Data for calculating business profitability
Posted: Thu Jan 30, 2025 4:17 am
The analysis of the enterprise's profitability is carried out on the basis of data from two financial documents:
Balance sheet (form No. 1, f. 1);
Statement of financial results - profit and loss (form No. 2, f. 2).
Let's look at the key metrics in these reports that are needed to calculate profitability.
The balance sheet structure can be represented at&t email list as the relationship between its various components:
NWC – net working capital (total current assets minus short-term debt);
SC — equity (amount from section 3 “Capital and reserves” of form No. 1);
IC — investment capital (own funds, as well as long-term payment obligations);
ЗК — borrowed capital (liabilities) (long-term obligations in addition to short-term debt).
How to calculate business profitability? To do this, let's consider the consolidated balance sheet of the holding company "Svoya Pekarnya" (table 1) and calculate the indicators that reveal the form of capital. We will additionally use the universal report on the finances of the same organization (table 1). Formulas for calculating business profitability.
Balance sheet, thousand rubles.
Balance sheet item Line code As of 12/31/2020 As of 12/31/2019 As of 12/31/2018
Assets
Non-current assets 1100 174 424 664
Fixed assets 1150 174 424 664
Current assets 1200 57 934 168 376 185 706
Stocks 1210 15 206 79 226 93 906
Accounts receivable 1230 26 502 88 118 89 898
Cash 1250 16 226 1032 1902
Balance 1600 58 108 168 800 186 370
Passives
Capital and reserves 1300 46 019 20 376 5262
Authorized capital 1310 300 300 300
Retained earnings (uncovered loss) 1370 45 719 20 076 4962
Long-term liabilities 1400 10,000 10,000 0
Borrowed funds 1410 10,000 10,000 0
Current liabilities 1500 2089 138 424 181 108
Borrowed funds 1510 0 7000 10,000
Accounts payable 1520 2089 131 424 171 108
Balance 1700 58 108 168 800 186 370
Capital structure indicators
Net Working Capital (line 1200 – line 1500) CHOK 55 845 29 952 4598
Equity (p. 1300) SK 46 019 20 376 5262
Investment capital (p. 1300 + p. 1400) IR 56 019 30 376 5262
Borrowed capital (p. 1400 + p. 1500) ZK 12 089 148 424 181 108
Financial performance report, thousand rubles.
Report article Line code 2020 2019
Revenue from core activities 2110 290 848 281 966
Cost of sales 2120 -253 330 -247 608
Raw materials ㅤ -214 942 -208 436
Remuneration of production personnel ㅤ -34 082 -34 076
Equipment depreciation ㅤ -2104 -3130
Shipping costs ㅤ -2202 –1966
Gross profit (loss) 2100 37 518 34 358
Commercial expenses 2210 -9994 -6944
Management expenses 2220 -1182 -2000
Profit (loss) from sales 2200 26 342 25 414
Interest payable 2330 -700 -300
Income from other activities 2340 19 451 8914
Other expenses 2350 -2000 –1996
Profit (loss) before tax 2300 43 093 32 032
Single tax* 2460 -17,450 -16 918
Net profit (loss) 2400 25 643 15 114
* The companies of the holding company "Svoya Pekarnya" operate under a special tax regime, in connection with which, instead of the item "Current income tax" (2411), the amount of the mandatory payment of the single tax is displayed.
Let's analyze the financial report indicators necessary for assessing the effectiveness:
revenue from core activities (sales) - turnover of products (services), manufactured and sold (delivered), the main type of activity, calculated using the accrual method, excluding indirect taxes (VAT, excise taxes and import duties);
cost of sales — the sum of all expenses associated with generating income from the core business. Includes both direct costs (costs of materials, wages and insurance premiums for production personnel) and some indirect costs (for example, general production costs and depreciation);
Gross profit is the amount of profit from core activities, excluding indirect management and commercial costs;
sales profit or operating profit - a reflection of the financial results from operating activities, that is, from all ordinary business transactions;
the total amount of profit from all types of company activities (primary and additional), as well as from financial transactions before paying income tax, depending on the tax system, is reflected in the indicator of profit before tax (EBT);
net profit is a key result reflecting the financial results of a company's operations (the difference between income and expenses for a certain period).
In addition to the indicators considered, the effectiveness of a company's financial achievements can also be assessed by other criteria, such as EBITDA.
Data for calculating business profitability
Source: shutterstock.com
The EBITDA information metric represents the profit from the main activities of the enterprise before deducting expenses for interest, taxes and depreciation. This value can be assessed using different methods.
One of them is adding the amount of depreciation for the reporting period to revenue (line 2200). Traditionally, EBITDA is used to analyze the financial condition of a company by external stakeholders (investors, banks, other creditors).
Balance sheet (form No. 1, f. 1);
Statement of financial results - profit and loss (form No. 2, f. 2).
Let's look at the key metrics in these reports that are needed to calculate profitability.
The balance sheet structure can be represented at&t email list as the relationship between its various components:
NWC – net working capital (total current assets minus short-term debt);
SC — equity (amount from section 3 “Capital and reserves” of form No. 1);
IC — investment capital (own funds, as well as long-term payment obligations);
ЗК — borrowed capital (liabilities) (long-term obligations in addition to short-term debt).
How to calculate business profitability? To do this, let's consider the consolidated balance sheet of the holding company "Svoya Pekarnya" (table 1) and calculate the indicators that reveal the form of capital. We will additionally use the universal report on the finances of the same organization (table 1). Formulas for calculating business profitability.
Balance sheet, thousand rubles.
Balance sheet item Line code As of 12/31/2020 As of 12/31/2019 As of 12/31/2018
Assets
Non-current assets 1100 174 424 664
Fixed assets 1150 174 424 664
Current assets 1200 57 934 168 376 185 706
Stocks 1210 15 206 79 226 93 906
Accounts receivable 1230 26 502 88 118 89 898
Cash 1250 16 226 1032 1902
Balance 1600 58 108 168 800 186 370
Passives
Capital and reserves 1300 46 019 20 376 5262
Authorized capital 1310 300 300 300
Retained earnings (uncovered loss) 1370 45 719 20 076 4962
Long-term liabilities 1400 10,000 10,000 0
Borrowed funds 1410 10,000 10,000 0
Current liabilities 1500 2089 138 424 181 108
Borrowed funds 1510 0 7000 10,000
Accounts payable 1520 2089 131 424 171 108
Balance 1700 58 108 168 800 186 370
Capital structure indicators
Net Working Capital (line 1200 – line 1500) CHOK 55 845 29 952 4598
Equity (p. 1300) SK 46 019 20 376 5262
Investment capital (p. 1300 + p. 1400) IR 56 019 30 376 5262
Borrowed capital (p. 1400 + p. 1500) ZK 12 089 148 424 181 108
Financial performance report, thousand rubles.
Report article Line code 2020 2019
Revenue from core activities 2110 290 848 281 966
Cost of sales 2120 -253 330 -247 608
Raw materials ㅤ -214 942 -208 436
Remuneration of production personnel ㅤ -34 082 -34 076
Equipment depreciation ㅤ -2104 -3130
Shipping costs ㅤ -2202 –1966
Gross profit (loss) 2100 37 518 34 358
Commercial expenses 2210 -9994 -6944
Management expenses 2220 -1182 -2000
Profit (loss) from sales 2200 26 342 25 414
Interest payable 2330 -700 -300
Income from other activities 2340 19 451 8914
Other expenses 2350 -2000 –1996
Profit (loss) before tax 2300 43 093 32 032
Single tax* 2460 -17,450 -16 918
Net profit (loss) 2400 25 643 15 114
* The companies of the holding company "Svoya Pekarnya" operate under a special tax regime, in connection with which, instead of the item "Current income tax" (2411), the amount of the mandatory payment of the single tax is displayed.
Let's analyze the financial report indicators necessary for assessing the effectiveness:
revenue from core activities (sales) - turnover of products (services), manufactured and sold (delivered), the main type of activity, calculated using the accrual method, excluding indirect taxes (VAT, excise taxes and import duties);
cost of sales — the sum of all expenses associated with generating income from the core business. Includes both direct costs (costs of materials, wages and insurance premiums for production personnel) and some indirect costs (for example, general production costs and depreciation);
Gross profit is the amount of profit from core activities, excluding indirect management and commercial costs;
sales profit or operating profit - a reflection of the financial results from operating activities, that is, from all ordinary business transactions;
the total amount of profit from all types of company activities (primary and additional), as well as from financial transactions before paying income tax, depending on the tax system, is reflected in the indicator of profit before tax (EBT);
net profit is a key result reflecting the financial results of a company's operations (the difference between income and expenses for a certain period).
In addition to the indicators considered, the effectiveness of a company's financial achievements can also be assessed by other criteria, such as EBITDA.
Data for calculating business profitability
Source: shutterstock.com
The EBITDA information metric represents the profit from the main activities of the enterprise before deducting expenses for interest, taxes and depreciation. This value can be assessed using different methods.
One of them is adding the amount of depreciation for the reporting period to revenue (line 2200). Traditionally, EBITDA is used to analyze the financial condition of a company by external stakeholders (investors, banks, other creditors).