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What are we talking about? The financial results of a company are indicators of business success that are expressed in specific numbers. The final value shows how big the organization's profit is or, conversely, the size of its losses.
What to pay attention the benefit of using our student database to? Calculation and analysis of financial results can be carried out using several methods, but the rules will be identical. It is also worth noting that the report on these indicators is a mandatory document for accounting.
The article explains:
The concept of the financial result of a company
Types of financial results of the company
Rules for calculating financial results
Formula for calculating the financial result of a company
Company financial performance report
The impact of the tax system on financial results
Financial result postings
Methods of analyzing the financial results of a company
Stages of conducting an analysis of the company's financial results
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The concept of the financial result of a company
The result of the economic activity of the enterprise is the financial result, which can be both positive and negative. In the first case, the organization makes a profit, and in the second case, it suffers losses. The company's net income is the amount formed by subtracting all expenses for the production and sale of products from the total revenue. If the resulting number is positive, then the company is in the black, that is, with a profit, and if it is negative, then, accordingly, it is in the red, with losses.
Information on financial results plays an important role not only in management and internal control, but also in other processes that are related to external factors. Data is required when applying for loans from banks, when insuring property. Also, no investor will invest in a business project without first studying the financial results for past periods.
Types of financial results of the company
Profit is a relative indicator of the organization's functioning. Generally speaking, if it exists, the enterprise is operating and developing successfully. But a profit study can also tell you something else. For example, using a comparative analysis over several years, you can determine the trend of an increase/decrease in the indicator, which indicates an increase or decrease in the efficiency of the organization. The presence of unprofitable data is a sign of ineffective commercial activity. In this case, top management must immediately take measures to increase the profitability of the enterprise.
Organizing timely and accurate accounting of the financial results of the company's activities is very important for conducting effective analysis.