Sales Profit Analysis: Understanding Calculation Methods
Posted: Thu Jan 23, 2025 4:36 am
Margin Profit — knowledge of the size of which helps to more accurately predict the financial results of commercial activities.
Operating Profit — operating profit.
Net Sales — net sales. This indicator is hong kong telegram number database determined by subtracting discounts on products, the cost of bonus loyalty programs and returns from revenue. This is a more objective way to evaluate the sales service's performance.
EBITDA - due to the fact that depreciation charges and payments on liabilities are not taken into account, it becomes possible to compare financial competitiveness with other enterprises represented on the market.
Retained earnings (retained earnings) is the accumulated net profit of a company after dividends have been paid.
Read also!
What other financial statements are there besides PnL?
An enterprise can use other types of financial reports, in addition to PnL, because this is related to the specifics of accounting; each business chooses the most convenient and informative form:
Balance sheet . The balance sheet of an enterprise covers all assets (current, non-current), liabilities (short-term, long-term), and capital in various forms (authorized capital, profit, other funds). The balance sheet includes detailed information on asset and liability items, with changes within the reporting period.
Cash Flow Report . This report records cash flows - income and expenses for the period. The peculiarity is that it is not the fact of the transaction itself that is subject to accounting, but the movement in current accounts or changes in the cash register.
In general, the PnL report is widely used in business, and this document provides a clear picture of the financial condition of the enterprise.
Operating Profit — operating profit.
Net Sales — net sales. This indicator is hong kong telegram number database determined by subtracting discounts on products, the cost of bonus loyalty programs and returns from revenue. This is a more objective way to evaluate the sales service's performance.
EBITDA - due to the fact that depreciation charges and payments on liabilities are not taken into account, it becomes possible to compare financial competitiveness with other enterprises represented on the market.
Retained earnings (retained earnings) is the accumulated net profit of a company after dividends have been paid.
Read also!
What other financial statements are there besides PnL?
An enterprise can use other types of financial reports, in addition to PnL, because this is related to the specifics of accounting; each business chooses the most convenient and informative form:
Balance sheet . The balance sheet of an enterprise covers all assets (current, non-current), liabilities (short-term, long-term), and capital in various forms (authorized capital, profit, other funds). The balance sheet includes detailed information on asset and liability items, with changes within the reporting period.
Cash Flow Report . This report records cash flows - income and expenses for the period. The peculiarity is that it is not the fact of the transaction itself that is subject to accounting, but the movement in current accounts or changes in the cash register.
In general, the PnL report is widely used in business, and this document provides a clear picture of the financial condition of the enterprise.