Sales profit formula and application examples. Formulas for the total increase in revenue from product sales. Due to which sales revenue increases

Only stable profits guarantee the successful operation and development of the company. The annual increase in profit indicates a correctly chosen development strategy, skillful management of current activities and high qualifications of the company’s management.

The need to plan long-term profit growth

Tough conditions of market competition require enterprises not only to have stable profits, but also to increase them annually. What factors cause the need to increase profits and what does it give?

Stable development and systematic renewal production capacity enterprises. Due to the constant increase in prices for technological blowing, when planning the renewal of fixed assets, it is necessary to provide for increased capital investments. This cannot be done without a promising increase in profits.
Gradual increase in wages. Nowadays it is difficult to attract qualified personnel without corresponding salaries. Wages in all countries are constantly increasing, this can only be achieved by increasing profits.
Attracting capital investments. Potential shareholders want to see not only the current state of the enterprise, but also the prospects for its development. Steady year-on-year profit growth increases the value of the company's shares.

The profit increase can be gross and net (absolute). There are specific differences between both categories; understanding them makes it easier to plan the company’s activities. For the most complete description of the financial situation commercial enterprise the parameters of the actual profit growth for the reporting period and the profit growth planned for the short and medium term are used.

Gross profit growth

Actual gross profit equals the sum of all income received from the sale of goods minus direct and indirect production costs. Gross profit increases due to changes in the price of goods, an increase in production volumes, and a decrease in unit costs.

Increasing profits by reducing production costs. Determined by the formula ΔP (profit increase) = Ср (cost in the base period) - Со (cost in the reporting period) × q (quantity of products).
Increase in profit due to increased production. Determined by the difference in cost products sold in the reporting and base periods. This means that the price did not change throughout the entire period.
Increase in profit due to increased prices. An increase is possible only with positive dynamics of price growth and is determined by the formula ΔP = (Tspp - Tsdp) × q, where Tspp is the price after the increase, Tsp is the price before the increase, q is the volume of production.

Increase in net profit

To determine the value net profit The amount of obligatory government payments and fees, fines, loan obligations and others should be deducted from the gross financial expenses, not directly related to the product manufacturing process. The increase in net profit is achieved by reducing all financial payments that are not directly related to the production process.

The increase in net profit is greatly influenced by operational efficiency accounting department, this indicator most fully characterizes the work of the company as a single financial and industrial organism. Net profit is an objective final result commercial activities any company.

Relative and absolute indicators of profit growth

The absolute increase in profit is indicated in rubles and is determined by the difference in the enterprise’s profit in the reporting and previous periods. This indicator is used for further financial settlements and planning. Relative growth allows you to see the dynamics of the company's development; the parameter indicates the growth as a percentage. To determine the relative increase in profit, you need to divide the data from the previous reporting period by the current year's figures and multiply by 100%. Relative indicators profit growth makes it possible to draw up graphs and tables used to attract investment in the enterprise.

Sales revenue is the amount Money, credited to the company’s accounts for products shipped to customers or services provided to them.

In my own way economic content it is the main source of income for the enterprise.

The receipt of revenue into accounts is the final stage of the circulation of funds of an enterprise, which is of decisive importance for ensuring its further normal economic activity. The defining moment in this process is the date of receipt of funds into the company’s accounts.

It is allowed to record product sales using two indicators:

in terms of sales volume itself;
in terms of product shipment to the buyer.

The following three main factors influence the amount of sales revenue:

volume of products sold;
level of realized prices;
assortment (structure) of products sold.

The volume of products sold has a direct impact on the amount of revenue. The higher the sales volume in physical terms, the higher the sales revenue. In turn, the influence of volume consists of 2 factors:

change in the volume of commercial output (direct impact on revenue);
change in balances of unsold marketable products.

The growth of such balances has the opposite effect on the amount of revenue. Growth in sales volume is practically the only factor influencing revenue, which is associated with the efficiency of the enterprise.

An increase in the share of more expensive products in total sales also leads to an increase in revenue. However, this also, as a rule, has absolutely nothing to do with efficiency, with improving the operation of the enterprise.

Gross profit is the amount of profit (loss) from the sale of products (work, services), fixed assets, other property of the enterprise and income from non-sales operations, reduced by the amount of expenses for these operations.

Non-operating income and expenses - income from equity participation in a joint venture, from leasing property, dividends on shares, bonds and other securities owned by the enterprise, other income and expenses from operations not related to the production and sale of products, including amounts received and paid in the form of economic sanctions and damages.

A complex of various factors determines market conditions. In market fluctuations (cycles), as is known, four stages are distinguished: depression, rise, boom, recession. All these stages have an impact on the development of goals, decision-making, determination of planned indicators, and the performance of any enterprise, including trading.

The depression stage is characterized by the lowest levels of production, turnover, prices, demand for goods, fixed assets, labor and capital, high costs, unemployment, bankruptcy, low profits and wages, and pessimistic moods.

With the rise, entrepreneurs begin to become more active, production, turnover, and profits increase; price growth slows down, investments increase, exchange rate valuable papers, propensity to purchase, the number of jobs increases.

During the boom stage, production capacity is fully utilized and the wage and prices, overemployment, scientific and technical activity is intensifying, entrepreneurs are looking for new directions for investing capital, and there is a danger of rising inflation.

During a recession, high prices hinder the sale of all goods (services); demand decreases, there is a decline in production and all this together leads to a crisis.

The second fundamental principle of the economic justification for the volume of retail turnover is to ensure the necessary relationship between the dynamics of performance indicators of a trading enterprise and forms of intensification. The dynamics of the relationship between indicators represents a standard for the efficiency of resource use and costs.

In such a standard, the foreground is the receipt of the necessary amount of profit, which determines the indicators interrelated with it, the achievement of a specific volume of trade turnover and the growth of the physical volume of sales, ensuring that the goods offered for sale meet the demand of the population. This strategy is based on ensuring a balance between retail trade turnover and profit, on the one hand, and commodity resources, retail trade turnover and population demand in terms of volume and structure, on the other, as well as on developing optimal proportions for their development.

Market segmentation is the division of consumers (or markets) into subgroups or segments. It can be carried out according to consumer groups, consumer properties of the product, and main competitors. As you know, the most promising market segment is considered to be the one in which approximately 20% of a given product and 70-80% of its buyers are located, which ensures sales and financial success for the company.

Understanding the differences between individual types of consumers enables enterprise personnel at the procurement, planning and implementation stages to more closely link needs with the supply of goods and services.

Market segmentation by consumers is based on socio-economic, demographic, geographical, psychological and lifestyle aspects. A social group is determined by income level, education, and occupation; ethnic - by nationality; demographic - by age, gender, religion, size and life cycle of the family and individual; geographical - divided into urban and rural populations, economically developed or developing countries; on a psychological basis - according to individual characteristics, purchasing motives, habits or preferences. The basis for identifying a segment based on lifestyle aspects is life activity, interests, position and demographics.

The formation of demand in the market for a particular product, consumer choice, and the behavior of individual consumers depend on how their needs are met and what utility a particular product brings. Utility refers to the satisfaction received from consuming a product or service. There is a distinction between total and marginal utility. Total utility is the satisfaction obtained from consuming a specific set of units of a good or service. Marginal utility is the utility equal to the increment or increase in total utility resulting from the acquisition of an additional unit of a given good. Marginal utility reflects the degree of urgency of the need and the effect that the consumer will receive from the next purchase of this product or from an additional quantity of the product. Based on the study of the theory of marginal utility, the law of diminishing marginal utility is derived. It is formulated as follows: “If the consumption of other goods remains unchanged, then as the need for some good or service is saturated, the satisfaction from the subsequent unit of this good decreases.” At the level of plan development and execution, salespeople are faced with the question of how to satisfy needs so that they bring equal marginal benefit. Theoretical studies show that maximum utility is achieved when the consumer's budget is distributed in such a way that the marginal utility of one ruble (100 rubles, 1000 rubles) of expenses is the same for each product. Studying the theory of marginal utility allows us to draw a number of conclusions that can be applied in the practical work of an enterprise.

1. Consumer choice is based on rational use of the budget and an attempt to maximize the satisfaction of one’s needs by purchasing goods and paying for services in a certain combination.

2. Consumers make their choices by comparing sets of consumer goods and services. The set may include goods of everyday and one-time demand, durable goods, food, household goods and clothing, luxury goods, etc. However, purchasing a large number of goods included in this set is most preferable. 3. Consumer preferences are ranked in order of importance for the buyer based on his income, aspects of life, and social status. In this case, the marginal rate of substitution of one good (A) with another (B) represents the maximum amount of another good (B) that a person is willing to neglect in order to purchase one additional unit of good “A”.

4. The set of goods on which consumers spend their income also depends on the growth rate of purchasing funds, changes in prices for basic complementary, interdependent and independent goods, the ratio of prices of two purchased or replacing each other products.

5. Consumer choice can be represented either as an indifference curve (when it is possible to rank the ordinal utility properties of an alternative set) or as a utility function (if set “C” is preferable to “A”, then the utility of set “C” is higher than “A” ).

6. The more a good is consumed, the smaller the increase in utility.

7. Utility is maximized when the ratio of marginal utilities of two goods is equal to the ratio of prices.

At first glance, such an analysis is only possible in a saturated market. However, this opinion is wrong. In conditions of an unsaturated market and limited purchasing funds, the forecast of the expected purchase mix, based on the theory of marginal utility, studied using indifference curves, becomes even more important.

The modern strategy for creating a production and sales program, used in foreign practice, is built on the idea of a growth matrix or “portfolio of areas” for business development, developed by specialists from the Boston Group. In accordance with this theory, products can be roughly classified by profitability into “stars”, “cash cows”, “dogs” and “problem children”.

Products classified as “stars” are characterized by quick sales, which require large amounts of working capital to ensure. They are very popular and have a high return on investment. Typically, in these cases, enterprises have good solvency and sustainable financial position. Over time, as their life cycle changes, the sales of “stars” slow down and they turn either into “cash cows” or, if their market share is reduced and they lose competitiveness, into “dogs”.

Products that are conventionally classified as “cash cows” have low sales growth rates, but their market share is usually high and they are capable of generating large amounts of revenue. The demand for such goods is stable, they bring real sustainable income, which can be used to purchase new goods and support the sale of others, etc.

With the development of market relations, they increasingly began to talk about other situations of the origin of revenue growth: this is profit earned thanks to the initiative of the entrepreneur, profit received under favorable circumstances, unexpected profit allowed and recognized by the authorities state power(relevant legislation).

All sources are interconnected, and it is often impossible to isolate their pure content. The most important factors determining profit are: the introduction of innovations, the absence of fear of risks (risk as a source of profit), the rational use of funds, the achievement of optimal volumes of activity (i.e., the choice of a scale of enterprise that allows for optimal profitability). It has been proven that in terms of profit large enterprises not always the best). Profits grow as long as interest rate on bank loans will be lower than the rate of return on invested capital; Having debt is therefore acceptable, even in many cases it contributes to profits (the so-called leverage effect). Many small and medium-sized enterprises are afraid of debt, which is not always justified. However, when using a voluntary debt strategy, one must be wary of low profitability, because it will force the enterprise to resort to additional loans in order to update equipment (range). And this can lead to a state of reduced solvency and even bankruptcy.

The introduction of innovations as a source of profit presupposes the production (sale) of a new product (service) of higher quality, the development of a new market, organizational and managerial innovations, and the development of new sources of goods.

The duration of the influx of profit from the introduction of innovations is determined by the following factors: the importance of the invention, the significance and constancy of the needs satisfied by this product (service), the nature of the activity, patent and licensing legislation in the country, the introduction of innovations; overall strategy conducted by the company in the market, the state of the competitive environment in this industry.

There are situations when the role of the entrepreneur in the occurrence of profit or loss is passive. Such situations are generated by: the nature of the activity, the existing market structure, general economic conditions, the presence of inflation (very beneficial for enterprises that have debt and have received non-indexed loans and credits). .

The main factors characterizing the specifics of the activity: capital-labor ratio, level of costs, demand dynamics, market structure.

Every enterprise that produces any product needs a thoughtful approach to its marketing. Only specialists should deal with such issues, because improper sales planning can lead to a decrease in profits and even bankruptcy of the enterprise. Knowing how to increase sales revenue, any start-up company will be able to quickly recoup its expenses and begin to make its first profit.

Process-oriented ways to increase profits

Profit is the difference between the income received and the amount spent on producing the product. That is, only net revenue is taken into account, without any material costs. These include not only the purchase of products and materials necessary for production, but also the purchase of machines, their maintenance, payment of wages to workers, advertising costs, etc. Therefore, to increase revenue, it is necessary to take a number of measures regarding equipment, work force and technological processes:

These are the main ways to increase sales profits by adjusting the production process.

Increasing profits outside of production

Equipment, personnel and procurement of resources are the basis for obtaining products in cheaper ways. However, to increase revenue, sales are needed. Without selling goods there will be no profit. Therefore, it is necessary to increase sales, and they depend on:

Product quality. The higher, the more people will want to purchase such a product;
Market expansion. This point is the most important, thanks to it the manufacturing company gets many new customers, which means sales increase. There are several ways to expand your sales market, but it is advisable to combine them to achieve results. For example, you need to organize advertising campaign that will attract attention potential buyers, and at the same time establish connections with wholesale clients– owners of their own trading platforms.

A well-thought-out advertising campaign can attract the attention of many buyers, and as a result, increase revenue. But, if the first point (quality) is not met, people will very soon become disappointed in the product and stop buying it. To obtain regular customers

, you need to take care of your reputation and not offer them low-quality goods.

Small note Not all entrepreneurs have their own production and trade own goods . Some prefer to limit themselves only to supplies ( network marketing

, distributors of some brands, etc.). In this case, only advertising can increase profits. Typically, at this level of business, its owners create their own website and conduct an advertising campaign on the Internet.

Profitability is the amount of profit in percentage terms that an organization receives in relation to costs. Profitability is calculated by dividing net profit by total revenue and multiplying by 100%. An indicator of 8–10% is considered normal. If profitability is lower, the organization needs to think about measures to increase it. Formula Sales profit is calculated using the formula. It is defined as the difference between expenses and gross profit. Gross profit is determined by subtracting selling expenses from sales revenue. Selling expenses (cost of sales) are only those expenses that directly go towards sales. So, the formula: Prpr = Vpr – UR – KR Where, KR, UR – commercial/administrative expenses; Vpr – gross profit; Prpr – income from the activities of the company.

Calculation of profit growth Profit growth is calculated as the difference in profit amounts based on the results of the previous and current periods. The reasons for the increase in profit may be a decrease in costs, an increase in production, or a change in the purchase price of products. 1. If profit has increased due to a decrease in production costs, then the increase is calculated by multiplying the volume of production of the current period by the resulting difference in production costs.
In this case, the increase corresponds to the amount of savings from cost reduction, based on the planned wholesale cost for this period. ΔP = (Sb - Co) q, where ΔP is the increase in profit, Sb is the cost of manufacturing one product in the base period, Co is the cost of manufacturing one product in the reporting period, q is the actual quantity of products. 2.

Formula: sales revenue. How to calculate sales revenue?

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Profit from product sales

Based on the data below, you need to determine what the profit from sales of products that the enterprise will receive in the planned year will be, and you also need to calculate how much the increase in profit in the reporting year will be compared to the previous period: - the volume of production of the enterprise is 440 thousand . things; - the price of a unit of production that is produced is $670; - variable costs of this enterprise per unit of production - $420 - fixed costs for the production of commercial products equal to 2,070,000 thousand dollars; Additionally, it is indicated that in the planned period, the analyzed enterprise intends to increase its profit from product sales by 18%. Solution: 1.

Profit increase

This means that to answer the question of how to find revenue from sales of products, the formula can be presented as follows: B = Ts1 * K1 + Ts2 * K2 + ... + TsN * KN, where B is the total revenue for all types of products sold; ЦN – price of the Nth type of product (including VAT); КN – quantity of the Nth type of products sold. Accounting for revenue from sales of products (works, services) Revenue in accounting is usually reflected in the following entry (Order of the Ministry of Finance dated October 31, 2000 No. 94n): Debit of account 62 “Settlements with buyers and customers” - Credit of account 90 “Sales”, subaccount “Revenue” " IN retail trade account 62 is often not used, and account 90 directly corresponds with the cash account: Debit account 50 “Cash” - Credit account 90 Thus, from the point of view accounting, revenue is the credit turnover of account 90 from the debit of accounts 62, 50. In this case we're talking about on revenue including VAT.

Formula for calculating profit from sales

Additional nuances It should be noted that receipt of revenue on time is one of key tasks activities of any organization in market conditions, because this is the main factor determining its financial position. But its arrival untimely can lead to unpleasant consequences, among which: delay in payment of funds to employees of the organization, arrears in payment of taxes and other mandatory payments, delays in settlements with suppliers, and so on. For tax purposes, proceeds from sales (the formula is below) or from the sale of property rights are considered income.

It is formed on the basis of revenues that are directly related to payments for the sold product (work, services) or property rights, which can be expressed both in cash and in kind.

Revenue from product sales

This is the revenue received from buyers and customers for the sold product.

As a result of investment activities (sale of fixed assets or other assets not in circulation, interest and dividends on securities).
As a result financial activities enterprise, which is associated with the placement of bonds and shares among investors, the repayment of loans and credits previously provided to other business entities.

Revenue planning In the process of financial and economic activity, any enterprise carries out revenue planning (the formula “sales revenue” will be discussed in detail below), which occurs, as a rule, in accordance with three methods.
The indicator under consideration is the most important source involved in the formation of one’s own financial resources any organization. In other words, sales revenue is one of the key definitions of the financial and economic life of an economic structure. Sales revenue (the calculation formula is shown below) is usually calculated for a specific period of time.

In the process of selling a product (work, service), the indicator under consideration allows us to determine the final result of the company’s activities. It should be noted that in the accountant’s report, the presentation of revenue is organized subject to the deduction of taxes. Revenue accounting In the life of any economic entity, the most important role is played by the fact that revenue is accounted for in the form of a sum of money.

Formulas for the total increase in revenue from product sales

Another revenue formula is determined by multiplying the sales value of a product (service) by the quantity of goods sold: B = St * Q Formula for revenue from sales The formula for revenue from the sale of goods for the corresponding period is calculated by taking into account sales volumes and prices. The formula for sales revenue is as follows: B=Q*P Here B is revenue from sales of products, Q is the quantity of goods sold, P is the price of goods sold. Types of revenue Revenue from the sale of goods (services) consists of funds or other property in monetary terms that are received or are to be received from the sale of goods (products, services, works) at prices and tariffs in accordance with the concluded agreement.

Info

Calculation of gross profit: Vpr = VO – SbstWhere, Sbst is the cost of selling products; In is the volume of revenue. If you subtract all other expenses and taxes from the profit value, you will get net profit. An example of using the formula for calculating sales profit.

Determination of net profit using the example of Entrepreneur Kuznetsov sells office supplies at retail. Within a month he purchased wholesale warehouse goods worth 500,000 rubles. Arranging delivery cost him 5,000 rubles. For rent commercial premises Kuznetsov paid 5,000 rubles.
Taxes and fees - 7,000 rub. Another 10,000 rubles were spent on other expenses. During the month, Kuznetsov sold all the goods. With a 30% markup, gross sales revenue will be 650,000 rubles.

Sales analysis and management decisions Why analyze product sales? This makes it possible to further clarify the trends of decline or, which is much better, growth of sales that are already planned. Moreover, the analysis provides information on which products require some effort to sell, and also helps in developing specific and targeted management decisions regarding the sale of products (works, services). So, for the first stage of this analysis, it is necessary to calculate the growth rate of sales revenue using the following formula: - TpN = N1 / N (sales revenue growth; formula).

— N1 – revenue from the sale of product (work, services) in the reporting period. — N – revenue from the sale of product (work, services) in the base (previous) period.