You will need
- - accounting balance sheet (form №1);
- - report on profit and loss statement (form №2).
Summary results of financial and economic activities of the enterprise are contained in the financial statements: in form No. 1 balance shows the total amount of the accumulated profit or uncovered loss at the beginning and end of the reporting period and in the form No. 2 – statement of profit and loss – decoded initial data for the formation of the financial result. In addition, according to the form # 2 can be traced all types of income (gross, from sales, before tax, net) and determine the profitability of the organization.
Compare data from line 1370 "undistributed profit (uncovered loss)" of form No. 1 accounting balance: the excess of the rate on the reporting date over the value at the beginning of the year indicates a profitable activity of the enterprise during the reporting period. But the analysis on a particular date does not reflect the real picture, therefore, to determine profitability , consider the data at least 1 year, in 5 key dates.
The constant growth of the value of retained earnings indicates proper management of revenues and expenditures. The decline means a loss, even if it is expressed as a positive number. However, if at the beginning of the analyzed period, the value in row 1370 is negative, but in the course of the year tends to zero and above, it is possible to speak of a gradual exit of the enterprise from crisis and in profitable activities.
Basic information about the profits and losses of the company contained in the same report. Rate the overall financial result, the line 2400 "Net profit (loss)". Individual indicator reflects the result of financial and economic activities of the reporting date, therefore, the conclusions on the values of several periods, i.e. in dynamics.
To summarize the information compile an aggregated report on profits and losses in the form of a table: in the vertical field values list the report lines in the horizontal reporting date. If the results of any of the considered time intervals marked decline, analyze the formation of profit at each stage to find the source of loss.
To determine gross profit, subtract cost of sales from income from operating activities revenue from sale of goods, products, services, works, excluding VAT. Then calculate the profit from the sales, reducing the gross profit on the total amount of commercial and management costs.
Further, rate other income, including from participation in other organizations, such as subsidiaries and interest receivable. Add their sum to the value of the profits from sales, and then subtract interest payable and other expenses – you will receive a profit before tax.
To obtain the value of net profit or loss, calculate and subtract from the profit before taxation current profit tax tax penalties and, if necessary, to reflect changes in permanent tax assets and liabilities.