Which entrepreneurs do not know what profit is? Probably no one is painful this economic indicator for the survival and development of the business.

And what is Operating, Margin, Balance or Gross Profit? What is the net profit of the calculation formula?

Without problems, only experienced entrepreneurs and excellent economic education can be answered. And it is for those who want to remember subseassed terms or learn something new, this article is intended.

Determination of net profit

It should be started with the basics, and one of the most important economic indicators of the success of the enterprise is net profit - funds remaining at the disposal of the company after the remuneration of personnel and paying all fees, taxes and banking and other contributions.

From these funds, reserve funds and other accumulations are formed, and net income is used to expand and develop the enterprise.

It should not be confused with a clean and economic profit. Next will be explained their differences.

Profit classification

The concept of profits is very diverse and it is classified according to the following signs:

• According to sources of formation - there is a profit from the sale of its products, from the sale of means of production and other fixed assets and other activities.
• By forming profit elements - under this feature is meant which articles of expenditures and income are taken into account in the calculation.
• By the nature of taxation, the profits are distinguished from which the tax is taken and those that are not taxed.
• According to a temporary basis, there is profits for the current period, over the previous time and its planned level.
• The inflationary sign distinguishes the nominal and real profits. The latter is the adjustment of the nominal value, taking into account inflation during the reporting period.

Above, only the main classification features are given. If you wish, this list can be significantly expanded, but it is quite enough as the basis.

Net profit indicators

It is not enough to just know the amount of the net profit of your company, you need to understand how it depends on.

Being aware of this issue, you will be able to make management decisions that can significantly increase both your personal income, so the number of funds sent to the further expansion of the company, encouraging staff and postponing "for a black day."

Revenue for a certain period

The main indicator of net profit is revenue for a certain period. It consists of the money that your company receives for the sale of goods or services, investment and financial activities.

To analyze this indicator, the period should be chosen correctly - if it comes to the production, especially mass, then it is reasonable to analyze the revenue for the whole year or the quarter.

As for more "dynamic" business areas, such as selling or providing services, then it makes sense to pay attention to the revenue for the week, month or certain seasons when one or another product or service is enjoyed.

How can I affect the revenue? If demand exceeds the offer - revenue increases by increasing production. In the reverse situation, it is necessary to create the advantages of your goods and services to competitors.

If your company is engaged in retailers, then to increase revenue, it is necessary to increase the attractiveness for the consumer not only the goods themselves, but also the store in which they are sold.

Product costs

Under the cost of the cost of resources, human labor and the work of the equipment spent on the manufacture of a specific product or service.

It also includes the cost of storing the produced goods and its transportation.

Cost reduction is one of the main methods of increasing profits.

But in pursuit of superfits, due to the reduction in cost, it should be careful and ensuring that the quality of the produced remains at the same level, low-quality products are less competitive.

Formulas for calculating profits

Now consider the types of profits that can be used in the work of the enterprise and the formulas for which their calculation is carried out.

In brackets there are abbreviated designations of the economic indicators used in the formulas.

Gross profit (VP) is the difference between revenue (B) and the cost (C) of the goods sold. It shows how much income from sales exceed the cost of creating and implementing. Calculated by the following formula:

Operating profit(OP) is the funds obtained from the gross profit of managerial (y), commercial (K) and other (P) spending, not directly on the manufacture of goods (in the aggregate they are called operating expenses).

OP \u003d VP-U-K-P

Balance profit (BP) is a profit in which the calculation takes into account not only the income from the main activity of the enterprise, but also income (or loss) from other activities of the company. The latter includes the sale of fixed assets of the enterprise, investment and other financial transactions. Net profit has the following balance sheet formula:

BP \u003d PRP + PPR + air defense,

where PRP, PPR and air defense - arrived from the sale of products, sales of fixed assets and non-implementing operations, respectively.

Revenue from sales (Pop) is the difference between gross profit and selling costs and management costs (y).

Taxable profit (NP) is a profit with which tax charges occurs. It is calculated as the difference in gross profit and income that are not taxed (non), as well as amounts of tax benefits (NL), if available.

NP \u003d VP-NON-NL

Margin profit (MP) refer to the difference of revenue from sales and variable expenses (PR):

Variables costs are the cost, the volume of which is associated with the amount of products manufactured.

Undestributed profits (NP) is the amount of money that remains after paying taxes and is not distributed among shareholders as dividends. It is used to increase the basic funds and development of the enterprise. Calculated as a difference in net profit (PE) and the amount of dividend paid (D):

Estimated profit - This is the amount of money embedded in the construction estimate and intended for the development and modernization of the production organization and additional stimulation of its employees. When calculating it, guidance should be guided by the methodological instructions to determine the magnitude of the estimated profit in construction (MDS 81-25.2001).

Economic profit (EP) - these are funds remaining from the company with a deduction from the cumulative income of all costs, including alternative. The aggregate income (SD) includes sales revenues, revenues from the implementation of fixed assets, financial and investment operations. As for the costs, in addition to explicit costs (II) on the salary and procurement of materials, there are alternative costs (or implicit costs, abbreviated by n), which express a possible missed benefit from the choice of one or another option of capital distribution.

EP \u003d SD - Ya - neither.

Video on the topic

Net profit- This is an indicator indicative of the efficient commercial activities of the company. In our article you will find formulas for calculating this indicator and learn about the nuances of their application.

Many financial indicators take part in the calculation of net profit, and the formula for its calculation is not so simple, as it seems at first glance. In the accountability of any company, net profit is reflected in the line of 2400 of the Financial Results (OFP) report, and all indicators of the Count 2 of this report are involved in determining net profit. .

About the structure and appointment of the OFP Find out of this.

A detailed algorithm for calculating net profit is given in the next section.

How to calculate pure profits?

The question is how to calculate the company's net profit, gets up to each merchant. The most common algorithm for calculating net profit is the lasting filling of the OFP, the final line of which is the indicator of net profit.

Schematically, the formula for calculating net profit (PE) in a simplified version can be represented as follows:

PE \u003d B - SS - UR - CR + PD - PR - NP,

In - revenue;

SS is the cost of sales;

Ur and cr - managerial and commercial expenses;

PD and pr - other income and expenses;

NP - income tax.

In the Lines of the OFP it looks like this:

P. 2400 \u003d Page 2110 - p. 2220 + p. 2310 + p. 2320 - p. 2330 + p. 2340 - p. 2350 - p. 2410 ± page 2430 ± page 2450 ± p. 2460.

Calculation of net profit begins with definition of revenue (B) and cost of sales (SS). These are the main source indicators for calculating net profit.

Formula for calculating gross profits Find out.

Then the obtained difference is adjusted by the value of commercial (CR) and managerial (ur) expenses that the company suffered over the same period.

As a result of simple mathematical actions with these indicators, profit from sales (line 2200 OFP) is detected. Then, in order to calculate the net profit, the profit rate from sales undergoes further refinement: it is increased by the amount of other income (PD) and reduce the amount of other expenses (PR).

What are included in other income, we will tell in the publication .

After such actions, another kind of profit is determined - profit before tax (line 2300 OFP). It is also clarified to obtain a net profit: it will deduct the amount of the current income tax and take into account the impact of changes in deferred tax liabilities (it), deferred tax assets (it) and other influence, not reflected in the previous lines of the OFP.

As a result of the listed adjustments and clarifications, the company's net profit is determined. Calculations of net profit are possible for any period of operation: shift, day, week, decade, month, etc. The main thing is that all the indicators participating in the calculation of the net profit were calculated in the same period of time.

About how otherwise net profit is determined, we will tell in the next section.

The impact of the company's main performance indicators for pure profit

Net profit is a multicomponent indicator - this is seen from its calculated formula. In this case, each participating parameter is also complex. For example, the company's revenue can be divided into different areas of activity or geographic segments, but its entire volume should be reflected in the formula for calculating net profit.

About how revenue and gross income of the company are related, see the article .

Such an indicator, as the cost, in various companies may have a different structure and influence the net profit in different ways. So, you should not expect large net profit if the products equal to or exceeding the volume of revenue obtained are spent on the company produced by the company (this is possible with material intensive or labor-intensive industries or the use of obsolete technologies).

Impact on the net profit of commercial and managerial expenses is obvious: they reduce it. The magnitude of this reduction directly depends on the ability of the company's management is rational to approach the structure and volumes of this type of costs.

However, even with zero or negative profits from sales, which are influenced by the above indicators, you can get pure profit . This is due to the fact that, in addition to profits from the main activity, the firm can earn an additional income. This will be discussed in the next section.

The role of other income and expenses in the formation of net profit

Often the main activity of the company does not bring her desired net profit. Especially often this happens at the initial stage of the company's formation. In this case, additional revenues obtained by the company can serve as a large help.

For example, you can make a profit from participation in other companies or successfully invest free cash in securities. The resulting income will contribute to an increase in net profit. Even a regular agreement with the bank on the use of the balance of money on the company's settlement accounts for a certain percentage will allow the company to receive additional income, which will definitely affect the indicator of its net profit.

But if the company uses borrowed funds accrued for the use of a loan interest can significantly reduce the indicator of net profit - it is not necessary to forget about such an influence of the fact of attracting borrowed funds for pure profits. The amount of interest on borrowed obligations (even calculated at the market rate) can seriously reduce net profit, and in certain cases lead to losses and bankruptcy.

Can the debts of the company under bankruptcy, find out from the chief book.

A significant impact on net profit has a variety of income and expenses that are not related to the main activity of the company. For example, renting unused areas or equipment can bring good additional income and have a positive impact on the net profit indicator. Net profit will increase if the company's assets not used in its activities are implemented.

At the same time, one should not forget about the need for constant monitoring of the composition and value of other expenses - with their growth, net profit decreases. For example, net income may decrease as a result of excessive spending money for charity and other similar cases.

As the cost of charity to reflect in accounting, we will tell about it.

Net profit of the enterprise is an indicator calculated in different ways.

Net profit, the calculation formula of which was described in the previous sections, can be determined and in other way. For example:

P. 2400 \u003d p. 2300 - p. 2410

Net profit, the calculation formula of which is given above , It is equal to profit before tax minus income tax.

Such an algorithm for calculating net profit is simplified and can be used, for example, by small enterprises that have the right to not apply PBU 18/02 "Accounting for income tax calculations".

IMPORTANT! The criteria of small enterprises are given in the FZ dated July 24, 2007 No. 209-FZ "On the development of small and medium-sized businesses in the Russian Federation".

For more information about the criteria for small businesses, see this.

Information on deferred tax assets and liabilities is formed in accounting and is required to reflect differences arising between tax and accounting.

RESULTS

Net profit is a comprehensive indicator that includes all types of income received by the cost of income. If the cost of the company exceeds a set of revenue from sales and additional income, then we can talk about the absence of net profit and loss to the company's activities.

Net profit allows merchants to expand their business, master new technologies and sales markets, which, in turn, is positively affected by the magnitude of the increase in net profit.

The enterprise operating within the market economy is focused on the value of the results of economic activities. The most significant of them is net profit. Based on this type of profit, a plan for the further development of the organization is formed.

That she characterizes

Net profit reflects the final financial result. She received its name as a result of accounting for absolutely all the cost of the enterprise within one period.

This indicator reflects how much money is the organization as a result of both the main and additional activities.

Net profit can be aimed at financing new projects or expanding existing production or distributed in other way.

It is worth remembering that net profit includes the amount used only in order to update the fixed capital (equipment). For other purposes, the operation of this amount is illegal.

Formula for calculating net profit

The indicator is equal to the difference of all incomes and all costs, including the tax burden.

To calculate, it is necessary to take revenue and costs for the same period for the entire volume of manufactured and implemented products.

General formula for calculating

In general, pure profits can be found on the following formula:

NP \u003d TR - TC + OR - OE - Twhere

NP (Net Profit) - Net profit, rub.;

TR (Total Revenue) - revenue, rub.;

TC (Total Cost) - Cost Complete, rub.;

OR (Other Revenue) - other income, rub.;

OE (Other Expenses) - other expenses, rub.;

The total cost is made up of the consumption of the costs associated with the production and sale of products. Other income and expenses will include exchange differences, purchase / sale of securities, leasing of non-production premises, etc.

The tax burden for a commercial enterprise is made up of several taxes. The main one is income tax with a standard rate of 20% of the balance profit (may vary due to the specifics of the activity and region). It is worth noting that insurance premiums are not taken into account by the total amount of taxes, but at cost as part of wages.

There is a simpler way to find pure profits, from the value of the balance profit, the amount of accrued taxes will be deducted:

NP \u003d BP - T,where

NP (NetProfit) - Net profit, rub.;

BP (BalanceProfit) - Balance Profit, Rub.;

T (Taxes) - the value of the tax burden, rub.

Balance calculation formula

The data for the calculation of gross profits are located in the form of accounting reporting entitled "Report on Financial Results". In accordance with the provisions of the report of the formula, it looks like:

P. 2400 \u003d p. 2110 - (p. 2120 + p. 2210 + p. 2220) + p. 2340 - p. 2350 - p. 2410where

p. 2110 - revenue, rub.;

(p. 2120 + p. 2210 + p. 2220) - Complete cost, rub.

p. 2340 - other income, rub.;

p. 2350 - other expenses, rub.;

p. 2410 - income tax, rub.

In the case of the use of the balance profit, the indicator is calculated by this formula:

P. 2400 \u003d p. 2300 - p. 2410where

p. 2400 - Net profit, rub.;

p. 2300 - Balance Profit, rub.;

p. 2410 -nalog for profits, rub.

Example of calculation

Enterprise LLC "Screen" is engaged in the production of drills for milling machines. Financial statements over the past 2 years contains the following data:

In this case, net profit over the years respectively amounts to:

NP 2013 \u003d TR - TC + OR - OE - T \u003d 110,000 - (35,000 + 8 000 + 17 000) + 2 000 - 3 000 - 49 000 * 0.2 \u003d 39 200 rubles

NP 2014 \u003d TR - TC + OR - OE - T \u003d 170 000 - (55,000 + 10 000 + 27,000) + 1 500 - 3 000 + 76 500 * 0.2 \u003d 45 200 rubles

NP 2013 \u003d BP - T \u003d 49000 - 49000 * 0.2 \u003d 39 200 rubles

NP 2014 \u003d BP - T \u003d 76500 - 76500 * 0.2 \u003d 61 200 rubles

Net profit of Joint-Stock Company - Nuances of Use

If an enterprise is a joint-stock company, that is, strict restrictions on the use of net profit. In this case, the indicator can only be used in two directions - to pay dividends on shares or on the development of the organization. The choice of solution takes place on the general voting of shareholders of the Company.

What is the difference between pure and retained profit

Net profit is reflected in the report on financial results and is characteristic of any enterprise.

Retained earnings is recorded in the balance sheet and is given to the payment of dividends. In a joint-stock company, these two types of profits can coincide, and may differ in the amount of deferred tax liabilities.

Net profit is considered the final indicator reflecting the financial result of the company's functioning. The purpose of the organization is to increase the profit of the future period, using a net profit as the basis of development.

The easiest way to determine pure profit As a balance of income from activities after paying from it all obligatory expenditures. Sometimes net profit can be called "net income", "free residue", in the English-speaking world - "Net Profit" and PR.

The own value of net profit is that it is it that the ultimate goal of any entrepreneurial initiative. This is a real indicator of the commercial success of the enterprise.

Clean profits can be represented in absolute indicators, i.e. In monetary terms and as a percentage of other values, such as gross income, the amount of investments, etc. All options for estimating net profit may be claimed depending on the analysis objectives. For example, the total amount of net profit gives an entrepreneur with the opportunity to solve whether the project of embedded efforts is worth it, the percentage of net profit to investment determines the interest in the enterprise. In the same way, it is convenient to calculate the inconomic processes, costs and other indicators

Formula of net profit

Net profit is not an arbitrary concept. Its calculation is subject to clear rules. Calculation options are different only by the degree of generalization or detailing of income and expenditure articles. For example, the simplest net profit formula looks like this:

Net profit \u003d total profits - the sum of all expenses.

As the most common one can lead such formula:

Net profit \u003d Profit before tax - income tax.

Net profit \u003d profit before tax - / + income tax - / + change of deferred tax assets - / + change of deferred tax liabilities - / + other taxes and fees calculated from profits.

Adding to the "-" sign "+" sign in the components of the formula is made in case the indicators of expenditure articles will have a negative value, this can happen, for example, when overpaying in past periods.

When calculating the term "net profit" can be transformed into a "loss". In essence, this is the same thing, i.e. The result of the transaction in a positive or negative value.

Use net profit

It may seem that net profit is the last link in the calculation chain. This is not true. If several recipients can claim for pure profits, it becomes unassigned income. The amount of such income is subject to the distribution between the owners in proportion to the share in total capital. This is called "income per share." A part of the net profit is not used for the payment of dividends called "unallocated profits".

It is worth noting that the object of distribution can be not only clean, but also other, including unplanned income.

In addition to the separation of net profit on the shares, according to the number of owners, there are other options for the distribution of free funds. They can be spent on:

• Consumption - otherwise spending on the personal needs of recipients. Dividend's payment usually refers to this option;
• Accumulation - placement of funds in bank accounts, the purchase of values \u200b\u200band other liquid assets;
• Investing - here is distinguished by the external and internal placement of investments. In the first case, the funds go to the development of its own enterprise, in the second - money is investing in extraneous projects for the sake of income from such investments.

Also, sometimes they talk about the creation of reserve funds, investment in the social sphere, etc. However, all options for using net profit can one otherwise reduce the three categories listed above.

In economic theory and practice, considerable attention is paid to the study of profit, since the disclosure of the content of this economic category, understanding the diversity of the forms of its manifestation and management of its "life cycle" is necessary for the sustainable functioning of the enterprise. Numerous studies devoted to the disclosure of economic content, profit functions, allowed to allocate two main approaches: Economic and accounting.

In accordance with the first approach under economic profit, the increase in the economic value of the enterprise is understood. At the same time, there are many discrepancies in understanding how to calculate the economic cost. You can highlight a number of main points of view:

In accordance with the second approach, an accounting profit is understood as a profit calculated in accordance with the accounting rules as the difference between income and expenses recognized in the reporting period, and reflected in the income statement.

Definition of accounting profits Based on two main concepts:

- concept of conservation of capital (maintaining the welfare of owners);

- Concepts of capital impacts.

In world practice dominates capital conservation conceptAccording to which accounting profit is an increase in equity during the reporting period, which characterizes the improvement of the welfare of the owners of the enterprise. According to this concept, revenue from sales and other income enterprises can be recognized only due to an increase in any asset or reduce any obligation, respectively, expenses cannot be recognized if they are not caused by a decrease in assets or an increase in liabilities. Thus, accounting profit is an increase in the resources that are at the disposal of the enterprise, loss - their decrease.

According to capital impair concept Accounting profit is the difference between income and expenses of the enterprise, which is the result of their correct separation by the relevant reporting periods. Incomes and expenditures of future periods will be recognized as assets or liabilities, regardless of whether such an asset or a liability of a real future influx or an outflow of resources.

In accordance with the profits and loss report, the following types of accounting profits are allocated (see Fig. 10.3).

Gross profit \u003d revenue from the sale of goods, products, works, services (minus VAT, excise taxes and similar obligatory payments) - the cost of goods sold, products, works, services.

The cost of production includes direct material costs, direct labor costs, as well as indirect general production costs.

Gross profit is an indicator of the performance of the enterprise's production units.

Profit from sales \u003d Gross profit - commercial expenses - management costs.

Profit from sales There is an indicator of the effectiveness of the main activity of the enterprise, i.e. Production and sales of products.

Profit before taxation \u003d sales profit + interest to receipt - interest to payment + revenues from participation in other organizations + other operating income - other operating expenses + non-deactive income - non-deactive costs.

Profit before tax is an indicator of the effectiveness of all economic activity of the enterprise.

Net profit \u003d profit before tax + - deferred tax assets - deferred tax liabilities - current income tax.

Under the deferred tax assets according to PBU 18/02 "Accounting for calculations on the income tax of organizations" is understood as the part of the income tax, which should lead to a decrease in income tax payable to the budget in the following (subsequent) per reporting period. Deferred tax obligations are equal to the amount of deferred income tax, which should lead to an increase in income tax payable to the budget in the following (subsequent) for the reporting period (periods).

The use of this or that profit indicator to assess the efficiency of the enterprise depends on the category of interested persons.

The end financial result is important to owners of the enterprise - the net profit, which they can withdraw in the form of dividends or reinvest in order to expand the scale of activity and strengthen their market positions.

- Lenders are important. The total amount of profit is important before paying interest and taxes - profit from sales (gross profit), since they receive their part for visiting capital.

- The state is interested in the profit after paying interest before taxes - profits before tax, since it is the source of the receipt of money in the budget.

The difference of accounting profits from the economic is that it is taken into account the cost of using all the obligations of the enterprise, and not only the cost of paying interest on borrowed funds taken into account when calculating accounting profits. In other words, accounting profit exceeds the economic on the amount of implicit (alternative) costs or costs of missed capabilities (see Fig. 10.4).

It is the economic profit that serves the criteria for the efficiency of resource use Enterprises. Its important meaning means that the company has earned more than it is required to cover the cost of the resources used, therefore, an additional cost was created for those who provided their capital.

The lack of economic profits indicates the inability of the enterprise to cover the cost of using the raised resources, "passing" of the provided capital and may cause capital flow into other spheres.

The existence of concepts "Accounting" and "Economic Profit" does not mean the possibility of direct comparison of their values. Each of these types of profit may have their own scope of application, and the most correct is their consideration as complementary. The use of an economic profit indicator can both confirm and refute the conclusions made on the basis of an accounting profit indicator, determine the need for additional analysis. From the point of view of the effect of the effect, an indicator of economic profit gives an idea of \u200b\u200bthe use of available assets due to the indicator of the accounting earnings due to the fact that the financial result obtained by a specific enterprise is compared with the result that will provide it with real, and not only the nominal preservation of the invested funds. In this regard, the indicator of economic profit is more capacious and useful when making a decision by an investor about its actions against the enterprise.

Example. Many factors are influenced by the final financial result of enterprises and organizations in the form of profit or loss, and in particular, the type of activity that determines the composition of income and expenses (Table 10.7). Some of them can be sufficiently specific and not peculiar to other activities (for example, geological and exploration costs). However, whatever the organization works, the procedure for the formation of profit indicators will be the same.

Table 10.7

Financial results of OJSC LUKOIL for 2009 - 2011, million dollars.

Indicators	2009	2010	2011
Revenue
Revenue from sales (including excise taxes and export duties)	81 083	104 956	133 650
Costs and other expenses
Operating expenses	(7 340)	(8 298)	(9 055)
Cost of purchased oil, gas and products of their processing	(31 761)	(43 250)	(59 694)
Fare	(4 830)	(5 608)	(6 121)
Commercial, general and administrative expenses	(3 306)	(3 558)	(3 822)
Wear and amortization	(3 937)	(4 154)	(4 473)
Taxes (except profit tax)	(6 474)	(8 978)	(12 918)
Excise taxes and export duties	(13 058)	(18 878)	(22 217)
Expenses for geological exploration	(218)	(336)	(532)
Net loss from disposal and reducing the cost of assets	(381)	(363)	(1 663)
Profit from the main activity	9 778	11 533	13 155
Percentage expenses	(667)	(712)	(694)
Income by interest and dividends	134	174	211
The share in the profits of companies accounted for by the equity method	351	472	690
Course Difference Loss	(520)	(122)	(301)
Other non-Officer income (expenses)	(13)	125	58
Profit before income tax	9 063	11 470	13 119
Current income tax	(1 922)	(2 104)	(2 678)
Deferred	(72)	(247)	(615)
Total profit tax	(1 994)	(2 351)	(3 293)
Net profit	7 069	9 119	9 826
Net loss (profit) relating to uncontrolled share in subsidiaries	(58)	(133)	531
Net profit beloned to OJSC LUKOOL	7 011	9 006	10 357
Profit on one ordinary share related to OJSC LUKOIL (US $)
basic profit	8,28	10,95	13,30
income profit	8,28	10,94	13,04