The economic efficiency of anysubject depends on how it analyzes the use of profit. This activity is carried out not on the basis of subjective assessment data, but on the regulatory basis of tax legislation, available instructions and recommendations developed by agencies for a particular industry and type of enterprise.
The statistical basis for the analysis areaccounting information on the movement of capital, the use of profits and the magnitude of losses, and others. The process, which involves the analysis of the use of profit, includes the study of determining factors affecting changes in taxable profit, the amount of dividends paid, as well as interest and tax deductions.
As a rule, tax institutions are interestedtaxable profit, because of these indicators, in the first place, depend on the amount of tax and net income. The change in this parameter, as a rule, is influenced by factors that take part in the formation of profit.
As foresees the analysis of the use of profitenterprises, net profit is an important indicator of the final results of its activities. Mathematically, it is calculated as a simple difference calculated between a certain amount of profit and an amount consisting of such components as taxes from profits, economic sanctions and other payments that are covered by profits. This value is determined by the factors of the dynamics of total profit, as well as by those factors that influence the specific amount of net profit, which is determined in relation to the total profit. For example, in order to find out how the amount of net profit changes, the change in profit that occurs due to each individual factor is multiplied by the specific weight.
When all calculations should be taken into account that the netProfit can only be used in the manner prescribed by the constituent document of the enterprise. Therefore, its use is regulated and can be sent only to:
- investment of economic development;
- creation of reserve funds for development;
- payment of dividends;
- the formation of insurance funds.
It is very important that the analysisuse of profit took into account the proportionality of the distribution of capitalized and consumed values, because it allows the company to determine and adequately establish:
- the volume of investments for the development of a production enterprise;
- the rate of return to owners of the enterprise.
In this analysis, it is appropriate to remember that the factorswhich determine the adequacy of the proportionality under consideration are: legal restrictions, tax preferences and benefits, rates of return and amounts of foreign investment amounts. These factors are usually attributed to external. Domestic include: level of profitability, the availability of profitable investment projects; the amount of leverage, the presence or absence of domestic investment sources, the level of real solvency. It is important that the analysis takes into account the need for the company to accelerate the completion of projects already underway, since their additional and unforeseen funding can significantly affect the profit utilization indicators.
For example, this indicator appearsefficiency of use of fixed assets of the enterprise. For its evaluation in the analysis it is important to show how and due to what the value of the main items of profit use fluctuates. To optimize these parameters, you should either change the established norms of net profit or change the value of the share of this article of its use.
In a word, knowing the exact indicators of cleanprofit and its dynamics, the analyst has all the possibilities to accurately determine the degree of their influence on the magnitudes and parameters of changes in consumed and capitalized profits.
