Factors affecting profits

Profit is the sum of the growth of your ownof the capital of a commercial enterprise, which takes place as a result of the activity of a given firm, expressed in money equivalent of a part of the additional cost. Profit is one of the main sources of creation of the enterprise's monetary fund, its financial resource. The notion of "profit" today's economic science defines as the income derived from the exploitation of such factors of production as capital, land and labor. Not accepting profits as exploitation or appropriating hired unpaid labor, they distinguish the following definitions of profit:

Payment for business services.
Payment for talent, innovation in the management of the enterprise.
Payment of risk, uncertainty of resultscommercial activities. The presence of risk is due to the choice of any of the options of natural and climatic conditions, social, scientific, technical or management decision.
The phenomenon of monopoly profits. This profit is often unstable.

When forming a market economyprofitability and profit are considered to be one of the most important indicators of the economic activity of enterprises and trading organizations. These indicators reflect all areas of activity of trade structures: the availability of measures to improve technology and organization of the trade process, the efficiency of resource use, the structure and volume of retail turnover.

Analysis of the factors influencing the profit

The level and amount of profits are influenced bymany factors that affect it both negatively and positively. Factors affecting profits are numerous and varied. Restricting them is quite difficult. All factors affecting the profit of the enterprise are divided into the main factors that have a determining influence on the level and amount of profit, and secondary - in most cases, their influence is neglected. In addition, the whole set of factors is divided into external and internal. They are closely related to each other. Internal factors that affect profit, as well as profitability are factors caused by the growth of retail turnover and resource-related factors (the state and conditions of exploitation of resources, their composition and magnitude).

Internal factors are determined by the following parameters:

Volumes of retail trade. In the event that the share of profit in the prices of goods is unchanged, the profit margin grows due to the increase in the volume of their sales.
Structure of retail trade goods. The turnover is growing due to the expansion of the assortment. Raising the segment of prestigious, high-quality goods in the turnover, it is possible to achieve a growth in the share of profit in prices, as the buyer purchases the goods of this group more often because of their prestige, and also counting on the increased convenience of their operation.
Organization of goods movement. The consequence of accelerated promotion of goods to the outlets is a reduction in current expenses and an increase in turnover. As a result, there is an increase in the level and mass of profit.
Organization of trade and technological processessale of goods. In an effort to increase profits, resort to the introduction of progressive methods of trade: the sale of goods through catalogs and samples, self-service. Such methods reduce costs and increase volumes of turnover.
Composition and number of employees. With sufficient level of technical support for labor, the required number of employees provides the enterprise with a full implementation of the program for obtaining the planned profit. Essential is the factor of the qualification of the employee, his ability to clearly and quickly serve the buyer, make the right purchase of goods, etc.
Systems and forms of economic promotion of laboremployees. These factors that affect the amount of profit are manifested through the indicators of the cost of wages and the profitability of such costs. Today, there is a growing moral incentive for employees when they are satisfied with their work.
Productivity of employees of the company. In the presence of other equal conditions, the result of higher labor productivity is increased profitability of the business structure, and an increase in the volume of profit.
Technical armament and the labor ratio of labor of workers. Labor productivity is directly dependent on the equipment of workplaces with samples of modern commercial equipment.
The material and technical basis of the commercialenterprise. The structure, which has a more developed and modern material and technical base, can count on the constant growth of retail turnover with a long-term perspective. After that, profitability is increased and profit is increased.
Territorial location, condition anddevelopment of a trading network. The location of trade networks directly affects profitability and profit. Along with the store fixed network, the profit indicator is significantly influenced by the development of a mobile, a parcel and a small retail network.
The level of physical and moral depreciation of the basicfunds. This factor is very important in terms of increasing the profitability of the enterprise. The reliance on worn-out, obsolete equipment and fixed assets deprives hopes for future profit growth.
Capital productivity. The direct result of its increase is the growth of retail turnover per 1 ruble of funds invested in fixed assets.
Working capital. These are the factors that affect the change in profit directly. Since the mass of the profit received from one turn directly depends on the size of working capital.
The order of pricing. The amount of profit is dependent on the amount of profit included in the price of goods. Continuous increase in the profit share in the price is able to produce the opposite of the desired result.
Work to collect receivables. The absence of delays in collecting receivables accelerates the turnover of current assets, which in turn leads to an increase in profits.
The work of a crime. This factor has a direct impact on the profitability of non-sales operations.
Economy mode. There is a relative decrease in the current costs of a commercial enterprise and an increase in the amount of the expected profit. In this case, we do not mean an absolute reduction in the available costs, but a relative reduction.
Business reputation of the firm. It is about the consumer's view of the potential of the commercial structure. Possession of high business reputation allows to increase profitability of the enterprise and to count on additional profit. A commercial enterprise can not work in isolation. It continuously interacts with the external environment: sellers and producers of goods, buyers (mainly this population), state institutions and public organizations. The combination of such factors has a direct impact on the efficiency of a commercial enterprise, the profitability of its activities and the amount of profit.