financial result from conducting the activities of the enterprise shall be subject not only to strict accounting, and detailed analysis.As you know, the financial result is a profit or loss, as the most effective method of study seems Factor Analysis profit enterprise.Let us more detail on the core aspects of this technique.
Information about profit or loss of a commercial firm of the same name is reflected in the form of financial statements.In addition to simply determining the profit of this report can be traced to the order of its formation, as well as factors somehow affect its value.Based on the profit and loss account, make the construction of a mathematical model by which factor analysis is performed and company profits.If you include in this model all the data presented in the report, it will analyze the company's net profit.
Particular attention must necessarily be given to the fact that the report is to evaluate only the overall change in revenue.The problem is that the active component in turn varies under the influence of two factors: the prices and volumes.The influence of each of them must be taken into account and reflected separately.To do this, the calculation will need to use information that is not presented in the study report.This refers to information about the changes in prices for the company's products (price index).After adjusting for changes in revenue under the influence of prices determined by its change under the influence of the dynamics of sales.Then multiplying by the profitability of sales of the base period to evaluate the change has arrived.
effect on earnings cost, as well as commercial and administrative expenses is determined by examining the changes in their levels.This level represents the ratio of certain expenses to the amount of revenue for the period.This level can be expressed in percentages or as a coefficient.In the future, the amount of revenue is necessary for the period multiplied by the difference calculated levels for each indicator.The result of the calculation will be specific quantitative effect of a factor.If the level has been presented as a percentage, the result will be divided by 100.
Factor analysis of the company's profit in the study of its changes under the influence of other income and expenses and income taxes can be done by determining the absolute changes in these factors.
analysis of the balance sheet profit of the company can be carried out in a similar manner.It is obvious that due to the nature of this indicator in its factor model will include a much smaller number of factors.In addition, this model can be represented otherwise, for example, as a work output and the difference in sales price and unit cost.This model can be analyzed by any suitable method.The most frequently resorted to the use of the method of chain substitutions, as well as its modifications.
Factor analysis of the company's profit is not the only technique that allows to study this key indicator.In respect of the profit and loss account is traditionally produces vertical and horizontal analysis.The first is to study the structure of this report.As a basis for comparison is usually made use of revenue studying densities all other parameters involved in the formation of profit.Horizontal same analysis is an analysis of the time, that is, the study of the dynamics.Determination of the absolute and relative changes in indicators can detect trends and to formulate the most useful management decisions.
