of view, but also with other, attracting the necessary specialists.
