Efficiency and results of commercial activity of the enterprise. Analysis and evaluation of the results of commercial activities What is the result of the activities of a commercial organization
The source of income for a commercial bank is all types of its activities (business). The total income of a commercial bank according to the form of receipt is divided into three groups:
1) interest income;
2) commission income;
3) other types of income (fines, penalties, forfeits, income from bank operations for the sale of securities, discount income, etc.).
In some cases, on individual credit transactions, the bank may receive both interest income and commissions.
The sum of all bank income in this reporting period is called gross income. Gross income includes:
1) operating income, including interest, commissions, from operations in financial markets;
2) income from side activities of the bank;
3) other income.
The predominant part of the bank's income relates to interest income - from the paid placement of the bank's own funds and borrowed funds, i.e. from providing loans to customers or from placing temporarily free funds in the central and commercial banks, from investments in debt obligations, from various accounting operations. Interest income on loans belongs to the group of stable sources of income for the bank.
Stable incomes are those that are constant for the bank over a relatively long period of time (one or two years) and, therefore, can be planned for the future (usually these are core business incomes). This group also includes fee and commission income received from the provision of non-credit banking services to customers, which are carried out on behalf of, on behalf of, and at the expense of customers. These types of services are usually charged in the form of a commission.
Unstable income includes income from foreign exchange transactions, income from operations with securities in financial markets, income from side activities of the bank, and other income. In the practice of the functioning of commercial banks, a prerequisite for their successful operation is a predominant increase in income from stable sources and a slight increase in income from unstable sources.
The income of a commercial bank must necessarily cover its expenses, thereby forming a profit. At the same time, part of the bank's income is directed to the creation of reserves to cover existing risks. In addition, for the effective functioning of the bank, it is necessary that it not only has an amount of income that exceeds its expenses, but also covers risks, and also ensures the regularity of income.
The expenses of commercial banks are the use of funds necessary for the implementation of all types of banking activities. They are subdivided according to the form of education, nature, period to which they refer, method of accounting.
To determine the financial results and profitability of the bank (both in general and for each type of its activity), commercial expenses are grouped as follows:
1) operating expenses, including interest, commissions, on operations in financial markets, other;
2) expenses for ensuring the functioning of the bank's activities;
3) other expenses.
Operating expenses are expenses incurred directly for the performance of banking operations.
Their main difference from other types of expenses is that their volume depends on the volume and structure of operations performed by the bank. Payment for the use of attracted resources is carried out in the form of interest payments, and, accordingly, these expenses are interest-bearing.
Interest expenses of commercial banks engaged in various types of lending activities usually average more than 50% of all its expenses. At the same time, their share in the total amount of expenses is different for each bank and depends primarily on the ratio of certain types of paid liabilities (obligations) of the bank. The largest amounts of interest are usually paid on deposits of the population and loans received in the interbank market, deposits of legal entities, certificates of deposit, securities (bonds, interest-bearing bills).
The bank's commission expenses include expenses for the provision of non-credit services to customers, mainly related to the costs of paying for services: correspondent banks, the central bank, stock exchanges, law firms, processing and clearing centers, etc. Payment for such services is made mainly in the form of a commission from the amount of the transaction. Fee expenses make up a small proportion of the bank's total expenses.
A separate group of the bank's expenses are expenses for operations in financial markets and expenses for operations with foreign currency. The first group includes expenses for the purchase of shares, bonds, payment of coupon income on bonds, payment on promissory notes, expenses for the revaluation of securities, expenses for operations with foreign currency.
Bank operating costs include costs that cannot be directly attributed to specific banking operations. These expenses are, in essence, "general business". Their amount is directly dependent on the volume of transactions and the entire activity of the bank.
Other operating expenses include those that are directly related to certain banking operations. These are postal and telegraph expenses for customer payments, taxes attributable to bank expenses, etc.
A special group of expenses in banking practice are the costs associated with the formation of a reserve fund designed to cover possible losses and losses on loans, possible losses on other active operations, on receivables, on depreciation of various types of securities.
One of the indicators characterizing the ratio of income and expenses of a bank is the interest margin, which is defined as the difference between interest income and interest expenses of a commercial bank, i.e. between interest received and paid. The margin characterizes the profitability of lending operations and at the same time shows the bank's ability to cover costs at its expense.
The margin is characterized both by absolute values in rubles and by relative indicators as a percentage. The absolute value of the margin is defined as the difference between the total amount of interest income and interest expenses of the bank, as well as between interest income and corresponding expenses for certain types of active operations.
Interest margin ratios can show its actual and sufficient level for a given bank.
The coefficient of the actual interest margin (Kf.pr.m) characterizes the relative actual value of the interest source of the bank's profit. It is calculated as follows:
To calculate this and other margin ratios, use the average balance of the asset, determined on the basis of the total asset of the bank's balance sheet, cleared of regulatory items.
Sufficient interest margin ratio (Kd.pr.m) characterizes the minimum level of margin required for a particular bank and is determined by the following formula:
When calculating a sufficient interest margin, other income includes income from payment for services of a non-credit nature: fees for collection, for settlement and cash services, information and consulting services of the bank, for other services, interest and commission received in addition for previous periods, received fines, penalties, penalties.
The interest margin ratio for lending operations (Kpr m s) is calculated using the following formula:
The profit of a commercial bank is the main financial result of the bank's activities, defined as the difference between all income and expenses. In the practice of the functioning of the bank, several indicators of profit are used. The difference between the amount of gross income and the amount of costs attributable in accordance with the current regulation to bank expenses is called balance sheet or gross profit (loss). The bank's balance sheet profit includes:
1) interest income, defined as the excess of interest income received by the bank over interest expenses;
2) commission income, defined as the excess of commission income over commission expenses;
3) profit from operations in financial markets, defined as the difference between income and expenses from these operations;
4) other types of profit received from other types of activities.
The largest share in the composition of profit is, as a rule, interest income.
The net profit of a commercial bank is the profit remaining at the disposal of the bank. It represents the final financial result of the activities of a commercial bank (i.e. balance sheet profit net of taxes) and is distributed in the following main areas:
Deductions to accumulation funds (replenishment of authorized and other funds);
Contributions to the special purpose fund (consumption);
Contribution to the reserve fund;
Payment of dividends to shareholders (participants).
Such indicators as the volume of profit and its structure, for all their importance, do not always provide complete information about the level of efficiency of the bank. The final characteristic of a bank's profitability is its profitability and rate of return.
The general economic meaning of profitability indicators is manifested in the fact that they characterize the profit received from each ruble spent by the bank (own and borrowed). In banking practice, several indicators of profitability are calculated. In Russian conditions, when calculating profitability indicators, balance sheet profit is currently used.
The overall profitability of the bank (R06ui) allows you to evaluate the overall profitability of the bank, as well as the profit attributable to 1 rub. income (share of profit in income):
This indicator is specified by the bank's profitability indicator, calculated as the ratio of the volume of the total balance sheet (P) received for a certain period to the share capital (K) of the authorized capital:
This indicator is known in world practice as ROE (return on eguity).
Another important indicator of the overall profitability of a bank is the rate of return on assets (ROA), which shows the amount of profit per ruble of bank assets. It is used in the analysis of the effectiveness of active operations of the bank, the effectiveness of bank management as a whole and is determined by the following formula:
where A is the average value of assets.
Tasks for independent solution
Task 1. In the table. 9.1 presents data on the income of a commercial bank. It is required to determine the volume of the bank's gross income for the corresponding years and the share of stable and unstable income in the total gross income.
| Table 9.1 Income of the commercial bank "Energostroy" for 2005-2006, thousand rubles. |
Task 2. In the table. 9.2 shows data on the costs of a commercial bank. It is required to determine the total amount of the bank's expenses, the itemized structure of expenses and the prevailing expense items.
| Table 9.2 Expenditures of the commercial bank "Energostroy" for 2005-2006, thousand rubles.
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Task 3. In the table. 9.3 shows the profitability of a commercial bank. Required:
1) determine the amount of interest margin;
Task 4. In the table. 9.4 shows data on income and expenses of a commercial bank. It is required to determine the coefficient of sufficient interest margin for 2005-2006.
Task 5. In the table. 9.5 incomes and expenses of commercial bank are presented. It is required to determine the coefficient of interest margin on lending operations for the respective years.
Task 6. In the table. 9.6 data on incomes and expenses of a commercial bank are presented. Required:
1) determine the volume of the balance sheet (gross) profit of the bank, including interest income, commission income, profit from operations in financial markets, profit (loss) from other types of bank activities;
2) to determine structural changes in the volume of the bank's balance sheet profit.
Income and expenses of the commercial bank "Energostroy" for 2005-2006, thousand rubles.
Table 9.6
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Task 7. In the table. 9.7 profit indicators of a commercial bank are presented. It is required to determine the volume of the bank's net profit for the relevant years and the structure of the use of net profit.
Profit indicators of the commercial bank "Energostroy" for 2004-2006, thousand rubles.
Table 9.7
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Task 8. In the table. 9.8. income, capital and profit of a commercial bank are given. It is required to determine:
1) the overall profitability of the bank;
2) ROE indicator (return on eguity);
3) ROA (return on assets).
Interest income of a commercial bank (Dp) is the total income received: from funds in credit institutions - Ds, from loans and leasing to customers - D ^, from debt securities - Dib, from other sources - Dd:
Dp \u003d X (Ds + Dkl + Dtsb + Dd) - (9.8)
Interest expenses (Rp) are the total costs incurred by the bank: on deposits of credit institutions - Rdo, on customer deposits - Rdk, on issued securities - Rtsb, on other costs - Rd:
Rp \u003d E (Rdo + Rdk + Rtsb + Rd) - (9.9)
The calculated data are given in table. 9.9.
Estimated data
The end of the table. 9.9
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Required:
1) determine the deviation of the specific value of the value of Mpb from the average value of the interest margin in the banking sectors of industrialized countries (according to export data, Mps = 1.7%).
2) identify the classification features of the presented options for solving the problem, justify the factors of possible deviations and the reasons that caused them.
Task 10. It is required to assess the level of current income (Dt) of credit institutions and determine the amount of non-interest current income (Dn) in the total volume (Dt), as well as calculate the value of the main components (Dt), determine and justify the priority of their formation. The level of current income is determined by the formula
Dm \u003d Dp + Dn - Pp, (9.10)
Рп - interest expenses of the bank.
Non-interest current income (Dn) includes: income from foreign exchange operations - Dnv, income from trust operations and agency income - Dta, dividends on shares and shares - Dpa, other current income - Ddt, income from other operations - Ddo:
Dn \u003d X (Dnv + Dta + Dpa + Ddt + Ddo) - (9.11)
The corresponding calculated data are given in table. 9.9. and 9.10.
Table 9.10 Calculated data
Task 11. One of the main parameters reflecting the system of rational restructuring of the bank's liabilities and maintaining them at the necessary and sufficient level is the indicator that characterizes the share of paid liabilities in the liabilities of credit institutions.
Paid obligations (Op) include: customer funds, including household deposits, - Sk, loans provided by the Central Bank of the Russian Federation, - KBR; funds of credit organizations - С0; debt obligations issued by a credit institution - Od, i.e.:
Op \u003d ∑ (Sk + KbR + C0 + Od). (9.12)
2) determine the qualitative characteristics of the process of managing the liabilities of credit institutions, compare the values of paid liabilities in liabilities with foreign expert data (Ops - the average share of paid liabilities in banks' liabilities; in industrialized countries it reaches 64%; P0 - total liabilities of a credit institution). The calculated data are presented in table. 9.11.
Table 9.11 Estimated data
Task 12. The processes of effective attraction of customer funds, the intensification of competition in the banking sector is largely reflected in the parameters characterizing the ratio of the volume of deposits (Vdb) and the amount of funds attracted from the interbank loan market (Imb) to the liabilities of credit institutions (P0).
The share of funds attracted from the interbank market in the liabilities of credit institutions of industrialized countries (IIC) is 8%.
The share of deposits attracted from the interbank market in the liabilities of banks in industrialized countries (IDC) reaches 49%.
The calculated data are given in table. 9.12 and 9.13.
Estimated data
Table 9.12
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Required:
1) determine the share (in %) of deposits, including individuals, in the liabilities of the credit institution;
2) determine the share (in %) of funds raised from the interbank market in the bank's liabilities;
3) use the results of calculations to justify real measures to attract deposits, deposits from the population and mobilize funds from the interbank loan market, as well as to identify priority opportunities in the implementation of these operations.
Estimated data
Table 9.13
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Task 13. The efficiency of using the resource potential of a credit institution is largely determined by the composition and structure of operating assets.
The operating assets of the bank include: loans to legal entities and individuals, investments in securities, debt on loans, funds leased, factoring, forfeiting, funds in hard currency, precious metals and stones, correspondent accounts in foreign currency, participation rights in authorized capitals of legal entities, interbank loans.
Credit institutions of industrialized countries have accumulated considerable experience in determining the parameters characterizing the constituent components of working assets, including: the average share of working assets (Ap) in total assets (Ao) - 87%; the share of loans to non-financial capital (AK) - 58%; share of investments in securities (As) - 22%.
The initial data are presented in table. 9.14 and 9.15.
Estimated data
Table 9.14
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Table 9.15 Consumables
| № | Positions | Thousand rub. |
| 1 | Cash, precious metals and stones | 7 432 159 |
| 2 | Funds on accounts with the Central Bank of the Russian Federation, including: | 34 586 221 |
| 2.1 | savings accounts when issuing shares | 1404 |
| 2.2 | required reserves in the Central Bank of the Russian Federation | 27 230 299 |
| 3 | Funds in accounts with credit institutions | 11 168 276 |
| 4 | Loans granted (total), of which: | 208 719 484 |
| 4.1 | arrears | 9 760 795 |
| 4.2 | loans granted to enterprises and organizations | |
| nizations | 130 433 344 | |
| 4.3 | bank loans | 20 924 868 |
| 5 | Securities | 173 849 356 |
| 5.1 | Government securities | 135 523 222 |
| 5.2 | Bills | 23 557 617 |
| 6 | Fixed assets, business costs and a lot of | |
| terial assets, leasing | 30 704 191 | |
| 7 | Participation in subsidiaries and controlled organizations, as well as funds used to acquire shares (shares) for participation in authorized capital | |
| legal entities | 4 681 872 | |
| 8 | Overdue interest on loans | 4 682 507 |
| 9 | bgcolor=white>Installments15 294 037 | |
| 9.1 | Interbank settlements | 56 378 |
| 10 | Other placed funds, including: | 13 577 055 |
| 10.1 | other placed funds and deposits in banks | 10 682 773 |
| 10.1.1 | including deposits with credit institutions for | |
| payments using plastic cards | 4923 | |
| 11 | Settlements with debtors | 5 198 108 |
| 12 | Future expenses | 6 348 936 |
| 13 | Performance results | 8097 240 |
| 13.1 | Expenses | 6 696 363 |
| 13.2 | Losses | 1 400 877 |
| 14 | Profit use | 3 993 011 |
| 15 | Assets | 514 419 993 |
Required:
1) identify and substantiate the composition and structure of the operating assets of the credit institution for the studied options, calculate their values in comparison with the above expert data;
2) identify possible priorities for improving the efficiency of the loan and investment portfolios, as well as for rationalizing the procedural framework for managing the structural and composition of the bank's operating assets in the proposed options.
Task 14. In the processes of banking management, it is important to rationalize the regulation of non-interest (overhead) expenses, which to a certain extent affects the commercial result of the work of a credit institution.
One of the main indicators for assessing the effectiveness of overhead risk management is a parameter that characterizes the ratio of non-interest expenses and current income. Non-interest expenses include: payroll, operating and other expenses.
Taking into account trends in overhead costs, the level of this parameter, according to foreign estimates, reaches 50-60%. At the same time, the growth rates of non-interest expenses should not exceed the growth rates of the bank's income.
The initial data of the options are presented in table. 9.10 and 9.16.
Estimated data
Required:
1) determine the costs associated with non-interest expenses, calculate the parameters of their regulation;
2) to identify the degree of change in income and non-interest expenses of banks, to substantiate the trends in the rational management of overhead costs in credit institutions.
Task 15. One of the important indicators of a variant assessment of the effectiveness of the formation and use of resource potential is a parameter expressing the ratio of the balance sheet result (profit or loss) to the balance sheet currency of a credit institution.
Of particular importance here is a detailed calculation of the degree of influence of effective accounts for passive and active operations on the balance sheet profit (loss) of the bank.
Data to complete the task are presented in Table. 9.17 and 9.18.
Estimated data
Table 9.17
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Table 9.18
Required:
1) determine the most priority option for increasing the efficiency of the resource potential of credit institutions;
2) reveal the reasons and identify, line by line, reserves for improving the performance of banks.
Task 16. The level of use of reserves in the area of active operations is reflected to a certain extent in the parameter of the concentrated sale of non-performing assets of a credit institution.
The non-performing assets of the bank include: funds on accounts with the Central Bank of the Russian Federation, cash, fixed assets, household materials and intangible assets, funds in settlements (in rubles), uncollected amounts, other debtors (in rubles).
According to expert data, the share of non-performing assets (AP) in the total assets of credit institutions in industrialized countries reaches 13%.
Required:
1) determine the constituent components of non-performing assets of credit institutions, using the initial data (see tables 9.13 and 9.14), identify and justify possible deviations from the requirements of foreign practice;
2) to consider the factors of a rational ratio of non-performing assets, as well as their use, taking into account the priority areas of banks' activities.
Task 17. When conducting an analytical assessment of the activities of a credit institution, it is of particular importance to identify parameters that characterize the stage-by-stage results of the bank's work, its solvency and profitability.
The range of problems under consideration includes, first of all, the need to determine the fixed and additional capital, the share of their constituent components in the total capital (own funds) of a credit institution.
The structure of the constituent elements of the main and additional capital in the bank's own funds is determined by the Regulation of the Central Bank of the Russian Federation No. 215-P (Form No. 134 - monthly).
Required:
1) using the initial data (see Tables 9.12 and 9.13), determine the total values of fixed and additional capital, identify their comparative characteristics in the total capital (own funds) of credit institutions;
2) analyze deviations from the requirements of the Central Bank of the Russian Federation, reveal their real causes, taking into account reasonable classification criteria.
Task 18. The profitability of operations of credit institutions characterizes the efficiency of work and the main directions of development of banks. In particular, the profitability parameter is defined as the ratio of net profit: to fixed capital; to additional capital, to own funds (capital); to the total assets of the credit institution.
2) identify comparative characteristics, evaluate the results of credit and investment policies, determine priority trends in the formation and use of the operating mechanism of credit institutions.
Task 19. The solvency of a credit institution is determined by a number of parameters that reflect the timely and high-quality fulfillment by the bank of obligations related to the functioning of its operating mechanism.
The following parameters are used to assess the solvency of a credit institution:
Characterizing the ratio of own funds (capital) to the total amount of assets;
Measuring the ratio of fixed capital to the total amount of assets;
Determining the ratio of additional capital to the total amount of assets;
Characterizing the ratio of reserves for possible losses to equity (capital).
Required:
1) based on the data given in table. 9.14 and 9.15 calculate the main solvency indicators of credit institutions;
2) assess the ability of credit institutions to fully and timely fulfill their obligations, determine the factors for a possible improvement in the performance of banks.
Task 20. The profitability of credit institutions is assessed by a number of qualitative indicators that characterize the efficiency of banks.
The parameters of return on equity and assets of credit institutions include the following ratios:
Net profit and authorized capital;
Net profit and assets;
Net profit and capital (own funds);
Net profit and fixed capital in equity;
Net income and additional equity in equity.
These parameters help to identify trends in the dynamics of income generation and to effectively study the structural components of the capital of credit institutions.
Required:
1) using the data of previous assignments (see tables 9.14 and 9.15), analyze the results achieved by credit institutions;
2) determine trends in income growth, evaluate the effectiveness of capital management in banks.
Task 21. It is important to study the potential of the bank's loan portfolio.
The parameters that take into account banking risks in the use of the loan portfolio include the following ratios:
The amount of loans granted and the total amount of assets;
The amounts of provisions for possible losses and the total amount of assets.
The dynamics of increasing the values of the parameters characterizes the increase in risk situations in the process of implementing the bank's loan portfolio.
Required:
1) determine the comparative values of the parameters for the use of bank loan portfolios (see tables 9.14 and 9.15);
2) to analyze the identified opportunities for the implementation of the loan portfolio of banks, taking into account positive and negative trends.
Task 22. In the process of analyzing the financial activity of a bank, it is essential to calculate the parameter of securing (covering) non-interest expenses with non-interest income.
The parameter reflects the dynamics of the constituent components that affect the result of the current work of the credit institution, and is determined by the ratio of non-interest income and non-interest expenses. In foreign practice, its value reaches 50%.
Required:
1) based on the use of the initial data (see tables 9.10 and 9.16), determine the calculated options for the specified parameter;
2) to identify and consider factors for improving the performance of banking activities, in particular, to assess the degree of influence of structural elements of non-interest expenses on the performance of credit institutions.
Task 23. To rationalize the regulation of interest rate risks, a parameter characterizing the level of the bank's net interest margin (MnI) is used.
where Dp - interest income of the bank;
Рп - interest expenses of the bank;
Ab - bank assets.
The average level of net interest margin in the banking sector of industrialized countries is 2.4%.
The initial data for the calculation options are given in Table. 9.9 and 9.17.
Required:
1) determine the level of net interest margin of banks;
2) evaluate comparative variants of interest rate risk management processes in banks, identify and justify the reasons for deviations from the average values of parameters calculated in foreign banking practice.
It is probably clear to all managers from "little to big" that control over the activities of their own and their subordinates is one of the elements of management. The second is also most likely understandable: you can control the execution of the result and the process of work. Which of the control elements is more important?
Result control - tracking the final indicators in numbers for a certain date, and process control helps to understand before this deadline whether it is possible to achieve the final indicators and it is not time to take some unplanned measures to achieve the result.
The head of the sales department, who considers the position of his brand in the market to be unshakable, trade relations to be impeccable, competitors to be complete slobs, and salespeople (salespeople) to be real managers who not only stand alone, but also correct their own task, may well limit themselves to monitoring the final indicators, so amazingly constructed process.
What needs to be controlled based on the results of the built sales process:
- coefficient Revenue actual/forecast;
- factor Accounts receivable actual/forecast;
- Revenue/Receivable ratio;
- coefficient Revenue / Balance in the warehouse (textbook controlled value for remote warehouses);
If you have a "plan / fact", and with the above described about salespeople and competitors, "everything is fine", from the bottom of my heart I "congratulate" those few who are sincerely mistaken in this. For the rest, who say "everything is fine" in this to themselves and their superiors, and for those who understand that this situation is from the "fiction" section, I want to say that the opinion of leaders who believe that their main role is set goals and objectives for your subordinates and deadlines for their implementation. At the same time, it is sufficient to check the fulfillment of the result by the end of the appointed period.
If the role of the head of the sales department is reduced to controlling the results, then everything will inevitably come down to:
- to running around at the end of the month: "There are 10 days left until the end of the month, we urgently need to ship X products to ...";
- management of the goal to turn into psychological pressure of sales personnel, and heart attacks (strokes);
- over time, everything will lead to distrust of salespeople to the manager, ignoring orders, conflicts with management.
Does it sound like the real thing, or maybe it's already familiar? This is due to the fact that the head of the sales department does not pay his attention to the process, and his zero role in the possibility of adjusting the process in order to achieve certain marketing targets.
Why is it that in reputable distribution organizations and their sales departments there is constantly control not only of the result, but also control over the current process? These companies are at the stage of qualitative development of distribution, when the company concentrates its thinking on the process in order to manage (!) the goal. With regular monitoring of the process of fulfilling the tasks set, the organization manages customers and can build clear marketing steps, sales and transport logistics. Why is that? When understanding before the end of the estimated period the possibility of underfulfillment of plans and forecast indicators, the attention of the manager, and therefore the salespeople, is concentrated on the problem, and the goals for the period change, which helps to achieve the intended result, and not state the impossibility of achieving closer to the end of the deadline.
What needs to be permanently controlled in the trading process:
- cumulative revenue as of the date of control and its correlation with forecast indicators;
- shipments on the current date, with an understanding of the possibility of closing transactions before the end of the billing period;
- coefficient Revenue / balance in stock (textbook controlled value for remote warehouses);
- number of shipped customers/total number of customers in the database;
- number of new clients / total number of clients in the database;
- average account (check, purchase) (for trade subdivisions with regular sales - a "litmus test" of possible problems);
- average invoice / average time of shipment (for distribution logistics, some indicator of possible current problems)
So far, I have not deliberately described why it is necessary to monitor each of the indicators in the current mode, and I have not given a number of other indicators. If you want comments, or clarifications to what has been said - register and welcome to the forum.
ABSTRACT
TO THE THESIS
ON THE TOPIC: "ANALYSIS OF THE FINANCIAL RESULTS OF A COMMERCIAL BANK"
The thesis on the topic "Analysis of the financial results of a commercial bank" consists of 74 pages of text, the thesis contains 11 tables, 11 figures, 4 graphics and 9 applications.
The thesis consists of three chapters, while writing this work, 40 sources were used.
The first chapter presents the theoretical aspects of the analysis of the financial results of a commercial bank in modern conditions
The second chapter deals directly with the Analysis of the financial results of LLC CB "El-bank"
In the third chapter, the reserves for the growth of profitability and profitability in a commercial bank are considered, ways to increase the financial performance of a commercial bank are selected.
The purpose of the thesis research is to identify reserves for profit growth and increase the values of the main financial indicators based on the analysis of the activities of a commercial bank
Introduction
Chapter 1. Theoretical aspects of the analysis of the financial results of a commercial bank in modern conditions
1.2 Methodology for analyzing profits of a commercial bank
Chapter 2. Analysis of the financial results of LLC CB "El-bank"
2.1 Brief description of the bank LLC CB "El-bank"
2.2 Equity analysis
2.3 Analysis of compliance with economic standards of LLC CB "El Bank" for the first half of 2009
2.4 Liquidity analysis of LLC CB "El Bank" based on indicators of assets and liabilities by terms of demand and repayment for the first half of 2009.
2.5 Analysis of the state of liquidity in foreign currency
Chapter 3. Reserves for the growth of profitability and profitability in a commercial bank
3.1 Formation of a strategy focused on increasing the bank's profit of a commercial bank
3.2 Ways to improve the financial performance of a commercial bank
Conclusion
Bibliography
Annex A
Annex B
Annex B
Annex D
Annex D
Appendix E
Annex Yo
Annex G
The relevance of the problem under study lies in the fact that without a competent analysis of the results of financial banking activities and the identification of factors influencing this activity, it is impossible to increase the level of profit and profitability. Banking performance analysis begins with an analysis of income and expenses, and ends with a profit study. An analysis of the bank's income and expenses makes it possible to study the results of a commercial bank's activities, and therefore to evaluate its effectiveness as a commercial enterprise. The analysis of the financial activity of the bank is carried out simultaneously with the analysis of the liquidity of the bank's balance sheet, and based on the results obtained, conclusions are drawn regarding the reliability of the bank as a whole. The purpose of the analysis of banking activity in terms of its financial results is to identify reserves for the growth of the bank's profitability and, on this basis, to formulate recommendations for the bank's management on pursuing an appropriate policy in the field of passive and active operations.
The amount of financial results achieved by the bank is a reflection of the whole range of external and internal factors affecting it, including: the geographical location of the bank, the presence of a sufficient customer base in its service area, the level of competition, the degree of development of financial markets, the socio-political situation in the region, the presence of state support and other factors that are, as a rule, outside the sphere of influence of the bank on them. On the other hand, the amount of equity capital, the volume of attraction and placement of funds, assets that generate and do not generate income, the level of general banking costs, losses and losses, the extent of the use of modern technologies, the level of profitability of the branch network and subsidiaries, the organization of internal control and audit, etc. - factors that depend on the activities of the bank itself and the quality of its management. The sum of all positive and negative management actions l bank personnel in a generalized form is manifested in the final financial result of the bank's activities - profit.
The variety of factors influencing the performance of commercial banks determines the need to consider these results in the process of their study as a multifunctional and multipurpose economic system.
Foreign and Russian experts have developed various methods for analyzing the results of a commercial bank, which are based on the study of highly profitable banking activities.
Unlike countries with a developed market economy, where the public is widely informed not only about the size of banks' profits, but also about the sources of its formation, in Russia the results of banks' work, their income and expenditure components, and even sometimes methods for determining their ratings are not available. Up to now, either the banks themselves or special organizations without the participation of the Central Bank of the Russian Federation, the Ministry of Finance, or the tax inspectorate have dealt with the issues of assessing the financial condition of commercial banks (including income and expenses). Ratings for assessing the income and expenses of commercial banks, which in international practice serve as a means of state supervision, do not play a similar role in Russia.
The work uses the works of Russian and foreign scientists - Lavrushin O.I., Korolev O.G., Zhukov E.F., Buevich S.Yu., Vakhrin P.I., Brayley R.L., Sharp U.F.
The purpose of the thesis research is to identify reserves for profit growth and increase the values of the main financial indicators based on the analysis of the activities of a commercial bank.
To achieve this goal, the following tasks are solved in the work:
· Study of the state of the Russian banking system, its significance and state at the present stage;
· Identification of factors influencing banking activities;
· Studying the methodology for analyzing the financial results of a commercial bank;
· Conducting an analytical study of the financial results of the banking activities of LLC CB "El-bank";
Identification of problems in the activity of the analyzed bank;
The object of the thesis research is the financial activity of the commercial bank LLC CB "El-Bank".
The subject of the study is the process of generating income, expenses and profits of the analyzed bank.
1.1 Place, importance and tasks of analyzing the financial results of a commercial bank
A system of indicators is understood as an interconnected and interdependent set of them. The main purpose of the system of indicators of financial results of commercial firms (including banks) is a comprehensive, comprehensive reflection of the results of their activities, adequately reflecting the economic processes taking place in them.
The algorithm for the formation of indicators of financial results of commercial banks is determined by the adopted accounting system and the forms of official financial statements used, established by the Central Bank of the Russian Federation. In turn, both the accounting system as a whole and the reporting of banks are currently the objects of active reform in accordance with the requirements of International Financial Reporting Standards. The forms of financial statements are changing, their content is being improved. This process is carried out in pursuance of the Accounting Reform Program in accordance with International Financial Reporting Standards, approved by Decree of the Government of the Russian Federation dated March 6, 1998 No. 283 “On Approval of the Accounting Reform Program in accordance with International Financial Reporting Standards”, as well as in accordance with "The concept of the development of accounting and reporting in the Russian Federation for the medium term", approved by order of the Minister of Finance of the Russian Federation dated July 1, 2004 No. 180.
Today, Russian commercial banks, as already noted in the first chapter, draw up several types of reports that differ both in content and purpose, and in the timing of their submission to the appropriate authorities.
One of the main types of financial statements that have existed since the inception of the Russian banking system (which, however, is not called financial) is traditional accounting, which includes a balance sheet and a profit and loss statement.
In accordance with Regulations of the Central Bank of the Russian Federation No. 302, a separate section (No. 7) is allocated in the Chart of Accounts for accounting in credit institutions for accounting for financial results. It provides for five synthetic accounting accounts, on which the formation of the relevant indicators of the results of banks' activities is carried out: account No. 701 "Income", account No. 702 "Expenses", account No. 703 "Profit", account No. 704 "Losses", account No. 705 " Use of Profits.
The process of forming financial results begins with the fact that the credit of account No. 701 "Income" accumulates the amount of all income received by the bank in the reporting year, and the debit of account No. 702 "Expenses" accumulates expenses.
Nikolaeva T.I.
It is known that the resources of the enterprise and the requirements of cost-effective work to a certain extent limit the maneuvering, both in the range of goods and in their prices. But it is the focus on customer demand and its active formation that should determine the use of available resources. Hence the successful sale of goods, which ensures the efficiency of the enterprise.
Commercial work in trade is the activity of an enterprise aimed at solving a specific set of tasks. The study of the processes of their implementation is an important element of operational research at the level of a trade enterprise and a region.
We consider the consumer as an equal participant in commercial activities. The main participants in commercial activity, in accordance with our position, are not only entrepreneurial structures, but also consumers (whose participation in the limit-distributive economy was weak). This statement is based on the fact that for entrepreneurs, the most important factor in concluding transactions is income (economic benefit), and for consumers, the benefit is the product (service) he needs if it satisfies his needs (consumer interests) to a greater extent. The consumer is not a passive buyer, but a full participant in commercial activities, its regulator. Thus, the most important category of subjects of business relations between suppliers of goods and the retail link is the consumer.
Rice. 1. A set of tasks of commercial activity in the market of goods and services
Therefore, we consider the complex of tasks of commercial activity of subjects of the consumer market through meeting the needs of the population. The consumer, realizing his interests, has a decisive influence on the behavior of entrepreneurs in the market when concluding transactions, choosing a market segment, organizing sales and sales of goods, forming an assortment, pricing policy.
The democratization of trade and freedom of entrepreneurship revived entrepreneurial spirit, individual collective initiative, material and moral interest of trade workers, which intensified their activity in the consumer market. Now enterprises themselves solve economic issues, carry out more profitable transactions, which helps to increase their profitability. The nature of the economic relations of trade with other subjects of the market infrastructure has changed based on a combination of interests of the enterprise and territories.
For an in-depth study of the impact of commercial work on the performance of enterprises, we made an attempt to develop a system of the main components of its assessment, which could be used as a self-assessment of commercial work by each enterprise. Such a system, in our opinion, will help the territorial and economic bodies to determine the directions for improving the management of commercial activities.
The theoretical novelty of the assessment methods we propose was tested in practice in the Sverdlovsk region during the period of adaptation of trade to the market (since 1995). To do this, commercial work was represented by four blocks characterizing the type of commercial activity, and indicators evaluating its effectiveness (Table 1).
Table 1
The system of indicators for evaluating the commercial work of trade enterprises
|
Direction of commercial Activities |
Performance indicator commercial work |
|
The range of products and Formation |
Range breadth Assortment depth Assortment update rate Assortment sustainability factor |
|
Product offering planning and provision of goods |
Trade turnover growth index Growth (reduction) in the time of circulation of goods The degree of compliance of commodity stocks with the standard Procurement plan execution index The degree of fulfillment of contractual obligations by suppliers Rhythm of receipt of goods by assortment Coefficient of acceptable quality level of goods Gross income index |
|
Formation and stimulation of demand |
Correspondence of the volume and structure of the product offer with the volume and structure of consumer demand The degree of assortment renewal Purchase completion rate Volume and structure of unsatisfied demand |
|
Economic efficiency commercial activities |
Growth in gross income from commercial operations Growth in profit from commercial activities The ratio of income and expenses for the purchase and sale of goods |
Among the tools of commercial activity of a trading enterprise, assortment policy occupies a special place.
The first block in the system for evaluating commercial activities - "Assortment of goods and its formation" - consists of four indicators, which we examined in detail when assessing the breadth and depth of the assortment in stores. The assortment renewal coefficient indicates the development and nature of economic relations of trade, both with domestic and foreign partners, as well as the work of enterprises to update the assortment. The stability coefficient of the assortment characterizes the species composition of the offered goods in the commodity group (subgroup). This block is especially important for evaluating the work of enterprises selling goods of the provided assortment list.
In the assortment policy, in our opinion, the following factors should be taken into account: the availability of a variety of goods in stores; stability and flexibility of the assortment, its compliance with changes in demand and seasonal fluctuations; rational placement of goods in stores. All this is fundamentally important.
In a market economy, the formation of the assortment is the prerogative of the trading enterprises themselves. The assortment lists existing in stores are based on the production and technical sign of the grouping of goods, which does not allow to take into account the complexity of demand, the mutual complementarity of goods, seasonal features of demand development and other conditions with sufficient completeness.
Of the totality of trade enterprises in the Sverdlovsk region, our attention as an object of analysis of the assortment policy was attracted by large stores in Yekaterinburg, which sell a universal range of goods mainly for food purposes. As mentioned earlier, they are promising, they are preferred by the population of the city. The active assortment policy pursued by these stores made it possible to create an individual and completely different assortment from competitors.
To characterize the assortment of individual trade enterprises and determine the effectiveness of the assortment policy, we analyzed the structure of the assortment, its breadth and, in part, its depth. It was found that it is possible to characterize only the actual structure of the assortment of goods in stores, since employees do not have information about the preferred assortment, and the study of demand is reduced mainly to elementary accounting of commodity sales, more often by group assortment. At the enterprises, the analysis of the range of goods is not carried out.
Studies have shown that almost all contracts and specifications for them do not contain information about the detailed range of goods. When concluding commercial transactions, supply contracts, contracts, there is practically no strict coordination of the intra-group assortment. The situation develops in favor of the manufacturer-supplier and more often the “dealer”. This adversely affects the correspondence between supply and demand, and leads to unreasonable price increases.
The actual completeness of the assortment and its dynamics can serve as evidence of a competent assortment policy. As we have established, the completeness of the assortment depends not only on the sales area of the store, the volume of trade. Important factors that ensure the completeness of the range are financial stability, the authority of the enterprise in the market of goods and services. Stores that accept goods in large quantities, make payments on time, and have a high degree of reliability (high rates of turnover, high profitability, etc.) enjoy great confidence among suppliers of goods.
In order to improve the social level of trade services, store clerks should pay special attention to the sustainability of the assortment. On the one hand, this indicator significantly affects the level of service, and on the other hand, it indicates the rhythm of delivery. The stability of the assortment is a guideline for the buyer.
To characterize the effectiveness of commercial activities, both as a separate trading enterprise and as a whole across the territory, in our opinion, the most interesting indicator is the degree of renewal of the product range, that is, its replenishment with new products and products. This indicator can be determined by the refresh factor. It seems to be especially important for working with non-food products. For the group of non-food products, it is determined by the period of obsolescence 1 .
In operational work (replenishment and regulation of the assortment of a trading enterprise), we recommend using such an indicator as the share of new goods (products or products) in the volume of new receipts, and when assessing long-term economic relations - the share of new products (products) in the total output of goods. Specialists should highlight products with improved consumer properties.
We propose to supplement this information block with calculations of the stability (stability) of the assortment, which will make it possible to judge the absence (presence) of interruptions in the sale of individual goods. For specialists involved in the analysis of the stability of the sale of goods with a fluctuating (uneven) number of purchases during the day, the introduction of such accounting will help not only evaluate the effectiveness of the organization of goods supply, but also determine the rationality of the assortment structure and the effectiveness of the assortment policy of a trading enterprise. An analysis of the breadth and stability (stability) of the assortment must be carried out on the basis of operational data on the state of current stocks, highlighting goods with a slow turnover.
The second block of indicators - “Product supply planning and supply of goods” - consists of eight indicators reflecting the planned growth in the turnover of enterprises, changes in its structure based on the product offer, the volume of planned gross income, commodity stocks, turnover, product quality. These indicators form the basis of plans for the purchase of goods, the selection of suppliers, the definition of delivery conditions, assortment, terms, delivery batches, prices and settlements with suppliers, etc. The higher the indices of these indicators, the more effective economic ties. Here, long-term, the degree of constancy of economic ties, and especially the fulfillment of contractual obligations, are important.
Since the same product appears in commercial transactions, there is no significant increase in the total turnover. At the same time, with the development of competition in the consumer market, a real opportunity has appeared for trade enterprises to choose profitable suppliers. At the same time, the role of local commodity producers in the production of food is increasing in the formation of the product offer.
Suppliers of imported goods are mainly resellers of goods, or intermediaries, and private firms. The services of such suppliers, as a rule, are used by non-food stores. This is due to the desire to save transport costs, financial resources, labor costs at trade enterprises when using the services of intermediaries. The participation of intermediaries often leads to an unreasonable increase in the number of links in the movement of goods, an increase in prices and their evasion from paying the necessary payments to the budget.
The effectiveness of economic relations as the most important area of commercial activity largely determines the correct choice of supplier and forms of trade transactions. The number of suppliers, the frequency of importation of goods, according to our observations, depends on the type of store, the capacity of the store, the assortment profile, which are decisive in the formation of the assortment and turnover volumes. With an increase in the trading area, the frequency of importation of goods increases, and, consequently, the turnover. In general, the funds of the enterprise are spent more economically.
The greatest efficiency of commercial activity is observed at large enterprises of various forms of ownership and is explained by the presence of long-term economic ties with large suppliers. This ensures that the specialists of this group of enterprises are highly informed about the current market situation and its prospects. Small and medium-sized enterprises, deprived of such an opportunity, most often rely in their activities on irregular, random connections. The main suppliers of goods for them are various intermediaries, which not only complicates the actual accounting of trade, but also leads to a significant increase in consumer prices and the almost complete absence of quality control of goods.
table 2
Distribution of indicators according to the degree of significance (preferences) for a trade enterprise when choosing partners-suppliers of goods
|
The average monthly retail turnover of a store in 1996 |
|||
|
Index |
up to 300 million |
from 500 to 1000 million rubles |
From 2000 and above million rubles. |
|
Risk avoidance |
|||
|
The price of the product |
|||
|
Product quality |
|||
|
Product range |
|||
|
Supplier location |
|||
|
Delivery terms |
|||
|
Consideration of consumer interests |
|||
This conclusion is confirmed by the results of surveys of heads of trade enterprises with different volumes of trade. 200 stores in Yekaterinburg were surveyed. Regardless of the volume of trade, it is preferable for them to make a profit (Table 2). For small enterprises (with an average monthly turnover of up to 300 million rubles), the terms of delivery, as well as the price of the goods and the possibility of avoiding risk, are of great importance. For larger enterprises (with a turnover of more than 500 million rubles), the quality of goods and the avoidance of risk are important. Large enterprises, on the other hand, give preference to the quality of goods, assortment and consideration of the interests of the consumer. Therefore, such enterprises are more preferable when choosing a place of purchase for the buyer.
The privatization of trade and the increase in the share of the private sector have led to a spontaneity in the organization of the market as a whole, which has led to the reluctance of both suppliers and sellers to work with high-value essential goods. Miscalculations and mistakes in the activities of market entities are aggravated by the lack of a regional information bank of data on market conditions. The absence of a unified commodity policy reduces the effectiveness of the commercial activities of the enterprise's employees in its various areas.
The analysis of the information presented by the experts showed that the violation of specialization, both among producers and trading enterprises, reduces the efficiency of economic relations and, ultimately, increases consumption costs.
The third block is “Formation and stimulation of demand“. It is advisable to use this group of indicators when assessing the compliance of the volume and structure of demand with the product offer. The proposed indicators are calculated for the enterprise, based on the assortment, its breadth, data on the demand of the population and factors affecting the degree of completion of purchases.
This direction of commercial activity is inextricably linked with the blocks that characterize the planning of a product offer and the formation of an assortment of goods. It is as a result of the supply of goods to the consumer that demand is formed, and as a result of the analysis of the demand of the population, the purchase of goods is carried out and the assortment and pricing policy is determined. In this block, an important place is occupied by the advertising work of trade and manufacturing enterprises.
The characterization of advertising made by experts reflects the lack of attention paid to this area of commercial activity. Advertising does not have a sufficient stimulating effect (for most stores) on the volume of sales of goods in order to recoup the costs of its organization.
The fourth block - "Economic efficiency of commercial activity" - characterizes the effectiveness of the management of commercial work, both for a particular enterprise and for a set of enterprises in a certain territory. These indicators complete and summarize the evaluation of business activities.
In a trading enterprise, commercial activity directly affects both its economic results and the social efficiency of trade in general. As we have already considered, the economic and social efficiency of trade are closely interconnected. The economic efficiency of commercial activities, in our opinion, should be assessed by economic results that characterize the work of the enterprise as a whole: general economic indicators (turnover, costs, profits, prices); indicators of resource use (production, turnover); the quality of trade services (breadth, stability and renewal of the assortment); the quality of goods.
The study of each direction of effectiveness constitutes a specific area. The effectiveness of trade management is assessed, first of all, from the standpoint of the quality of trade services and the profitability of enterprises. The components of management efficiency largely depend on the organization of commercial activity and its results, since in the course of commercial operations, trade turnover, enterprise income, a range of goods are formed, and their quality is checked.
Analyzing the impact of commercial activity on economic results, we concluded that the profitability is higher for those trading enterprises that have a wide range of goods, high turnover, clear business ties and increase the pace of retail turnover, improve work with customers.
Evaluation of the effectiveness of the commercial activities of enterprises, according to the methodology proposed by us, can be carried out both on the basis of expert assessments and by the enterprises themselves. Such work is necessary when planning economic activity, identifying the reasons for non-fulfillment of planned targets, finding reserves to improve the efficiency of enterprises, and determining a strategy for its development. The assessment of commercial activity gives an idea of the adaptation of the enterprise to market conditions, allows not only to develop a strategy and tactics for the behavior of commercial enterprises, but also to improve the efficiency of their management at the territory level. Its application will allow business entities to determine the strengths and weaknesses of trading activities and concentrate all conditions on the areas that are the most promising and profitable.
Evaluating the commercial activity of trade when it enters the market, we have established:
1. Enterprises are gradually adapting to the market situation, there have been positive changes in their work. The commercial activity of trade has significantly intensified, there has been an improvement in the structure of trade turnover due to an increase in the volume and a change in the composition of the product offer based on the expansion of the geography of interregional and international relations. The degree of satisfaction of consumer demand has increased, both in terms of volume and structure. This is due to the expansion, updating of the range and the promotion of goods and services that are fundamentally new for the population of the region.
2. In the course of the reform, due to the development and deepening of the sphere of activity of the subjects, the substantive aspect of the commercial activity of trade enterprises has fundamentally changed. Now a significant part of retail enterprises combine wholesale and retail sales, and wholesale - retail. Expand retail and manufacturing businesses. Thus, they ensure the maneuverability of commodity resources, the rapid delivery of goods to the consumer and the return on investment.
3. Our studies did not reveal significant changes in the organization of commercial activities at enterprises, the work of the services involved in it, the content and rational distribution of responsibilities between employees in the approach to solving problems. As before, the main commercial functions are carried out by heads of enterprises, which is especially typical for municipal stores and limited liability companies. Due to the workload and lack of knowledge of market processes and little experience in new conditions, these specialists do not provide high efficiency of commercial activities in all areas.
The expansion of the trade network, the emergence of new types of trade enterprises ensured the influx of workers into trade who do not have special training and do not have the necessary set of knowledge, as evidenced by official statistics, sample surveys and expert surveys. At the same time, the professional level and the prevailing stereotypes of the activities of personnel workers of certain categories often conflict with the requirements of the changed external and internal environment of the enterprise.
4. The analysis of the effectiveness of the commercial activities of enterprises of various forms of ownership showed its greatest effectiveness in large enterprises. But the bulk of them are closest to the consumer - these are small shops. Their activities require all kinds of support from the state. In particular, it is necessary to establish information market centers in the field, which would provide various enterprises with the necessary information about market conditions, market processes, etc. This can play a positive role both in terms of increasing the efficiency of trading activities and in terms of creating a favorable market environment.
The lack of market information, operational analysis data and the inability to constantly link commercial decisions with market conditions reduce the efficiency of the work of trade specialists. This is especially evident in the weakened attention to the work of studying the demand for goods directly at the trading enterprise. Here, work on the formation of consumer demand with the help of the necessary information and advertising is weakened.
5. We came to the conclusion that it is necessary to introduce a fundamentally new approach to managing commercial activities. This can be achieved by introducing marketing services (or at least their main elements) in each enterprise. Since marketing is a purely market concept for managing the commercial activities of an enterprise, it will allow the most harmonious combination of the market interests of the enterprise and the consumer. Practical marketing will bring real benefits to the enterprise only when its application is carried out by qualified specialists with knowledge in the field of market strategy and tactics.
A marketing service that adequately meets the requirements of the market is still in its infancy. Its development is constrained by the lack of funds from enterprises, specially trained personnel and methodological developments adapted to local conditions.
The above factors largely determine the approach to the assortment policy of enterprises, the planning of procurement activities, which determine the composition and structure of the product offer, the degree of satisfaction of consumer demand, and the organization of trade services.
6. Effective commercial activity at the regional level ensures market saturation, a high level of consumer satisfaction, development of competition in the sphere of circulation, and therefore should be the area of constant attention of the authorities. Control in certain areas of commercial activity (prices, trade allowances, taxes), carried out today by the forces of disparate, narrow departmental structures, does not allow one to get a complete picture of the ongoing processes, and even more so to ensure their integrated management.
The refusal to centralize the management of commercial activities should not be manifested in the complete removal of self-government bodies from its regulation. Analysis of the nature, forms and methods of such regulation is an independent, extremely urgent problem that requires serious further research.
- The technique was developed by the author (see Nikolaeva T.I. Adaptation of trade to market conditions. Ekaterinburg: Publishing house of USUE, 1995.).
- Despite the fact that the study of the range of goods is a very important problem (even intersectoral), there are still no standards regulating its performance. Specialists and scientists of trade have not yet come to a common view on the nomenclature and essence of the indicators of the assortment of goods.
- The measure of updating the range of goods should be considered the magnitude of deviations of actual rates from their optimal values. The optimal renewal period can be calculated by the ratio of 100% to the obsolescence period. The result will show the proportion of items that are recommended to be replaced annually. It would be useful for employees of commercial or marketing services to take this indicator into account in their work.
- Note. The technique was developed by the author. Based on data from surveys of heads of trade enterprises in the cities of the Sverdlovsk region.
7.1 Profit: concept, principles of formation, factors on it
influencing
Nowadays, in a market economy, there are more and more commercial enterprises. Each company seeks to get the highest possible profit at the lowest cost. To ensure the profitability of his business, an entrepreneur should deeply analyze the current situation in the market, as well as within his enterprise. Achieving the main goal - maximizing profits is possible only with proper and thoughtful planning of the activities of a trading enterprise.
Profit in trade is a monetary expression of the value of the surplus product created by the productive labor of trade workers who are engaged in the continuation of the production process in the sphere of commodity circulation, as well as a part of the surplus product created by the labor of workers in other sectors of the national economy and directed to trade through the mechanism of prices for goods, tariffs, surcharges. Profit is measured by amount and level. It is one of the most important evaluation indicators characterizing the result of the economic activity of the enterprise. The ratio of profit to turnover, expressed as a percentage, determines the level of profitability of the sale of goods. In a market economy, profitability is the most important qualitative indicator of the work of a trading enterprise, which summarizes the state of income, distribution costs, turnover, use of fixed assets, labor, equity and borrowed capital.
Profit is the final financial result of the economic activity of the enterprise. However, the financial result can be not only profit, but also loss.
In a simplified form, profit is the difference between gross income and distribution costs. This profit is to be called accounting (gross) profit, it reflects the financial result of a particular activity of the enterprise.
Economic profit - is the difference between gross income and economic costs. Economic profit is less than accounting profit by the amount of costs that are not included in distribution costs - the goal of any trading enterprise on the market is to maximize economic profit. This profit characterizes entrepreneurial income, which testifies to the payback of the costs of a trading enterprise and its ability to self-finance. In the process of analyzing the results of the work of a trading enterprise, various values of profit are used: profit (loss) from the sale of goods; sales profit
fixed assets and other property; gross profit; net profit; taxable income; income from other activities of the enterprise.
Differences in the concepts of profit are determined by their economic content and the provisions of the legislation on the taxation of enterprise profits. Profit from the sale of goods is defined as the difference between the gross income from the sale of goods and distribution costs. When determining the profit from the sale of fixed assets and other property, the difference between the sale price and the residual value of these funds and property, increased by the inflation index, is taken into account. At the same time, the concept of "residual value" is considered in relation to fixed assets, intangible assets, and the initial cost - for other property.
The composition of income from non-sales operations includes: income received from equity participation in the activities of other enterprises, from the lease of property, dividends on shares, bonds and other securities owned by the enterprise, as well as other income (expenses) from operations that do not related to the sale of goods, including amounts received in the form of sanctions for violation of business contracts.
Gross profit characterizes the final financial result of the economic activity of the enterprise and is the sum of profit from the sale of fixed assets and income from non-sales operations, reduced by a unit of expenses for these operations.
Gross profit with the greatest completeness and objectivity shows the result of all types of economic activity of the enterprise.
Net profit - This is the part of the gross profit that remains at the disposal of the enterprise after paying income tax to the budget.
Consider the concept of "taxable income".
Taxable income - is the amount of the portion of gross profit that is taxable. The object of taxation is the gross profit of the enterprise, reduced or increased in accordance with the provisions of the current legislation.
Let's name the conditions for profit growth in trading:
Expansion of the range of goods;
Implementing commercial innovations to increase
sales volumes of new products that are in high demand;
No fear of commercial risk;
Wise use of funds derived from cost savings.
Profits and losses represent the difference between the estimated costs and revenues and the actual costs incurred and revenues received.
Profit refers to the result of a firm's activities. Profit maximization is a prerequisite for all firms: profit is maximized when marginal revenue equals marginal cost. The rule in profit maximization is to choose such a volume of production
and sell the good so that its price equals long-run marginal cost. Marginal costs are additional variable costs associated with each additional unit of output, sales of products - firms, as a rule, solve the problem of maximizing profits in the long run. Those that are not closely involved in profit maximization have little chance of survival. Firms that survive in a competitive environment give long-term profit maximization one of its original values.
Profit and profitability in the conditions of the formation of a market economy are the most important indicators of the economic activity of trading organizations and enterprises. These indicators reflect all aspects of the activity of trade enterprises: the volume and structure of retail trade, the rational use of resources, the implementation of measures to improve the organizations and technologies of trade processes, etc.
The amount and level of profit are formed under the influence of a large number of different factors that have both positive and negative effects on them. The number of factors that determine the amount of profit and profitability can hardly be clearly limited, it is very large. All factors can be divided into the main ones, which have the greatest impact on the amount and level of profit, and the secondary ones, the influence of which can be neglected. In addition, the entire set of factors can be divided into internal and external. They are closely related.
Internal factors affecting profit and profitability include resource factors (the size and composition of resources, the state of resources, their operating conditions), as well as factors related to the development of retail turnover.
Among the internal factors, the following factors can be distinguished:
The volume of retail trade. With a constant profit share in the price
product growth in sales of goods allows you to receive a large amount
arrived.
Commodity structure of retail trade. Extension
assortment contributes to the growth of turnover. Increase in turnover
goods of higher quality, which are prestigious, allows
increase the share of profit in the price of goods, because buyers are more likely to purchase
these goods precisely because of their prestige and counting on great convenience
in operation. It also improves profitability.
Organization of goods movement. Accelerated promotion of goods in
trade network contributes to an increase in turnover and a decrease in current
expenses. As a result, the mass and the level of profits increase.
Organization of the trade and technological process of selling goods. For
to make a profit, it is necessary to use progressive methods of selling
goods: self-service, sales of goods by samples and catalogs. This
contributes to an increase in the volume of trade, as well as a decrease in its cost intensity.
The number and composition of employees. Sufficient number at
a certain level of technical equipment of labor allows you to fully
to the extent to implement the program of the enterprise to receive the necessary amount
arrived. Of great importance is the skill level of tradesmen.
employees, their ability to quickly and accurately serve customers, correctly
purchase goods, etc.
Forms and systems of economic incentives for workers.
The influence of this factor can be assessed through the indicator of payment costs
labor, as well as through the indicator of profitability of labor costs. IN
the role of moral encouragement of employees is currently increasing,
getting satisfaction from their work.
Labor productivity of employees of the enterprise. Height
labor productivity, ceteris paribus, entails
increase in the mass of profit and increase the profitability of activities
enterprises.
Capital-labor ratio and technical equipment of labor of workers.
The higher the equipment of employees with modern commercial equipment,
the higher their productivity.
The state of the material and technical base of the trading enterprise.
An enterprise that has a more modern and developed material and
technical base have the prerequisites for a constant increase
retail turnover in the long run. This entails
increase in the mass of profits and increase profitability.
Development and condition of the trade network, its territorial
location. The location of the trading network has a direct
impact on earnings and profitability. Serious impact on performance
profits can be provided not only by the development of a stationary store chain, but also
small retail, parcel and mobile network.
Moral and physical depreciation of fixed assets. This factor is
very important to increase the profitability of trade. Usage
worn-out fixed assets, obsolete equipment is not
allows you to expect to increase profits in the future.
Capital productivity. With an increase in capital productivity, retail
turnover per 1 ruble of funds invested in fixed assets.
Amount of working capital. The greater the amount of working capital
the enterprise has, the greater the mass of profit it receives in
the result of one of their turnovers.
Applicable pricing policy. From the amount of profit
included in the price of the goods, depends on the amount of profit received. Constant
an increase in the share of profits in the price of goods can lead to the opposite result.
Organization of work on the collection of receivables.
Timely collection of accounts receivable contributes to
acceleration of the turnover of working capital, and consequently, an increase in profits.
Organization of claim work, work with containers. This factor
directly affects the amount of profit from non-sales operations.
The implementation of the economy mode. Allows a relative reduction
current costs of trade enterprises and increase the amount received
arrived. The economy mode is understood not as an absolute, but as a relative
lower operating costs.
Business reputation of the enterprise. Represents an established
consumers have an opinion about the potential of the enterprise. high
business reputation allows the company to receive additional profit,
increase profitability. Trade enterprises cannot work
isolated. They are constantly in relationship with the outside
environment; buyers, the main share of which is occupied by the population;
manufacturers and sellers of goods; public organizations and
state institutions. The sum total of these relationships
directly affects the efficiency of commercial enterprises,
the amount of their profit, the profitability of activities.
The main external factors that form the profit of a trading enterprise include the following factors:
- Market volume. Retail turnover depends on market capacity
trading enterprise. The greater the market capacity, the greater the opportunity
profit-making enterprises.
- The development of competition. It has a negative effect on the amount and
the level of profit, since it leads to an averaging of the rate of profit.
Competition requires certain costs that reduce
the amount of profit received.
- The amount of prices set by suppliers of goods. In conditions
competition price increases by suppliers do not always lead to adequate
increase in selling prices. Merchants seek less
work with intermediaries, choose among suppliers those who offer
goods of the same quality level at lower prices.
- Prices for the services of transport, public utilities,
repair and other enterprises. Increase in prices and tariffs for services
increases operating costs of enterprises, reduces profits and reduces
profitability of trading activity.
- The development of the trade union movement. The company strives to
limiting wage costs. The interests of employees express
trade unions that are fighting for higher wages, which
creates the prerequisites for reducing the profits of the enterprise.
- Development of activities of public consumer organizations
goods and services.
- State regulation of the activities of trade enterprises. This factor is one of the main ones, determining the amount of profit and profitability.
In general, the factors affecting the profit of a trading enterprise can be represented in the form of a diagram.
Factors affecting the amount of profit can be divided into two groups, as it were. The first group includes the so-called main factors that directly affect the volume of profit of a trading enterprise. These include:
Profit (loss) from the sale of goods.
Profit (loss) from non-trading activities of the enterprise.
The balance of income and expenses on non-sales operations.
Profit (loss) from the sale of fixed assets.
The second group includes the so-called interdependent factors:
Sales volume of goods.
Retail prices for goods sold.
circulation costs.
The capital-labor ratio of workers.
The tax intensity of the enterprise.
The number of employees of the enterprise.
Turnover and composition of capital.
Costs attributable to profit.
If we talk about the main factors affecting profit, then we can say that in practice, gross (balance sheet) profit is mainly created at the expense of profit from the sale of goods, but it can be increased (decreased) by the amount of profit from non-trading activities of the enterprise, by the amount identified positive (negative) balance on non-sales transactions, by the amount of profit received from the sale of fixed assets (moreover, the profit (loss) from the sale of fixed assets is the difference between the sale (market) and their original price or residual value, taking into account revaluations caused by inflation If it is revealed that the initial cost and costs incurred associated with the disposal of fixed assets and other property exceed the amount of proceeds from the sale, then the gross profit of the enterprise is reduced by the amount of this excess.If, on the contrary, the amount of proceeds exceeds the initial cost and expenses for the disposal of fixed assets and other property, gross profit is increased by this difference).
Interdependent factors as well as the main ones strongly influence the amount of profit. It is no coincidence that these factors received such a name. Their peculiarity lies in the fact that each of them to some extent influences or is influenced by other factors from this group. Therefore, dividing the subsystem of interdependent factors into separate elements-indicators,
it is possible to identify the degree of influence of each of them on profit based on the application of methods and techniques of economic and mathematical analysis. First, the impact of each of them on the amount of profit is evaluated, and then their combined impact. Using a comprehensive method of analysis, it is possible to identify the following necessary conditions for the normal functioning and development of an enterprise:
Tp > Tm > Ti > Tf > Tch, where Tp is the profit growth rate,
Tm - the growth rate of trade,
Ti - the growth rate of distribution costs,
Tf - the growth rate of the capital-labor ratio of workers,
Tch - growth rate of the number of employees.
Growth factors of this or that indicator are calculated by their successive ratio. The intensive development of a trading enterprise can be characterized not only by an increase in turnover and profit, but also by an increase in the productivity of trade workers, an increase in capital, etc.
For example, distribution costs in retail trade strongly depend on the size of wages to employees, various deductions to off-budget funds. A decrease in distribution costs entails, respectively, a decrease in wages and various kinds of deductions. This, in its own way, can increase profits, but at the same time, it can undermine the incentive for employees to work and greatly reduce labor productivity, which can lead to high costs for restoring staff to working capacity. In foreign practice, in this regard, a system of incentives for employees is used, where, along with an increase in salaries, the so-called participation of employees in the economic activities of an enterprise is used, which implies that employees have the right to purchase shares of enterprises at preferential prices, and then can receive dividends on purchased shares. .
It is assumed that the return on the increase in labor costs should grow faster than the size of its payment. The enterprise distributes this or that part of the profit not in the form of cash payments, but in the form of shares or transfers it to the bank accounts of employees, forming a credit fund, which the enterprise puts into circulation, which to some extent reduces the need for borrowed funds, while reducing the cost of paying interest on bank loans.
The amount of profit in trade also depends on the volume of demand for goods and their supply. A decrease in demand for goods can lead to both a decrease in gross income from sales and a reduction in gross profit. The regulator of the ratio of supply and demand in the market are the retail prices of goods. At low prices for goods, the quantity demanded for them is greater, and at high prices, less, since there are cheaper substitutes for these goods. As sales increase, the rate of return
increases, then its growth slows down, and, finally, it stabilizes or decreases, which depends on the properties of certain groups of goods.
Thus, profit is influenced by two interdependent factors: distribution costs and sales volumes of goods. Other factors also directly affect profit and each other.
7.2 Analysis of the profit of a manufacturing enterprise
Profit - the most important comprehensive indicator of enterprise performance assessment, reflecting all aspects of work: volume, assortment, quality, cost. This allows you to actively use the procedure for distributing profits in the system of economic incentives. The possibility of using profits for certain purposes is set depending on the efficiency of work.
The level of fulfillment of the profit plan depends on the financial condition of the manufacturing enterprise, the fulfillment of its obligations for settlements with suppliers of raw materials and materials; budget, banks and other organizations.
When conducting an analysis, it is necessary to identify the validity of the profit plan, which influenced the implementation of the plan factors, reserves for the growth of savings in order to accelerate production development, material incentives for employees.
The main sources of analysis are f. No. 1 "Balance sheet" and f. No. 2 "Profit and Loss Statement".
The financial result of the economic activity of the enterprise is reflected in the balance sheet in the form of balance sheet profit. The balance sheet profit includes profit (loss) from the sale of marketable products, other types of sales and non-operating results (profits and losses).
The balance sheet is grouped in a certain order and generalized information about the value of the property and liabilities of the enterprise in a single monetary meter at a specific point in time.
The balance sheet is a reporting document and is drawn up on the last calendar day of the reporting period.
The balance sheet is a two-sided table. The left side of the balance sheet is called the asset, and the right side is called the liability. Assets are what an enterprise owns; liabilities are what the enterprise owes. Liabilities show how much money was received by the company, assets - how the company used the funds received, in what it invested them. The results of the asset and liability balance are equal to each other.
Profit and loss account characterizes the financial results of the enterprise (account "Profit and Loss") for the reporting period. The income statement contains the following indicators:
Proceeds from the sale of goods, products, works, services minus tax
value added, excises and other taxes and mandatory
payments (net revenue);
Cost of sales of goods, products, works, services (except
selling and administrative expenses);
Business expenses;
Management expenses;
Profit/loss from sales;
Interest receivable;
Percentage to be paid;
Income from participation in other organizations;
Other operating expenses;
Profit/loss from financial and economic activities;
Other non-operating income;
Other non-operating expenses;
Profit/loss of the reporting period;
income tax;
diverted funds;
Undistributed profit/loss of the reporting period.
Responsibility for the organization of accounting at the enterprise, compliance with the law in the performance of business operations lies with the head of the enterprise. Depending on the volume of accounting work, the manager can:
Establish an accounting service as a structural unit,
headed by the chief accountant;
Introduce the position of an accountant;
Transfer on a contractual basis accounting
centralized accounting, specialized organization or
specialist accountant;
Handle bookkeeping in person.
The required number of accountants is determined depending on the amount of information generated for each of the accounting objects. The chief accountant (financial director), who heads the accounting service, acts in accordance with the law “On Accounting” and the Regulation on Accounting and Accounting in the Russian Federation. He reports to the head of the enterprise and is responsible for the formation of accounting policies, accounting, timely submission; complete and reliable financial statements. The main task of accounting is to contribute to the achievement of positive results of the economic activity of the enterprise.
The head of the enterprise forms the accounting policy on the basis of the Accounting Regulation "Accounting policy of the organization" dated 09.12.98 No. 64n, which entered into force on January 1, 1999. Form the accounting policy of all enterprises, regardless of the form of ownership, and
disclose only those that publish their financial statements in full or in part in accordance with the legislation of the Russian Federation, constituent documents or on their own initiative.
The form of accounting is chosen by the enterprise independently, and during the reporting period the accepted form of accounting should not change.
Currently, enterprises use the following forms of accounting:
Journal-main;
Memorial-order;
Magazine-order;
automated.
Any enterprise for the implementation of industrial or other commercial activities must have a certain capital or a set of resources that support economic activities. At enterprises that produce products, the monetary form of capital in the process of procurement of resources changes to material, which in the process of production turns into a commodity. In turn, the commodity form of capital passes into the sphere of circulation and, in the process of realization, again turns into a monetary form with an increment. Accounting reflects the movement of capital of an individual enterprise by processes:
Formation of the authorized capital (fund);
Acquisition (procurement) of resources;
Production and release of products;
Sales of finished products;
formation and use of financial results.
For enterprises that perform work and provide services, the circulation of capital is similar to the circulation of capital in enterprises that produce products. At the same time, in the accounting of the movement of capital for such enterprises, the production stage is excluded, since the production of works and services is carried out here.
For enterprises engaged in trading activities, the circulation of capital represents a change in the monetary form to commodity and commodity to monetary with an increment. In accounting for such enterprises, the process of production of services is peculiar, during which a new product is not created, but costs are incurred to bring the goods to the consumer.
The process of formation and use of financial results is associated with the identification of the final financial result of the economic activity of a manufacturing enterprise (on the profit and loss account). The final financial result consists of profit (loss) from the sale of products, works, services, goods and income minus expenses received from various business operations (sale of property, received rent, losses from natural disasters, etc.). The final financial result is taken into account during the year on an accrual basis.
The use of profit is reflected separately from the received profit on the account of the same name.
The resulting profit is used to pay income tax. At the end of the year, the amount of profit used is written off to pay off the received annual profit. The remaining unused profit is transferred to a special account to record its movement in the next year.
7.3 Distribution of profits in trading
Under the distribution of profit is understood the procedure for its direction, determined by law. In a market economy, a significant part of the profit is withdrawn in the form of taxes (38-45% of gross profit), which the state uses to replenish budget revenues.
The Law of the Russian Federation "On the Profit Tax of Enterprises and Organizations" provides for the right of enterprises to direct part of their gross profit to finance capital investments for industrial and social purposes, as well as to repay bank loans received for these purposes. This makes it possible to reduce the actual amount of income tax, calculated without taking into account this benefit, by no more than 2 times. In addition, the law allows the gross profit to cover the costs associated with the repayment of loans from commercial banks received to finance capital investments. If the company uses these loans for other purposes, then the profit received from their use is subject to taxation in the prescribed manner.
The distribution of profits is based on the observance of three basic principles:
Ensuring the material interest of employees in achieving
the highest results at the lowest cost;
Accumulation of own capital;
Fulfillment of obligations to the state budget;
One of the directions of profit distribution is the repayment of the state target loan received from the target off-budget fund to replenish working capital, within the limits of its age. A targeted loan is issued on the basis of an agreement between financial authorities and joint-stock companies (with a state share in the authorized capital of more than 50%), privatized enterprises, regardless of the organizational and legal form. The repayment of the overdue target loan and the payment of interest on it is carried out at the expense of the profit remaining at the disposal of the enterprise.
The second direction of profit distribution is deductions to the reserve fund. In Russia, the reserve fund is created and replenished from profits only in joint-stock companies and limited liability companies. No more than 50% of the amount of profit subject to taxation can be directed to the reserve fund. The funds of this fund are earmarked
purpose - coverage of unforeseen losses, compensation for risk, other expenses arising in the course of business activities of the enterprise. The existence of a reserve fund determines the possibility of paying dividends on shares in the event of a shortage of net profit.
Abroad, the method of participation of employees of a large enterprise in its profits is widely used. For these purposes, the company creates a so-called accumulation fund, into which a certain percentage of profit before taxes is transferred. This amount is distributed among employees in proportion to their salaries, and the money is not paid immediately, but is placed in various kinds of shares. An employee of a corporation can receive them only after leaving the enterprise.
If the amounts of the authorized capital and the accumulation fund exceed the amount of profit received, then we can talk about the stability of the financial orientation of funds for the development of the enterprise. The equalization of the ratio of these amounts indicates a pre-crisis state.
Special-purpose funds can be created at the enterprise, in which a significant part of the profit is accumulated, reserved or directed to the formation of sources of financing costs, the creation of new property of the enterprise for production purposes and social infrastructure, as well as for the needs of social development (except for capital investment), for material incentives for employees . Special-purpose funds clearly distinguish between funds allocated by an enterprise for production development and for consumer needs. In this regard, two independent groups of funds are formed: accumulation and consumption funds. Also, special-purpose funds include the fund of the social sphere.
Some of the profits may go to the consumption fund. The consumption fund at the enterprise is formed to meet the current needs of the trading enterprise. The source of the accumulation fund is net profit. Directing a significant share of net profit to current needs, the company reduces the rate of economic growth and, consequently, limits the possibility of future consumption. Profit directed to investment (investment) contributes to the acceleration of economic growth, thereby expanding the possibilities of future consumption.
In general terms, the profit remaining at the disposal of the commercial enterprise is distributed among accumulation and consumption funds. These funds differ in ownership. At a joint-stock enterprise, consumption funds are owned by the enterprise's labor collective, and accumulation funds are owned by shareholders and founders. Therefore, consumption funds cannot be attributed to the capital of an enterprise, because the difference between capital and funds lies in the fact that capital is formed as a result of the accumulation of property, and accumulation funds - as a result of the distribution of net profit.
Russian legislation grants enterprises, regardless of the organizational and legal form of ownership, the right to quickly maneuver the profits that come to their disposal after paying tax payments to the budget. The difference between the total amount of profit for all activities of the enterprise and its used part for the reporting period is retained earnings.
Retained earnings is an indicator that characterizes the economic growth of an enterprise based on its own funds. As part of retained earnings, one part characterizes the amount of accumulated profit, the second part is free profit, i.e. profit that received no referral. It should be noted that the profit remaining at the disposal of the enterprise cannot be fully attributed to equity. In fact, all consumption funds, as well as such savings as investments in the social sphere, do not belong to equity. They do not represent the capital of the enterprise in its pure form, but in fact what the enterprise gave to the team to improve its social needs (construction of a holiday home, etc.).
In terms of economic content, funds are the net profit of the reporting year or previous years, distributed among funds for its intended use: for the purchase of new equipment (accumulation fund); for social activities (social sphere fund); for material incentives (consumption fund) and other needs.
The Board of Founders has the right to direct the funds of the funds to cover losses, redistribute the funds of the funds between them, direct part of the funds to increase the authorized capital and finance other activities.
It must be added that all of the above (regarding the creation of funds at an enterprise) is typical for more or less large enterprises, where the distribution of profits takes place in accordance with the constituent documents for funds that provide for the amount of deductions. The procedure for the formation and spending of funds is determined by the enterprise independently and is fixed in the charter and order on the accounting policy of the enterprise. This method of using profits is called the stock method. The fundless method is used in most cases by small businesses. At such enterprises, a reserve fund is usually formed, contributions to which may affect taxable profit due to possible tax benefits on these contributions. Ultimately, the goal of profit distribution analysis is to establish how rationally profit is distributed and used from the standpoint of self-growth (self-sufficiency) of capital and self-financing of a trading enterprise.
Based on the results of the analysis, having identified how certain factors affect the change in profit, it is necessary to develop specific measures to increase the analyzed indicator:
Increasing the volume of output;
Reducing the cost of production;
Reducing the cost of the enterprise;
Establishing strong economic ties with suppliers of raw materials and
materials;
Systematic control over the distribution of raw materials, materials and fuel;
Increasing the productivity of workers;
Professional development of specialists;
Introduction of the latest technologies;
Efficient use of production capacities.
Creation of trade enterprises for the sale of products;
Creation of marketing services at the enterprise;
Reconstruction and modernization of the enterprise.
In the conditions of market relations, manufacturing enterprises carry out their activities on the basis of a commercial calculation, in which costs must be covered from their own income. Profit becomes the main source of production and social development of labor collectives.
Production enterprises began to have real financial independence, independently distribute the proceeds from the sale of products, dispose of profits at their own discretion, form production and social funds, seek the funds they need for investment, using, among other things, financial market resources - bank loans, issuance of bonds , certificates of deposit and its other instruments.
Enterprises have become free from petty tutelage on the part of the state, but at the same time their responsibility for the economic and financial results of their work has sharply increased.
