As a final result of all the activities of the enterprise, the profit demands the most careful attention.The reasons are many: from the correct and full payment of taxes before the most loyal management decisions.Apparently, not enough just to collect information on the profits of a few periods, as it is required to be analyzed.Perhaps most important to analyze the structure and dynamics of income, on which we will focus in more detail.
profits of an enterprise consists of income from sales of products, ie from operating activities, as well as the difference of other income and expenses.Of course, you can independently learn to profit in the context of primary and other activities, but it is much more convenient to carry out the analysis on the basis of the profit and loss account.The information that it presents is enough to analyze the composition and dynamics of earnings.To this end, the report is first necessary to examine in two directions: vertical and horizontal.Vertical analysis is a study of the structure, as in the process of determining its share of individual indicators.Traditionally, the base is chosen as the resulting revenues.The structure is defined for several periods, and then study the changes occurring in it.
next type of analysis - horizontal.From its name it is quite obvious that compares performance over several periods.To this end the relative and absolute change.As the relative index typically use dynamic factor.With this type of analysis identifies the key trends inherent in the dynamics of some indicators: how to profit, and the factors that influence it.With regard to the factors, the analysis of the composition and dynamics of earnings vertical and horizontal ways usually complemented by conducting factor analysis.
Factor analysis of the dynamics of the profit is to identify indicators that have the greatest influence on her, and made specific quantitative assessment of the influence.To carry out factor analysis, you need to create a mathematical model that can describe the profit.Models can be quite varied.Profits can be represented as the product of the difference in sales prices and unit costs.The simplicity of such a model because it allows for a small number of factors affecting the profit.A more detailed model can be built on the basis of the report referred to above, which reflects the order of formation of net profit.Using this model, it should be noted that this value depends on the revenues, which in turn depends on the price and volume of sales.These factors also should be considered separately.Analysis of the influence factors in the model can be made in any way suitable for the analysis of deterministic models, for example, the method of chain substitutions.
analysis of the composition and dynamics of the profit would be incomplete if it is not certain conclusions follow.The importance of the findings is difficult to overestimate, because on the basis of their management decisions.The analysis may reveal a number of serious problems that require solutions.You may need to pursue a policy of more stringent cost management to reduce the cost of production, which has a negative impact on profits.In addition, the shortcomings can be determined pricing policy which does not contribute to maximizing revenue.You may need to look for ways to reduce the tax burden: the special tax regimes, benefits and the like.In other words, it is necessary to pay attention to the factors that negatively affect the profits, and then make decisions that contribute to the weakening of this effect.The factors also influencing positively need to use more fully.
