The economic essence of profit and the features of its formation in modern conditions. Factors affecting profit

Financial results result from all activities of an enterprise over a specified period of time, usually a quarter or a year, and are determined on the basis accounting estimates, i.e., based on realized income and incurred costs (accrual or cash basis) at current prices.

In this regard, they significantly depend on the accounting policies of the enterprise and do not take into account changes in the value of money over time.

There is a need for a clear system of profit distribution, primarily at the stage preceding the formation of net profit.

In the conditions of commodity-money relations, net income takes the form of a positive financial result - profit. In the goods market, enterprises and organizations act as separate commodity producers. Organizations, having set a price for their products, sell them to consumers, receiving revenue, which does not mean making a profit. To determine the financial result, it is necessary to compare revenue (income) with the costs of production and sale of products or services, which take the form of product costs.

If revenue (income) exceeds cost (expenses), the financial result indicates a profit. There is also an opinion that “a positive financial result (profit) is calculated as the difference between the proceeds from the sale of a product economic activity and the sum of the costs of production factors for this activity in monetary terms.”

If revenue (income) is equal to cost (expenses), then it was only possible to reimburse the costs of production and sales of products. The implementation took place without losses, but there is no profit as the main goal of commercial organizations and the source of development and prosperity of the company. In the case when costs (expenses) exceed revenues (income), the organization receives losses - a negative financial result, which puts it in a rather difficult financial situation.

An economically sound system of profit distribution must first of all guarantee the fulfillment of financial obligations to the state and maximally provide for the production, material and social needs of enterprises and organizations. Let us note how book profit is adjusted during the distribution process.

Balance sheet profit is reduced by the amount of profit taxed at different rates of income tax, deductions are made to reserve or other similar funds, and amounts of profit for which tax benefits are established are excluded.

The balance sheet profit remaining after these adjustments is subject to taxation and is called taxable profit. After paying the tax, what remains is the so-called net profit. This profit is at the full disposal of the organization and is used by it independently.

The financial result of an enterprise reflects its balance sheet profit or loss: profit (loss) from sales finished products(works, services), profit (loss) from other sales and the amount of non-operating income and losses.

To manage profit, it is necessary to reveal the mechanism of its formation, determine the influence and share of each factor of its growth or decline.

The efficiency of economic activity is characterized by a relatively small number of indicators. But each of them is influenced by a whole system of factors, i.e. reasons that cause changes in these indicators. There are factors of the first, second... “n” order.

Factors in economic analysis are classified according to different criteria. Based on the objectives of the analysis, all factors can be divided into internal (main and non-main) and external.

Internal main factors determine the results of the enterprise. Internal non-core ones - they determine the work of the organization, but are not related to the essence of the indicator under consideration: structural changes in the composition of products, violations of economic and technological discipline.

External factors do not depend on the operation of the enterprise, but quantitatively determine the level of use of its production and financial resources(Fig. 1.1).

Figure 1.1 Factors influencing profit margin

Identification during the analysis of internal and external factors affecting profitability makes it possible to “cleanse” performance indicators from external influences.

Let us first consider factors directly related to the activities of the enterprise, which it can change and regulate depending on the goals and objectives set for the enterprise, i.e. internal factors, which can be divided into production factors, directly related to the main activities of the enterprise, and non-production factors, which are not directly related to the production of products and the main activities of the enterprise.

Non-production factors include supply and sales activities, i.e. timeliness and completeness of fulfillment of obligations by suppliers and buyers to the enterprise, their distance from the enterprise, cost of transportation to the destination, and so on; environmental protection measures, which are necessary for enterprises in a number of industries, for example the chemical, engineering industries, and entail significant costs; fines and sanctions for untimely or inaccurate fulfillment of any of the company’s obligations, for example, fines to the tax authorities for late payments to the budget. The financial results of the company’s activities, and, consequently, profitability are indirectly affected by social conditions labor and life of workers; financial activities of the enterprise, i.e. management of own and borrowed capital in an enterprise and activities in the securities market, participation in other enterprises, etc.

Production factors include the availability and use of means of labor, objects of labor and labor resources. These factors are the main factors in the growth of profits and profitability of the enterprise; the processes of intensification of production are associated with increasing the efficiency of their use.

Depending on the content of the indicators and the algorithm for their calculation, first-order factors are identified that directly determine the size of the effective indicator (increase in the number of workers, production volumes, etc.). Second-order factors influence the result through first-level factors, etc.

Using factor analysis, unused reserves are established, therefore the classification of factors is the basis for the classification of reserves.

Reserves are the unused capabilities of an enterprise, which are grouped according to the following characteristics:

1) by the nature of the impact on production: intensive and extensive;

2) production characteristic: intra-farm, sectoral, regional, national;

3) time indicator: current and future;

4) stage of the product life cycle: production stage, operational stage.

Economic factors can reflect the quantitative or qualitative side of an enterprise's activities. Signs of quantity are reflected in indicators of production and sales of products, product range, number and area of ​​premises, quantity of equipment, etc. The increase in production volumes characterizes the expansion of the enterprise’s activities and can be ensured along with the listed production factors and factors of working time use (the number of days worked, shifts, length of the working day), as well as labor resources (the number of employees by category, type of activity, etc. ).

Information about quantitative factors, as a rule, is accumulated in accounting and reflected in reporting.

The influence of production factors on the result of activity can be assessed from two positions: as extensive and as intensive. Extensive factors are associated with changes in the quantitative parameters of the elements of the production process, these include:

– changing the volume and operating time of labor tools, i.e., for example, the purchase of additional machines, machines, the construction of new workshops and premises, or increasing the operating time of equipment to increase the volume of products produced;

– change in the number of objects of labor, unproductive use of means of labor, i.e. an increase in inventories, a large proportion of defects and waste in the volume of products produced;

– changes in the number of workers, working hours, unproductive costs of living labor (downtime).

A quantitative change in production factors must always be justified by a change in the volume of output, i.e. The enterprise must ensure that the rate of profit growth does not decrease relative to the rate of increase in costs.

Intensive factors are understood as a reflection of the degree of effort of the enterprise and its employees to improve the activities of the enterprise, which are reflected in the system of various performance indicators, not only in content, but also in terms of measurements. Measurements of intensive factors can be absolute values ​​in value and physical terms, relative values ​​expressed in coefficients, percentages, etc. In particular, labor productivity can be expressed in cost or quantity of production per worker per unit of time; level of profitability - in percentage or coefficients, etc.

Since intensification factors reflect the degree of efficiency of the enterprise, they are also called qualitative factors, since they largely characterize the quality of the enterprise.

Intensive production factors are associated with improving the quality of use of production factors, these include:

– increasing the quality characteristics and productivity of equipment, i.e. timely replacement of equipment with more modern equipment with greater productivity;

– use of advanced materials, improvement of processing technology, acceleration of material turnover;

– improving the skills of workers, reducing the labor intensity of products, improving labor organization.

Figure 1.2 Classification of factors in economic analysis

In addition to internal factors, the profitability of an enterprise is also indirectly affected by external factors, which do not depend on the activities of the enterprise, but often have a strong influence on the results of its activities. This group of factors includes: the geographical location of the enterprise, i.e. the region in which it is located, the distance of the enterprise from raw materials sources, from regional centers, natural conditions; competition and demand for the company’s products, i.e. the presence in the market of effective demand for the company’s products, the presence in the market of competing firms producing goods with similar consumer properties, the situation in related markets, for example in the financial, credit, securities, and raw materials markets markets, since a change in profitability in one market entails a decrease in profitability in another, for example, an increase in the yield of government securities leads to a reduction in investment in the real sector of the economy; government intervention in the economy, which manifests itself in changes in the legislative framework for market activity, changes in the tax burden on enterprises, changes in refinancing rates, etc.

The listed factors affect profit not directly, but through the volume of products sold and cost, therefore, in order to identify the final financial result, it is necessary to compare the cost of the volume of products sold and the cost of costs and resources used in production.

Profit from the sale of products, works, and services occupies the largest share in the structure of the enterprise’s balance sheet profit. Its value is formed under the influence of a number of factors, the most important of which are: cost, sales volume, current price level.

The most important of them is cost. The cost of production is understood as all the costs of an enterprise for the production and sale of products, namely: the cost of natural resources, raw materials, basic and auxiliary materials, fuel, energy, fixed production assets, labor resources and other operating costs.

Quantitatively, prime cost occupies a significant share in the price structure, so it has a noticeable effect on profit growth, all other things being equal.

Cost reduction indicators include the following indicators:

– indicators related to increasing the technical level of production (introduction of new progressive technology, modernization of equipment, changes in the design and technical characteristics of products);

– indicators related to improving labor organization and management (improving organization, service and production management, reducing management costs, reducing losses from defects, improving labor organization).

The main objectives of analyzing the cost of industrial products are:

– establishing the dynamics of the most important cost indicators;

– determination of costs per ruble commercial products;

– identifying reserves for cost reduction.

Analysis of production costs by elements and costing items is carried out in order to identify deviations, determine the composition of elements and costing items, the share of each element in the total amount of production costs, study the dynamics for a number of past years, identify factors that caused changes in elements and items costs and influenced the cost of production.

An important factor influencing the amount of profit from product sales is changes in the volume of production and sales of products. A fall in production volume under current economic conditions, not counting a number of counteracting factors such as rising prices, inevitably entails a reduction in profits. This leads to the conclusion that it is necessary to take urgent measures to ensure growth in production volumes based on technical renewal and increased production efficiency.

The dependence of profit on sales volume, other things being equal, is directly proportional. As a result, the indicator of changes in the balances of unsold products becomes of no small importance in market conditions; the higher it is, the less profit the company will receive. The value is not products sold depends on a number of reasons due to the current market conditions, the production and commercial activities of the enterprise, and the conditions for selling products. Firstly, the capacity of a given market always has a limit, and, as a consequence, there is a risk of commodity oversaturation; secondly, an enterprise may produce more products than it sells due to an ineffective marketing policy. In addition, the share of more profitable products in the unsold balances of finished products may increase, which will entail a total increase in these balances in value terms based on lost future profits. In order to increase profits, the enterprise must take appropriate measures to reduce the balance of unsold products, both in kind and in monetary terms.

The amount of revenue from the sale of products and, accordingly, profit depends not only on the quantity and quality of products produced and sold, but also on the level of prices applied.

Free prices in the conditions of their liberalization are set by the enterprises themselves, depending on the competitiveness of the product, the demand and supply of similar products by other manufacturers (with the exception of monopolistic enterprises, the price level of which is regulated by the state). Therefore, the level of free prices for products is to a certain extent a factor that depends on the enterprise.

The main feature of the division of costs for the general classification is the place where costs arise and the ratio of costs to various areas of the enterprise. This classification is used to organize costs within the enterprise’s profit statement and for subsequent comparative analysis of individual types of enterprise costs. The main types of costs according to the general classification are presented in Figure 1.3.

Rice. 1.3 Cost classification

According to this classification, all costs are divided into production and non-production. In turn, production costs consist of:

– costs associated with the use of direct materials;

– costs of paying direct labor;

– production overhead costs.

Costs for direct materials include the amount of costs incurred by the enterprise for the purchase of raw materials and components, i.e. those physical substances that are directly used in production and go into finished products.

Direct labor costs represent the payment of key production personnel (workers) whose efforts are directly (physically) related to the production of the finished product. The labor of equipment adjusters, shop foremen and managers in terms of costs is included in production overhead costs. It should be noted that these definitions are well-known modern conditions, when “truly direct” labor begins to play an ever smaller role in modern highly automated production. There are fully automated industries for which there is no direct labor at all. However, in general case the concept of “primary production workers” remains in force and their wages relate to direct labor costs.

Manufacturing overhead costs include other types of costs that support the production stage of the enterprise. The structure of these costs can be very complex and their number is large. The most common types of manufacturing overhead costs are indirect materials, indirect labor, electrical and thermal energy, repairs and maintenance of equipment, public utilities, depreciation of production premises and equipment, a certain part of taxes included in the so-called gross costs, and all other costs that are inherently associated with the production process at the enterprise.

Costs associated with the sale of products include all the costs of the enterprise associated with maintaining finished products in the warehouse, promoting the product to the market and delivering the product to the consumer.

Administrative costs include the total costs associated with the general management of the enterprise, i.e. the content of the management “apparatus”, including accounting, planning and financial department and other management departments.

The way in which the totality of costs fits into the production cost of goods sold is very important.

The classification discussed above is directly related to the classification of costs in relation to the finished product. All enterprise costs are divided into two groups:

– costs related to the finished product (Product Costs),

– costs related to the period of time (Period Costs).

A sign of cost sharing according to this classification is the way in which costs are charged to cost of goods sold. Costs of the first group are included in the cost of goods sold only when the finished products, which included these costs, are sold. Until the moment of sale, these costs in the inventory of the enterprise represent its assets, i.e. they are materialized as part of work in progress or finished goods and stored in a warehouse. The costs of the second group are included in the income statement, i.e. taken into account when calculating the profit of the enterprise during the period in which they were actually incurred. A typical example of the second group is the costs associated with the general management of the enterprise.

According to this scheme, the resources of the enterprise, which form the costs related to the product, are the assets of the enterprise until the enterprise sells the finished product. At the same time, costs related to a period of time are recognized as the costs of the enterprise in the period in which they were incurred, regardless of whether the finished product was sold or not.

The main feature is the dependence of changes in costs in connection with a change in any basic indicator. The latter is usually the volume of goods sold. In accordance with this feature, costs are divided into two types: fixed (constant) and variable. Variable costs are those costs that change (in general) in direct proportion to an increase or decrease in production and sales (assuming that unit costs remain almost constant, stable). Fixed costs are those costs that do not change when the level of production and sales changes over a certain period of time (for example, a year). TO variable costs include the costs of raw materials and supplies, energy and utilities (used in the production process), sales commissions (if determined by sales volume), workers' wages (provided they can be increased or decreased as production volume increases or decreases). Examples of fixed costs are the cost of depreciation of buildings and equipment, depreciation of pre-operating expenses, rent and leasing (which do not change with changes in sales and production volume), interest on loans, wages of employees, managers, controllers (which, by assumption, do not change with changes in production level), general administrative expenses.

Some of these costs, such as wages or general administrative expenses, may not vary directly with volume nor be constant. They can be designated as mixed (semi-variables). Such costs can be broken down into variable and fixed components and considered separately. Let us consider the classification of costs in more detail, giving this consideration a quantitative content. In the process of this analysis, we will be primarily interested in those cost characteristics that remain unchanged as the volume of production and sales changes. These characteristics are called invariants. Due to their lowness, invariants are the basis for solving planning problems.

Fixed costs can change if there is a significant change in production volume. Moreover, this change is, as a rule, spasmodic in nature. For example, if production volume increases, it may be necessary to rent additional production premises and purchase new equipment, which will lead to an increase in fixed costs by the amount of rental payments for new premises, as well as operating and depreciation costs for new equipment. Taking into account the noted feature fixed costs the concept of a relevant interval of change in the volume of product sales is introduced, during which the value of total fixed costs remains unchanged.

Profit reflects the efficiency of the enterprise, its liquidity and solvency. It influences the pace of production modernization. Therefore, it is important to be able to calculate and analyze this indicator.

Definition

Any activity is aimed at generating income that covers losses and generates profit. It is important to be able to distinguish between these concepts. The money received from sales is called revenue. Net income is the amount remaining after all expenses have been paid. That is, profit is the difference between revenue and costs. But this term much wider. The net profit formula includes the final financial result different types activities.

An organization can earn income only by producing competitive goods. Great importance price plays a role here. It must correspond to the solvency of potential consumers. The company sets prices depending on the level of costs. If the amount of resources consumed is less than the revenue received, then the organization is operating at a profit. In conditions market economy unprofitable enterprises do not exist for long.

Net profit, equity capital - sources of self-financing of the organization. Income maximization - important condition prosperity of the enterprise and the country's economy. An enterprise can use profits to increase scale, strengthen positions, and update the operating system.

Functions

• Profit reflects the result of activity.
• Stimulating: maximizing income affects the growth of wages, the pace of OS updates, and an increase in production levels.
• Fiscal: taxes are paid and budgets are formed from the income of enterprises.
• Estimated: the amount of profit directly affects the value of the organization.
• Control: receiving losses indicates a large amount of expenses.

Structure

The net profit formula includes income from sales, transactions with fixed assets, results of financial and non-operating activities. The most higher value has the first indicator. The organization is not able to influence the level of stock quotes, on which the results of operations with securities. But it can reduce costs and increase revenue.

There are other criteria by which the net profit of an organization is classified:

• depending on the calculation method: marginal, net, gross;
• by the nature of payment of fees: taxable and non-taxable;
• by time: profit of previous years, reporting and planning periods;
• by nature of application: capitalized and distributed.

To calculate each of these indicators, its own formula is used.

Factors

The organization itself can influence profits. The level of technology used, capacity utilization and other production factors influence the quantity and quality of products. It is more difficult to regulate non-productive factors: the interaction of employees affects different levels hierarchy, personnel reaction to changes in working conditions, logistics, etc. But the enterprise is generally unable to influence market conditions, the level of inflation and taxation, monetary policy, and distance from resources. But these external factors have an indirect impact on the activities of enterprises. Therefore, it is so important to be able to assess the degree of influence of each criterion on net income.

To maximize profits, it is necessary to analyze the product range. Products that are practically not in demand should be excluded from circulation. It is also necessary to develop an effective management system for market segmentation, introduce automated systems and waste-free production systems.

Income and costs

From an economic point of view, profit is the difference between receipts and payments. From an economic point of view, it is the difference between the state of the enterprise at the end and beginning of the period. In this regard, accounting and economic profit are distinguished. The connection between the categories is expressed in their formulas:

• Accounting profit is the difference between total income and obvious costs.
• Economic profit is the difference between income and all costs.

Thus, we get: economic profit = accounting profit- implicit costs.

Explicit costs are the sum of expenses for paying for resources: raw materials, machines, work force etc. Implicit costs is the cost of the firm's internal resources. For example, an enterprise uses its own building for business activities. Utility costs in this case are obvious costs. They can be documented. Implicit costs in this case are lost income from renting out the building.

Profit calculation

As noted earlier, revenue is a general measure of profitability. Its volume is determined by adding the amounts of invoices. It is calculated as payment is received or as goods are shipped. Revenue excludes VAT, excise taxes, mark-ups received by retailers, and export tariffs.

1. Net profit from sales (PR) = Revenue – VAT – Excise taxes – Export tariffs.

2. Gross profit is the difference between net income and cost: Вп = CR – Cost.

3. Profit from sales (Ppr) = Вп – Ур – Кр, where:

• Ur – management costs.
• Kr – commercial expenses.

4. Net income from all types of activities: Po = Vp + IP + Fp + Pd, where:

IP, Fp and Pd - income from investment, financial, and other types of activities.

5. Profit before tax (Pn) is the final result revealed after accounting for all transactions.

Mon = To – Real estate tax – Income benefits.

After paying all fees, the organization has money left at its disposal that can be spent on its own needs.

Net profit formula: PE = Po – NPP + Pd - Pr, where:

• NPP – income tax.
• Pr – other expenses.

Marginal income, or “zero profit” is the amount of revenue that covers all costs.

Analysis

Research is carried out in order to evaluate performance results, develop measures to reduce costs and increase income. Most often used factor analysis, which shows the degree of influence of individual indicators on the final result. For example, when looking at gross revenue, ways to reduce costs are explored. Profit is calculated based on data from the balance sheet and Form No. 2 of the “Report on Financial Results”.

Factors influencing profit making are classified according to various signs(rice).

Rice. . Factors influencing profit margin

TO external factors include natural conditions, government regulation prices, tariffs, interest, tax rates and benefits, penalties, etc. These factors do not depend on the activities of enterprises, but can have a significant impact on the amount of profit.

To the number internal factors include: implementation of plans for product production, assortment and quality, cost reduction and increase in labor productivity, volume of product sales, and others.

Internal factors are divided into production and non-production. Production factors characterize the availability and use of means and objects of labor, labor and financial resources and, in turn, can be divided into extensive and intensive: extensive factors affect the process of making a profit through quantitative changes: the volume of means and objects of labor, financial resources, work time equipment, number of personnel, working hours, etc. Intensive factors influence the process of making a profit through “qualitative” changes: increasing equipment productivity and its quality, using advanced types of materials and improving their processing technologies, accelerating turnover working capital, increasing the qualifications and productivity of personnel, reducing labor intensity, material intensity of products, improving labor organization and more efficient use of financial resources, etc. Production factors include, for example, supply, marketing and environmental activities, social working and living conditions, etc.

When carrying out the financial and economic activities of an enterprise, all these factors are closely interconnected and interdependent.

The main factors for profit growth are an increase in sales revenue and a decrease in the cost of products sold in accordance with the terms of the supply agreement. Revenue, in turn, is affected by the volume of products sold (in physical terms) and prices.

The amount of profit is also influenced by factors such as the range of products sold and the amount of other income and expenses included in the profit (interest received and paid, income from participation in other organizations, other operating and non-operating income and expenses, cost structure of products sold, (for it as part of the variables, fixed costs and profit).

Profits are affected by inflation. When inflation rises, the amount of reserves increases significantly. As a result of the increase in their value, significant amounts are diverted from circulation. monetary resources, which could be used to develop production. In addition, changes in the value of inventories can affect real production costs either up or down. Thus, rising inflation distorts the real results of economic activity and the profit of the enterprise.

Profits may increase as a result of increased production of comparable products, increased specific gravity products with higher profitability, reducing the cost of comparable products, increasing wholesale prices while improving product quality.

The profit and profitability of an enterprise is also influenced by such factors as the innovative activity of the enterprise.

Profitability

Profitability– an indicator of the economic efficiency of the enterprise’s economic activity; it is the ratio of the income received and the amount of capital invested in creating this income.

Profitability indicators are relative characteristics financial results and efficiency of the enterprise. They characterize the relative profitability of an enterprise, measured as a percentage of the cost of funds or capital from various positions.

When analyzing production, profitability indicators are used as a tool for investment policy and pricing. The main profitability indicators can be grouped into the following groups:

General indicators characterizing profitability (profitability):

1. Sales profitability. Shows how much profit accrues per unit of products sold. Calculated using the formula:

2. Accounting profitability from ordinary activities. Shows the level of profit after tax. Calculated using the formula:

3. Net profitability. Shows how much net profit is per unit of revenue. Calculated as:

7. Cost-effectiveness. Shows how much profit from the sale is per 1 thousand rubles of costs. Calculated using the formula.

Profit is the amount of growth equity commercial enterprise, occurring as a result of the activities of a given company, part of the additional value expressed in monetary terms. Profit is one of the main sources of creating an enterprise's cash fund, its financial resource. The concept of “profit” today economics defines as income received as a result of the exploitation of factors of production such as capital, land and labor. Not accepting profit as exploitation or appropriation of hired unpaid labor, the following definitions of profit are distinguished:

• Payment for business services.
• Payment for talent and innovation in enterprise management.
• Paying for risk, uncertainty of results commercial activities. The presence of risk is determined by the choice of any of the options for natural and climatic conditions, social, scientific, technical or management decisions.
• The phenomenon of monopoly profit. Such profits are most often unstable.

When forming a market economy, profitability and profit are considered one of the most important indicators of the economic activity of enterprises and trading organizations. These indicators reflect all areas of activity of trading structures: the presence of measures to improve technology and organization of the trading process, efficiency of resource use, structure and volume retail turnover.

Analysis of factors affecting profit

The level and amount of profit are influenced by many factors that affect it both negatively and positively. The factors influencing profits are many and varied. It is quite difficult to limit them. All factors influencing the profit of an enterprise are divided into main ones, which have a decisive influence on the level and amount of profit, and secondary ones - in most cases their influence is neglected. In addition, the entire set of factors is divided into external and internal. They are closely related to each other. Internal factors affecting profit, as well as profitability, are factors determined by the growth of retail turnover and factors of a resource nature (the state and operating conditions of resources, their composition and value).

Internal factors are determined by the following parameters:

• Volumes retail. If the share of profit in the prices of goods is constant, the amount of profit increases due to an increase in the volume of their sales.
• Structure of retail goods. Trade turnover is growing due to the expansion of the range. By raising the segment of prestigious, high-quality goods in the turnover, it is possible to achieve an increase in the share of profit in prices, since the buyer purchases goods of this group more often precisely because of their prestige, as well as counting on the increased ease of use.
• Organization of goods movement. As a consequence of the accelerated movement of goods to retail outlets is a reduction in current costs and an increase in trade turnover. As a result, there is an increase in the level and mass of profits.
• Organization of trade and technological processes sales of goods. In an effort to increase profits, they are resorting to the introduction of progressive trading methods: selling goods according to catalogs and samples, self-service. Such methods reduce costs and increase turnover.
• Composition and number of employees. With a sufficient level of technical support for labor, the required number of employees ensures that the enterprise fully implements the program for achieving the planned profit. Of significant importance is the qualification factor of the employee, his ability to clearly and quickly serve the buyer, make the correct purchase of goods, etc.
• Systems and forms of economic incentives for employees. These factors influencing the amount of profit are manifested through cost indicators for wages and the profitability of such costs. Today there is an increase in the moral factor of encouraging employees when they receive satisfaction from their work.
• Labor productivity of company employees. In the presence of other equal conditions, the consequence of increasing labor productivity is increased profitability activities of a commercial structure, and an increase in profit.
• Technical equipment and capital-labor ratio of workers. Labor productivity is directly dependent on the provision of workplaces with samples of modern commercial equipment.
• Material and technical base trading enterprise. A structure that has a more developed and modern material and technical base can count on constant growth in retail turnover with a long-term outlook. Following this, profitability increases and profits increase.
• Territorial location, condition and development of the trading network. Location retail chains directly affects profitability and the amount of profit. Along with the stationary store network, the profit indicator is significantly influenced by the development of the mobile, parcel and small retail networks.
• Level of physical and moral wear and tear of fixed assets. This factor is very important in terms of increasing the profitability of the enterprise. Reliance on worn-out, obsolete equipment and fixed assets eliminates hope for profit growth in the future.
• Capital productivity. The direct result of its increase is an increase in retail trade turnover per 1 ruble of funds invested in fixed assets.
• Working capital. These are factors that directly influence changes in profit. Since the amount of profit received from one turnover directly depends on the size of working capital.
• Pricing procedure. The amount of profit received depends on the amount of profit included in the price of the goods. A continuous increase in the profit share in the price can produce the opposite of the desired result.
• Work on collecting accounts receivable. The absence of delays in the collection of receivables accelerates the turnover of working capital, which in turn leads to increased profits.
• Claim work. This factor has a direct impact on the profitability of non-operating operations.
• Economy mode. There is a relative decrease in the current costs of a commercial enterprise and an increase in the amount of expected profit. In this case, we do not mean an absolute reduction in existing costs, but a relative one.
• Business reputation companies. We are talking about the consumer’s view of the potential capabilities of a commercial structure. Possessing a high business reputation allows you to increase the profitability of the enterprise and count on additional profits. A commercial enterprise cannot operate in isolation. It continuously interacts with the external environment: sellers and producers of goods, buyers (mainly the population), government agencies and public organizations. The combination of such factors has a direct impact on the efficiency of a commercial enterprise, the profitability of its activities and the amount of profit.

Every entrepreneur knows what profit is and how to calculate it, because it the main objective(or one of them) of any economic activity. However, when counting the long-awaited banknotes, you may find that the actual amount differs significantly from the expected one. The reason is often various factors, affecting the amount of profit. Their list, classification and degree of influence will be described below.

Briefly about the concept of “profit”

This term refers to the difference that is calculated by subtracting from the total income (revenue received from the sale of goods or services, fines and compensations, interest and other income) the costs incurred for the purpose of acquiring, storing, transporting and marketing the company’s product. What profit is can be more graphically illustrated by the following formula:

Profit = Income - Costs (expenses).

All indicators should be converted into monetary equivalents before calculations. There are several accounting and economic, gross and net. There are several views on what profit is. Definition various types(accounting and economic, gross and net) is necessary to analyze the economic situation in the company. These concepts differ from each other, but their meaning in any case is the most striking characteristic of the efficiency of an enterprise.

Indicators characterizing profit

Knowing what it is and the formula presented above), we can conclude that the resulting indicator will be absolute. At the same time, there is profitability - a relative expression of how intensively an enterprise operates and what its level of profitability is in relation to a certain base. A company is considered profitable when the amount of income received (revenue from the sale of goods or services) not only covers production and sales costs, but generates profit. This indicator is calculated by the ratio of net profit to the cost of production assets:

Profitability (total) = / (Amount of fixed assets + Amount of material current assets) x 100%.

Other profit indicators (profitability of products, personnel, sales, own assets) are calculated in a similar way. For example, the profitability indicator of a product is found by dividing the profit by the total cost of the product:

Profitability (products) = Net profit / Costs of production and sales of the product (cost) x 100%.

Most often, this indicator is used to carry out analytical calculations of on-farm value. This is necessary in order to control the profitability or unprofitability of specific products, introduce the production of new types of goods, or stop the production of unprofitable products.

Factors influencing profit margin

An integral part of the activities of any successful organization or enterprise is strict accounting of costs incurred and income received. Based on this data, economists and accountants calculate a lot of indicators to reflect the dynamics of development or degradation of the company. At the same time, they study the factors influencing the amount of profit, their structure and intensity of impact.

Analyzing the data, experts evaluate the past activities of the enterprise and the state of affairs in the current period. They are influenced by many interrelated factors that can manifest themselves in completely different ways. Some of them contribute to income growth, while others can be characterized as negative. Besides, Negative influence one of the categories can significantly reduce (or completely eliminate) the positive result obtained due to other factors.

Classification of factors determining profit

There are several theories among economists about how the factors influencing the amount of profit should be divided, but most often they resort to the following classification:

1. External.
2. Internal:

• non-production,
• production

In addition, all factors can also be extensive or intensive. The first illustrate the extent and for how long production resources are used (is the number of workers and the cost of fixed assets changing, has the duration of work shift). They also reflect the irrational use of materials, supplies and resources. An example would be the production of defective products or the production large quantity waste.

The second - intensive - factors reflect how intensively the resources available to the enterprise are used. This category includes the use of new progressive technology, more efficient management of equipment, and the involvement of personnel with highest level qualifications (or activities aimed at improving the professionalism of their own employees).

What refers to production and non-production factors

Factors characterizing the composition, structure and application of the main components of production that take part in the process of generating profit are called production. This category includes means and objects of labor, as well as the labor process itself.

Non-productive factors should be considered those that do not directly affect the production of the company's product. This is the order of supply of inventory items, how products are sold, financial and economic work at the enterprise. The characteristics of the working and living conditions in which the organization’s employees find themselves also relate to non-productive factors, since they indirectly affect profit making. However, despite this, their influence is significant.

External factors: list, essence and degree of influence on profit

The peculiarity of numerous external factors that can affect the profitability of an enterprise is that they do not depend in any way on managers and staff. Among them are:

• Demographic situation in the state.
• Availability and level of inflation.
• Market conditions.
• Political stability.
• Economic situation.
• Loan interest rates.
• Dynamics of effective consumer demand.
• Price for imported components (parts, materials, components).
• Features of tax and credit policy in the state.

All these external factors (one or more at the same time) inevitably affect the cost of products, the volume of production or the number of products sold.

Specifics of internal factors on which the volume of profit depends

An increase in an organization's profit can occur as a result of an increase in cash receipts or as a result of a reduction in expenses.

Internal factors reflect self manufacturing process and sales organization. The most significant impact on the profit received by the enterprise is an increase or decrease in the volume of production and sales of goods. The higher these indicators are, the more income and profit the organization will receive.

The next most important internal factors are changes in the cost and price of the product. The greater the difference between these indicators, the higher the profit the company can make.

Among other things, the profitability of production is influenced by the structure of manufactured and sold products. The organization is interested in producing as much profitable products as possible and reducing the share of unprofitable ones (or eliminating them completely).

Ways to reduce company costs

Entrepreneurs can use several methods to reduce costs and increase profits. First of all, specialists review and analyze ways to reduce the cost of production, the transportation process or sales.

The next issue to be considered is the maintenance of personnel. If possible, various free privileges, bonuses, bonuses and incentive payments are cut. However, the employer cannot reduce the rate or salary of employees. Also, all mandatory social payments remain at the same level (according to sick leave, business trips, vacation pay, maternity pay and others).

As a last resort, the manager is forced to resort to dismissal of freelance and temporary employees, review staffing table and staff reduction. However, he should carefully consider such steps, because laying off workers will not lead to an increase in profits if the volume of production and sales of the product decreases.

What is optimization of tax payments?

An enterprise can save by reducing tax amounts that will be transferred to the budget. Of course, we are not talking about evasion and violation of the law. There are legitimate opportunities and loopholes that, if used wisely, can lead to increased profits.

Tax minimization does not mean a literal reduction in tax payments; rather, it implies an increase in the financial resources of the enterprise, as a result of which special taxation systems with various preferential conditions come into force.

Completely legal and legal way tax accounting, designed to increase profit margins and reduce taxes paid, is called tax planning.

Due to its effectiveness, today tax minimization becomes practically mandatory procedure for many businesses. Against this background, conducting business activities on general conditions, without taking advantage of available tax incentives, can be called short-sighted and even wasteful.

Intangible factors

Despite the fact that some factors influencing the amount of profit of an enterprise are sometimes beyond control, a decisive role in achieving high incomes belongs to a properly built organizational system at the enterprise. Stage life cycle the company, as well as the competence and professionalism of management personnel, largely determine how noticeable the influence of certain factors will be.

In practice, quantitative assessment of the impact of a specific factor on profit indicators is impossible. For example, a company’s business reputation becomes such a difficult factor to measure. Essentially, this is the impression of the enterprise, how it looks in the eyes of its employees, clients and competitors. Business reputation is formed taking into account many aspects: creditworthiness, potential opportunities, product quality, level of service.

Thus, you can see how wide the range of factors influencing the profit indicators of an enterprise is. However, a specialist who applies and understands the current legislation has access to various ways reducing costs and increasing company revenues.