Advice 1: How to calculate balance sheet profit

Absolute economic efficiency of enterprises characterize the financial results. The most important among them – earnings. The final financial result of economic and production activities of the organization acts as balance sheet profit, on the basis of which to calculate taxable profit.
How to calculate balance sheet profit
Instruction
1
Balance sheet profit (RB) is calculated as the algebraic sum of three indicators: profit from the sale of the company's products (PP), the balance of income from non-operating transactions (RWP) and the profit from other sales (RPR). The formula can be represented as follows:
RB = RR + Sun + RPR
2
Profit from sales (RR) is calculated according to the following formula:
PP = Np - Sp - Rnds - RA
In this formula, Np – revenues from sales of products (goods, services), Sp – production costs (only the cost of production, commercial and management expenses) Rnds – added tax, RA – excise taxes.
3
The balance of non-operating income and expenses (RVP) is calculated in accordance with the following variables: income on owned enterprise securities, income from rental property, income from equity participation in joint ventures, as well as sanctions, fines and penalties for supplying low quality products, for failure of contractual obligations, violation of the terms and conditions of carriage, etc.
4
To profit from other sales (RPR) includes profit (loss) from sales of works, goods, services by the service and utility industries, including the sale of purchased inventory items. In addition, other sales organizations include works and services of nonindustrial character, which are not included in the volume of products sold core business. Here we are talking about services for overhaul and capital construction, transport services, households, the implementation of the purchase of heat.

Advice 2: How to calculate profit

Profit characterizes the end results of the production process, is an indicator of the financial condition of the company. Of course, on the size of the profit may influence the variables, for example, the political situation in the country, natural disasters, as the reputation of the firm, etc., under the influence of which a profit may fluctuate in the short term. The same effect may have conducted extensive advertising campaigns of the company. Overall, however, the profits for the stable functioning of the enterprise is the value more or less constant, and this figure allows owners to plan for future activities.
How to calculate profit?
When calculating the net profit use the calculator.
Instruction
1
Size gross income – total revenue from sale of goods or services, as well as net income – total revenue from sale of goods or services minus the cost of returned goods (services) and discounts to the customers.
2
We expect the total cost of production of goods and services included in the cost of production.
3
Calculate the gross profit of the enterprise, which represents the difference between net sales revenue and cost of goods sold (services).

I.e., gross income = Net income – Cost of production.
4
Determine the net profit.
Net profit = gross profit – Taxes, penalties, fines, interest on loans Operating expenses.
Operating expenses include the costs of searching for partners, conclusion of deals, the cost of training employees, the costs caused by force-majeure situations.
The net profit indicator just displays the final result of the activities of the company, shows how profitable the implementation of this kind of activity. Net profit (RAS) is used by entrepreneurs to increase working capital, the formation of various funds and reserves and for reinvestment in production. Net profit depends on the size of the gross profit and the magnitude of tax payments. If the company is a joint-stock company, dividends to shareholders are calculated, just based on the amount of net profit.
Note
Profit is a key indicator of economic activity of the enterprise, reflecting how efficiently organized the production and sales process, not whether the inflated costs and is advantageous in General, the existence of this business unit.

Advice 3: How to calculate book value of assets

Under the carrying value means the value of intangible assets and fixed assets accepted for accounting. It includes the amount of the costs incurred to manufacture or acquisition, transportation, loading and other work, as well as the amounts that shall be paid by the organization for certain consulting services. Not considered recoverable taxes (including value added tax).
How to calculate book value of assets
Instruction
1
The property is made on the balance sheet at replacement and original cost, which includes all costs of acquisition, construction and commissioning of assets, both productive and non-productive. Summarize all of the known costs and add them to your additional calculations.
2
Include in the replacement cost of the acquisition costs of the property for a certain market price in a certain period of time. If the original cost you will have to determine the sum of all expenditures, rehabilitation, consider average prices in the market. Periodically adjust the generated report.
3
The recovery value is determined by experts based on market prices, and using the coefficients of inflation. The cost is considered to be restorative if it is determined in the result of revaluation of funds, which by decision of the Russian government. If necessary, use the services of professional accountants or regularly explore the market price, relating to the scope of activities of your company.
4
Do not forget to specify the carrying value taking into account depreciation of the assets in the company (depreciation). The value of assets – the difference between the original cost of the property, which was adopted on the balance sheet, and depreciation.
5
Remember that the book value is determined by the date of the transaction, this is especially true for joint stock companies, in which most operations are performed at the end of the reporting period, which complicates the formulation of the balance. Russian law provides for the fixation of the carrying value of assets based on the purpose of making decisions about the size of the deal at the last reporting date.
Note
The transaction, which is more than 25% of the entire balance of the property is considered large and the decision on it was adopted by the shareholders or Directors. In that case, if the carrying amount is determined incorrectly, the transaction will be void.
Useful advice
Compare the asset's carrying amount and the carrying value of alienate property, if we are talking about the transaction. Compare them at the time of transaction, not at the time of any dispute or a complete revaluation. The carrying value of property and assets of the entity is mapped, excluding assets of subsidiaries and affiliated companies or associations.

Advice 4: How to calculate the profitability of production

Profitability of production – one of the main indicators of production and economic activity of the enterprise. Analysis of the results of calculation of profitability of production allows to assess the overall situation at the plant and to take corrective solutions to improve values of this indicator. Improving profitability can be achieved by increasing the profits from product sales, cost reduction, and effective use of equipment. How to calculate profitability?
How to calculate the profitability of production
You will need
  • - balance sheet
Instruction
1
Calculate the balance profit of the enterprise. Balance sheet profit is calculated as the difference between the company's income from operating activities and expenditures of the company for these transactions. The income of the enterprise can be divided into two groups: realizable and non-operating. The first group includes revenues from the sale of products or services, fixed assets (including land) and other assets. Non-operating income includes income from renting of property income from stocks, bonds, Bank deposits.
2
Calculate the average annual value of fixed assets of the company. Fixed assets is material assets involved in production, and in the process wear transfer their value to the manufactured products. The average annual value of fixed assets is determined as follows: need to add half the cost at the beginning and end of the year, the full value of fixed assets at the beginning of all months of the year and the amount received divided by 12.
3
Determine the average annual cost of working capital. Working capital is the funds that the company uses in its production-economic activities. The average annual cost of working capital can determine the folding of the average annual value of inventories, WIP, semi-finished products of own production and expenditure in future periods. Data for calculation can be found in the company's balance sheet during the reporting period.
4
Calculate the profitability of production. Profitability is calculated as the quotient of the balance sheet profit of the enterprise for the sum of the average annual value of fixed assets and average annual cost of current assets.

Advice 5: How to calculate the net profit of the company

Net profit implies a certain share from retained earnings, which must ever be at the disposal of the company after payment of taxes and other obligatory payments.
How to calculate the net profit of the company
Instruction
1
Determine the period for which you wish to calculate the net profit of the enterprise. Can take for such calculation period year, quarter or month.
2
Calculate the net profit using the following formula: Net profit of the enterprise = financial profit + gross profit + other operating profit – tax deduction.
3
Please note that the indicators for the calculation you need to take for the period of time over which you choose to calculate.
4
Can calculate the amount of net income and other means. It is necessary to use indicators from the financial statements. In this case, the net profit of the enterprise is formed on the account in accounting "Profit and loss".
5
Determine the gross profit. For this you will need the following amounts: revenue for the required period and the value of the cost of production. To calculate the gross profit of firm subtract from the first coefficient of the second.
6
Find the sum of operating profit. It is defined in the form of the difference of all other operating expenses and income. In turn, in order to calculate the financial profit, we must subtract from the amount of financial income costs in this category.
7
Calculate the net profit after the payment of necessary indicators. If you get a value with a negative sign "-", it will mean that the enterprise during the analyzed time period suffered losses.
8
Can form net profit of the retained earnings. In this case, it is calculated as the difference between the book profitu, which is subject to taxation and the value of tax deductions subject to the usual company benefits.
9
Check the values obtained. They should be equal, because you expected the same indicator in different ways. If the sums do not add up, so in the calculations an error was made.

Advice 6: How to calculate profitability

Profitability is often considered as indicator of the efficiency of the enterprise, that is, the ratio of net profit to net costs. However, in practice the calculation of indicators of profitability compounded by a number of reasons and additional parameters.
Profitability as a measure of efficiency of activity of the enterprise
You will need
  • Calculator, Notepad and pen, accounting records for the activities of the organization
Instruction
1
Define the measure of profitability (efficiency) of production activities. Otherwise this figure is called balance profitability:Profitability = balance sheet total net profit / (Average value of current assets + average fixed assets) * 100%.According to this formula, the rate will be slightly overestimated as in the balance sheet reflects the profit from all activities of the organization and not just from the manufacturing process. So are considered indicators of profitability of total assets and an indicator of profitability of own capital.
2
Calculate an indicator of profitability of total assets. This parameter shows the efficiency of use of personal property of the organization and is calculated according to a formula:Return = (Balance sheet profit / balance sheet assets Amount)*100%.
3
Calculate an indicator of profitability of own capital. This parameter is an indicator of the efficiency of use of invested in the organization of capital and is calculated by a special formula:Profitability = (Net profit / equity capital) * 100%.This indicator, as a rule, interests of shareholders and investors.
4
Calculate the profitability of products. In order to calculate the profitability of products as a performance indicator of the cost of sale or production, you must use the following formula:Profitability = (Profit from sales / total cost of products) * 100%.
5
Calculate the return on sales. Profit margin is an indicator which characterizes the efficiency of cost of sales. For its calculation we use the formula: Profitability = (Profit from sales (sales) / Cost of products sold) * 100%.
Useful advice
The correct calculation of the profitability indicators show the company detailed analysis of the competitiveness of its products in the market, and will also give a boost to increase volume sales and adjustments to the production process.
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