Net profit– an indicator of the enterprise’s income. Expressed in a specific amount that remains with the company after all settlements with suppliers, personnel and tax authorities. It does not contain operating costs.

 

Net profit includes part balance sheet profit enterprise, from which taxes, fees, other contributions to the budget, as well as enterprise expenses (commercial, administrative, wage costs, etc.) are excluded. It remains entirely at the disposal of the company. From it, the company’s funds are updated, dividends are paid to shareholders, and working capital. The money can be used for business needs, its expansion, and equipment modernization.

Calculation by formula

The calculation is made using the following indicators:

• financial profit (Pf);
• gross (Gv);
• operating room (O);

Data is taken for the same period of time, for example, month, quarter, year, from accounting report about profits and losses.

Calculation formula:

Pch = Pf + Pv + Po - N.

Financial, gross, operating profit is all profit before tax. Financial represents the difference between financial income and expenses, operating - between operational. Gross - between revenue and cost of goods.

Profit before tax is the difference between revenue and costs of purchasing goods (cost, delivery, preparation, wages, VAT).

The amount of tax deductions depends on the taxation system and the field of activity.

Business taxes

Tax rates:

• the main tax system is 20%, this amount is paid by enterprises from their income if they do not apply other regimes;
• when choosing a simplified system (STS), the amount of deductions is 6% (income is taxed) or 15% (the difference between income and expenses);
• for agricultural enterprises - 6%;
• UTII - 15% of imputed income;

The simplified tax rate may be reduced in some regions.

Examples of calculations

Example 1

Initial data:

• OSN 20%;
• employees - 1, salary - 40 thousand rubles. before taxes and contributions for the 1st quarter;
• revenue for the first quarter 2015 - 2,000 thousand rubles. (including VAT 360 thousand rubles);
• costs for the purchase of goods for the 1st quarter. 2015 - 1,200 thousand rubles (including VAT 216 thousand rubles);
• costs of delivery and preparation for sale for the first quarter. 2015 - 150 thousand rubles. (including VAT 27 thousand rubles).

VAT payable - 117 thousand rubles. (216 and 27 - to be reimbursed from the budget).

Personal income tax and contributions = 5.2 (13%) + 8.8 (PFR) + 2.04 (FFOMS) + 1.16 (FSS) = 17.2 thousand rubles.

Profit before tax (553 thousand rubles) = 1,640 thousand rubles. (revenue excluding VAT) - 1,107 thousand rubles. (purchase costs excluding VAT + delivery and preparation costs excluding VAT).

Pch = 553 - 17.2-20% = 428.64 thousand rubles.

Example 2

Initial data:

• simplified tax system 15%;
• no employees;
• revenue for 2014 - 2,300 thousand rubles;
• costs for the purchase of goods - 1,500 thousand rubles;
• costs for delivery and preparation for sale - 300 thousand rubles.

Since the taxation system is simplified, VAT is not taken into account in the calculations.

Amount of contributions = 20727.53 rubles. (for an amount up to 300 thousand rubles) + 20,000 rubles. = 40,727.53 rub.

Pch = 2,300 - 1,500 - 300 - 40.72753 - 15% (STS) = 390.37 thousand rubles.

Summary

Net profit is an important indicator of the performance of an enterprise. It reflects the development of the company, its creditworthiness and shows its investment attractiveness.

One of the most important moments The success of an enterprise or any business is net profit. All of them are created and work for the sake of net income, since it determines the success or unprofitability of the company. Not only timely paid salaries to employees depend on this, but also the formation of a platform for unstable economic situation enterprises, as well as the owner's income.

First of all, you need to decide on the period for which the company’s net income will be calculated. It could be month, quarter or year. When calculating, you need to take into account all the summed up results. financial transactions for the selected period. Any company simultaneously makes many calculations that affect the final income. Mainly taken:

• The company's total financial profit for the selected period.
• Gross profit.
• The amount of funds that went to pay salaries and taxes.
• The cost of goods or services provided by the company is taken into account.
• Return of loans.
• Many other options.

General specific formula there is no need to calculate net profit, since every enterprise, company, firm, small business has certain income and expenses and certain specifics of work.

Formula for calculating net profit

But in general, net income is calculated as follows: you need to add gross and other types of income to financial profit, and from the resulting amount subtract the funds that went to pay taxes.

Using the formula:

• To use this formula, you need to take financial statements the period for which the company's income will be calculated. It consists of receipt data and expenditure orders accounting report. Figures are taken from it to calculate financial profit. To do this, you need to subtract the expenses that were incurred during this period from the resulting total income indicator.
• To count gross profit The company needs to take into account the cost of the goods. After determining it, you need to find the revenue indicator for required period. From the collected figures it is necessary to subtract the cost of the goods. The result is the company's gross profit.
• To calculate other types of profit, take data on incoming and outgoing orders financial transactions that are not the main types of income of the company. Here, too, it is necessary to subtract the expenses resulting from the activities of the enterprise from the income received.
• There is a clause in the accounting documentation that includes calculated taxes. Their amount must be entered into the formula for calculating net profit.

Having received all the necessary data to calculate the formula, you can begin mathematical calculations. Based on the result obtained, it is estimated company performance level. It can be positive or negative. In the latter case, it is necessary to reconsider the company's activities, since this means that it is suffering losses.

An example of calculating net profit at a store

When operating a store the best economic indicator is to obtain net profit. This is the result of the sale of goods by the consumer. It is necessary to take into account all the work of the store in order to calculate its income for a certain period. This is usually done at the end of the month. To do this, you first need carry out an audit at the point of sale.

Correct calculation of net profit

When calculating net income, first of all you need to add up all the revenue for each day that the store received within a month. Next, you need to calculate the amount spent by the owner on the purchase of goods sold during this period. To do this, an audit of documents containing information about goods that went on sale and sold is carried out.

Then you need to subtract the expenses that were incurred when purchasing the goods from the store’s monthly revenue. The result is a difference called gross income. But this is not yet the store’s net profit, since during the reporting month funds were also spent on other needs:

• Payment of rent for retail and warehouse premises.
• Payment of utility services.
• Pay wages employees.
• Purchase commercial equipment, household goods and more.

All expenses, which were made by the store for the reporting month, must be folded. Then you need to subtract from gross income the amount of expenses and taxes that the store paid. The result is net profit, which can be used for any needs.

Basic rules for profit distribution

After calculating income, it is necessary to distribute it competently. If an enterprise is in active competition in the market, then first of all financial income it should be spent on development and acquisition of new technologies and to expand production. Also, when using net profit, it is necessary to stimulate the work of employees and improve process technology.

Net profit is distributed between accumulation and consumption funds, based on the principles:

• Formation of enterprise finances for business development.
• Cash payments to creditors and investors.
• Monetary incentives for employees to increase labor productivity.

Distributing net profit, it is necessary to interact with the state, as it stimulates contributions made in charitable donations, the medical field, the development of innovation, etc. by providing tax benefits.

The head of the enterprise must have professional skills and be an expert in his field of activity. Having calculated the net income for the required period, he must determine whether or not to develop the enterprise. But even if an enterprise receives losses during its formation, then this is considered normal, since at this time there are capital investments, for example, purchasing a building, equipment, etc.

Net profitis an indicator indicating effective commercial activities companies. In our article you will find formulas for calculating this indicator and learn about the nuances of their application.

Many people take part in calculating net profit financial indicators, and the formula for calculating it is not as simple as it seems at first glance. In the accounting records of any company, net profit is reflected in line 2400 of the income statement. financial results(OFR), and all indicators in column 2 of this report are involved in determining net profit .

Find out about the structure and purpose of the ODF from this.

Detailed algorithm The calculation of net profit is given in the next section.

How to calculate net profit?

The question of how to calculate a company's net profit faces every businessman. The most common algorithm for calculating net profit is line-by-line filling of the FRF, the final line of which is the net profit indicator.

Schematically, the formula for calculating net profit (NP) in a simplified version can be presented as follows:

PE = B - SS - UR - KR + PD - PR - NP,

B - revenue;

CC - cost of sales;

UR and CR - administrative and commercial expenses;

PD and PR - other income and expenses;

NP - income tax.

In the lines of the ODF it looks like this:

Page 2400 = page 2110 - page 2120 - page 2210 - page 2220 + page 2310 + page 2320 - page 2330 + page 2340 - page 2350 - page 2410 ± page 2430 ± page 2450 ± page 2460.

The calculation of net profit begins with determining revenue (B) and cost of sales (CC). These are the main initial indicators for calculating net profit.

Find out the formula for calculating gross profit.

Then the resulting difference is adjusted by the amount of commercial (CR) and management (MR) expenses that the company incurred during the same period.

As a result of simple mathematical operations with these indicators, profit from sales is revealed (line 2200 OFR). Then, in order to calculate net profit, the sales profit indicator undergoes further refinements: it is increased by the amount of other income (PD) and reduced by the amount of other expenses (PR).

We will tell you what is included in other income in the publication. .

After such actions, another type of profit is determined - profit before tax (line 2300 OFR). It is also clarified to obtain an indicator of net profit: the amount is subtracted from it current tax on profit and take into account the impact of changes in deferred tax obligations(ONO), deferred tax assets (ONA) and other influences not reflected in the previous lines of the FRA.

As a result of these adjustments and clarifications, the company's net profit is determined. Calculations of net profit are possible for any period of work: shift, day, week, decade, month, etc. The main thing is that all indicators involved in the calculation of net profit are calculated for the same period of time.

We will talk about another way to determine net profit in the next section.

The impact of the company's main performance indicators on net profit

Net profit is a multi-component indicator - this can be seen from its composition calculation formula. Moreover, each parameter involved in the calculation is also complex. For example, a company's revenue may be divided into different lines of business or geographic segments, but its entire volume must be reflected in the formula for calculating net profit.

For information on how revenue and gross income of a company are related, see the article .

In some companies, such an indicator as cost may have different structure and impact the bottom line differently. Thus, you should not expect a large net profit if amounts equal to or exceeding the amount of revenue received are spent on the products manufactured by the company (this is possible in case of material-intensive or labor-intensive production or the use of outdated technologies).

Impact on the net profit of commercial and management expenses obviously: they reduce it. The magnitude of such a reduction directly depends on the ability of the company’s management to rationally approach the structure and volume of this type of costs.

However, even with zero or negative sales profit, which is influenced by the indicators listed above, you can get a net profit . This is due to the fact that, in addition to profits from its core activities, the company can earn additional income. This will be discussed in the next section.

The role of other income and expenses in the formation of net profit

Often, the company's core activities do not bring it the desired net profit. This happens especially often at the initial stage of a company’s formation. In this case, the additional income received by the company can be of great help.

For example, you can make a profit from participating in other companies or successfully invest free cash V securities. The income received will help increase net profit. Even a regular agreement with a bank on using the balance of money in the company’s current accounts for a certain percentage will allow the company to receive additional income, which will certainly affect its net profit.

But if a company uses borrowed funds in its work, the interest accrued for using the loan can significantly reduce the net profit indicator - about this impact of the fact of borrowing borrowed money Don't forget about net profit. The amount of interest on borrowed obligations (even calculated at the market rate) can seriously reduce net income, and in certain cases lead to losses and bankruptcy.

Find out whether the company's debts can be collected from the chief accountant during bankruptcy.

A variety of income and expenses not related to the company's core activities have a significant impact on net profit. For example, renting out unused space or equipment can bring good additional income and have a positive impact on your net profit. Net profit will increase if the company's assets that are not used in its activities are sold.

At the same time, one should not forget about the need for constant monitoring of the composition and amount of other expenses - as they increase, net profit decreases. For example, net income may decrease as a result of excessive spending on charity and other similar situations.

We'll tell you how to reflect charity expenses in accounting.

The net profit of an enterprise is an indicator calculated in different ways

Net profit, the calculation formula for which was described in the previous sections, can be determined in another way. For example:

Page 2400 = page 2300 - page 2410

Net profit, the calculation formula for which is given above , equal to profit before tax minus income tax.

This algorithm for calculating net profit is simplified and can be used, for example, by small enterprises that have the right not to apply PBU 18/02 “Accounting for income tax calculations.”

IMPORTANT! The criteria for small enterprises are given in Federal Law No. 209-FZ dated July 24, 2007 “On the development of small and medium-sized enterprises in the Russian Federation.”

For more information on the criteria for small businesses, see this.

Information about deferred tax assets and liabilities is formed in accounting and is required to reflect differences that arise between tax and accounting accounting.

Results

Net profit is a complex indicator that includes all types of income received by the company, taking into account expenses incurred. If the company's costs exceed the total of sales revenue and additional other income, then we can talk about the absence of net profit and the company's activities are unprofitable.

Net profit allows merchants to expand their business, master new technologies and markets, which, in turn, has a positive effect on the increase in net profit.

Net profit is one of the most important indicators activities of any company. It is equal to the difference between total revenue and total expenses (during a given reporting period). The higher the profit value, the better, since profits can be reinvested in the company. Profit is judged financial condition companies. It also helps with pricing and other decisions.

Steps

Part 1

Calculation of net profit

Determine total costs. Expense categories may vary depending on the company's activities (see next section). Total cost is the amount spent (spent) in reporting period.

• In our example, the publishing house spent $13,000 in a month. This amount is the total cost.

1. Subtract total expenses from total revenue to find the net profit for the period under consideration. The owners of the company control the net profit. They can reinvest it in the company, or use it to pay off a loan, or to pay dividends to investors, or simply to save.

   • In our example, the publisher's net profit is $30,000 - $13,000 = $17,000. This profit can be used to purchase new equipment (printing presses), which will lead to an increase in the number of products produced (books), and in the long run - to additional profit.

2. Note that a negative net income is called a “net loss.” Instead of saying that a company made a “negative profit,” the company is said to have a “net loss” (or net operating loss). If a company experiences a net loss, then its expenses exceed its income. This is normal when a company is in its infancy, but in the long run, losses should be avoided. Net losses are covered by loans or additional capital provided by investors.

   Review a company's income statement to find the company's exact total revenues and total expenses (from which the company's net income is calculated). Most public companies are required to disclose financial statements, including an income statement, which shows the company's sources of income and expenses, the company's total income and expenses for the reporting period, and the company's net income (the last line of the income statement). .

   • The next section shows the structure of the company's income and expenses.

   Part 2

   Structure of the company's income and expenses

   1. Net sales. This is the very first source of income for any company. If you do not have the company's total revenue and total expenses, you need to find them by separately adding the income values ​​from each source of income and separately the expense values ​​for each expense item. Net sales are the income a company receives from the sale of goods and services (minus discounts and payments for low-quality goods).

      • Consider the example of a sneaker company. Let's say that in the first quarter the company sold $350,000 worth of sneakers and paid $10,000 for defective goods, and also provided discounts in the amount of $2,000. In this case, net sales are $350,000 - $10,000 - $2,000 = $338,000.

   2. Calculate gross profit. It is equal to the difference between net sales and cost of goods. Cost is the cost of production; it includes direct costs (such as the cost of raw materials and labor), but does not include indirect costs such as product delivery and sales staff salaries.

   3. Subtract depreciation. Depreciation of fixed assets and amortization intangible assets These are related but not identical concepts. Depreciation of fixed assets is the decrease in the value of equipment and production buildings (due to wear and tear) over time. Amortization of intangible assets is the reduction in the value of patents and copyrights over the life of the assets. By subtracting depreciation and operating expenses, you will calculate the company's operating income.

      • In our example, let's say that the equipment costs $100,000 and has a 10-year service life; Equipment depreciation is $10,000 per year or $2,500 per quarter. In this case, operating income is $138,000 - $2,500 = $135,500.

   4. Subtract any other expenses, which include expenses not related to the company's normal (day-to-day) operations. This includes paying off loans, paying off debts, purchasing new assets and much more. Such expenses vary from one accounting period to another, especially if the company's business strategy changes.

      • In our example, let's say that the company makes payments on loans. In the quarter under review, she paid out $10,000. The company also purchased new machines worth $20,000. In this case: $135500 - $10000 - $20000 = $105500.

   5. Add in any one-time income, such as from transactions with other companies or from sales of tangible (equipment) and intangible (copyrights) assets.

      • For our example, let's say a company sold $5,000 worth of old equipment and the right to use the company's logo to another company for $10,000. In this case: $105,500 + $5,000 + $10,000 = $120,500.

   6. Subtract taxes to find net income. Now that all income and expenses have been taken into account, it is necessary to determine the taxes that the company pays; this can be found from the income statement. Please note that taxes may be collected by several government agencies(for example, federal and local). Besides, tax rates depend on the location of the company and the amount of its revenue. After subtracting taxes from the value obtained in the previous step, you will get the company's net profit.

      • In our example, let's say the company pays taxes of $30,000. Thus, net profit is $120,500 - $30,000 = $90,500 (for 1 quarter). Very good!
   • If you have a small business located in your own home, separate household expenses and trading expenses. For example, only a portion of utility bills and internet and telephone costs should be considered trading expenses.

Net profit is the goal of any entrepreneurial activity, the most important indicator of the company's performance. There are several options for calculating it. Let's figure out what net profit is, how to correctly calculate and analyze it

What is this article about:

What is net profit in simple words

The net profit of an enterprise is the part of the balance sheet profit that remains at the disposal of the company after paying taxes, fees, and other payments to the budget. In simple words The net profit of an enterprise (hereinafter referred to as PE) is equal to the difference of all income and all costs, including tax burden(see also about income tax in 2019: rate, calculation, when to pay). Negative profits are called net losses.

Net profit formula

There are several calculation options.

PE = profit before tax - tax deductions.

PE = total profit (financial, gross, operating) - tax deductions.

How to explain to the CEO and owners why there is net profit, but no money in the accounts

If the owners ask to explain why the net profit differs from the balance on current accounts and what the money was spent on, a special report must be drawn up. It will show where the money went and that it was not stolen.

How to calculate net profit on a balance sheet

IN balance sheet The organization's net profit is reflected in article 2400.

The balance calculation formula will look like this:

2400 = 2110 - 2120 - 2210 - 2220 + 2310 + 2320 - 2330 + 2340 - 2350 - 2410

where 2110 – “Revenue”;

2120 – « Cost of sales »;

2210 – “Business expenses”;

2220 – “Administrative expenses”;

2310 – “Income from other organizations”;

2320 – “Interest receivable”;

2330 – “Interest payable”;

2340 – “Other income”;

2350 – “Other expenses”;

2410 – “Income tax”.

Excel model that will help predict changes in the company's net profit

See how with using Excel conduct a scenario analysis of net profit and find out on what factors it depends, how sensitive it is to changes in capital, items of income and expenses. The proposed model can be easily adapted to your company.

What to consider when calculating

The difficulty in calculating the indicator arises due to the peculiarities of accounting for income and expenses in accounting, tax accounting, IFRS, etc.

When calculating the amount of profit in accounting and tax accounting, a difference may arise for several reasons:

1. When accounting for income:

• in accounting, it is possible to account for revenue using the accrual method (except for small businesses, cash accounting is possible for them); in tax accounting, income can be taken into account using the cash method and the accrual method;
• There are some features of accounting for income as main income, non-operating income, and other income. There are also cases when income cannot be taken into account in tax accounting at all.

2. When accounting for expenses:

• Some expenses are not taken into account in tax purposes, but are taken into account in accounting. Therefore, the tax base (profit before tax) in accounting will be less. From point of view tax accounting Some types of expenses a company can carry out only at the expense of a state of emergency, for example, fines and penalties transferred to the budget;
• discrepancies when accounting for normalized expenses. For example, daily allowances for business trips. Standards for determining a fixed asset and the possibility of its depreciation;
• differences in the timing of recognition of certain types of expenses: with the cash method and the accrual method, when calculating exchange rate vestries. Due to the moment of accounting for fixed assets requiring registration;
• differences due to choice different systems depreciation, period beneficial use fixed assets.

3. When creating reserves

• for vacation pay;
• for doubtful debts. In tax accounting, it is not necessary to create such a reserve, unlike accounting, and the methods for creating a reserve in these accounts are different.

Because of these differences in accounting and tax accounting, a company earns different profits before taxes. There are differences in other types of accounting.

Analysis of the enterprise's net profit

1. Analysis based on the income statement. It is carried out in several stages:

• , connection with other forms of reporting;
• calculation of analytical indicators of the structure and dynamics of income, expenses, profit;
• structural-dynamic analysis;
• trend analysis;
• ;
• calculation of profitability indicators, their analysis, including factor analysis.

Profitability indicators are an important component in the analysis, as they allow one to find relative values. For example, it is worth calculating the net profit margin (RP NP)

R PE = PE / Revenue

When comparing the PPP indicator over several periods or in comparison with other enterprises in the industry, it is possible to draw qualitative conclusions about the company’s performance. Sometimes it is useful to calculate gross and/or operating profit margins as part of your analysis.

2. Analysis of enterprise management data.

Analysis of the income statement shows which factor is the most significant in the composition of profit. A more detailed analysis can then be carried out based on the management data of the enterprise. For example, most companies create a budget. Analysis of the implementation of the company's plan as a whole and in in the context of the Central Federal District , structural-dynamic analysis of indicators, identification of external and internal factors affecting net profit - all this can give useful information. This will help identify reserves for income growth and develop measures to mobilize them.

Also, the analysis can be carried out not only in comparison with planned indicators, but also in comparison with the basic ones (for example, for previous period). However, the base period is not the best option for analysis. In the last 10 years, the economy of almost every country has been very volatile, and the set of factors in the base period will be very different from the current situation.

When analyzing the emergency situation, it is important to identify its change due to quantitative or qualitative factors. Qualitative change is possible by increasing the output of the enterprise's resource potential. For example, thanks to the intensification of the use of basic factors of production, increasing labor productivity.

An example of calculating and analyzing the net profit of an organization

For example, let’s take Alpha LLC, which is engaged in metallurgical activities. For analysis, let's look at the financial results report for 2015–2016 in a more detailed form than is customary in financial statements(Table 1).

Table 1. Income statement

Indicators	Amount, thousand rubles				Structure of income and expenses, %
			Change (+/-)	Growth rate, %			Change (+/-)
Revenue
Revenue from sales of metals
Revenue from other sales
Total revenue
Cost of metals sold
Cost of other sales
Gross profit is
Administrative expenses
Business expenses
Impairment loss on non-financial assets
Other operating expenses, net
Profit from operating activities
Positive/(negative) exchange rate differences, net
Financial expenses
Impairment of investments held for sale
Loss on disposal of subsidiaries and assets,
classified as held for sale
Profit from investment activities, net
Share in profits of associated enterprises
Profit before tax
Income tax expenses
Profit for the year
Due:
Shareholders of the parent company
Non-controlling interest holders

Thanks to the relative values, the significant increase in net profit in 2016 becomes more obvious. At the same time, profit before tax changed by almost the same amount – 61.5%, and the increase in the profit tax itself was 63.4%. This suggests that temporary and permanent differences in the accounting of the Alpha company exist, but in 2016 they were not present - the effect remained almost at the level of 2015.

conclusions

Net profit is one of the most important performance indicators of almost any enterprise. And it includes many factors, the analysis of which allows you to manage the company more effectively. However, due to its peculiarities, this is not always a sufficiently informative indicator. Therefore, EBIT, , additional profitability indicators.