К.э.н., доц. Шубина С.В., Лосева И.В.

Харьковский институт банковского дела Университета банковского дела

Национального банка Украины (г. Киев), Украина

Analysis and management of trading companies’ net profits

Summary. The main approaches are considered to its analysis are revealed, a necessity and principles of model management of net profit in the trade, the model of analysis of net income is complemented taking into account the specific of trade enterprises.

Keywords: financial resources, net profit, analysis, simulation, system management.

Introduction. In terms of continuous development of the market economy the role of net income in economic activity is rapidly growing. Net profit is the main stimulus of economic enterprise, it ensures the interests of entrepreneurs, staff and the state; net profit is also basic source of each enterprise development. Thus, the necessity to develop recommendations for a comprehensive analysis and management of net profit is becoming very important. These days the issue of choosing approach relatively to formulation and analysis of trade net profits remains unsolved because the correct showing of the trade margins in financial accounts is vital for determining the successful performance of trading enterprises [5].

Today a huge number of researchers are working on importance, significance and problem of improving and optimizing net income, such as: A. Babo, L. Breili, A. Hropelli, B. Kolass, R. Holt, I. Blank, A. Poddyerohin, S. Dzyubyk, L. Kovalenko, T. Kucherenko, A. Ryazantseva and others. However, the scientists have very different views on analysis and management of net income.

Problem statement: The aim of the article is summarizing and development of trading companies’ net profit analysis and management.

A variety of research methods has been used in the research process: logical generalization, statistical analysis, systematic and comprehensive approaches.

The main material. Profitability is the major criterion for assessment of business activities of trading companies; consequently, net income which reflects the final valuation of trading activity is the most important indicator of financial performance (financial status) of entity.

Necessity of complex analysis of the net income is explained while answering next questions:

- Does Company operate effectively?

- What are the factors influencing the change in the absolute value of net profit?

- What decisions need to be done to increase net income in future?

G. Mitrofanov provides complete and detailed model analysis of net profit [2]. Using this scientist’s interpretation, the approximate structure of this model analysis can be made for trading companies, including its specification and modern trends.

Organizational and information model analysis of trading companies’ net profit:

1.1. The purpose of net income analysis.

The purpose of net profit analysis of trading company is to identify internal reserves, increase the research process efficiency and develop proposals for optimizing and usage of net profit.

The task is analysis of sources of trading companies’ net profits, its distribution and efficiency of usage, as well as deterministic factor analysis of profit.

2. Objects and subjects of net income analysis.

The objects of analysis are:

- net income;

- factors which have affect the net profit formation and usage.

The subjects are the internal and external users of information.

3. The system of economic indicators for net income analysis.

3.1. Absolute value indicators that are linked accounting to:

- absolute value of profits;

- absolute dynamics of net income.

3.2. Relative indicators that are results of analytical processing of financial documents.

- relative indicators of income structure;

- relative indicators of dynamics;

- relative rates of intensity and efficiency of processes.

4. Informational support of net income analysis.

There are external and internal information. The external information includes external legal statements, regulatory and supplemental information. In our opinion, to the above mentioned types of information statistics can be added, because it allows analyzing the trends in net profit changes in future that will give an opportunity to the company to make effective assessment, forecasting and planning of their further activities.

The internal information also includes planned and cartographic information. Financial documents play an essential role in the analysis of profitability, making it possible to consider the full picture of the company’s activities.

5. The system of methodological procedures of handling the primary information.

5.1. Economic-logical methods:

- grouping;

- comparison;

- calculation of absolute and relative indicators;

- calculation of average figures;

- elimination.

5.2. Economic-mathematical methods:

- methods of processing dynamic series;

- methods of regression-correlation analysis;

- methods for modeling.

5.3. Heuristic (psychological) methods (test questions, expert evaluations and “collective notebook”) which play an important role in the analysis of information.

6. Synthesis and implementation of results of the net profits strategic analysis.

6.1. Summary of the results:

- systematization of analytical information about the net profit formation and usage;

- quantitative assessment of lost profits;

- quantitative assessment of the net profits potential increase;

- assessment of the probability of forecasted earnings;

- development of contingency activities to grow net income in future;

- documenting the results of analysis and transferring them to the management structure.

6.2. Implementation of results is done by:

- evaluation of measures for increase the net income absolute value in terms of financial strategy of the company;

- decision on the implementation of the chosen option;

- bringing the decision to the performer;

- monitoring the execution of the decision.

According to the above mentioned analysis model, management of trading companies’ net profit should be formulated.

Conclusion. Strategic analysis of net income is done for the identification of the internal reserves of increasing the efficiency of this process and development of proposals for optimizing the trading businesses’ net income formation [3]. Functioning of trading companies in the market is defined by its ability to create the sufficient amount of profit. Therefore, analysis of profit takes a leading place in the complex economic analysis, because it estimates the degree of achieving the enterprise’s ultimate goal. Management of net income is an important financial tool that provides growth of the company, which is also the main objective of any business [1].

Resources:

1. Коваленко Л.О. Фінансовий менеджмент. : навч. посіб. [2-ге вид., перероб. і доп.] / Л.О. Коваленко, Л.М. Ремньова. – К. : Знання, 2005. – 485 с.

2. Фінансовий аналіз / [Г. В. Митрофанов, Г. О. Кравченко, Н. С. Барабаш та ін.]; За ред. Проф. Г. В. Митрофанова. – К. Київ. Нац. Торг.-екон. Ун-т, 2002. – 301 с.

3. Подольська О.В. Фінансовий аналіз / О.В. Подольська, О.В. Яріш. – К. Центр навчальної літератури, 2007. – 592 с.

4. Кучеренко Т. Формування показника чистого прибутку у Звіті про фінансові результати / Т. Кучеренко // Бухгалтерський облік і аудит. – 2008. - № 2. С. 36-38.

5. Павлюк І. Проблеми бухгалтерського обліку торгової націнки та шляхи їх вирішення / І. Павлюк // Бухгалтерський облік і аудит. – 2008. – № 2. – С. 15-25.