How to find gross profit. Definition and formula for calculating gross profit

The desire to maximize profits is inherent in the very essence of entrepreneurship. But in financial analysis exists . Distinguishing them is important not only for competent management accounting, but also for development long term strategy business.

Gross profit is the quantitative difference in monetary terms between (revenue) and total expenses incurred in the production of goods or services.

There will be no profit if the product produced is not in demand in the market. If a product is not in demand, then no one buys it, which means no revenue is generated. But expenses, on the contrary, are always present.

Even if the company does not produce anything yet, it is already spending employee salaries, utility bills, and equipment depreciation. Having started production, the company increases costs by purchasing raw materials, fuel, tools, furniture and Consumables, paying for delivery of goods.

In most cases, expenses include entertainment costs for presentations and advertising. Don’t forget that this is also an expense for the company. If the company services the loan, such deductions also apply to expenses. Even the smallest company spends funds for its activities.

Sources of income may also be different. First of all, this comes from sales, that is, from the main activity. The company can rent out premises or equipment, this is also income. Another permanent source of income can be profitable intermediation, resale of goods from other manufacturers. The company can sell unnecessary property, securities, receive a loan or funds from the state - all these events also replenish the company’s budget. In addition to the above, the organization may have interest income on available funds invested in the bank, etc. All these incomes at the end of the reporting period will form gross revenue.

Thus, to get an idea of ​​gross profit, you need to understand that it is obtained by subtracting a firm's total expenses from its total revenues in a specific unit of time (month, year, quarter).

Formula for calculating gross profit

How is gross profit practically calculated? The notation in the formula may be different, but the simplest option looks like this:

• Pg – gross profit
• Rg – gross revenue
• Eg – gross expenses

If a company is engaged only in trade (resale of products), and it receives its main income, then it is more convenient to use another formula - for turnover:

Pg = T * M / 100 – Eg

Where the designations correspond to the following indicators:

• Pg – gross profit
• T – turnover
• Me – estimated markup
• Eg – gross expenses

Me – Margin Estimating – estimated trade margin, which is previously found using the formula:

Here the icon Mt denotes the trade margin, that is, the amount that the seller adds on top of the original cost of the product in order to make his profit. It can be expressed as decimals, and as a percentage.

Calculation example

As a hypothetical example, let's take a company that produces and sells T-shirts with celebrity portraits at a price of 500 rubles apiece, rents out half of its office to a law firm for 50,000 a month, and also has a bank deposit of 1 million rubles, receiving from the bank annually 7% per annum.

If a company produces 2 thousand T-shirts per year, then its costs are as follows:

• Purchase of materials, threads and paints – 100,000 rubles per year
• to obtain copyrights for images – 10,000 rubles per year
• Salary – 1,200,000 rubles per year
• Transport costs – 50,000 rubles per year
• Website promotion and advertising – 50,000 rubles per year

The company's income is as follows:

• Revenue from the sale of T-shirts (2 thousand for 500 rubles) – 1,000,000 rubles per year
• – 600,000 rubles per year
• Bank interest – 70,000 rubles per year

Thus, the gross revenue (Gross Revenue) for the year for such a company will be 1,670,000 rubles.

Gross Expenditure for the same period of time will be 1,410,000 rubles.
Using the formula, we subtract one from the other and get 260,000 rubles - this will be the gross profit of the company for reporting period. English word“profit” is well understood by all Russian entrepreneurs.

Where is the indicator used?

The T-shirt example above shows that the company's gross margin is not very high. Perhaps it is worth spending less on wages, or buying more productive equipment, because the free million rubles lying in the bank could bring more benefits.

Therefore, gross profit is one of the simplest, but at the same time the most important indicators, used in accounting and financial analysis.

Gross profit shows how well a company is doing and whether the business is moving in the right direction. After all, gross profit can have not only a positive, but also a negative value.

In order for a company to receive a positive gross profit, it is necessary that its production or trading processes do not “eat up” more money what the company gets from doing business. The main source of income for a manufacturing company is sales revenue. The higher the price of the product, or the greater the trade margin on previously purchased goods, the greater the revenue will be. But it is impossible to raise prices for your goods without taking into account the specifics of consumer demand.

If the price of a product is too low, then production will exceed the benefits from the activity, and the company will go bankrupt. If the price is too high, then no one will buy the product, and the result will be just as disastrous - the gross profit will be negative, and in the end it may. Therefore, the company is forced to constantly balance between the optimal combination of income and costs. Thus, the gross profit indicator signals the owners of the enterprise how rationally they use the resources that are on the company’s balance sheet.

It is worth noting that if gross profit shows a negative result, this does not always mean that the activity is developing according to a negative scenario. Very often, profits are negative at the beginning of a company’s operation if it has just opened.

During this period, there are a lot of expenses, and a constant income from production and sales has not yet been established. This may also be a temporary effect. Having detected a minus sign in the gross profit indicator in time, the head of the company can take measures to even out the situation.

Thus, it is so simple, but it will allow the manager to keep his “finger on the pulse” of his business and not miss problematic issues.

Write your question in the form below

Every domestic enterprise carrying out business activities from time to time needs to make calculations of indicators characterizing the efficiency of doing business. One of these values ​​is gross profit, the calculation formula for which is given below.

Gross profit

The main purpose of creation and operation Russian enterprises is to make a profit.

At the same time, each organization is obliged to carry out accounting of transactions taking place in the economic activities of the corresponding entity.

The Ministry of Finance of the Russian Federation, by Order No. 43n dated July 6, 1999, approved PBU 4/99, according to which the reporting of organizations consists of the following documents:

• balance in a form developed at the legislative level;
• Profits and Losses Report;
• appendices and explanatory note;
• auditor's conclusion, but only in cases listed in the legislation.

The official forms of the balance sheet and financial statements were put into circulation by Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 N 66n.

In the same act of lawmaking, the Ministry provided for an indication of the value of gross profit, the calculation formula for which is given below.

The importance of calculating the described details cannot be overestimated due to the participation of the named value in the calculation of other indicators of the enterprise’s activity.

Appendix No. 4 to Order of the Ministry of Finance of the Russian Federation dated July 2, 2010 N 66n to reflect the value of gross profit in financial statements line 2100 is intended.

How is gross profit calculated?

It is important to remember that the value of gross profit is not identical to the income reflected on line 2400 in the financial statements.

IN general outline the calculation of the described details is the difference between the revenue received by the organization from sales and the cost of the goods or services sold.

Accordingly, in order to answer the question of how to find gross profit, you must have the following data:

• revenue on line 2110;
• cost reported in section 2120.

Thus, to find the described value, you need to apply the formula: page 2100 = page 2110 - page 2120.

When starting to calculate gross profit, it is necessary to take into account the indicators that make up both revenue and the cost of goods.

If the company is a trading company, then the cost of production will consist of:

• expenses for purchasing goods;
• delivery costs;
• paid wages and related taxes and fees;
• costs of renting retail space;
• advertising costs;
• other expenses.

A slightly different composition of costs in the manufacture of goods:

• expenses for materials, raw materials, means of production;
• wage fund, taxes, contributions;
• costs associated with organizing work;
• depreciation of fixed assets;
• warehousing costs;
• other costs.

The formation of revenue of a trading and manufacturing enterprise differs in a similar manner.

It is important to remember that the list of items involved in calculating revenues or costs and, as a result, determining gross profit is not exhaustive. Each enterprise represents unique system, requiring individual approach when determining balance sheet indicators.

In conclusion, it should be noted that the value of the enterprise’s gross profit is reflected in Russian rubles. Specifying other currencies is unacceptable.

Gross profit- is the difference between the organization's revenue and cost products sold, product or service.

The activity of any production unit is based on the law of making a profit with minimal risks.

Gross profit as an indicator of efficiency

Profit is one of the main indicators. It is this that is the source of the development of the enterprise. One of its types gross profit, is one of the most important indicators of enterprise performance.

Good dynamics of gross profit indicates that the organization operates quite effectively in a competitive market environment. Gross profit gives an overall picture of production efficiency and helps to successfully manage the finances of an enterprise.

Gross Profit Formula

The gross profit formula is as simple as two:

VP = BP – S, Where

• VP – gross profit,
• Вр – revenue after the sale of goods, services,
• C is the cost of goods and services sold.

To correctly determine the VP ( gross profit), it is necessary to determine the cost as accurately as possible.

Presentation on Gross Profit Growth

What influences gross profit growth?

The question of why profit depends is very important. A clear understanding of it allows us to find additional features to increase it. It makes sense to systematize the factors that influence the dynamics gross profit.

Internal factors

• Unit price of a product or service.
• Cost of manufactured products.
• Volume and speed of turnover of products sold.
• Revenue from products sold.
• Marketing costs and promotion.
• Competitiveness of goods or services.

External factors

• Market conditions, fashion.
• State regulation of certain economic processes, including depreciation and tax deductions.
• Changes in consumer demand.
• Changes in the pricing policy for raw materials, an increase in the supply of goods and services on the market.
• Political climate, emergency situations.

Internal factors change in accordance with the actions of the organization itself, which means that for now they may well change it to achieve acceptable dynamics of the gross profit indicator.

External factors only indirectly affect gross profit, but they are able to influence production costs and sales volumes.

Unsold goods have a negative impact on gross profit. Instead of profitability, they only bring losses and unexpected expenses. In such a situation, it would be appropriate to use a system of discounts, markdowns of goods and materials (inventory assets), and the involvement of barter transactions. These measures will not significantly increase gross profit, but it will make it possible to return the investment spent on production.

Working with an indicator such as gross profit will help identify profitable products. This, in turn, will allow you to adjust the range of goods and services.

There are several other items that affect gross profit growth. For example, funds from the sale of fixed assets, disposal of illiquid materials, non-operating income.

What influences the calculation of gross profit?

In order to obtain higher gross profits, it is necessary to regularly address cost issues. All measures should be aimed specifically at reducing this indicator.

For every industry there is various ways: search for profitable logistics options, modernization technological processes, and even adoption alternative sources energy resources! All these activities will automatically lead to the fact that gross profit the organization will grow.

For the same purpose, prices for manufactured products can be increased. But in this matter you need to act carefully, and not violate the fine line between price and demand. Otherwise, you may not realize anything and be left without any profit at all. In order to correctly raise prices, you can study the prices of competitors or conduct a customer survey.

An increase in the volume of goods and services sold will have a positive effect on gross profit. If the demand for them is consistently high, it is advisable to find opportunities to satisfy it. By the way, a drop in the volume of goods promoted on the market can provoke a rise in prices. Understanding all the nuances is what successful management enterprise.

You can count on additional size increases gross profit, if organized correctly advertising company. The right strategy in this direction will certainly have a positive impact on sales. Modern technical capabilities and ownership statistical information provide ample opportunities for promoting products on the market of goods and services.

Once funds are received, they must be distributed correctly. In this case, it is advisable to take into account all cost items. This distribution of gross profit has great importance. It must guarantee the fulfillment of obligations to the state regarding taxation. In addition, it must meet the production and social needs of the production structure.

After gross profit has been reduced by the amounts required to operate commercial activities, it is distributed to other income and expense items: income from the rental of property, dividends on shares, from bank accounts, etc. At this stage, income tax and other mandatory payments are subtracted from the amount of profit received.

• with the environment,
• with staff training,
• with social programs,
• with the creation of a reserve fund
• with personal profit.

Artificially increasing your share at the expense of other expense items can lead to a decrease in the company's profitability.

Any responsible production manager understands. That investing part of the profit in the workforce, in its training, in social Security employees will certainly pay off over time and will have a positive impact on labor productivity, and therefore on increased profits.

Offtopic: economics in our lives

During the day modern man repeatedly operates with economic concepts. Where to buy something, how to pay for it, where to get a loan. At the same time, he is forced to plan his budget in order to satisfy all his needs. Otherwise, there may simply not be enough funds.

Living in an economic environment and encountering it every day, not everyone can say what economics is. This concept is very general. It includes too much to be confined to a small rule. The literal translation of this term means the ability to manage a household.

In fact, economics studies the various production activities of society and helps to properly distribute its resources. The main task of the economy of any country is to provide its citizens with goods and services that fully satisfy them. The basis of any good economy is large production structures and work activities of citizens.

The difficulty in understanding the essence of this concept is that it has a psychological component. For example, fashion and politics influence the state of the economy. Precisely different psychological aspects do not allow economics to be considered a science in its pure form and to be sufficiently predictable. However, it has numerous indicators for analyzing and adjusting work activities.

Gross profit is one of the key indicators financial activities enterprises. Below you will find a definition of the term, a formula for calculating gross profit and a description of the meaning of the indicator.

What is gross profit

Gross profit is the company's revenue minus the cost of the product. If a pottery workshop sold 10 pots worth 10,000 rubles in a week, to calculate the gross profit you need to know the cost of their production.

It includes the cost of clay, water, electricity, and wages for the craftsman. Expenses should also include depreciation of the potter's wheel and the cost of renting the premises. If the pots were sold through a nearby store, the cost should include the costs of transporting the products and the distribution network’s commission.

If the amount of expenses is 6,500 rubles, and the revenue is 10,000 rubles, then the gross profit of the workshop is 3,500 rubles.

Formula for calculating gross profit

Gross profit is calculated using the following formula:

Vyr – C = PRval

The variables are deciphered as follows: Vyr - revenue, C - cost, PRval - gross profit.

This is the classic formula used by manufacturing companies. Merchants calculate gross profit using the gross revenue variable:

Inhalation – C = PRval

Traders operate with the “gross income” variable, since they redistribute a significant part of the proceeds in favor of producers. For example, to sell a ton of apples for 10 thousand rubles, commercial network must buy this product from the manufacturer for 8 thousand rubles. After the sale, the merchant’s revenue will be 10,000 rubles, and the gross income will be 2,000 rubles.

What is the meaning of the “gross profit” indicator?

Gross profit is one of the key performance metrics manufacturing enterprises. It shows how effective they are business processes in general and the production activities of the organization in particular.

A simplified example of a pottery workshop shows that its activities are effective. The cost of manufactured products was 6,500 rubles. And the proceeds from the sale of pots amounted to 10,000 rubles. At the same time, the cost included all expenses for production activities, including depreciation of equipment.

Despite positive value gross profit, the activities of a hypothetical pottery enterprise may be unprofitable. This will happen if the amount of taxes and fines exceeds 3,500 rubles or the amount of gross profit. In this case, the net profit will be negative.

To increase gross profit, a company can reduce the cost of production or increase its cost to consumers. The second way reduces the competitiveness of the organization, so it should be used only after all possibilities for reducing production costs have been exhausted. Specific steps depend on the industry, economic situation and a variety of other factors. Some of the most obvious ways to reduce product costs include:

Reducing labor costs. In this case, you will have to increase the workload on existing specialists, but not hire new ones.

Reducing the cost of raw materials.

Scaling production.

Energy saving.

Reduced logistics costs.

Reducing costs for selling products.

Improving marketing efficiency.

Trading enterprises practically do not use gross profit to evaluate performance. Enterprises of this type focus on profitability and sales volume, net profit and other indicators.

So, gross profit is an indicator of the financial performance of an enterprise. It is calculated as the difference between revenue and production costs. Gross profit is convenient to use to evaluate the performance of manufacturing enterprises.

Gross profit is not revenue! Revenue represents the amount of money a company pays for its products or services.

While profit is the positive result of the difference between the amount of revenue and expenses incurred. And understanding this difference between indicators provides answers to many questions related to the efficiency of the enterprise.

Gross profit. What is this indicator?

The concept may vary depending on the sources of its definition, but the essence of this indicator remains unchanged.

So, for accounting purposes The following are considered gross profit:

• under the accrual method - all operations for the shipment of goods to customers (for services rendered or work performed), regardless of receipt of payment for them and minus the basic expenses incurred but not paid;
• under the cash method - all cash receipts associated with the main (production) activities and reduced by expenses paid by the enterprise. In this case, only the fact of making and receiving payment matters.

For profit analysis purposes its gross indicator is called marginal. It is calculated as the difference between net revenue (i.e. less) from the sale of goods (services, works) and all (!) production costs (including sales costs) that are attributable to the volume of products (services) sold.

Gross revenue is calculated according to accounting data, which reflects all the facts production activities enterprises. And those facts that do not directly relate to the company’s activities, but have found their place in its accounting process, form economic profit. This type of profit is dangerous to use for analysis purposes, because this category is calculated based on all expenses, including those that had nothing to do with entrepreneurial activity(for example, expenses for treatment of the owner’s children, payment of his utility bills, etc.). Economic profit is always less than accounting profit.

Therefore, for analysis purposes, the accounting indicators reflected in are used. Based on how well this report is compiled, the reliability of all subsequent calculations based on it depends.

Calculation rules

In accounting, gross profit is found very quickly - according to the turnover of account 90 “Sales” based on the data of its subaccounts.

Wherein included in expenses that are used in determining gross profit include:

• (services or goods) – these are all expenses of a production nature;
• indirect taxes, which are included in revenue and are reimbursed by buyers when completing a transaction (and excise taxes);
• commercial expenses are the costs of selling: packaging, delivering products to customers, carrying out advertising campaigns etc.;
• administrative (general) expenses are the costs of an enterprise for servicing operations that are associated with the management of the company, with the maintenance of its administrative facilities, and other similar expenses.

It is worth noting that selling and general expenses can be included in aggregate figure“Cost of sales” and reflected in the same sub-account as production cost. But (approved by the Ministry of Finance of the Russian Federation in Order No. 94n dated October 30, 2000) it is possible to separately reflect management expenses and sales expenses - on independent subaccounts of account 90. It all depends on the company.

Besides, very important for the formation of the indicator gross profit is also the fact of writing off general business expenses (account 26) and commercial expenses (account 44):

• with direct costing, management expenses and sales expenses can be included in full in the cost of products sold (services provided, work performed);
• With the full cost method, these costs are divided between goods sold and those remaining in the enterprise's warehouse.

IN general view calculation of gross profit (GP) according to account 90 it looks like this:

VP = Sub-account “Revenue” (including indirect taxes) – Sub-account “VAT” – Sub-account “Excise” – Sub-account “Cost of sales”.

However, in the Financial Results Report, the gross profit indicator, which is indicated in the line of the same name, differs from the accounting data, although it is formed on their basis.

The fact is that in this Report gross profit is located as follows:

VP = Revenue (without indirect taxes) – Cost of sales.

At the same time, the cost of sales does not include either commercial or general business expenses. These expenses are already included in the calculation of the financial result from sales, subtracted from the gross profit indicator.

On examples calculation of gross profit taking into account the source of its determination will look like this:

1. Revenue excluding VAT and excise taxes = 250 thousand rubles;
2. Cost of sales = 84 thousand rubles;
3. Selling expenses (CR) = 5 thousand rubles;
4. Management expenses (UR) = 6 thousand rubles.

With the direct costing method of writing off expenses:

VP = 250 t. – 84 t. – 5 t. – 6 t. = 155 thousand rubles;

To determine gross profit using the full cost method, you should supplement the example with the volume of sold and unsold products: 100 units. and 25 units. respectively. Then:

1. KR = 5 thousand x 100 units. / (100 units + 25 units) = 4 thousand rubles - should be attributed to the cost of 100 units sold. products;
2. UR = 6 thousand x 100 units. / (100 units + 25 units) = 4.8 thousand rubles - included in the cost of 100 units sold. products;
3. VP = 250 thousand - 84 thousand - 4 thousand - 4.8 thousand = 157.2 thousand rubles.

Thus, it is clear how beneficial the direct costing method of writing off costs is for accounting purposes (when calculating other taxes on income, this cost formation method is not important).

If you calculate gross profit based on the data reflected in Financial results report, then it will look like this:

VP = 250 thousand – 84 thousand = 166 thousand rubles – management and commercial expenses are not included in the calculation.

They are used in the formation of another indicator - “Profit (loss) from sales”.

However, it is on the basis of the Financial Results Report that the analysis of indicators that affect gross profit is carried out.

If you have not yet registered an organization, then easiest way do this using online services, which will help you generate all the necessary documents for free: If you already have an organization, and you are thinking about how to simplify and automate accounting and reporting, then the following online services will come to the rescue, which will completely replace an accountant in your company and save a lot money and time. All reporting is generated automatically and signed electronic signature and is sent automatically online. It is ideal for individual entrepreneurs or LLCs on the simplified tax system, UTII, PSN, TS, OSNO.
Everything happens in a few clicks, without queues and stress. Try it and you will be surprised how easy it has become!

Analysis of the results obtained

By the amount of gross profit have an impact three main factors:

• amount of revenue;
• the amount of indirect taxes included in revenue;
• cost of sales.

In turn, for each of these factors many other indicators also influence, in particular:

• on revenue - prices, sales volume, demand for products, timeliness of payments for them, etc.
• on the amount of indirect taxes - rates, changes in tax legislation, sales structure, availability of benefits (for example, an enterprise may have an exemption from VAT), and much more;
• at cost – the cost of materials, fuel and raw materials; remuneration of the main workers and the amount of insurance premiums accrued on it, etc.

But for the purposes of factor analysis other indicators are taken:

• sales volume (VRP) . Its increase can lead to an increase in profit if the majority of products sold are profitable goods (i.e. those for which there is demand and which are capable of generating profit). If the products sold are unprofitable, then even an increase in their sales leads to a decrease in profits;
• product structure (UD) . Profit depends on the growth of the share in total sales. The larger it is, the higher the profit;
• price (P) and cost (C) . The lower the share of cost in the price, the higher the profit.

To conduct factor analysis to identify the degree of influence of the above indicators, the following is used formula:

Profit = ∑ (VPOTAL x UD x (C - C)).

In this formula, all four indicators are first taken for the base period, and gradually one by one they are replaced by the indicator of the reporting period, thus showing the degree of influence of each of them on final result- at a profit.

The base period for analysis is the past period of time, which can be taken as a month, quarter, etc.

It is also worth noting that data on all four indicators can be taken from accounting - from account 90, according to which both quantitative and cost accounting is formed, and for each type of product (service) separately.

The rules for constructing a gross profit report in the 1C program are outlined in the following video tutorial: