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Ways to improve profitability

Content

Introduction

1. Relevance of the topic

In a market transformation, enterprise operation more and more complicated under the influence of dynamic changes of various environmental factors. The primary task of economic development of Ukraine is to ensure stable economic growth. Consolidated net income largely determines the rate of economic development, some regions, the increase of social wealth and improve living standards. Profit growth companies provides its own financial resources necessary to carry out financial activities of the entity. Their lack of a risk of debt that eventually could lead to bankruptcy. In this context, the formation mechanism of profit enterprise and its adaptation to market conditions is of great theoretical and practical importance.

2. The purpose and objectives of the study, expected results

The purpose of: The aim of the study is to deepen the theoretical foundations and methodological improvement of management tools formation, distribution and use of company profits.

To achieve the goals set in the following problem:


The object of research: the management of the company profits.


Subject of research: set of theoretical, practical and methodological tools for profit management company.

Research Methods: the theoretical basis of master's work stands the dialectical method of knowledge of economic phenomena, the fundamental theoretical principles of economic science in the management of enterprise profits, which were developed in the writings of famous domestic and foreign scientists, economists, legal regulatory acts of Ukraine, Decrees of the President of Ukraine, government decisions and regulations, industry guidelines. When conducting research, depending on the set of specific goals and objectives used method of economic analysis, a method of logic synthesis, the method of economic-mathematical, methods of structural analysis, expert evaluations, graphical analysis, grouping.

Scientific research results.In a study carried out theoretical and methodological rationale for management of profitability of the coal industry, which allows more efficient use of financial and economic resources in order to maximize profits.

Testing results. The main results of the study were presented at the IX International scientific-practical conference "Accounting, control and analysis in the management of business" (18 - April 19, 2012).

3. Review of Research and Development

Theoretical and practical aspects of managing the profits of enterprises covered in the writings of scholars such as I. Blanca, LD Buriak, FF Butintsya, ER Kvasovskogo, AM Podderegin, V. Sopko, NM Tsal-Tsalka VP Privalov, RS Sayfulin, GV Savitskaya, AD Sheremet et al. Among Western economists study income is reflected in the works of the Bab, L. Braley, E. Brigham, and A. Gropelli, K. Drury, B. Kolassa, S. Ross, and G. Holt. At the same time, the specific conditions of transformation of the economy and socio-economic characteristics of economic activity in Ukraine at present some theoretical results and methodological tools to manage a profit businesses need some concrete new approaches. In particular this applies to refine the conceptual and categorial apparatus of the problem, deepening the methodological foundations of the system profit management companies and evaluate its effectiveness, enhancing the integration of risk factors in the formation of profit, improving the methodological tools of profit distribution in certain areas by ensuring the effective development of enterprises and the growth of their market value, the introduction of effective systems of control over the use of profits. Insufficient developed some issues of this problem, their theoretical and practical importance for the effective development of enterprises determine the relevance of the topic of master's work, its goals and objectives.

4. The first section– «Theoretical basis of the financial results of enterprises».

In the current context of the economic development of Ukraine and the formation of real independence of business entities are significant changes in relation to the profits in order to increase its role in the economic mechanism of enterprises Islands, because profit is not only an incentive to work, but also the main source of development. Office of profit is very important and urgent issue for the company, which led to the relevance of research in a number of issues profit management companies, namely, the economic nature of the profit, its role and importance in the enterprise legality and advisability of considering profits as an object of control, profit management tools.

The history of economic thought has a significant number of theories about the origins and definitions of profit entities in this category. A critical review of different perspectives on the definition of categories of profit entity indicates that the vast majority of scientists consider income as a form of surplus value, which is formed during the manufacturing process, and expresses the relationship between ownership by employees and owners of capital. At the present stage of development of domestic economic thought among scholars there is no single recognized framework of nature and the formation of profit. Profit enterprise is traditionally called a positive financial result of the company, which is calculated as the difference between total revenues and expenditures of the enterprise.[1].

Exploring different perspectives of domestic and foreign scientists and economists as to the origin, nature of income allows us to refine its definition. The author is to be understood as a form of profit comprehensive income arising from the sale of ownership of capital in various fields of application, which acts as both object and instrument of financial management.

In the management of profit is of great importance to the classification, which is in the economic literature is represented by different criteria. The author proposed to complement it with the following characteristics: taking into account expenses that affect the formation of profit (authentic, alternative and general), in the form of enterprise ownership (private, collective, communal, public, mixed), by planning company profits (resource method, the target method ) position on a market for goods and services (exclusive income and profits earned in the realization of competitive advantages) (Fig. 1).

Fig. 1 Classification of company profits

Given the importance of profit for the enterprise, have been investigated profit function - accounting, distribution, catalytic. According to the analysis of statistical data on the performance of enterprises of Donetsk region found that the profit functions are not performed in full, particularly challenging. This leads to a reduction in capital investment companies and, therefore, to regressive tendencies in his work. Thus, enabling the playback function of profit enterprise, which must be regarded as the principal requires management to focus efforts on this aspect of the control gains.

Based on a study of subordination profits of the enterprise management actions in the classic sense of - Analysis, planning, accounting, control and motivation found that the profit corresponds to all characteristics of the object to which it is advisable to send the relevant management tools. This necessitated analysis instrumentation profit management company.

According to the analysis tool profit management concluded that the greatest development and use of management techniques gained profit enterprises, research has shown that the diversity and, in addition, a large number of scientists and experts opinions regarding management practices and their classification. This urge is that for the effective management of the company to gain a comprehensive and systematic use of a combination of methods that allow direct methodological apparatus profit management is to control those aspects that are most important to the company, both today and in the strategic plan. Using the methods of profit management companies in this aspect requires the development of an integrated management tool profits.[2].

5. The second section – «Current status of profit management in the Ukrainian economy».

The analysis of the efficiency of the coal industry of Ukraine, the necessity of improving the management of profit in the current economic conditions, improved model of the management of all the constituent entities of profit, which characterizes the role of the company's profit in market conditions.

It is established that the control gain to find the best way to ensure the production of products (both now and in the future, that lends itself to prediction). The total profit of the enterprise management policy sets the goals and key indicators of productive plans for the formation of profit for next year, to associate these figures with the overall system plans for the formation and use of company profits. The system allows these plans to use different methods for the formation of the planned revenue and provide interconnection of all the main indicators of enterprise activity with the volume of production, costs and profits in the period ahead.

Performed in the study showed that in the management of operating income to take account of different planning methods: the method of extrapolation, the method of direct calculation, normative method, «CVP» or planning method of operating profit with the use of "the relationship of costs, sales volume and profit" ;, the method of formation of the target profit forecast cash flow method, the method of modeling the influence of factors on profit. Thus, depending on the method of calculation, planning, formation of profit can be considered as final or as an initial stage of planning throughout the enterprise.

Competent, effective management of revenue provides for the formation of the construction of the coal industry relevant organizational and methodological support systems of governance, knowledge of the basic mechanisms of profits, use of modern methods of analysis and planning.

The complex nature of management forming earnings reflects the need to control all components of income and, therefore, the author proposed an extended model that characterizes the role of the company's profit in market conditions.

Profit - an important feature of the enterprise, it determines the competitiveness and potential for business co-operation, assessing the quality guaranteed by the economic interests of the company and its partners in financial and business terms. The financial condition of the enterprise depends on its ability to obtain the necessary revenue. The company's management has the ability to regulate the amount of profit the company, if you know the factors influencing it.

Factors influencing the profits of an enterprise can be divided into two groups: external and internal factors. The author proposes to divide the internal factors are the factors of direct (production volume, production costs, the price of goods sold, product mix) and indirect (after-sales service, the dynamics of depreciation of fixed assets, advertising, the ratio of own and borrowed capital). Thus, based on the financial strategy adopted by the company can increase or decrease the amount of gross profit due to the choice of a method of valuation of property, cancellation of his order, establish the validity period, the choice of methods of cost control and organization of profit centers.[9].

6. The third section – «Recommendations for improving the profitability of the enterprise».

Provided scientific and practical advice on how to profit management companies in the Ukrainian economy, and recommendations for the management profit by the example of an industrial enterprise. Our calculation of the efficiency provided by the recommendations.

Conclusion

Thus, on the basis of this analysis we can conclude that the problem of improving the management and profit is the most important. The mechanism of effective management of a profit to enhance production efficiency and to encourage its development. In today's challenging economic conditions, industries are forced to constantly carry a factor analysis of profits and profitability, as well as search for reserves improvement of these indicators. A systematic analysis of the factors and causes of deviations in the enterprise need not only to increase the objectivity of the results of its operations. The analysis should be preventive in nature to affect the time of the work to find ways to eliminate variations in the next cycle and to provide for them in the new plan.

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    19. Note! At the time of writing the abstract master's work is not yet complete. Date of completion – December 2012. The full version of the abstract and the diploma can be obtained from the author or the head after the deadline.