Enterprise profit is source of financial resources, necessary to ensure the financial and economic activities. It lack leads to a debt that can ultimately lead to a financial crisis and bankruptcy. The profit growth to a large extent determines the rate of economic development of the country and separate regions, increase of social wealth and improve the living standards of the population. Factors affecting the financial results in various sectors of the economy are: the procedure of formation and use of profit of the enterprises, change of volumes of manufacture in the industry, the effectiveness of the financial management of companies, etc.
Theoretical and practical aspects of the management of profit of the enterprises are considered in the works of scholars: I.A. Blanc, L.D. Beet, F.F. Butinec, E.R. Kvasovskiy, A.M. Podderegin, V.V.. Sopko, N.M. Cal–Tsalko, V.P. Privalov, R.S. Safulin, G.V.. Savitskaya, A.D. Sheremet and etc. Among western economists study profit reflected in the works of A. Bab, L. G. Breyli, Drury, B. Kolass, Myers, Ross, G. Holt.
Profit is the main aim of activity of the enterprise. The profit of the enterprise depends on production, supply, marketing and commercial activity of the enterprise. The profit growth creates a financial base for the economic development of the enterprise. In connection with this objective of the enterprise is not only to generate the maximum amount of profit in the current period, and its efficient distribution, use, formation and planning to ensure further growth of the company. Among the factors influencing change of profit you can select the output of products, the quality of the goods, competitiveness of the enterprise, its business reputation.
Problem of a competent and effective management of profits is the most urgent at the present stage of economy development of Ukraine. Many companies seek to maximize profit in the short term and does not carry out investments in the production development. This is partly due to the lack of economic knowledge management of enterprises, partly because of the instability of economic situation in the country. A mechanism of effective control profits should improve the efficiency of production and to promote its development. On the majority of the Ukrainian enterprises the most important aspect of the lack of attention.
The purpose of master's work consists in the theoretical substantiation and solving complex tasks of the organization, methods and practical use of recommendations of analysis, planning and distribution of enterprise profit.
In accordance with purpose of master's work were defined the following tasks:
The object of work is the process of profit management at the enterprise.
The subject of research are the principles and methods of profit management at the enterprise.
Methods of research. The theoretical basis for the study were fundamental principles of economic theory, scientific works of domestic and foreign scientists in the field of management profit. Normative base of research was made by the existing legislative and normative documents. The information base of research are official statistics, the data of primary accounting and reporting by enterprises. In the course of the study were also used common scientific research methods, the method of economic–statistical analysis, a method of comparison and economic–mathematical modeling.
Scientific and practical value of master's work consists in the theoretical substantiation and solving complex tasks of the organization, methodology and practical application of the recommendations on the profit management at the enterprise. Practical value of work consists in the process of improving the management of profit of the enterprise. The results of researches can be used in decision-making on management efficiency increase of profits. The implementation of the recommendations in the activities of enterprises will improve the scientific basis for decisions related to the management of profit.
In the first section of the "Scientific-theoretical bases of management of profit of enterprises" are considered essence and functions of profit, as well as analyzed the stages profit management, as its formation, distribution and use.
In the group management functions profits as a special area of the enterprise management the main of them are:
At the enterprise are subject to allocation net profit, i.e. profits, the profits at the disposal of the company after the payment of taxes and other obligatory payments. With profit levied sanctions, which shall be paid to the budget and extra–budgetary funds.
The process of formation and distribution of net profit of the company is represented in figure 1.
Fig. 1 — Formation and distribution of net profit of enterprise (5 fragments, 3 repeats, size 648х535, 40 Kb, Gif Animator 89 А)
The funds for development and perfection of manufacture are spent on satisfaction of needs, which are connected with growth of volumes of manufacture, technical re–equipment, development of technology of production and other needs, ensuring growth and improvement of material and technical base of the enterprise. Specifically these costs represent capital investments in construction of new production facilities, reconstruction of enterprises, purchase and installation of new equipment, other expenses of a capital nature, including environmental and such, which are aimed at improvement of labour conditions and safety engineering. It is also used for carrying out scientific–research and experimental–design works, preparation and development of new progressive technologies and types of products.
One of the needs of production, which is connected with its extended reproduction, is to increase their own financial resources, which are invested in stocks of raw material, materials, carry-over stocks of work in progress, finished products, goods, that is, the increase in the working capital.
Fund of funds allocated for social needs, are mainly used for such expenses, which contribute to the social development of the collective of the enterprise:
The fund of material incentives is used in order to stimulate interest of workers of the company in achieving high results of the work. In this direction profit is used for payment of remuneration for the general results of the work by the end of the year, on one–time bonuses awarded to the individual workers for performance of especially important manufacturing jobs, the payment of premiums for other achievements in work, as well as the provision of one–time material aid to workers and employees.
Reserve funds may be created at the expense of profit enterprises of all forms of property for use in the event of a sharp deterioration of the financial position as a result of temporary changes of market conditions, natural disasters, etc. With regard to joint–stock companies, limited liability companies and other business companies, the creation of their reserve funds at the expense of profit is mandatory in the order and amount determined by the constituent documents.
In the second chapter "the Methodological basis of the profit management enterprise" was a method of analysis of profit, methods of its planning, as well as specify the meaning of controlling and his organization at the enterprise.
Depending on the methods used are the following main system analysis at the enterprise: horizontal analysis; vertical analysis; comparative analysis; analysis of factors; integrated analysis.
For the enterprise it is very important to analyze indicators of profit, because they reflect the efficiency of the enterprise for a certain period. In my opinion, more efficient use of a set of vertical and horizontal methods of the analysis of the profits, because such an approach gives the possibility to get very accurate results, indicators of financial condition of the enterprise. Use these two methods in aggregate does not demand significant expenses of time and effort, as well as of the calculation can be done with the help of computer programs, which greatly simplifies the implementation of the analysis of indicators of profit. Horizontal and vertical analyses profit allow enough to reflect the changes in the financial sphere of the company.
The basis of the profit management of the enterprise is the system and the methods of its planning. Planning of profit is the process of establishing a system of measures to ensure its formation to the extent appropriate and effective use in accordance with the objectives of development of the enterprise in the forthcoming period.
At the enterprises of the industrial sector can be applied three methods of calculating the profit from realization of production:
The main positive feature of the development of a profit by a method of direct calculation is the simplicity and reliability. However, it limits the opportunities of revealing the internal reserves profit growth in the planning process, because it gives only the final result — plan profit, without having the influence of some factors on the planned amount of income.
The calculation of earnings on the basis of cost for one hryvnia product may be used by the enterprise as a whole from the calculation of income from production and sales of all products. It is supposed to use data on costs of production and sales of products for the previous period, as well as the expected change that is expected in the next period. This enlarged method, which is applied at the enterprises of the serial and a single type of production. The method of calculation also lacks the ability to determine the influence of different factors on the volume of profit, change it.
Economic (analytical) method differs from the already discussed methods of calculation of income that makes it possible to determine not only the total amount of profits, but also influence on the amendment of certain factors: volume of production (sales) of products; cost of production; level of wholesale prices and profitability of products, assortment and quality of production.
Important in the planning of profit is the break-even point. It is one of the most important characteristics of the interrelation of the expenses, volume of production and profit.
Break-even point (the threshold of profitability, dead point, point the critical volume of realization, self–sufficiency) — revenues from the sale of, at which the break-even activity of the enterprise in case of non–profit[6].
Result from the implementation of the recovery of variable costs fully sufficient to cover the fixed costs, and the profit is equal to zero.
The break-even point is calculated and graphical methods. Break–even point in natural expression:
where, FC — fixed costs;
P — the price of a unit of production;
VC — variable costs per unit of output.
Membership in the permanent includes expenditures, the amount of which does not depend on changes in the volume of production and sales of products within a specified period of time. As a rule, fixed costs are being implemented and at the lack of core activities. These include: rent, heating, lighting, administrative expenses, etc.
The variables include costs, the total amount of which varies in proportion to the change of volumes of manufacture. These include: raw materials, accessories; wages for production workers; fuel and energy for technological purposes and etc. The amount of fixed and variable cost is the gross (total) costs of the company.
Break-even point can also be calculated in money terms by the formula:
where, S — revenues from sales of products;
TVC — total variable costs.
Defining the threshold of profitability, that is, the revenue from the sale of, with which the enterprise has no losses, but has not yet and profits, we obtain the value of production of the enterprise, below which produce products is inexpedient.
It is necessary to note, that volumes of manufacture of below the threshold of profitability of evidence of deterioration in the financial condition of the enterprise, that is, the deficit of liquid funds. Location of firm in a break–even point is also dangerous, because in this case the enterprise has a great risk of losing a significant amount of profit. The more the company is close to the threshold of profitability, the greater the power of the operating lever. Such action is weakened at growth of proceeds and profit due to a reduction in the share of fixed costs in the total amount.
If the company a solid stock of the financial strength (over 10%), the favorable impact forces operating lever with a reasonable relative weight of the fixed costs in the total amount of their high level of cost–effectiveness, it is quite attractive for investors, lenders, insurers and other subjects of economic life.
In the third section "Methodical recommendations to improve the management of profit of enterprises" the application of economic–mathematical models on the basis of the financial statements of the company. This issue were such scientists, as Stanitsyn A., Leontiev In., Prosvetov G.I., L.L., Koshelnik V.M., The nightingale V.V. and others.
In my work I will consider a model, which led Prosvetov G.I. It refers to maximize profits at the enterprise.
The company, which maximizes profit, may use the following model to determine the appropriate volumes of release. Let Q be the volumes of the products manufactured by the enterprise. Total revenue TR and general expenses TC depend on Q: TR(Q) and TC(Q).
Profit π(Q) = TR(Q) — TC(Q).
We are looking for the maximum of this function. Then the derivative:
That is 
.
An expression 
is marginal revenue (additional income from the production of an additional unit of output).
An expression 
is a marginal costs(additional costs for the production of an additional unit of output).
Get a condition for profit maximization: the firm maximizes profit with such a value of output at which marginal revenue equal to the marginal cost. (MR=MC).
This condition profit maximization as for competitive firms, and for non-competitive firms. For a competitive firm limit income is equal to the price of unit of the goods: MR=P. So for a competitive firm maximization condition is formulated thus: the competitive firm maximizes profit with such a value of output at which marginal cost equals price of a commodity unit (MC=P).
In this master's work is the use of two economic–mathematical models, which will be carried out the appropriate calculations. After that it will be proved a number of recommendations on improvement of the mechanism of profit management and its maximization.
Therefore, we can conclude that the problem of a competent and effective management of profits is the most urgent at the present stage of economy development of Ukraine. A mechanism of effective control profits should improve the efficiency of production and to promote its development. On the majority of the Ukrainian enterprises this and the most important aspect is the lack of attention. To enhance the efficiency of profits, as well as the maximization of the company have the opportunity to use different economic–mathematical models. They give the company more specific information concerning the optimal volume of output of products, costs for effective activity and other. The proposed recommendations will help make its activity more efficient.
Master's degree work is not yet completed. The final completion — December 1, 2011. The full text of work and materials on the topic can be obtained from the author or his head after the specified date.