For any businessman or an entrepreneur profit is important.This result, which is at the same time and the reason for the opening of any business.No profit is not meaningful activities aimed at generating income.For the successful promotion of the product in the economic market producers need to carry out the analysis, planning and monitoring a plurality of parameters.Ignorance of the factors affecting the future development of the company, could lead to negative results.One of the factors that demonstrate the success of the company, is the net profit.From it depends on timely payment of wages to workers, the income of executives, the creation of a fund to solve the financial problems of the company.To calculate the formula is used in net profit.After reading the article, everyone can understand that this is a factor and how to learn.
Determination
Net income is part of the balance sheet profit of the company, which remains in its possession after the final payment of the mandatory contributions (taxes, cash contributions, fees).This is an important economic indicator of the enterprise, showing the effectiveness of all structural units of the organization.It should not be confused with the phrase "economic profit".This factor - the result of the company for the entire reporting period.Because of the result, which gives the formula in calculating net income, you can expect the coefficients expressing the profitability, financial stability, liquidity.This factor is used for the approval of methods for assessing conditions such as bankruptcy, creditors and the solvency and investment appeal.
who value the net profit
Investors use this indicator in determining the profitability of the company and its ability to generate cash flows.Due to net profit lenders can determine the rate of economic reliability of the company and its ability to pay obligations.This factor affects the value of the company, which is very important for managers and owners.In terms of net income, the ability of suppliers in the necessary terms to make payments for the materials and components.Managers also use a term such as "net income."Calculation formula used to obtain the number necessary to determine the coefficients sustainability of the enterprise, the opportunities for the development of innovative technologies and upgrade production facilities.
Factors affecting the rate
main source of capital gain is the net profit.The formula allows you to calculate the coefficient on the basis of which the owners determine the dividend and investment policy pursued subsequently now from the perspective of its development.This figure depends on the amount of sales revenue, cost level, the financial results of normal operations, the value of income tax and other obligatory payments.
Implementation net profit
These funds are used to upgrade production facilities, creation of inventories, training operating personnel, the development of innovative technologies, provisioning, charity, foreign and domestic investments, the calculation of dividends to shareholders.
analysis of net profit
It allows you to determine the overall dynamics and character of the periodic changes in the efficiency of the enterprise.Net profit inherent oscillation, as well as seasonality.Among several important indicators there is a rigid correlation relationship.This data may include the dynamics of net profit, sales revenue and net assets of the enterprise.
credit rating companies can be attributed to investment grade.In determining the grade formula is used for the balance of the net profit.This rating allows efficient flow of funds to attract foreign investors.
calculation of net income: Formula
This indicator is equal to the remainder of gross profit after the implementation of all necessary payments (taxes, fees).During the study period taken certain period of time (year, quarter).
So, the result of the summation of financial, gross and operating margins, followed by the size of the tax deduction form factor.This is pure profit.Calculation formula can be simplified.The index will be equal to the difference between profit before taxation and the size of the required payments.To record the result obtained using Form № 2. 190 This line of the profit and loss figure used in determining the future development prospects of the company.
algorithm for calculating
First you need to determine the appropriate accounting period for which should summarize.The figures are taken only for the selected time, otherwise the result will be displayed incorrectly.Before the eyes should be the formula of net income.To determine the index of financial need information about gross, operating profit and the amount of taxes.
procedure for calculating
First we need to determine the amount of the gross receipts.This is the amount of revenue from services rendered or goods sold.
Next you need to calculate the net gross inflow.This is the amount of income from which is deducted the size of bonuses, donated by customers and consumers to return funds in case of failure of the goods or services received.
Follow-up to the definition of net profit
Then you need to calculate the total amount of the cost of manufacturing products.This amount is included in the cost.This includes the costs of providing services.
The following analysis gross margin.For this purpose it is necessary to subtract from the net income determined in the second paragraph, the cost of the product.
Finally, it is possible to carry out the determination of net profit.The formula will provide results that can be used in further analysis of other factors.For the index of gross profit should be deducted operating costs and other mandatory payments.We are talking about fines, loans, taxes and deductions.
International standards
Thanks to numerous studies conducted by world economists calculated the minimum ratio, which allows to obtain the formula of net income.It is equal to 14%.If the index is less than this figure, the company is considered to be loss-making, despite the size of the total income.Upon reaching the coefficient company begins to develop and the activity becomes profitable.
specific example of determination of net profit
first calculated income and expenses.You can then proceed to the determination of net income (or loss) of the enterprise.From business income deductible expenses related to commercial activities.The resulting number can be a loss, and the net profit.The formula for the balance of income and expenditure will determine the difference between them.The resulting number can be positive.Then the result is recorded as net profit.The formula allows you to calculate and losses.When expenses exceed income, the difference becomes negative.Then the result is recorded as a net loss.If the owner owns several companies, the calculation is carried out for each of them separately.
Determining profitability
This is an indicator of economic efficiency of the company, showing what part of the income of the organization makes a profit.It has many different variations.Most often referred to in terms of gross profit margin and net profit.This indicator informs entrepreneurs about the level of effectiveness of a variety of means.These include material, labor, money and other resources.When you start counting net profit, be sure to mention profitability and loss.The second criterion is an indicator that most closely reflects the difference of income and losses from the payment of fines and penalties, and so on. D.
profit ratio is calculated as the ratio of the previously determined net profit to all the resources and assets within its structure.In order to obtain the result as a percentage, it is necessary to multiply the ratio by 100%.There is the gross margin, and net operating income;negotiable, non-current and other assets;equity.The first 3 indicators show the economic efficiency of the turnover during the sales.
Net profit margin: the formula
This ratio is a measure of the share of net income in a given volume of sales.For several numbers, you can determine the net profit margin.Calculation formula is not so complicated.To determine the adequacy ratio of the information specified in the form of number 2 balance of the profit and loss account.
The return is calculated as follows: the ratio of net profit to total revenues.The minimum value of the result is determined by the industry and other characteristics of the organization.For the same economic work of several institutions with long-term profitability of the production cycle will be higher.
Notes
It should be noted that the figure shows a favorable or unfavorable activities of existing organizations, but not a solution to the question of how profitable investments in its work.In order to take a decision on the matter should calculate the return on assets and equity.
