Factors affecting profit briefly. Factors affecting the amount of profit

In the conditions of market relations, there are profit growth factors that are important to take into account during economic analysis. In the current situation for the organization, a negative feature is the growth of receivables and payables, it is the imbalance that has become an important factor in generating profits.

Based on the results of factor analysis, it is possible to assess the quality of profit. The quality of profit from the main activity is considered high if its increase is due to an increase in sales volume and a decrease in the cost of production. The low quality of profit is characterized by an increase in sales volumes due to an increase in prices for products without an increase in the physical volume of sales and a decrease in costs per ruble of products.

Invariable factors influencing the profit of the organization are:

Change in the volume of sales (affects an increase in sales of profitable products, which leads to an increase in the amount of profit, and vice versa);

Realization price;

Number and composition of personnel;

Economic incentives for personnel.

To date, the method of profit analysis does not sufficiently take into account the influence of an important factor - time. As a rule, this is done by discounting costs to profit, i.e. allocation of costs to one point in time. When the state establishes temporary restrictions on the payment of taxes, the timing of the sale of products and the allocation of costs to the production process, the time factor is becoming more and more versatile in the modern economy. Consequently, it is not time itself that affects the results of financial activity, but various factors of production and financial activity that manifest themselves in a certain period of time.

In a market economy, the main goal of any private organization is to make a profit. The profit of the organization is influenced by various factors, which can be divided into: external and internal.

External factors include natural conditions, state regulation of tariffs, interest, tax rates and benefits, penalties. Such factors do not depend on the activities of the organization, but significantly affect its profit.

Internal factors are divided into production and non-production. Production factors characterize the availability and use of means and objects of labor, labor and financial resources. Non-production factors include marketing and environmental activities, social conditions of work and life, etc.

The main factors affecting the profit of the organization is the price of products, the level of fixed and variable costs, the influence of the state and competitors.

When setting a price, an enterprise must take into account the level of demand for a product, prices from competitors, the influence of a political situation, etc. An enterprise must set a price that will be acceptable to consumers, and, at the same time, sufficient to cover all costs and make a profit in the amount necessary for the development and improvement of production.

The main sources of reducing the costs of production and sales of products by the organization include a decrease in the consumption of raw materials, materials, fuel and energy per unit of output; reduction of wage costs per unit of output; reduction of administrative costs and overheads; raising the technical level of production; improving the organization of production and labor and changing the volume of production.

For effective enterprise management, in addition to studying the results of their activities, it is necessary to thoroughly study the activities of competitors and compare them with the results of their activities.

The following types of policies can be attributed to the methods of implementing state regulation of the market: tax, investment, antimonopoly, financial, anti-inflationary, foreign trade, etc. The profit of the organization is the main source of financing the development of the organization, improving its material and technical base, providing all forms of investment. All activities of the organization are aimed at ensuring profit growth or its stabilization at a certain level. A number of the above factors should be the subject of careful consideration and justification regarding the formation of profits. Without due attention to this problem and each factor in particular, the effective operation and profitability of any of the enterprises is impossible. In order for the organization of Russia in modern market conditions to work stably and make a profit, we can offer the following main factors for its increase:

Increasing the volume of production and sales of products;

Implementation of measures to increase the productivity of their employees and the application of the system of participation of employees in the formation of profits of the organization;

Reduction of production costs or the use of modern cost management methods, one of which is management accounting;

Qualified implementation of the pricing policy, since the market is dominated by free (contractual) prices;

Competent construction of contractual relations with suppliers, intermediaries and buyers;

Improving the marketing system at the enterprise;

Grouping their products on the basis of profitability - focusing on those products that are highly profitable, improving products with an average level of profitability, and removing low-profit products from production;

Organization of the production process in such a way that it is adapted for quick changeover;

Continuous scientific research of market analysis, consumer and competitor behavior.

To improve the efficiency of enterprises, it is of paramount importance to identify reserves for increasing production and sales volumes, reducing production costs, and increasing profits.

To determine the main directions of the search for reserves to increase profits, we single out the factors influencing its receipt, classified according to various criteria.

External factors include:

natural conditions;

State regulation of prices, tariffs, interest, tax rates and benefits, penalties, etc.

These factors do not depend on the activities of enterprises, but can cause a significant impact on the amount of profit.

Production factors are characterized by the presence and use of means and objects of labor, labor and financial resources, and, in turn, are divided into extensive and intensive.

Extensive factors influence the process of making a profit through quantitative changes. These changes include:

The volume of funds and objects of labor,

Financial resources,

equipment operating time,

Number of staff,

Working time fund, etc.

Intensive factors affect the process of making a profit through "qualitative" changes. These changes include:

Improving the productivity of equipment and its quality,

The use of progressive types of materials and the improvement of their processing technology,

Accelerating the turnover of working capital,

Improving the qualifications and productivity of personnel,

Reducing the material consumption of products,

Improving the organization of labor and more efficient use of financial resources, etc.

Non-production factors include, for example, marketing and environmental activities, social conditions of work, life, etc.

Summing up, it must be said that profit plays a decisive role in entrepreneurial activity and is one of the main performance indicators of an organization. It characterizes the possibility of innovative development, reconstruction and modernization of its production. Profit is defined as one of the goals of the activity and development of the organization, as a result of work, motivation, economic security and a quantitative measure of the success of the organization. An important point is not only quantitative indicators of profit, but also its structure, long-term and quality.

Profit and profitability in the conditions of the formation of a market economy are the most important indicators of the economic activity of trading organizations and enterprises. These indicators reflect all aspects of the activity of trade enterprises: the volume and structure of retail trade, the rational use of resources, the implementation of measures to improve the organizations and technologies of trade processes, etc.

The amount and level of profit are formed under the influence of a large number of different factors that have both positive and negative effects on them. The number of factors that determine the amount of profit and profitability can hardly be clearly limited, it is very large. All factors can be divided into the main ones, which have the greatest impact on the amount and level of profit, and the secondary ones, the influence of which can be neglected. In addition, the entire set of factors can be divided into internal and external. They are closely related.

The amount of profit of an economic entity is influenced by factors related to its production activities and of a subjective nature, and objective factors that do not depend on the activities of an economic entity (Table 1).

Table 1. Factors affecting the amount of profit

Profit from the sale of products also depends on internal and external factors.

Internal factors affecting profit and profitability include resource factors (the size and composition of resources, the state of resources, their operating conditions), as well as factors associated with the development of retail turnover.

These factors can be conditionally divided into three groups: industrial, commercial, financial.

Production factors are associated with the volume of production, its rhythm, material, scientific, technical and organizational and technical equipment, respectively, the quality parameters of products, their assortment and structure, etc.

Commercial factors, as it were, lead to financial factors and cover the concept of marketing in a broad sense: the conclusion of business contracts on the basis of the closest study of the current and prospective market conditions, price regulation of sales, its direction and organizational and economic support.

The reliability of the forecast of commercial factors is based, on the one hand, on risk insurance (mainly the risks of loss of property, disruption of supplies, distance or refusal of payment), on the other hand, on attracting solid, solvent customers. This, in turn, requires known non-production costs (representation, advertising, etc.).

Financial factors, covering both the proceeds from the sale of products and services, and entrepreneurial income from all types of activities, include, respectively: forms of payment (provided by the contract or determined promptly); price regulation, including markdowns in case of slowdown in sales; attracting a bank loan or funds from centralized reserves; application of penalties; study and collection of receivables, as well as ensuring the liquidity of other assets; stimulation of attraction of monetary resources in the financial markets. The principle “time is money” is important here: the faster and fuller the receipt of income, the more effective all activities.

Internal factors act on profit through an increase in output, improvement in product quality, an increase in selling prices and a reduction in production and sales costs.

The main external factors that form the profit of a trading enterprise include the following factors:

Market volume. The retail turnover of a trading enterprise depends on the capacity of the market. The larger the market capacity, the greater the ability of the enterprise to make a profit.

The development of competition. It has a negative effect on the amount and level of profit, since it leads to an averaging of the rate of profit. Competition requires certain costs that reduce the amount of profit received.

The amount of prices set by suppliers of goods. In a competitive environment, price increases by suppliers do not always lead to an adequate increase in sales prices. Trade enterprises tend to work less, to work with intermediaries, to choose among suppliers of those who offer goods of the same quality level at lower prices.

Prices for the services of transport, utilities, repair and other enterprises. The increase in prices and tariffs for services increases the operating costs of enterprises, reduces profits and reduces the profitability of trading activities.

Development of activities of public organizations of consumers of goods and services.

State regulation of the activities of trade enterprises. This factor is one of the main ones, determining the amount of profit and profitability.

Factors affecting the amount of profit can be divided into two groups, as it were. The first group includes the so-called main factors that directly affect the volume of profit of a trading enterprise. These include:

Profit (loss) from the sale of goods.

Profit (loss) from non-trading activities of the enterprise.

The balance of income and expenses on non-sales operations.

Profit (loss) from the sale of fixed assets.

The second group includes the so-called interdependent factors:

Sales volume of goods.

Retail prices for goods sold.

circulation costs.

The capital-labor ratio of workers.

The tax intensity of the enterprise.

The number of employees of the enterprise.

Turnover and composition of capital.

Costs attributable to profit.

If we talk about the main factors affecting profit, then we can say that in practice, gross (balance sheet) profit is mainly created at the expense of profit from the sale of goods, but it can be increased (decreased) by the amount of profit from non-trading activities of the enterprise, by the amount identified positive (negative) balance on non-sales transactions, by the amount of profit received from the sale of fixed assets (moreover, the profit (loss) from the sale of fixed assets is the difference between the sale (market) and their original price or residual value, taking into account revaluations caused by inflation If it is revealed that the initial cost and costs incurred associated with the disposal of fixed assets and other property exceed the amount of proceeds from the sale, then the gross profit of the enterprise is reduced by the amount of this excess.If, on the contrary, the amount of proceeds exceeds the initial cost and expenses for the disposal of fixed assets and foreign property, gross profit is increased by this difference).

Interdependent factors as well as the main ones strongly influence the amount of profit. It is no coincidence that these factors received such a name. Their peculiarity lies in the fact that each of them to some extent influences or is influenced by other factors from this group. Therefore, by dividing the subsystem of interdependent factors into separate elements-indicators, it is possible to identify the degree of influence of each of them on profit based on the application of methods and techniques of economic and mathematical analysis. First, the impact of each of them on the amount of profit is evaluated, and then their combined impact.

Growth factors of this or that indicator are calculated by their successive ratio. The intensive development of a trading enterprise can be characterized not only by an increase in turnover and profits, but also by an increase in the productivity of trade workers, an increase in capital, etc.

For example, distribution costs in retail trade strongly depend on the size of wages to employees, various deductions to off-budget funds. A decrease in distribution costs entails, respectively, a decrease in wages and various kinds of deductions. This, in its own way, can increase profits, but at the same time, it can undermine the incentive for employees to work and greatly reduce labor productivity, which can lead to high costs for restoring staff to working capacity. In foreign practice, in this regard, a system of incentives for employees is used, where, along with an increase in salaries, the so-called participation of employees in the economic activities of an enterprise is used, which implies that employees have the right to purchase shares of enterprises at preferential prices, and then can receive dividends on purchased shares. .

It is assumed that the return on the increase in labor costs should grow faster than the size of its payment. The enterprise distributes this or that part of the profit not in the form of cash payments, but in the form of shares or transfers it to the bank accounts of employees, forming a credit fund, which the enterprise puts into circulation, which to some extent reduces the need for borrowed funds, while reducing the cost of paying interest on bank loans.

The amount of profit in trade also depends on the volume of demand for goods and their supply. A decrease in demand for goods can lead to both a decrease in gross income from sales and a reduction in gross profit. The regulator of the ratio of supply and demand in the market are the retail prices of goods. At low prices for goods, the quantity demanded for them is greater, and at high prices, less, since there are cheaper substitutes for these goods. As sales volumes increase, the rate of profit rises, then its growth slows down, and, finally, it stabilizes or decreases, depending on the properties of certain groups of goods.

Thus, profit is influenced by two interdependent factors: distribution costs and sales volumes of goods. Other factors also directly affect profit and each other.

Profit and profitability in the conditions of the formation of a market economy are the most important indicators of the economic activity of a construction organization. These indicators reflect all aspects of the activities of trade enterprises.

The internal factors affecting profit and profitability include resource factors (the magnitude and composition of resources, the state of resources, the conditions for their operation).

Among the internal factors, the following factors can be distinguished:

1. The volume of products sold. With a constant share of profit in the price, the growth in the volume of products sold allows you to get a large amount of profit.

2. Number and composition of employees. A sufficient number at a certain level of technical equipment of labor allows you to fully implement the program of construction organizations to obtain the necessary amount of profit.

3. Forms and systems of economic incentives for workers. The influence of this factor can be assessed through the indicator of labor costs, as well as through the indicator of profitability of labor costs.

4. Productivity of workers of the construction organization. The growth of labor productivity, other things being equal, entails an increase in the mass of profits and an increase in the profitability of a construction organization.

5. Capital-labor ratio and technical equipment of labor of workers. The higher the equipment of workers with modern means of labor, the higher their productivity.

6. Return on assets. With an increase in the return on assets, the volume of construction and installation work increases per 1 ruble of funds invested in fixed assets.

7. The amount of working capital; The greater the amount of working capital a construction organization has, the greater the mass of profit it receives as a result of one of their turnover.

8. Implementation of the economy mode. Allows relatively reduce the current costs of construction organizations and increase the amount of profit. The economy regime is understood not as an absolute, but as a relative reduction in current costs.

The main external factors that form the profit of a construction organization include the following factors:

1. Market capacity. The retail turnover of a trading enterprise depends on the capacity of the market. The larger the market capacity, the greater the ability of the enterprise to make a profit.

2. Development of competition. It has a negative effect on the amount and level of profit, as it leads to averaging the rate of profit. Competition requires certain costs that reduce the amount of profit received.

3. The amount of prices set by the suppliers of goods.

All of the above should be the object of management attention on the part of the manager of the enterprise.

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Profit is formed under the influence of a large number of interrelated factors that affect the results of the enterprise in different directions: some positively, others negatively. Moreover, the negative impact of some factors can reduce or even negate the positive impact of others. The variety of factors does not allow them to be clearly limited, and causes their grouping. Considering that an enterprise is both a subject and an object of economic relations, the most important is their division into external and internal.

At the same time, factors affecting profits are classified according to different criteria. So, there are external and internal factors.

Internal factors - factors that depend on the activities of the enterprise itself and characterize the aspects of the work of the team.

External factors - factors that do not depend on the activities of the enterprise itself. However, they can have a significant impact on profits. In the process of analysis, the influence of internal and external factors makes it possible to "clear" performance indicators from external influences, which is important for an objective assessment of the team's own achievements.

In turn, internal factors are divided into non-productive and production.

Non-production factors include: organization of product sales, supply of inventory items, organization of economic and financial work, environmental protection, social working and living conditions of employees of the enterprise.

The production factors presented in Fig. 5 (see Appendix 7) reflect the presence and use of the main elements of the production process involved in the formation of profit - these are the means of labor, objects of labor and labor itself.

In the process of carrying out the economic activity of an enterprise related to production, sales of products and making a profit, these factors are closely dependent and interrelated.

Among the variety of external factors that can be found in modern literature, the main ones can be distinguished:

degree of political stability;

the state of the state economy;

demographic situation in the country;

market conditions, including the consumer goods market;

inflation rates;

interest rate for a loan;

state regulation of the economy;

effective demand of consumers - the dynamics and fluctuation of effective demand predetermines the stability of obtaining trade proceeds;

prices set by suppliers of goods - since an increase in purchase prices is not always accompanied by an adequate increase in sales prices. Retailers often compensate for part of the increase in prices by suppliers by reducing the share of their own profits in the retail price of goods. An increase in prices for the services of transport enterprises, utilities and other similar enterprises directly increases the current costs of a trading enterprise, thereby reducing profits;

tax and credit policy of the state;

development of activity of public organizations of consumers of goods and services;

development of the trade union movement;

economic conditions of managing;

market volume.

Internal factors include:

gross income;

labor productivity of employees;

goods turnover rate;

availability of own working capital;

efficiency of use of fixed assets;

the volume of retail turnover - since a constant share of profit in the price of goods, the growth in sales allows you to increase the amount of profit. When increasing the volume of trade, it is necessary to remember its structure, since the profitability of certain product groups is different. Of course, one cannot give preference only to highly profitable goods, only the rationalization of the structure of trade turnover will allow achieving a normal level of profit.

pricing order - it is important to choose the right commercial strategy, because an increase in the share of profit in the composition of the trade margin can lead to a decrease in the volume of sales of goods due to high prices. But a logical consequence in some cases may be a reduction in the level of trade markup to speed up the sale of goods (for example, a differentiated markdown of goods, including seasonal, holiday or one-time). This will increase the amount of profit due to the volume of trade and by accelerating the turnover of working capital: the shorter the period for the sale of goods, the greater the amount of profit the company receives per unit of time. It is also obvious that the greater the amount of working capital an enterprise has, the more profit it will receive as a result of one of their turnover. At the same time, not only the total amount of working capital is important, but also the ratio between own and borrowed funds, since the use of loans increases the costs of a commercial enterprise;

the level of distribution costs - with a constant value of the trade margin, by reducing the costs of the enterprise, it is possible to increase the amount of profit received. The implementation of the economy mode allows you to reduce the current costs of the enterprise. At the same time, it should be borne in mind that the savings regime is understood not as an absolute, but as a relative reduction in distribution costs.

the structure of marketable products can have both a positive and a negative impact on the amount of profit. If the share of more profitable types of products in the total volume of its sales increases, then the amount of profit will increase, and, conversely, with an increase in the share of low-profit or unprofitable products, the total amount of profit will decrease.

means of labor;

objects of labor;

labor resources.

For each of these two groups, the following types are distinguished:

1. extensive factors;
2. intensive factors.

Extensive factors include factors that reflect the volume of production resources (for example, changes in the number of employees, the cost of fixed assets), their use over time (changes in working hours, equipment shift ratio, etc.), as well as unproductive use of resources (costs of materials for marriage , losses due to waste). Intensive factors include factors that reflect the efficiency of resource use or contribute to this (for example, advanced training of workers, equipment productivity, the introduction of advanced technologies).

External and internal factors are closely related. But internal factors directly depend on the organization of the work of the enterprise itself.

The cost of production and profit are inversely proportional: a decrease in cost leads to a corresponding increase in the amount of profit and vice versa.

The change in the level of average selling prices and the amount of profit are directly proportional: with an increase in the price level, the amount of profit increases and vice versa.

Profit analysis is carried out according to the planned and actual data of the financial and planning and economic departments, accounting, as well as forms of annual and periodic reporting.

Of great importance is the analysis of profit, which is carried out according to its individual sources. Particular attention in the process of profit analysis should be paid to the most significant item of its formation - profit (loss) from the sale of goods, products, works, services as the most important component of the enterprise's profit, which often exceeds the balance sheet profit in its volume. To carry out this analysis, the most convenient and widely used is the factor analysis of profit from sales. When conducting this study, the influence of the volume and structure of trade turnover, gross income from sales, distribution costs is determined.

It is recommended to carry out a multivariate analysis of changes in profit from sales of products in the reporting period compared with the previous one under the influence of factors that have either a positive or negative impact on its change. Materials for profit analysis is the annual balance sheet, a report in the form No. 2 "Profit and Loss Statement".

Thus, profit management is a very complex and multi-stage process. Competent and reliable analysis of profits at each stage of this process is very important. With the help of factor analysis, the manager manages to determine the degree of influence on the amount of profit of the main factors. That is, an analysis is given of the formation of profit at the enterprise according to its individual sources. When conducting this study, the choice of the most effective method of analysis is of great importance. In modern scientific literature, there are many types of profit analysis, but factor analysis has the greatest practical significance. Its implementation gives the most objective assessment of the formation of profit in the enterprise.

After identifying all the factors affecting profit and evaluating its indicators, it is necessary to start planning the profit of the organization. This is a very important process that requires a high degree of training of specialists dealing with this problem. Planning is also divided into different types, including tactical planning. It is it that is most used in practice, as it is the link between strategic and operational planning. And, most importantly, decisions made during tactical planning are less subjective, because they are based on complete and objective information, and its implementation is associated with less risk.

As a rule, Russian entrepreneurs are reluctant to use long-term planning, as the country's economic situation is unstable. Therefore, most often they resort to tactical planning, which is carried out initially in terms of the goals and conditions of the previous year, and only after that is it necessary to calculate the prices and conditions adopted in the long-term plan.

The change in economic indicators for any time period occurs under the influence of many different factors. The variety of factors affecting profit and, accordingly, profitability requires their classification, which at the same time is important for determining the main directions, searching for reserves to improve business efficiency (Figure 2.1):

Figure 1.1 - Classification of factors affecting the reserves for increasing profits and increasing profitability

Source:

There are internal and external factors.

External factors include natural conditions, state regulation of prices, tariffs, interest, tax incentives, penalties, inflation, etc. They do not depend on the activities of organizations, but can have a significant impact on the amount of profit and profitability.

Internal factors are divided into production and non-production. Production factors - characterize the availability and use of means and objects of labor, labor and financial resources and, in turn, can be divided into extensive and intensive. profit economic reserve

Extensive factors affect the process of making a profit and the level of profitability through quantitative changes: the volume of funds and objects of labor, financial resources, equipment operation time, number of staff, working time fund, etc.

Intensive factors affect the process of obtaining and increasing profits, increasing profitability also through qualitative changes: increasing the productivity of equipment and its quality, using advanced materials, improving processing technology, accelerating the turnover of working capital, etc. Non-production factors include, for example, supply and marketing and nature protection activities, social conditions of work and life, etc.

The process of forming the organization's profit can be divided into two stages with a certain degree of conditionality: the formation of profit for the reporting period, the formation of net profit.

Consequently, the factors influencing the financial result can be divided into two groups: influencing the formation of profit of the reporting period and influencing the formation of net profit. Let's consider each of these groups of factors in more detail.

The level of profitability and the amount of profit of the reporting period is affected by a combination of many factors that depend and do not depend on the activities of the organization. The main factors of profit growth, as well as profitability, depending on the activities of the organization, are:

- growth in the volume of production and sales of products;
- reduction of production costs;
- rising prices for products sold;
- changes in the structure of manufactured and sold products, improvement of the assortment.

The factors noted above affect mainly the profit from the sale of products and, accordingly, the level of profitability. Due to the fact that the vast majority of the profit of the reporting period (90-95%) organizations receive precisely from the sale of marketable products, this part of the profit should be given special attention.

So, consider the first factor - the growth of production and sales. An increase in the volume of production and sales in physical terms, other things being equal, leads to an increase in profits. With a high share of semi-fixed costs in the cost of production, an increase in production volume will lead to an even greater increase in profits due to economies of scale. Increasing production volumes of products that are in demand can be achieved with the help of capital investments, which requires the direction of profits for the purchase of more productive equipment, the development of new technologies, and the expansion of production.

It does not require capital expenditures to accelerate the turnover of working capital, which also leads to an increase in production volumes and product sales. However, inflation quickly depreciates working capital

The next factor affecting profit and profitability is the reduction of production costs. Quantitatively, the cost price occupies a significant share in the price structure, so the cost reduction affects the profit growth, all other things being equal. If a change in the volume of sales affects the amount of profit in direct proportion, then the relationship between the amount of profit and the level of cost is inverse. The lower the cost of production, determined by the level of costs for its production and sale, the higher the profit, and vice versa. This factor, which determines the amount of profit, in turn, is influenced by many reasons. Therefore, when analyzing changes in the cost level, the reasons for its decrease or increase should be identified in order to develop measures to reduce the level of costs for production and sale of products, and therefore increase profits due to this. In many organizations, there are divisions of economic services that are engaged in line-item analysis of the cost, seek sources and reserves to reduce it. But to a large extent, this work is depreciated by inflation and rising prices for raw materials and fuel and energy resources.

Do not forget about the increase in prices for products sold. The factor that directly determines the level of profitability and the amount of profit from the sale of products are the applied prices. Free prices in the conditions of their liberalization are set by organizations and depending on the competitiveness of this product, demand and supply of similar products by other manufacturers. Therefore, the level of free prices for products to a certain extent depends on the organization. A factor independent of the organization is state regulated prices set for the products of monopoly organizations, as well as for products that are socially significant. The increase in price in itself is not a negative factor. It is quite justified if it is associated with an increase in demand for products, their quality, improvement of technical and economic parameters and consumer properties of products. However, in countries with economies in transition, including the Republic of Belarus, the rise in prices in most cases is due to inflationary processes. Consequently, the profit increase factor is of an inflationary nature and cannot be considered as a reserve for the growth of the financial result.

In addition to these factors, the amount of profit from sales, of course, is affected by changes in the structure of manufactured and sold products. The higher the share of the more profitable, the more profit the organization will receive. Accordingly, an increase in the share of low-margin products will lead to a reduction in profits.

All of the above factors directly affect the size of the profit of the reporting period, also have an indirect impact on the size of the final financial result of the organization - net profit. The factors that directly form this indicator are mainly factors that do not depend on the activities of the organization, namely, the legal framework of the country in terms of taxation.

In addition to the above, the factors affecting the size of the profit of the organization are also specific directions for the use of profits.

Net profit is used by the organization for the needs and purposes determined by the plan for economic and social development. At the same time, special funds of the organization are formed from net profit: an accumulation fund, a consumption fund. A feature of the distribution of profits of a joint-stock company is the formation of a reserve fund intended to cover the losses of the organization. The procedure for the distribution and use of profits is fixed in the charter of the organization and is determined by the regulation, which is developed by the relevant divisions of economic and financial services. The legislation only limits the size of the organization's reserve fund (not less than 10% and not more than 25% of the authorized fund), regulates the procedure for forming a reserve for doubtful debts.

The reserve for the growth of profits in the formation of special funds of the organization is the possibility of using (reinvesting) the dividend fund: in order to develop the organization with insufficient profit, a decision can be made to reinvest dividends on ordinary shares and not pay income to their owners in the current year. The distribution of profits for the invested part and dividends is the most important moment of financial planning, since the development of a joint-stock company and its ability to pay dividends in the future depend on this.

In developed countries (USA, Canada, Germany, France, Italy, etc.), the calculation of the final results of an organization's activities using the "cost-output" method has become widespread. In accordance with this method, the overall result of the organization's work is determined by summing up the operational and financial results. For each type of activity, the costs are commensurate with the production and marketing of products (sales), income, and the final result is determined.

Having studied the factors affecting profit and profitability, it becomes possible not only to determine them for each organization separately, but also to see the boundaries of their controllability, and also to single out among them dependent and independent of the business entity.

To assess the performance of an organization, it is not enough to use the profitability indicator, since the presence of profitability does not mean that it works well. The absolute amount of profitability does not allow us to judge the degree of profitability of a particular organization, transaction, idea. Many organizations that have received the same amount of profitability have different sales volumes, costs.