In a market economy, modernenterprises, or rather their leaders must have a body of knowledge and skills to "stay afloat." Ignorance of the basic rules and laws of doing business leads to disastrous results, and it comes very quickly. In the article below, an attempt will be made to deal with such a notion as net profit - the most important factor that affects the profitability of any enterprise and the analysis of which makes it possible to understand whether it is worthwhile to conduct and develop the business further, or to look for other opportunities for earning.
In theory, the net profit is part of thebalance sheet profit of each enterprise, which remains at the disposal of the owners or shareholders after all taxes, fees, deductions and other obligations to the budget have been paid. In most cases, net profit is used to increase the company's working capital, to form funds and reserves, and also to reinvest in production.
Of course, there is a dependence of the amount of netprofits from the gross profit margin, as well as the size of taxes. In addition, it is on the basis of the amount of available net profit that the dividends are calculated for the company's shareholders.
Indicators of net profit for each enterpriseare very important. Net profit can be considered the result of the enterprise, for the period in which this profit was demonstrated. The indicator of net profit clearly demonstrates the amount of funds received by the enterprise after payment of all tax collections, payment of wages, as well as other payments that are mandatory. It is clear that an increase in net profit means that the company has worked well in a certain period and, conversely, a decline in its indicators, much less their withdrawal into "minus" means that certain measures should be taken to prevent bankruptcy. That is why it is important to know how the net profit is determined. The simplest instruction on calculating this most important indicator is given below.
ЧП = ФП + ВП + ОП - СН
Net profit can be usedenterprise for any purpose. Most often, according to the decision of the management, the net profit is directed to the payment of expenses incurred by the enterprise at the current time. Quite often the net profit is accumulated or used for charitable purposes.
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