Efficiency of economic activity of anysubject in many respects depends on how it analyzes the use of profit. This activity is carried out not on the basis of subjective estimates, but on the regulatory basis of tax legislation, available instructions and recommendations developed by departments for a certain industry and type of enterprise.
The statistical basis for analysis isaccounting 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 that affect the changes in taxable profits, the amounts of dividends paid, as well as the amount of interest and tax deductions.
As a rule, tax institutes are interested intaxable profit, because of these indicators, first of all, the amount of tax and net income depend. The change in this parameter is usually influenced by factors that take part in the formation of profits.
How does the use of profit analysisenterprises, 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 items as taxes from profits, economic sanctions and other payments that are covered by profit. This value is determined by the factors of the dynamics of the total profit, as well as by those factors that affect the specific value of net profit, determined in relation to the total profit. For example, in order to find out how the amount of net profit varies, the change in profit that occurs due to each individual factor is multiplied by the specific weight.
At all calculations it is necessary to consider, that pureprofit can only be used in the way that the constituent document of the enterprise provides. Therefore, its use is regulated and can only be directed to:
- investment in economic development;
- creation of reserve development funds;
- payment of dividends;
- formation of insurance funds.
It is very important that analysisthe use of profit took into account the proportionality of the distribution of capitalized and consumed quantities, because this allows the enterprise to determine and adequately establish:
- volume of investments for the development of a production enterprise;
- the rate of return to the owners of the enterprise.
With this analysis, it is appropriate to remember that the factors,which determine the adequacy of the proportionality in question, are: legal restrictions, tax preferences and benefits, rates of return and amounts of foreign investment. These factors are usually attributed to external factors. Internal include: level of profitability, 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 already implemented projects, since additional and unforeseen financing of these projects can significantly affect the use of profit.
For example, such an indicator isefficiency of use of fixed assets of the enterprise. To assess it in the analysis it is important to show how and why the magnitude of the main articles of profit use fluctuates. To optimize these parameters, it is necessary either to change the established rates of net profit or to change the size of the share of this article of its use.
In a word, knowing the exact values of the netprofit and its dynamics, the analyst has every opportunity to accurately determine the degree of their impact on the magnitude and parameters of changes in consumed and capitalized profits.
