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Topic 7: “Analysis of the financial results of the organization’s activities”

Questions:

Analysis of profits from sales of products (works, services)

Taxable income analysis

Tax analysis

Analysis of net profit formation

Analysis of the distribution and use of net profit

Enterprise profitability analysis

Analysis of the “Cost - Volume - Profit” ratio

Meaning, objectives and information base of analysis

The final positive result of an organization's activities is profit. The importance of profit is due to the fact that, on the one hand, it depends mainly on the quality of the enterprise’s work, it increases the economic interest of workers in the most efficient use of resources, since profit is the main source of industrial and social development of the enterprise, and on the other hand, it serves as the most important source formation of the state budget. Thus, both the enterprise and the state are interested in increasing the amount of profit. An increase in profit can be achieved not only due to an increase in the labor contribution of the enterprise team, but also due to other factors. Therefore, the enterprise needs to conduct a systematic analysis of the formation, distribution and use of profits.

Objectives of the analysis and its sequence:

Assessing the profit plan and choosing the best option; study of plan implementation and dynamics;

Identification and quantitative measurement of the influence of factors in the formation of profit indicators and assessment of its quality;

Studying the directions, proportions and trends of profit distribution;

Identification of profit growth reserves;

Information sources: forms of an economic and social development plan or a business plan for generating profit, “Calculated balance of income and expenses” (financial plan); accounting reporting forms No. 1 “Balance Sheet”, No. 2 “Profit and Loss Statement; current accounting data for account 99 “Profits and losses”, etc.

Analysis of the composition and dynamics of balance sheet profit

In the process of analyzing business activities, the following profit indicators are used: balance sheet profit, profit from sales of products, works and services, profit from other sales, financial results from non-operating operations, taxable profit, net profit.

Balance sheet profit includes financial results from the sale of products, works and services, from other sales, income and expenses from non-sales operations (Fig. 7.1).

Rice. 7.1 – Block – diagram of factor analysis of profit

Taxable income - this is the difference between book profit and the amount of profit subject to income tax (on securities and from equity participation in joint ventures), as well as the amount of income tax benefits in accordance with tax legislation, which changes periodically.

Net profit - This is the profit that remains at the disposal of the enterprise after paying all taxes, economic sanctions and contributions to charitable foundations.

It is necessary to analyze the composition of balance sheet profit, its structure, dynamics and implementation of the plan for the reporting year.

When analyzing the composition and dynamics of balance sheet profit, the following calculations are made:

ü The actual structure of balance sheet profit is found as the share of each financial result included in the balance sheet profit in the total amount of balance sheet profit;

ü There is a change in the structure of balance sheet profit compared to last year and the plan;

ü There is progress (in %%) for balance sheet profit as a whole and for groups of financial results;

ü The growth rate (in %%) of balance sheet profit is calculated.

Previously, the amount of balance sheet profit for the previous year is recalculated to the price index for the company's products.

The analysis is carried out in the following table:

Table 7.1 - Analysis of the composition, structure, implementation of the profit plan for the reporting year.

Analysis of profit from sales of products (services, works)

Enterprises receive the bulk of their profits from the sale of products and services. In the process of analysis, the dynamics and implementation of the plan for profit from product sales are studied and the factors for changing its amount are determined.

Profit from the sale of products, works, and services for the enterprise as a whole depends on 4 factors:

1. Product sales volume (VVP),

2. Product structures (UD)

3. Product cost (C)

4. Level of average prices (P).

The total change in profit is defined as the difference between the profit of the reporting period and the planned amount of profit

1. Product sales volume can have a positive and negative impact on the amount of profit. Increasing sales of profitable products leads to a proportional increase in profits. If the product is unprofitable, then with an increase in sales volume, the amount of profit decreases.

To find influence first factor it is necessary to multiply the amount of planned profit by the percentage of overfulfillment or underfulfillment of the plan for the sale of products valued at cost.

where, respectively, is the planned cost of the actual and planned volume of product sales; - coefficient of plan fulfillment in terms of volume of products sold.

2. Structure of commercial products can have both a positive and negative impact on the amount of profit. If the share of more profitable types of products in the total volume of their sales increases, then the amount of profit will increase and, conversely, with an increase in the proportion of low-profit or unprofitable products, the total amount of profit will decrease.

Influence structural factor calculated using the balance method: first, they find the difference between the profit according to the plan, recalculated to the actual sales volume, and the profit according to the plan, and then subtract the change in profit due to the change in the volume of product sales from the obtained result.

where is the profit according to the plan, recalculated for actually sold products, is the new profit from sales of products; - change in profit from product sales due to changes in the volume of product sales

3. Influence production costs are found by subtracting from the actual cost of products sold, the cost of production according to the plan, recalculated to the actual volume of sales, and, taking into account the inverse relationship between profit and cost, the result changes its sign to the opposite.

where is the actual full cost of products sold; – planned full cost of actual sales volume

4. Influence prices- this is the difference between actual sales revenue and plan revenue recalculated to the actual volume of product sales.

where is the actual and planned sales revenue for the actual volume of sales without deduction of taxes

The company receives the bulk of its profit from the sale of products. In the process of analysis, the dynamics of profit from product sales, the implementation of the plan for profit from product sales are studied, and the factors for changing its amount are determined.

Profit from sales is influenced by factors such as changes in:

1) volume of product sales;

2) structure of products sold;

1) selling prices for sold products;

2) prices for raw materials, materials, fuel;

3) tariffs for energy and transportation;

4) the level of costs of material and labor resources.

The influence of the listed factors on profit from product sales is determined using the following algorithm:

1) determine the total change in profit (∆Р) from product sales:

∆Р = Р 1 – Р 0 ,

where P 1 is the profit of the reporting year; P 0 – profit of the base year;

2) determine the impact on profit of changes in selling prices for sold products (∆Р 1):

∆Р 1 = N р1 – N р1.0 = ,

where N р1 = – sales of products in the reporting year in prices of the reporting year (p – price of the product; q – number of products); N р1.0 = – sales of products in the reporting year in prices of the base year;

3) determine the impact on profit of changes in production volume (product volume assessed at planned cost):

P 2 = P 0 K 1 – P 0 = P 0 (K 1 – 1),

where P 0 is the profit of the base year; K 1 = S 1.0 / S 0 – growth rate of product sales volume. Here S 1.0 is the actual cost of products sold for the reporting period in prices and tariffs of the base period; S 0 – cost of production of the base year (period);

4) determine the impact on profit of changes in production volume caused by changes in the structure of products (∆Р 3):

∆Р 3 = Р 0 (К 2 – К 1),

where K 2 = N 1.0 / N 0 – sales volume growth factor estimated at selling prices. Here N 1.0 – sales in the reporting period at prices of the base period; N 0 – sales in the base period;

5) determine the impact on profit of savings from reducing product costs (∆Р 4):

∆Р 4 = S 1.0 – S 1,

where S 1.0 is the cost of goods sold for the reporting period in prices and conditions of the base period;

S 1 – actual cost of products sold for the reporting period;

6) determine the impact on profit of changes in cost due to structural changes in the composition of products (∆Р 5):

∆P 5 = S 0 K 2 – S 1.0.

Separately, according to accounting data, the impact on profit of changes in prices for materials and tariffs for services (∆P 6), as well as savings caused by violations of economic discipline (∆P 7) are determined.

The sum of factor deviations gives the total change in profit from sales for the reporting period, which is expressed by the following formula:

∆Р = Р 1 – Р 0 = ∆Р 1 + ∆Р 2 + ∆Р 3 + ∆Р 4 + ∆Р 5 + ∆Р 6 + ∆Р 7.

Profit from sales of products for the enterprise as a whole depends on four first-level factors:

1) volume of product sales (VRP);

2) structure of products sold ();

1) cost of goods sold ();

2) the level of average selling prices ().

Thus, profit from sales of products for the enterprise as a whole is determined by the formula:

The volume of product sales can have a positive and negative impact on the amount of profit. Increasing sales of more profitable products leads to increased profits. If the product is unprofitable, then with an increase in sales volume, the amount of profit decreases.

The structure of commercial products can have both a positive and negative impact on the amount of profit. If the share of more profitable types of products in the total volume of their sales increases, the amount of profit will increase. On the contrary, with an increase in the share of low-profit or unprofitable products, the total amount of profit will decrease.

The cost of production is inversely proportional to profit: a decrease in cost leads to a corresponding increase in the amount of profit, and vice versa.

The change in the level of average selling prices is directly proportional to profit: as the price level increases, the amount of profit increases, and vice versa.

The procedure for calculating these indicators in a systematic form is presented in table. 7.2.

Table 7.2 Calculation of the influence of first-level factors on the change in the amount of profit from product sales

According to the table. 7.2, you can establish how the amount of profit has changed due to each factor. We determine the change in the amount of profit due to:

· volume of product sales

;

· structure of commercial products

;

· selling prices

;

· cost of goods sold

.

It is also necessary to analyze the implementation of the plan and the dynamics of profit from the sale of certain types of products, the amount of which depends on three factors of the first level:

1) volume of product sales;

1) cost;

2) average selling prices.

The factor model of profit from the sale of certain types of products has the form:

After this, it is necessary to study in detail the reasons for changes in sales volume, price and cost for each type of product.

To analyze and assess the level and dynamics of profit indicators, a table is compiled that uses data from the financial statements of a business entity (Table 8).

Table 8 – Profit indicators for 2009 -2011

As a result of analyzing the dynamics of profit, it is possible to identify changes in the financial result of the enterprise’s economic activity:

(5)

(thousand roubles.)

In 2010, compared to 2009, profit increased by 937 thousand rubles. or 6.94% (106.94 – 100).

(thousand roubles.)

In 2011, compared to 2010, profit increased by 252 thousand rubles. or 1.75% (101.75 – 100).

Based on the data obtained, we can say that the company has achieved high financial results in its economic activities.

When selling fixed assets and other property, the enterprise obtained the following financial result:

from sales of PF = (other income, reporting – other expenses, reporting) - (other income, previous – personal expenses, previous)

2010 from sales of PF = (1529 – 790) - (1160 – 480) = 24+15 = 59 (thousand rubles) or 8.68%

In 2010, compared to 2009, the excess of other income over expenses allowed an increase in profit by 59 thousand rubles. or 8.68%

2011 from sales of PF = (1272-420) – (1529-790) = 113 (thousand rubles)

In 2011, compared to 2010, the excess of other income over expenses allowed an increase in profit by 113 (thousand rubles) or 15.29%.

Income from participation in other organizations affected profit before tax as follows:

income from participation in another body = income from account. to other organ. report – income from education in other organs. before

2010 = 610 – 550 = 60 (thousand rubles)

In 2010, compared to 2009, income from participation in other organizations allowed an increase in profit before tax by 60 thousand rubles. or 10.9%

2011 = 680 – 610 = 70 (thousand rubles)

In 2011, compared to 2010, income from participation in other organizations allowed an increase in profit before tax by 70 thousand rubles. or 11.47%

We illustrate the data on the amount of profit before tax in the graph (Figure 1).

Figure 1 - Profit dynamics for 2009 -2011

To analyze the structure of profit, it is necessary to determine the specific weight of its components.

(6)

Analysis of the structure of balance sheet profit indicates that its main part is profit from sales of products. However, it should be noted that in 2011, compared to 2009, the importance of profit from product sales decreases; Indicators such as income from participation in other organizations, profit from other operations, and others begin to play important roles.

Based on the calculated data, you can create a table characterizing the composition and structure of profit indicators (Table 9).

Table 9 – Dynamics of the enterprise’s profit structure

Using the data from Table 10, we will clearly demonstrate the dynamics of the structure of profit before tax of the enterprise (Figure 2).

Figure 2 – Dynamics of the structure of profit before tax for 2009-2011.

Let's calculate the level of relative profitability indicator - the level of profitability for 2009-2011. Based on the calculation results, we will compile a summary analytical table (Table 10).

The data in Table 10 shows that in 2010, compared to 2009, profit from product sales increased by 818 thousand rubles. (13001 - 12183 thousand rubles), or by 6.17%, and in 2011, compared to 2010, profit from product sales increased by 49 thousand rubles. (13050 – 13001 thousand rubles), or by 0.38%; balance sheet profit in 2010 compared to 2009 increased by 1,743 thousand rubles. (12663 – 10920 thousand rubles) or by 15.96%.

Table 10 – Dynamics of financial indicators for 2009 – 2011

In 2011, compared to 2010, profit before tax increased by 107 thousand rubles. (12770 – 12663 thousand rubles) or by 0.84%; net profit in 2010 compared to 2009 increased by 13 thousand rubles. (8225 - 8225 thousand rubles), or by 0.16%, and in 2011 by 100 thousand rubles. (8325-8225 thousand rubles), or by 1.22%.

A negative result of the work is a decrease in the level of profitability in 2010 compared to 2009 by 3.9%, and in 2011 compared to 2010 by 1.2%. This means that the business entity received a profit for each ruble of production costs less in 2010 compared to 2009, 3.9 rubles, and in 2011, compared to 2010, by 1.2.

Thus, the amount of lost profits (i.e. the amount of lost profit) in 2010 compared to 2009 amounted to 2200.926 thousand rubles (-3.9 * 56434/100), and in 2011 compared to 2010 year amounted to 718.272 thousand rubles. (-1.2*59856/100).

Analysis of the implementation of planned indicators showed that in 2010, compared to 2009, net profit increased by 712 thousand rubles, and in 2011, compared to 2010, net profit increased by 191 thousand rubles. This positively characterizes the work of the business entity and its financial service employees. The decrease in profitability was due to an increase in the level of production costs.

A general assessment of the financial condition of an enterprise is achieved on the basis of such performance indicators as profit and profitability.

The amount of profit and the level of profitability depend on the production, supply, sales and commercial activities of the enterprise, in other words, these indicators characterize all aspects of management.

Analysis of the formation and use of profit assumes the following stages:
1. Analysis of the composition and dynamics of balance sheet profit.
2. Analysis of financial results from ordinary activities.
3. Analysis of the level of average selling prices.
4. Analysis of financial results from other activities.
5. Analysis of the profitability of the enterprise.
6. Analysis of the distribution and use of profits.

Information sources: invoices for the shipment of products, analytical accounting data for the sales account and the accounts “Profit and Loss”, “Retained Earnings, Uncovered Loss”, accounting reporting form No. 2 “Profit and Loss Statement”, financial plan data.

The analysis uses the following profit figures: balance sheet profit, taxable profit, net profit.

Balance sheet profit includes profit from ordinary activities, financial results from operating and non-operating transactions and extraordinary circumstances. The scheme for the formation of balance sheet profit is shown in Fig. 14.

Taxable income represents the difference between profit from ordinary activities and the amount of income tax benefits.

Net profit- this is the part of the profit that remains at the disposal of the enterprise after paying income tax.

7.1. Analysis of the composition and dynamics of balance sheet profit

In the process of analysis, it is necessary to study the composition of profit from ordinary activities, its structure, dynamics and implementation of the plan for the reporting year. When studying the dynamics of profit, it is necessary to take into account inflationary factors of changes in its amount. To do this, revenue must be adjusted by the weighted average increase in prices for the enterprise's products on average in the industry, and the cost of goods, products (works, services) must be reduced by their increase as a result of an increase in prices for consumed resources over the analyzed period.

To analyze profits by composition and dynamics, an analytical table is drawn up. 25.

Table 25

Analysis of the composition, dynamics and implementation of the profit plan

Fig. 14. Scheme of factor analysis of profit

7.2. Analysis of financial results from ordinary activities

The bulk of the enterprise's profit comes from ordinary activities, which include profit from sales of products (works, services).

Profit from product sales for the enterprise as a whole depends on four factors of the first level of subordination: product sales volume (VRP); its structure (UD i); cost (Z i) and the level of average selling prices (C i).

The volume of product sales can have a positive and negative impact on the amount of profit. Increasing sales of profitable products leads to a proportional increase in profits. If the product is unprofitable, then with an increase in sales volume, the amount of profit decreases.

The structure of commercial products can have both a positive and negative impact on the amount of profit. If the share of more profitable types of products in the total volume of their sales increases, then the amount of profit will increase, and vice versa, with an increase in the proportion of low-profit or unprofitable products, the total amount of profit will decrease.

The cost of production and profit are inversely proportional: as the price level increases, the amount of profit increases and vice versa.

Calculation of the influence of these factors on the amount of profit can be performed using the method of chain substitutions, sequentially replacing the planned value of each factor with the actual value (Table 26)

Table 26

Calculation of the influence of first-level factors on changes in the amount of profit from sales

Change in the amount of profit due to:

volume of product sales

structure of commercial products

average selling prices

cost of products sold

First you need to find the amount of profit given the actual sales volume and the planned value of other factors. To do this, you should calculate the percentage of plan fulfillment in terms of product sales volume, and then adjust the planned amount of profit by this percentage.

Fulfillment of the sales volume plan is calculated by comparing the actual sales volume with the planned volume in natural (if the products are homogeneous), conditionally natural and in value terms (if the products are heterogeneous in composition), for which it is advisable to use the basic (planned) level of cost of individual products, so as cost is less susceptible to the influence of structural factors than revenue.

Then you should determine the amount of profit based on the actual volume and structure of products sold, but at the planned cost and planned prices. To do this, it is necessary to subtract the notional amount of costs from the conditional revenue:

If an enterprise produces heterogeneous types of products, then the structure of products sold is determined by the ratio of each type of product assessed at planned cost to the total volume of sales of products in the same assessment. In this situation, to calculate the influence of the structural factor on the change in the total amount of profit, the model is used

Where R ipl – planned profitability i-x types of products (the ratio of the amount of profit to the total cost of products sold).

It is also necessary to analyze the implementation of the plan and the dynamics of profit from the sale of certain types of products, the value of which depends on three first-order factors: the volume of product sales (VRP i), cost (Z unit i) and average selling prices (P i). The factor model of profit from the sale of certain types of products has the form

7.3. Analysis of the level of average selling prices

The average selling price per unit of product is calculated by dividing the proceeds from the sale of the corresponding product by sales volume. The change in its level is influenced by the following factors: the quality of products sold, sales markets, market conditions, inflationary processes.

The quality of commercial products is one of the main factors on which the level of the average selling price depends. Higher prices are set for higher quality products and vice versa.

Change in the average price of a product due to its quality (DTs quality) can be defined as follows:

,

Where C n And C p– respectively, the price of a product of new and previous quality; VRP n– volume of sales of new quality products; VRP total– total sales volume i-th type for the reporting period.

Calculation of the influence of product grade on the change in average price can be performed using the method of absolute differences.

To do this, we multiply the deviation of the actual share from the planned one for each variety by the planned price per unit of production of the corresponding variety, sum the results and divide by 100:

.

The data can be summarized in Table 27.

Table 27

Calculation of the influence of product quality on its average selling price

If the coefficient of exceeding the plan is 1.1296320 (30500:2700), then the actual sales volume for grade I in terms of the planned grade is equal to 24400 units. (21600 x 1.129630).

The data obtained indicate that due to an increase in the share of products of grade I and a decrease in grade II, revenue from its sales increased by 114,375 thousand rubles (225,31875-22,417,500), and the average price per unit of product increased by 3.75 thousand rubles = [( +5 . 750)+(-5 . 675)] :100.

Using the same methodology, the change in the average selling price is calculated depending on the sales markets of the products.

If during the year there was a change in selling prices for products compared to the planned ones due to inflation, then the change in price for each type of product is multiplied by the volume of its sales at new prices and divided by the total number of products sold during the reporting period.

7.4. Analysis of financial results from other activities

Fulfillment of the profit plan largely depends on financial results of activities not related to product sales. These are financial results obtained from operating, non-operating operations and extraordinary circumstances.

The analysis comes down mainly to studying the dynamics and causes of losses and profits in each specific case. Losses from the payment of fines arise due to violations by individual services of contracts with other enterprises, organizations and institutions. During the analysis, the reasons for unfulfilled obligations are established, and measures are taken to prevent mistakes.

A change in the amount of fines received may occur not only as a result of violation of contractual obligations by suppliers and contractors, but also due to weakening of financial control over them. Therefore, when analyzing this indicator, it is necessary to check whether, in all cases of violation of contractual obligations, appropriate sanctions were presented to suppliers.

Losses from writing off bad accounts receivable usually occur at those enterprises where accounting and control over the status of payments is at a low level. Profits (losses) of previous years identified in the current year also indicate shortcomings in accounting.

Income from securities (stocks, bonds, bills, certificates, etc.) deserves special attention. Enterprises holding securities receive certain income in the form of dividends. In the process of analysis, the dynamics of dividends, stock prices, net profit per share are studied, and the rate of their growth or decline is established.

At the end of the analysis, specific measures are developed aimed at preventing and reducing damages and losses from these types of activities.

7.5. Product profitability analysis

Profitability indicators characterize the final results of business more fully than profit, because their value shows the relationship between the effect and the available or used resources. They are used to evaluate the activities of an enterprise and as a tool for investment policy and pricing.

Profitability indicators can be combined into several groups:
1) indicators characterizing the profitability (recoupment) of production costs and investment projects;
2) indicators characterizing the profitability of sales;
3) indicators characterizing the profitability of capital and its parts.

All these indicators can be calculated on the basis of balance sheet profit, profit from sales of products and net profit.

Profitability of production activities(recoupment of costs) (R 3) is calculated by the ratio of balance sheet ( Pb) or net profit ( Pch) to the amount of costs for products sold or produced (Z):

It shows how much profit the company makes from each ruble spent on the production and sale of products. It can be calculated for the enterprise as a whole, its individual divisions and types of products.

Return on sales(R n) is calculated by dividing the profit from the sale of products, works and services or net profit by the amount of revenue received (RP). Characterizes the efficiency of entrepreneurial activity: how much profit does the enterprise have per ruble of sales. This indicator is widely used in a market economy. It is calculated for the enterprise as a whole and for individual types of products.

.

Return on capital(R k) is calculated by the ratio of balance sheet (net) profit to the average annual cost of all invested capital () or its individual components: own (shareholder), borrowed, fixed, working, production capital, etc.

.

In the process of analysis, it is necessary to study the dynamics of the listed profitability indicators, the implementation of the plan at their level and conduct inter-farm comparisons with competing enterprises.

The level of profitability of production activities (recoupment of costs), calculated for the entire enterprise(R), depends on three main factors of the first order: changes in the structure of products sold, their cost and average selling prices.

The factor model of this indicator has the form:

Produced in the same way factor analysis of profitability of sales.

.

The deterministic factor model of this indicator, calculated for the entire enterprise, has the following form:

The level of profitability of sales of certain types of products depends on the average price level and cost of the product: (VFactor analysis of return on invested capital is carried out similarly. The balance sheet amount of profit depends on the volume of products sold RP) , its structures(UD) i , cost(3 units), average price level(UD) (C

and financial results from other activities not related to the sale of products and services (VFR).

The average annual amount of fixed and working capital () depends on the sales volume and the rate of capital turnover (turnover ratio K about), which is determined by the ratio of the amount of turnover to the average annual amount of fixed and working capital.

Conversely, a slowdown in capital turnover requires additional attraction of funds to ensure the same volume of production and sales of products.

Thus, sales volume in itself does not affect the level of profitability, because with its change, the amount of profit and the amount of fixed and working capital increase or decrease proportionally, provided that other factors remain unchanged.

.

The relationship between these factors and the level of return on capital can be written in the form

Reserves for increasing the amount of profit are determined for each type of commodity product.

Their main sources are an increase in the volume of product sales, a reduction in its cost, an increase in the quality of commercial products, their sale in more profitable markets, etc. (Fig. 15)

Fig. 15. Scheme for calculating reserves for increasing profits from product sales

7.6. Analysis of the distribution and use of enterprise profits

After paying taxes, profits are distributed as follows: one part is used to expand production (accumulation fund), the other is used for capital investments in the social sphere (social sector fund), and the third is used for material incentives for the enterprise's employees (consumption fund). A reserve fund of the enterprise is also created.

In addition, in the process of analysis it is necessary to study the implementation of the plan for the use of profits, for which the actual data on the use of profits in all areas are compared with the data of the plan and the reasons for deviations from the plan in each direction of the use of profits are clarified.

The main factors determining the amount of contributions to savings and consumption funds may be changes in the amount of net profit (P h) and the coefficient of profit deductions to the relevant funds (TOi).

The amount of profit deductions to the enterprise funds is equal to the product of two factors: Fi= Pch. TOi. This means that to calculate their influence, you can use one of the methods of deterministic factor analysis (Table 28).

Table 28

Calculation of the influence of first-level factors on the amount of contributions to enterprise funds

Then you need to calculate the influence of factors changing net profit on the amount of contributions to the enterprise funds. To do this, we multiply the increase in net profit due to each factor by the planned coefficient of contributions to the corresponding fund:

.

An important task of the analysis is to study the use of savings and consumption funds. The funds from these funds have a designated purpose and are spent according to approved budgets.

The accumulation fund is used mainly to finance the costs of expanding production, its technical re-equipment, introduction of new technologies, etc.

The social sector fund can be used for collective needs (expenses for the maintenance of cultural and healthcare facilities, holding recreational and cultural events), the consumption fund can be used for individual needs (remuneration based on the results of work for the year, financial assistance, the cost of vouchers to sanatoriums and holiday homes, scholarships for students, partial payment of food and travel, retirement benefits, etc.).

In the process of analysis, the correspondence of actual expenses to the expenses provided for in the estimate is established, the reasons for deviations from the estimate for each item are clarified, and the effectiveness of activities carried out at the expense of these funds is studied.

When analyzing the use of savings fund funds, one should examine the completeness of financing of all planned activities, the timeliness of their implementation and the resulting effect.

In foreign countries, to ensure a systematic approach to studying the factors of changes in profit and predicting its value, marginal analysis is used, which is based on marginal income.

Marginal income (MI) is the profit plus fixed costs (A).

MD=P+A,

P=MD-A.

Very often, when determining the amount of profit, instead of marginal income, revenue (RP) and the share of marginal income in it (D y) are used.

Because the

,

.

This formula is successfully applied when it is necessary to analyze the profit from the sale of several types of products.

When analyzing profit from the sale of one type of product, you can use a modified formula for determining profit if you know the quantity of products sold and the marginal income rate (D s) in unit price:

Where IN- variable costs per unit of production.

The last formula allows you to determine the change in the amount of profit due to the quantity of products sold, price and level of variable and fixed costs.

The method of profit analysis becomes somewhat more complicated in conditions of multi-item production, when, in addition to the listed factors, it is necessary to take into account the influence of the structure of products sold.

In foreign countries, to study the influence of factors on changes in the amount of profit in multi-item production, a model is used .

The average share of marginal income in revenue () in turn depends on the share of each type of product in total revenue ( UDi) and the share of marginal income in revenue for each product (the ratio of the marginal income rate to the price):

; .

After this, the factor model of profit from product sales will have the form

.

It allows you to determine the change in profit due to the quantity (volume) of products sold, its structure, selling prices, unit variable costs and fixed expenses of the enterprise.

Profitability Analysis Methodology according to the “direct cost” system will be carried out using the following factor model

.

To analyze the profitability of costs for the enterprise as a whole, we use the following factor model:

By successively replacing the planned (basic) level of each factor indicator with the actual one and comparing the calculation result before and after replacing each factor, it is possible to determine the change in the level of profitability due to the volume of products sold RP total, its structures ( UDi), prices ( C), specific variable costs (IN) and the amount of fixed costs (A).

The profitability of sales (business activities) is analyzed in a similar way:

The analysis of return on invested capital is carried out using the following factor model:

Where P b – balance sheet profit ; IR – average annual amount of investment capital; - amount of turnover (cost of products sold); K about– capital turnover ratio (the ratio of the amount of turnover to the average annual amount of capital); VFR– non-operating financial results.

Profitability analysis is carried out in a similar way if the capital turnover ratio is calculated not according to debit, but according to credit turnover of account 46, i.e. by revenue. Then the factor model of return on investment capital will have the form

The advantage of the considered methodology for analyzing profitability and profitability indicators is that its use takes into account the relationship between the elements of the model, in particular sales volume, costs and profits. This provides a more accurate calculation of the influence of factors and, as a result, a higher level of planning and forecasting of financial results. The use of this method in the financial management of domestic enterprises will make it possible to more effectively manage the process of generating financial results. However, this will become possible only if planning and accounting of enterprise costs is organized using the “direct costing” system, i.e. their groupings into constants and variables.

Questions for self-control
1. In what areas is profit analysis carried out?
2. What is the significance of analyzing the composition of profits over time?
3. In what sequence is the analysis of profit from ordinary activities carried out?
4. What factors influence changes in sales profit?
5. For what purpose is the analysis of average selling prices carried out?
6. What is the essence of analyzing financial results from other activities?
7. In what areas is profitability analysis carried out?
8. In what areas is the distribution and use of profit analyzed?
9. On what principles is profit analysis based in the direct costing system?