Accounting firms is a collection of extremely valuable documents. Their value lies in the information that they contain in themselves. In turn using this information quite a detail the activities of a company. So, on the basis of balance sheets it is possible to draw conclusions about the financial stability of the organization and its liquidity, and form, reflecting the information on the income statement, that is, of the eponymous report, allows you to make a factor analysis of profit from sales and other types of profit. This kind of analysis makes it possible to identify those revenues and costs that had a positive or negative impact on the absolute value of the profits earned. This is the kind of analysis I would like to dwell in more detail.
Factor analysis of profit from sales as mentioned above, is carried out according to the form 2. Note that not all the indicators presented in it, affect this kind of profit. Obviously, in the calculation it is necessary to take only those indicators that are above sales. After glance at the report, we identify the following factors: revenue from product sales, the cost of the same products and the amount of the carried out operation and management expenses. However, it should be noted that the amount of revenue is affected by two important factors: sales volumes and price. Their impact should be assessed separately. It is necessary to determine the proceeds at comparable prices, then its change under the influence of the price.
In regard to the costs affecting the profit of their impact is determined by examining the changes in relative level. This level is defined as a particular type of expenditure to revenue for the relevant period. Then the difference of levels in the reporting and base periods is multiplied by the net profit of the reporting period. Thus, there is identification of the impact of cost and management expenses.
Factor analysis of gross profit allows to consider fewer factors, since the value of this form of profit is not affected by the amount of management and commercial expenses. By the way, gross profit, strictly speaking, not quite correct to call profit, as revenue not cleared of all charges. More correctly, this figure called a margin, however, we see that historically it is quite different.
Going further on the study report and begin to analyze net profit of the company. Such study will be more detailed than the factor analysis of profit from sales. This is because the factors have to consider much more. Except those which have been described above, it is necessary to consider the impact of income and expenses from other activities and income tax. There is no need to determine their level, since it is sufficient to calculate the absolute change.
It Should be noted that factor analysis is not only used to explore profit margins. So, very often carried out factor analysis of working capital, rather, of their turnover. His technique is quite different. This is due to this type of indicators, as they are relative. Most often, when conducting this type of analysis is used the method of chain substitutions and some of his modifications.
The profit of the enterprise is a very important indicator, as it is an indicator of efficiency. It is clear that its study should be given enough attention. Factor analysis of profit from sales and other types of profit is a very useful tool. It allows you to identify factors that most strongly decrease the profit, and to concentrate the impact on them. In addition, with the use of this type of analysis can identify the parameters that influence positively, and then use these factors more intensively.
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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
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