To see an increase in the company's profit, it is necessary to calculate it correctly

[subornaakter40]

To see an increase in the company's profit, it is necessary to calculate it correctly

Source: unsplash.com

Profit is the difference between an organization's income and expenses for a given period.

Employees of a company are rarely chile mobile phone numbers database interested in increasing the company's profits. They are primarily interested in wage growth. And the income of a business owner is directly related to the increase in the final results of the company's activities.

In order to choose effective ways to increase profits and find reserves for its growth, you must first correctly calculate the company's profit indicators.

Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:

After working with over 300 internet projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!

In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.

What you get for free:


5 Key Metrics to Increase Profits by 220%


The Secret ROI Formula: Instant Advertising Efficiency Calculator


Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes

We have prepared all the documents and templates with formulas for you. And yes, it is FREE:

Download documents for free
Already downloaded
153357

In practice, many business owners and financial managers estimate profit values ​​differently. In fact, there is no need to use complex mathematical formulas and build cumbersome tables in Excel to calculate the financial result. It is enough to conduct a simplified analysis of the increase in the company's profit:

D - Income for the reporting period (revenue from the sale of goods, works, services and other income of the company).

Per – Variable costs for the reporting period (costs that change with changes in the volume of manufactured products, for example, raw materials and supplies).

Post – Fixed expenses for the reporting period (Expenses that do not change depending on the increase or decrease in production volumes. For example, rent payments, Internet, accountant's salary, etc.).

Read also!

"Business Case: How to Create and Apply"
Read more
Calculation:

D – Per = marginal profit (essentially – the enterprise’s markup)

Marginal Profit – Post = Profit

Profit - interest on loans = net profit

As you can see from the formulas, it is quite easy to calculate the company's net profit. It is only necessary to collect data on all the organization's income and expenses for the analyzed period.