Which results in revenue growth. How is growth percentage calculated? Relative and absolute indicators of profit growth

In order to calculate the increase (in absolute or percentage terms), it is necessary to have the current value and the one with which the comparison is being made. To establish the dynamics of growth, the time intervals must be equal (for example, a week, a month, or a year).

Growth calculation is used in the management of financial and economic activity and also in statistics. Using a simple mathematical formula, you can find out how much your costs or income (personal or company as a whole) have increased over a certain period of time, calculate the increase in customers, and much more. As an example, let's try to calculate the percentage increase using a special formula.

Growth formulas

First you need to have some value that is taken as starting point. For example, the population of the city M on January 1, 2013. amounted to 100 thousand people.

If you want to know the growth for the year, you will need the value of the population of the city M on January 1, 2014. Let's say 150 thousand people. Now you can calculate the increase.

The increase in absolute value will be equal to the difference between the current value and the previous one:

• From the population in 2014, subtract the population in 2013: 150,000 - 100,000 = 50,000;
• Total: growth for the year is 50 thousand people.

The increase in percentage is equal to the ratio of the current value to the previous one, minus 1, multiplied by 100%:

• We divide the current value of 150,000 by the data on the past period of 100,000. We get 1.5;
• We subtract one: 1.5 - 1 \u003d 0.5;
• Convert to percentage: 0.5 * 100% = 50%;
• Total: population growth for the year is 50%.

To calculate the dynamics of population growth, annual data as of January 1 of each year will be needed.

If the growth value turns out to be negative, then there was a decline during the year (in this case, the population in the city M would decrease).

Each enterprise should provide for planned activities to increase profits.

In general terms, these activities can be of the following nature:

• increase in output;
• improvement ;
• sale or lease of surplus equipment and other property;
• reduction of production costs due to more rational use material resources, production capacity and areas, labor force and working hours;
• diversification of production;
• expansion of the sales market, etc.;
• rational use of economic resources;
• reduction of production costs;
• boost ;
• liquidation of non-production expenses and losses;
• raising the technical level of production.

In conditions market economy profit is enormous. The desire to obtain it directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. However, economic instability, the monopoly position of commodity producers distort the formation of profit as a net income, lead to the desire to receive income, mainly as a result of price increases.

Although profit is the most important economic indicator activity of the enterprise, it does not characterize the efficiency of its work. To determine the effectiveness of the enterprise, it is necessary to compare the results (in this case, profit) with the costs or resources that provided these results.

The main factors for increasing the profit of the enterprise

As you know, sales profit is the difference between sales revenue and the total cost of products, works, services. Thus, there are two ways to influence (increase, decrease) the profit of the enterprise:

• the first way is cost reduction;
• the second way is to increase revenue, i.e. sales volume.

Consider an example of the interaction of these paths (Fig. 13.1). To increase profit by 100 thousand rubles, it is necessary either to reduce costs by 100 thousand rubles, or to increase sales by 594 thousand rubles. (2994 - 2400).

Obviously, the most profitable option is to reduce costs, since:

Rice. 13.1. Ways to increase profits:

1 - initial version; 2 - the first way, cost reduction; 3 - the second way, increase sales

reducing costs by 4.1% is much easier than increasing sales by almost 25%;

increasing the volume of production requires additional costs, including working capital;

increasing sales requires conquering certain market segments.

It should be noted that cost reduction for the enterprise is an objective process. At the same time, not only because of the increase in profits, but also in connection with the competition and the need to reduce prices for manufactured products in certain situations. In these cases, in order to reduce or increase profits, it is necessary to switch to the release of new products in a timely manner.

The main factors influencing the cost reduction of the enterprise:

• Achieving an appropriate level of labor productivity.
• Ensuring the appropriate turnover of the company's funds and, above all, working capital and their sources.
• Optimization variable costs enterprises.
• Optimization fixed costs, i.e. overhead, general business and commercial expenses.
• Optimization of the capital structure of the enterprise, own and borrowed funds.
• Implementation of management accounting, improvement of budgeting.
• Supply cost optimization.
• Cost management.
• Other factors.

• Decreased stock levels.
• Elimination of all kinds of losses and unproductive expenses.

The main factors for increasing sales and revenue:

I. Factors - management requirements.

• Flexible production, allowing a constant increase in its volume, timely updating of products, expanding the range.
• Compliance with concluded agreements.
• Optimization of prices and pricing.
• Ensuring the highest quality of products, works, services.
• Periodic review of commercial lending policy.
• Other factors.

II. Factors related to possible reserves.

• Conquest and development of new markets.
• Dealer network expansion.
• Effective activity of the enterprise for the sale of products.
• Other factors.

The purpose of enterprise profit management: optimization of profit planning; obtaining at least the planned profit; optimization of profit distribution in terms of business efficiency.

It should be noted that all activities of the enterprise are aimed at realizing the goal of profit management. Part of this activity is focused on the implementation of another, no less important goal - ensuring the liquidity and solvency of the enterprise.

A profitable policy is as follows.

Analysis of actual financial results:

• the relationship between the income and expenses of the enterprise and its profit,
• financial analysis of revenue, profit and profitability of types
• profit - from sales, balance sheet, taxable, net;
• analysis and optimization of enterprise costs in the process of developing the cost, including the cost of goods sold, commercial and administrative expenses;
• marginal analysis and evaluation of marginal indicators;
• analysis of the capital structure and associated financial leverage, its impact on profitability own funds according to the Dupont formula;
• analysis of indicators of the turnover of the company's funds and its impact on the profitability of the company's own funds according to the Dupont formula;
• assessment of profit per share in joint-stock companies.

Analysis and assessment of the role and place of profit in internal financial relations, in the centers of financial responsibility.

Development and justification of a business plan ( financial plan), the financial budgets of the enterprise, including the forecast income statement based on the results of the analysis and other economic calculations. Types of documents and their content are determined by the enterprise.

Development of a profitable enterprise policy related to the distribution of net profit, including:

• dividend policy;
• investment policy;
• relation to the consumption fund;
• relation to the reserve fund at the expense of net profit;
• assessment of other payments from net income.

Development of an organizational plan of the enterprise, a kind of profit management regulation, including the principles of operational activities for the implementation of the planned profit.

In addition to the main provisions of the profitable policy outlined above, other provisions may be reflected in the relevant documents.

The growth rate is an important indicator that characterizes the increase in profits, output, etc. However, not everyone knows the formulas that allow you to calculate this important indicator. Our article will tell you how to determine the growth rate.

growth rate

• TR = (PTP-PPP) / PPP x 100%, where TR is the growth rate, PTP is the indicator of the current period, PPP is the indicator of the previous period.

For example, in 2012 your company earned 287 million rubles, and in 2013 the profit amounted to 299 million rubles. Calculate the growth rate percentage:

• TP \u003d (299 - 287) / 287 x 100% \u003d 4.18%

It turns out that in 2013 the profit of your company increased by 4.18%.

Growth decline rate

If your productivity or income does not increase, but falls, then in this case, consider the percentage of decrease in growth.

If it is necessary to calculate the average growth rate for several equal periods of time, use the following formula:

• TPp = ((PTP / PPP) 1/ n -1) x 100%, where TPp is the growth rate for a certain period, and n is the number of such periods.

For example, if we need to find the average growth rate of your business for each month, the formula would look like this:

• TPp \u003d ((299/287) 1/12 - 1) x 100% \u003d 0.31%

But determining the growth rate for one period of time is not very significant. Carry out a similar calculation for several different similar periods. Enter the data in a table, or rather build a graph. And you can analyze how the growth rate has changed over time. For example, 2009, 2010, 2011, 2012 and 2013.

As you can see, there is nothing complicated in calculating the rate of growth or decline if you know the appropriate formulas and be able to use them. And for the analysis of profitability or unprofitability, this indicator is indispensable.

The profit of the company is the main source of cash receipts of the company as a result of its activities. It is the main source of income for the company. The options for the receipt of profits in the assets of the company are as follows:

• sale of goods, products;
• provision of various services.

It should be noted that all the costs of the company, which are associated with the receipt of the above sources of income, are not included in the concept of profit. the main objective firms - profit maximization.

The main indicator of the effectiveness of any business is the profit from sales. Profitability and efficiency, direction of movement may depend on its size. Money and asset turnover.

concept

Profit from sales is understood as an indicator that is able to assess the company's activities and the level of its effectiveness. The amount of profit should be sufficient to cover expenses and carry out normal activities.

To analyze the effectiveness of the company, they take the values ​​of profit from sales for the previous period and compare them with the reporting data. On the dynamics draw conclusions. If the indicator has grown during the reporting period, then the company's efficiency is evident.

In general, the indicator under study is the difference between gross income and the cost of selling products (goods).

It is possible to associate the measure of profit from sales with the value of operating profit in international practice, that is, with the profit that the firm produces in the market in the process of functioning.

The concept of "sales" in this case implies not only profit from operations in the direction of trade, but also any other types of sales with the conclusion of transactions and sales contracts with partners.

The indicator of profit from sales allows you to evaluate the amount of profit received by the company for the period of operation in its core business, enshrined in the charter.

Differences between revenue and profit

The table below shows the main differences between the company's revenue and the concept of its profit.

Compare sales revenue and sales revenue.

The relationship here is as follows: we remove expenses and expenses from the proceeds, we get a profit. We multiply the price of the goods by the natural volume of sales, we get the proceeds.

Formula for calculation

For on sales and the formula for its calculation, imagine the following dependence:

Where VP is an indicator of gross profit, t.

B - total revenue, t.

C - the total costs of the company, t.

In a more visual form, the formula looks like this:

Pr \u003d B - UR - KR,

where B is the sum of the company's gross profit, tr.

Pr - the amount of profit from the sale, t.

SD - the amount of administrative expenses, t.

KR - the amount of commercial expenses, t.

In turn, gross profit is the difference between the revenue received by the company and the costs incurred:

B \u003d Vyr - Seb,

where Vyr - the amount of revenue received, t.

Seb - the amount of expenses incurred (cost), t.

Thus, in order to correctly calculate the profit from sales, it is necessary to obtain accurate information about all amounts of income and all amounts of expenses of the company during the study period.

Further calculations when using the indicator under study relate to the concept of net profit, which can be determined:

PE \u003d PR + PD - Pras - N,

where is the state of emergency net profit, t.r.

PR - profit from sales, t.

PD - other income, t.

Pras - other expenses, t.

H - tax on profit from the sale, t.

Marginal profit

The concept of profit from the sale of goods is closely related to the definition contribution margin:

Pmarzh \u003d B - PZ,

where Pmarzh - the amount of marginal profit received, i.e.

B is the company's revenue, t.

PZ - the sum of the company's variable costs, t.

Variable costs may include the following items:

• wages of workers associated with the manufacture of products (its sale), that is, the main ones;
• production costs for raw materials for the manufacture of products;
• payment of costs for electricity, gas, etc.

Marginal profit is directly related to the volume of production of the company, so, with their growth, the amount of profit will also increase. This type of profit provides opportunities to cover costs in terms of fixed costs.

Internal factors

Since profit is the main source of income for the company, it is necessary to carefully examine all the factors that can increase (or decrease) it. Among all factors, both external and internal can be distinguished.

Among internal factors select:

• The volume of sales of goods, which is associated with the profitability of sales. At high profitability sales and sales growth sales profit is also growing. Otherwise, if the profitability is low, then the growth in sales will, on the contrary, lead to a drop in profits.
• The structure of the assortment list.
• Costs of goods (there is an inverse relationship: with an increase in costs, profit falls).
• The cost of the goods (if it grows, so does the profit).
• Amount of business expenses.

External factors

External factors include:

• depreciation and accrual policy;
• government bodies and their influence;
• natural features;
• general market sentiment (demand, supply level, etc.)

The growth of sales volumes in natural units always contributes to the growth of profit from the sale of the company, and hence financial growth. In the case of sales of unprofitable goods, the profit is directed downward. Profit growth can also be ensured by an increase in the volume of sales of cost-effective goods in the structure of the product range, which leads to an improvement in the financial condition of the company. If the share of low-margin products (or unprofitable) in the sales structure is higher, then the profit also falls.

A fall in the level of prime cost and costs contributes to an increase in the level of profit from sales, an increase in costs contributes to a decrease in profit. Profit from sales and cost are inversely related to each other. Such expenses, in particular, include commercial and administrative expenses.

The dynamics of prices for sold products has a significant impact on the level of profit. An increase in prices leads to an increase in sales volumes, and hence an increase in profits from sales. In the reverse situation, a decrease in prices leads to a decrease in the firm's revenue, as well as a drop in profits.

The company's management is able to influence all the above factors in the direction of reducing the impact of negative ones. As a result of their impact, a profit or loss from sales is formed.

Application of methods factor analysis makes it possible to show reserves for increasing sales efficiency and determine the optimal management decisions. For this purpose, use the data from the "Report on financial results".

It is very difficult for an enterprise to influence external factors, since they are determined by the state of the firm's sales market. Directly, these factors are not able to influence the profit of the company, their action is indirect.

Examples

We analyze the profit from sales using specific examples.

Example 1. Astra LLC received the following performance indicators for 2017:

• revenue amounted to 100,000 tons;
• the cost was 85,000 tons.

The formula for the calculation is as follows:

Gross profit \u003d Revenue - Cost,

Gross profit \u003d 100,000 - 85,000 \u003d 15,000 tons

Gross profit amounted to 15,000 tons.

Example 2. In 2017, Klima LLC sold 1000 units of goods at a price of 500 rubles. The cost of one unit of goods was 350 rubles. The total cost of selling products amounted to 15,000 rubles. It is necessary to determine the profit from the sale.

To solve, we find the total revenue from the sale of goods:

1000 * 500 = 500,000 rubles.

Let's define the total costs (cost):

1000 * 350 = 350,000 rubles.

Let's calculate the value:

Sales profit \u003d Revenue - cost - sales expenses \u003d 500,000 - 350,000 -15,000 \u003d 135,000 rubles.

Thus, the amount of the desired indicator was 135,000 rubles.

Where to find in reporting

In the company's reporting forms, the profit indicator is reflected as follows:

• there is no profit from the sale in the balance sheet;
• profit in the "Statement of financial results" is reflected in line 2200.

The fact that there is no line in the balance sheet to indicate this profit is due to the fact that the basis of the balance sheet is the grouping of assets and liabilities of the company according to the degree of urgency. The balance sheet is a document that characterizes financial position for a specific date.

A "statement of financial results" involves the accumulation of the financial results of the company for a certain period of time. It classifies income and expenses by direction.

The calculation of profit from sales according to the reporting is as follows:

Line 2200 = Line 2100 - line 2210 - line 2220

Calculation according to accounting data

The amount of the studied indicator can be determined according to the accounting data of the company:

Profit from sales \u003d Credit turnover of subaccount 90-1 "Revenue" - Debit turnover of subaccount 90-2 "Cost of sales"

Sub-account 90-2 reflects the cost of production, as well as commercial and administrative expenses.

Analytical accounting for this sub-account provides a division of costs into separate accounts in order to be able to identify the amount of commercial expenses, management costs.

Conclusion

AT modern conditions the functioning of the market is present high degree segmentation. The company needs to choose the area of ​​activity in which it can get a decent share of the local market, outperform competitors and increase its profits and profitability.

In this case, the indicator of profit from sales is the main indicator of the effectiveness of the use of the company's available capital, its assets, management methods and marketing promotion tools in the selected segment. Therefore, this indicator is defined as the main indicator of the effectiveness of the enterprise in a particular area of ​​activity.

By investing in business development, buying stocks, real estate or bonds, an entrepreneur expects to increase investments, that is, to get a gain. To figure out how to calculate growth, you need to understand what it is. Growth is an increase in the value of fixed capital, which provides for the receipt of more funds (profit) during its implementation. Until the asset is sold, it is considered that the income is not received.

The calculation will require the values ​​of the current price and the previous one. The results of the calculation are used to manage financial and economic activities, as well as to maintain statistics. The growth value allows you to determine whether income, the number of customers or any other indicator has increased or decreased over the period under review.

Types of growth

• Implemented- it is received in the event that the investment objects were sold and a profit was made on them.
• Unrealized- occurs when there are investments that are not realized, but can bring profit after the sale.

Management

For the calculation, you will need to set the time interval and determine the initial (base) point. It can be the beginning of a year, a month, or another time period.

The increase can be absolute. Its value is equal to the difference between the indicators of the current and base (or previous) periods. For example, the cost of producing a unit of output at the beginning of the year was 150 rubles, and at the end - 175 rubles. The absolute increase in value amounted to 175-150=25 rubles.

Growth is often considered in relative terms (growth factor). To do this, the value of the current indicator is divided by the base or previous value. For example, 175/150=1.16. This suggests that the cost of production has increased by 1.16 times. To get the value as a percentage, you need to multiply the result by 100%. In our example, this will be 16%.

To analyze the effectiveness of activities or investments, it is required to determine the growth rate. To do this, determine the indicators corresponding to the start and end points. For example, the value of shares at the beginning of 2014 was 250 thousand rubles, and by the end of the year - 420 thousand rubles. Then, the initial value is subtracted from the value of the final indicator (420000-250000=170000). The result must be divided by the initial value and multiplied by 100%. (170000/420000*100=40%). In the considered example, the rate of increase in the value of shares for the year was 40%.

To generalize the results over a long period (for example, several years), the average absolute increase is calculated. To do this, find the difference between the final and initial indicators, then it must be divided by the number of periods.

Growth can be negative. For example, if the value of shares by the end of the year amounted to 210 thousand rubles, then the increase will be equal to:
(210000-250000)/210000*100=-19%.

Depending on the purpose of calculating the absolute increase, the basic or chain methods are used. The basis of the basic method is the comparison of indicators of any period with the base. In the chain method, current indicators are compared with previous ones.

Question: How to calculate profit growth?
Answer: The absolute value is the difference between the current and the baseline (or previous) value. Relative - the result of dividing the current indicator by the base (or previous).

Question: How to get the average monthly increase if several different periods are taken into account?
Answer: To do this, the indicators for each month are calculated separately. Then they need to be added and divided by their number.

Question: When calculated, it received a negative value. What does it mean?
Answer: This means that the investment did not bring profit, but became unprofitable.