Analysis of the company's profit.

current economic system is based on independent economic entities that are involved in different kinds of relationships with other actors with a single purpose - to make a profit.The desire for it, according to the ideologists of capitalism, is the driving force that should lead us to a state of complete social harmony and common prosperity.According to supporters of a liberal economy, earnings and all should remain the only active factor in the economy, ie the influence of the state should be reduced to zero.

Thus, the profit - a key indicator for both business owners and consumers of its products, so the analysis of business profits - this is one of the fundamental processes of business.Under the analysis of implied total income verification for compliance with the planned indicators and the definition of its main sources and weaknesses of the company.

analysis of the company's profit to determine how well it works in terms of itself, as if the company was thinking living being.It is this approach, built a modern economic science.That is, the profits of the enterprise to grow by any means - it is considered an absolute good, even if it violates the interests of employees, consumers, and even shareholders.

Consider the following situation.Shareholders interested in the rapid withdrawal of dividends, but the analysis of the profit organization points out that such actions will lead to a significant drop in profits in future periods, because the main source of income is a group of products that requires constant reinvestment of profits in innovation.In this case, the right thing the manager, from the point of view of modern economic science, will reduce the payments to shareholders, but to increase profits, despite the fact that the real owners of the company will remain dissatisfied with this step.

As for employees, the situation is even simpler.Quite often, the analysis company profits indicates that the largest portion of the costs that can be easily cut, non-wage.Therefore, in the interest of the company, but not in the interests of its employees, will reduce wages or increase the amount of work performed.Such a decision must be made (in theory), even if we are talking about reducing salaries by the people who make decisions.

Then, perhaps, increase profits defends the interests of consumers?In fact, analysis of the profit from the sale is carried out to reduce costs and increase revenues, which means that other things being equal the price should rise, and the cost of production will decrease, which will adversely affect the quality of products.Of course, buyers are not interested in this.

In this case, the purpose for which the analysis of business profits, and who is the winning party from its increase, if the conditions of market presence mainly large corporations neither involved in the economic relations between the parties does not have a direct benefit from this?Benefit from profit growth in the first place, the company itself, which eventually turns into a self-governing system with its own interests, lies in the fact that fully capture all competitors and become a monopoly.

modern economy like the battle of the Titans-corporations that serve people (shareholders, managers, employees, and ordinary customers).As far as this situation is conducive to the public welfare - the question quite controversial, and supporters of various economic ideas for several centuries unsuccessfully defended their arguments on this issue.