Types of enterprise profit and their calculation

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According to current Russian legislation, the following profit indicators are used in accounting to determine the taxable base:

revenue;

gross;

received from sales;

balance;

clean.

Economic theory also describes marginal and kuwait mobile phone numbers database operating profit.

Types of enterprise profit

Among all the indicators for calculating the enterprise's profit, the key one is revenue from the sale of goods, since it reflects the volume of receipts from the main economic activity of the enterprise. Then the following indices are calculated: marginal, gross, received from sales, operating, balance sheet and net profit.

General calculation formulas:

Revenue (TR – total revenue) = Unit price (P – price) × Quantity of goods sold (Q – quantity).

Marginal (PM – profit margin) = Revenue (TR) – Variable costs (VC).

Calculation of the enterprise's gross profit (GP) = Revenue (TR) − Production cost of goods manufacturing (PC).

Profit on sales (PS) = Revenue (TR) − Total cost (TC).

Calculation of the balance sheet profit of the enterprise (BP) = Proceeds from sales (PS) + Other income (OI) − Other expenses (OE).

Operating profit (OP) = Balance sheet profit (BP) + interest payable (I).

Net (NP) = Balance (BP) − Taxes (T).

Calculation of net profit of the enterprise
The business owner, shareholders, contractors – for all of them, the economic performance indicators of the company and profit, in particular, are important. The dynamics of key indices show what amount is at the disposal of the enterprise after deducting taxes and other mandatory payments.

Free cash (remaining after taxation and settlements with counterparties and shareholders) is a fund that can be used to develop and expand the business. It is worth remembering that profit also affects the amount of dividends that interested parties will receive.

The formulas for calculating key economic indicators were discussed earlier. However, there is another method for calculating enterprise profits, which is based on accounting data.

Alternative calculation formulas:

Adding together three types of profit – financial, gross, operating – and deducting taxes.

The amount of revenue is reduced by the sum of the cost price, expenses for management, commercial and other needs, and the amount of tax payments.

Tax payments are deducted from profit before tax.

These formulas are general. To obtain an accurate result, a corporate economist or accountant must adapt them to the company's activities, for example, adjust costs.