What is considered net profit?
In Russian reality, the idea has long been rooted that there is earnings with “clean” and “dirty” money. For example, the latter is the official salary specified in the employment contract, and the first is the amount that the employee actually receives (after paying personal income tax and other possible contributions). Although it sounds somewhat ambiguous, it reflects reality well. If we draw an analogy with net profit, the essence is absolutely the same.
Net profit is one of the main indicators informing about the results of a company’s work. It refers to the funds remaining after subtracting all expenses, including taxes, from sales proceeds and other income. It is obvious that the management of any company strives to obtain maximum net profit. Not only the owners of the enterprise and senior managers are interested in this, but also all employees, since often it is the value of this indicator that has the greatest impact on the possibilities of bonuses and incentives for personnel.
Important: as a rule, net profit goes to increase the company’s working capital, the formation of various funds, production investments and dividends. Its volume directly depends on the organization’s gross profit and tax burden.
The amount of net profit received by an enterprise affects not only the well-being of its owners, but also the following points:
- Attracting new investors - without a doubt, they will want to invest money in the company that showed good performance results at the end of the reporting period, and net profit is a key indicator in the analysis of operating efficiency.
- The likelihood of obtaining a loan - today the harsh business reality is such that it is impossible to pull a fish out of the pond not only without difficulty, but also without attracting borrowed funds, and taking out a loan is not so easy if the net profit in the accounting documents does not please with its volumes. However, in the opposite case, money will be given without problems, and even on excellent terms.
- Maintaining the authority of the company - the reputation is made up of little things over the years: by creating a name, you work for the future... Then usually everything happens, as in the joke: “For the first two years, a student works for a record, and the rest - it’s not for him.” When an organization constantly has a good net profit, this indicates its strong and stable position in the market, and hypothetical partners, as a rule, want to cooperate with such companies on a long-term basis.
- Expansion of the material and technical base - in order to explore new horizons in business, it is necessary to invest money in the development of the company, which is impossible without improving technology, modernizing and purchasing new equipment, mastering current working methods, etc. And all of the above requires finance, and quite a lot of it. Where can I get them? Of course, from pure profit.
Important: if, as a result of calculations, the value of the indicator turns out to be a negative number, then the organization faced a loss in this period.
Operating profit: definition
The concept of operating profit is intended to identify the company's performance in its main line of business. The basis for calculating this indicator is the total revenue in monetary terms received after the sale of manufactured products and resale of goods.
When operating profit is determined, the calculation formula should not take into account the amounts of financial flows and investment funds. The sequence of calculations is as follows:
- the total revenue value is displayed;
- the gross profit indicator is found (cost amounts for products sold are subtracted from revenue);
- how to calculate operating profit - the total gross profit is reduced by the costs incurred to sell batches of goods to end consumers.
Gross profit is intended to show the degree of influence of product costs on the profitability of production. The operating profitability indicator makes it possible to make performance data more objective. The level of tax burden and possible actions of fiscal authorities do not affect the value of this type of profit.
Formula for calculating net profit
Any commercial company conducting business encounters a situation where it is necessary to calculate net profit. To find its value at the end of the reporting period, you should use special formulas.
Advice: net profit is determined based on the information presented in the financial statements of the enterprise - usually it is enough to have the Statement of Financial Results on hand.
There are several formulas that help find net profit; they have the same economic meaning, but differ in the degree of detail. Let's give the main ones.
Net profit = Revenue – Cost of production – Administrative expenses – Selling expenses + Other income – Other expenses – Income tax.
If you look at the Financial Results Report, you will easily notice that each line in it has its own unique code, so the formula can be written differently:
Net profit = line 2110 – line 2120 – line 2210 – line 2220 + line 2310 + line 2320 – line 2330 + line 2340 – line 2350 – line 2410 +/– line 2430 +/– line 2450 +/– 2460.
Thus, in order to find the amount of net profit, you first need to calculate the gross profit, which is the difference between revenue and cost. As a rule, calculating the cost of goods sold is the most difficult thing for company economists, since it is determined by many components. However, even a non-specialist can cope with the calculations, especially if he familiarizes himself with the necessary information: having mastered accounting entries for beginners, it will be easier to understand how to find net profit.
If the above formula is simplified as much as possible, we get the following:
Net profit = Profit before tax – Income tax.
This calculation method is usually used by small companies that have the right by law not to apply PBU 18/02 “Accounting for income tax calculations” in their work.
Example of calculating net profit
Of course, calculating the indicator in question is somewhat more difficult to do than issuing an invoice for payment or a delivery note, but if you have a formula, initial data and a calculator, the process will not take even a couple of minutes. Let's look at a practical example, the purpose of which is to calculate the company's net profit.
Let's assume that Scarlet Flower LLC needs to find net profit for two reporting periods. The initial data is presented in the table:
| Indicator name | Amount, rubles | |
| 1st quarter 2021 | 2nd quarter 2021 | |
| Revenue | 298 000 | 355 000 |
| Cost price | 99 000 | 113 000 |
| Administrative expenses | 49 000 | 57 000 |
| Business expenses | 38 000 | 41 000 |
| Other income | 6 000 | 8 000 |
| other expenses | 11 000 | 15 000 |
| Income tax | 21 400 | 27 400 |
- Net profit (1st quarter) = 298,000 – 99,000 – 49,000 – 38,000 + 6,000 – 11,000 – 21,400 = 85,600 rubles.
- Net profit (2nd quarter) = 355,000 – 113,000 – 57,000 – 41,000 + 8,000 – 15,000 – 27,400 = 109,600 rubles.
Advice: for manufacturing companies, the volume of net profit is largely determined by the cost value, and its calculation is associated with a number of difficulties - it is important not to get confused with value added tax. Subtracting VAT from the amount is not difficult if you keep simple formulas in your head. You also need to ensure that all documentation is in order, since otherwise problems cannot be avoided when drawing up a balance sheet and other financial statements. There are situations when counterparties forget to attach the necessary papers to the supplied products, then it would be reasonable to send a letter of request to the inattentive partners to resend the invoices.
What is the difference between net and retained earnings?
The difference between net profit and retained profit is that these indicators are reflected in different financial statements and do not always have equal importance, despite the popular belief regarding their equivalence.
Net profit is recorded as a separate line in the organization's financial performance report - it is recorded by any company at the end of the reporting period. Although, of course, it is possible that not everything went well, that is, instead of profit there is a loss:
Net profit
Retained earnings are indicated on the liability side of the company's balance sheet:
retained earnings
Most often, the term “net profit” is used when talking about the profit received during the reporting period (calendar year). Retained earnings include profits not only for the reporting year, but also for the previous time.
Let's give a simple example: in the balance sheet of Vasilek LLC as of January 1, 3,200 thousand rubles are listed in the retained earnings column. Net profit for the current year amounted to 750 thousand rubles. Then:
- Retained earnings at the beginning of the reporting period = 3,200 thousand rubles.
- Net profit for the reporting period = 750 thousand rubles.
- Retained earnings at the end of the reporting period = 3,950 thousand rubles.
That is, retained profit or loss is the result of the company’s activities for the entire period of its existence, and net profit is calculated for a specific period.
Is retained earnings an asset or a liability?
Retained earnings on the balance sheet are, of course, a liability. The value of this indicator indicates the company’s actual debt to its owners, since ideally this profit should be distributed among the participants and invested in the further development of the business.
In fact, the company cannot dispose of retained earnings without the owners making a decision. The loss reflected in line 1370 is also on the passive side of the balance sheet, only this is a negative value, so the number is placed in parentheses.
Our article “How to read a balance sheet (a practical example)?” will help you better understand balance sheet analysis.
How to calculate it? Formula options
This indicator can be calculated using several formulas. The meaning of all methods is the same, and the final amount will not differ, so you can use any of them.
Expanded formula
PP = FP + VP + OP - N, where
- PE - net profit;
- FP - financial profit. It is calculated by subtracting similar expenses from income from financial activities;
- VP - gross profit. Calculated as sales revenue minus production costs;
- OP - operating profit. Expenses are deducted from income from other activities;
- N is the amount of taxes.
Calculation example. For example, LLC Firma in 2015 sold products worth 600 thousand rubles, the cost of which was 400 thousand rubles. One of the premises was also rented out, the proceeds amounted to 100 thousand rubles. Income from financial investments in other enterprises - 70 thousand rubles. Other costs - 100 thousand rubles.
- Let's calculate the gross profit: 600 - 400 = 200.
- Financial profit: 70 thousand rubles.
- Operating profit: 100 - 100 = 0 rub.
- Tax: (200 + 70)*20% = 54 thousand rubles.
- Net profit will be: 70 + 200 - 54 = 216 thousand rubles.
Simplified formula
PP = B + PD - SP - UR - PR - N, where
- B - revenue;
- PD - other income;
- SP - cost of production;
- UR - administrative expenses, advertising costs;
- PR - expenses for other activities;
- N is the amount of taxes paid.
Data for calculation using this method can be taken from the company’s financial performance report for the required period.
Calculation example. Let’s say the reports of the Korabliki store indicate the following amounts:
| Index | Line | 2015 (thousand rubles) |
| Revenue | 2110 | 150 |
| Cost price | 2120 | 60 |
| Business expenses | 2210 | 15 |
| Management costs | 2220 | 20 |
| Other income | 2340 | 2 |
| Other expenses | 2350 | 1.5 |
| Income tax | 2410 | 11.1 |
- Net profit will be: 150 + 2 - 60 - 15 - 20 - 1.5 - 11.1 = 44.4 thousand rubles.
Folded formula
PP = P - N, where
- P - profit;
- N is the amount of taxes.
In this calculation option, profit is understood as the difference between the organization’s total income and costs for the reporting period.
Calculation example. Let the income of LLC “Organization” in the reporting year amount to 500 thousand rubles. Cost - 300 thousand rubles. The machine was sold for 20 thousand rubles. Other costs - 100 thousand rubles.
- First you need to calculate all income: 500 + 20 = 520 thousand rubles.
- Next, we determine the costs: 300 + 100 = 400 thousand rubles.
- We determine the final profit: 520 - 400 = 120 thousand rubles.
- We charge income tax: 120*20% = 24 thousand rubles. to the budget.
- Amount of net profit: PE = P - N = 120 - 24 = 96 thousand rubles.
Balance calculation formula
Page 2400 = page 2300 - page 2410, where
- line 2400 - net profit;
- line 2300 - profit before tax;
- line 2410 - amount of income tax.
The data for this calculation method must be taken from the income statement.
Calculation example. Let’s say the financial statements of LLC “Enterprise” contain the following data:
| Index | Line | 2015 (thousand rubles) |
| Revenue | 2110 | 150 |
| Cost price | 2120 | 60 |
| Business expenses | 2210 | 15 |
| Management costs | 2220 | 20 |
| Other income | 2340 | 2 |
| Other expenses | 2350 | 1.5 |
| Balance sheet profit | 2300 | 55.5 |
| Income tax | 2410 | 11.1 |
Net profit will be:
- (150 - (60 + 15 + 20) + 2 - 1.5) - 11.1 = 44.4 thousand rubles.
- 55.5 - 11.1 = 44.4 thousand rubles.
For more information on how to calculate this indicator, see the following video:
If you are interested in how to calculate labor productivity, read this article.
Information about what profitability is is given.
What is the indicator used for?
The amount of net profit most reliably characterizes the efficiency of the enterprise. An increase in this amount compared to the previous period indicates the high-quality work of the company, a decrease indicates an incorrect policy of management personnel.
The indicator is used by many internal and external users of information about the organization:
- Owner and shareholders. Using this data, the company owner evaluates the results of the enterprise's activities and the effectiveness of the selected management system. This amount is also used to calculate dividends and attract individuals as investors in the authorized capital.
- Director. He evaluates the financial stability of the company, the correctness of management decisions, and also develops new development strategies. The indicator directly affects profitability, which is why analysis of the balance of available funds is important for top managers.
- Suppliers. It is especially important for them that the organization is able to pay for raw materials, and the indicator is used to assess the stability of the company. If she has little money, then some suppliers may refuse to enter into an agreement because they will not be sure of payment for services and materials.
- Investors. Based on the indicator, they consider the possibility of financial investments. The higher the amount of free income, the more attractive the company is for investors. First of all, they plan to receive additional income from shares.
- Creditors. Borrowers determine the solvency of the company. Money has the greatest liquidity, that is, the ability to be quickly sold. The more of them an organization has at its disposal, the faster it can pay off its debts. Accordingly, there is a greater chance of getting a loan from a bank.
Revenue from sales in the balance sheet: asset lines
With a high degree of probability, it can be argued that many lines of both parts of the balance sheet are related to the revenue indicator. For example, a sharp decrease in the value of fixed assets or intangible assets (lines and) at the end of the period may indicate their sale, therefore, there is reason to believe that the total revenue of the enterprise includes a share of income from the sale of these assets.
The appearance in the balance line of information about financial investments in material assets indicates not only the possible receipt of revenue from the provision of property for rent, but also about investment in the development of the company (purchase of assets for leasing) at the expense of the profit that the revenue itself generates.
Financial investments (line 1170), i.e. investing money in the purchase of securities or in the authorized capital of third-party enterprises, can also be made from the company’s profits, and the appearance of information in this line indicates both the use of profits and the expected increase in revenue.
A clearer picture of costs and income from revenue can be obtained by analyzing the data in the second section of the balance sheet. Thus, a significant decrease in inventories on line 1210 may indicate the transfer of inventory items into production or directly for sale. True, this can only be asserted if there is a sharp decrease in the balance of reserves and knowledge that they were not replenished throughout the entire reporting period.
The relationship between revenue and working capital can be viewed on line 1250 “Cash and equivalents”, since it goes to the bank account and to the cash desk. But even here it is impossible to give an unambiguous assessment of the volume of revenue received. For example, a small balance on a line does not always indicate a shortage of money in the company; it is quite possible that the company quickly finds a use for the proceeds received into the account.
You can see the amount of revenue in the balance sheet on line 1230 “Accounts receivable”, if money for the shipped goods has not been received from all customers in the reporting period and there is no other debt besides these debts, but in practice this happens extremely rarely, and the debt cannot be considered revenue . Moreover, it should be taken into account that VAT is present in the amount of unreceived revenue reflected in receivables.
Formula for calculating the net profit of an enterprise
To calculate net profit, it is necessary to make the difference between all costs and taxes of the enterprise. The formula has a single economic meaning, but can be reflected in different ways:
Net profit = Revenue – Cost of goods – Administrative and selling expenses – other expenses – taxes;
Net profit = Financial profit + Gross profit + Operating profit – Amount of taxes;
Net profit = Profit before tax – Taxes;
Net Income = Total Revenue – Total Expenses.
Net profit is also called “the bottom line” because it is reflected in the balance sheet as the last line. In the balance sheet before 2011, net profit was reflected in line 190 of Form No. 2 (Profit and Loss Statement); after 2011, the net profit indicator is reflected in line 2400.
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Formula for calculating net profit on balance sheet
Let us describe in more detail the formula for calculating net profit through the balance sheet lines.
Net profit (line 2400) = Revenue (line 2110) – Cost of sales (line 2120) – Selling expenses (line 2210) – Administrative expenses (line 2220) – Income from participation in other organizations (line 2310) – Interest receivable (line 2320) – Interest payable (line 2330) – Other income (line 2340) – Other expenses (line 2350) – Current income tax (line 2410)
The figure below shows part of the balance sheet of the enterprise OJSC “Surgutneftekhim” and its reporting for 5 years. As can be seen from the balance sheet in Excel, in order to obtain net profit, you must first calculate: gross profit (marginal profit), profit from sales and profit before tax.
Balance sheet profit of the enterprise in reporting
Accounting statements reflect all performance indicators of companies. It allows you to assess the degree of success of a business project, calculate its profitability and prospects. The line in the balance sheet for book profit is not highlighted. The report shows the value of the profit remaining after deducting from it all types of costs and tax liabilities.
The reason for the impossibility of identifying the value of balance sheet profit according to the balance sheet reporting form is the different approach to reflecting the results of operations. The balance sheet is compiled on the basis of the ending account balances. Balance sheet profit must be calculated based on information generated cumulatively. The calculation can be made based on the balance and data from accounting registers. To do this, the amount of income tax paid during the year must be added to the retained earnings from the balance sheet line under code 1370.
Goals and directions for using the net profit indicator
The amount of net profit characterizes the efficiency of the entire company/enterprise and is used for various purposes by various external and internal stakeholders (individuals, users).
| User/stakeholder | Purpose and directions of use |
| Investors | Goal: assessment of investment attractivenessAssessment of the size and dynamics of changes in the net profit of an enterprise to analyze its investment attractiveness. The more a company can generate net profit at the end of the reporting period, the higher its profitability. |
| Creditors | Purpose: assessment of creditworthinessAssessment of the size and dynamics of changes in net profit to analyze the solvency and creditworthiness of the enterprise. Cash is the most quickly liquid type of asset, and the more cash a business has left after paying all tax deductions, the greater its ability to pay its obligations in the short and long term. |
| Owner/Shareholders | Goal: assessing the effectiveness of activities as a whole. Analysis of net profit is an integral indicator of the activity of an enterprise/organization and characterizes the effectiveness of all management decisions for the reporting period. The larger the net profit, the more effective the management of the organization was. An increase in net profit increases the size of dividend payments and allows you to attract additional buyers/shareholders. |
| Suppliers | Goal: assessing the sustainability of operation. The net profit of an enterprise serves as an indicator of its sustainability of development. The higher the net profit for the reporting period, the higher the ability to pay suppliers and contractors on time for raw materials. |
| Top managers | Goal: assessing the sustainability of financial development The amount of net profit and the dynamics of its change serves as a guideline for developing strategies and plans to increase it at the operational level. Planning of contributions to reserve funds, wage funds and production funds. |
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Formation of a balance sheet in accordance with IFRS standards (IAS)
The line codes of the Russian balance sheet are given in curly brackets.
| N | Analytical balance sheet lines | Calculation formula |
| 1 | Current assets: | Sum of lines: 2+3+4+8+9+14+15 |
| 2 | Cash | Cash {260} |
| 3 | Short-term investments | Short-term financial investments (56,58,82) {250} |
| 4 | Short-term receivables: | Sum of lines: 5+6+7 |
| 5 | Accounts and bills receivable | Goods shipped (45) {215}+ buyers and customers (62,76,82) {241} + bills receivable (62) {242} |
| 6 | Intercompany receivables | Debt of subsidiaries and dependent companies (78) {243} |
| 7 | Other receivables | Debt of participants in contributions (75) {244}+ advances issued (61) {245}+ other debtors {246} + VAT on acquired assets (19){220} |
| 8 | Long-term accounts receivable | Loans (more than 12 months) {144}+Accounts receivable (more than 12 months) {230} |
| 9 | Inventory: | Sum of lines: 10+11+12+13 |
| 10 | Raw materials, materials and components | Raw materials, materials and other analogues. values (10,12,13,16) {211} |
| 11 | Unfinished production | Animals for growing and fattening (11) {212}+ costs in work in progress (20,21,23,29,30,36,44) {213} |
| 12 | Finished products | Finished goods and goods for resale (16,40,41) {214} |
| 13 | Other stocks | Other inventories and costs {217} |
| 14 | Future expenses | Deferred expenses (31) {216} |
| 15 | Other current assets | Other current assets {270} |
| 16 | Long-term assets: | Sum of lines: 17+18+19+20+21 |
| 17 | Land, buildings and equipment | Fixed assets (01,02,03) {120} |
| 18 | Intangible assets | Intangible assets (04.05) {110} |
| 19 | Long-term investments | Investments in subsidiaries {141}+ investments in dependent companies {142}+ investments in other organizations {143}+ other long-term financial investments {145} |
| 20 | Unfinished investments | Construction in progress (07,08,16,61) {130} |
| 21 | Other long-term assets | Income investments in tangible assets (03) {135}+Other non-current assets {150} |
| 22 | TOTAL ASSET | Row sum: 1+16 |
| 23 | Current responsibility: | Sum of lines: 24+25+32+33+34 |
| 24 | Short-term loans | Loans and credits (90.94) {610} |
| 25 | Accounts payable: | Sum of lines: 26+27+28+29+30+31 |
| 26 | Bills and bills payable | Suppliers and contractors (60.76) {621}+ bills payable (60) {622} |
| 27 | Taxes payable | Debt to extra-budgetary funds (69) {625}+ debt to the budget (68) {626} |
| 28 | Intercompany accounts payable | Debt to subsidiaries (78) {623} |
| 29 | Advances received | Advances received (64) {627} |
| 30 | Dividends payable | Debt to participants (75) {630} |
| 31 | Other accounts payable | Debt to personnel (70) {624}+ other creditors {628} |
| 32 | revenue of the future periods | Deferred income (83) {640} |
| 33 | Reserves for upcoming expenses and payments | Reserves for upcoming expenses and payments (89) {650} |
| 34 | Other current liabilities | Other current liabilities {660} |
| 35 | Long term duties: | Sum of lines: 36+37 |
| 36 | Long-term loans | Loans and credits (92.95) {510} |
| 37 | Other long-term liabilities | Other long-term liabilities {520} |
| 38 | Equity: | Sum of lines: 39+40+41+42+43 |
| 39 | Share capital | Authorized capital (85) {410} |
| 40 | Reserves and funds | Reserve capital (86) {430} |
| 41 | Extra capital | Additional capital (87) {420} |
| 42 | retained earnings | Retained earnings of previous years (88) {460}-Uncovered loss of previous years (88) {465}+Retained earnings of the reporting year (88) {470}-Uncovered loss of the reporting year (88) {475} |
| 43 | Other equity | Targeted funding and revenues (96){450} |
| 44 | TOTAL LIABILITY | Sum of lines: 23+35+38 |
Methods for analyzing the net profit of an enterprise
Let's consider various methods of analyzing the net profit of an enterprise. The purpose of this analysis is to determine factors, cause-and-effect relationships between indicators that affect the formation of net profit as the final indicator of the enterprise’s performance.
The following analysis methods can be distinguished, which are most often used in practice:
- Factor analysis;
- Statistical analysis.
These types of analysis are opposite in nature. Thus, factor analysis focuses on identifying significant factors that influence the formation of the enterprise’s net profit. Statistical analysis emphasizes the use of time series forecasting methods and is based on an analysis of the pattern of changes in net income over the years (or other reporting periods).
Factor analysis of an enterprise's net profit
The main factors in the formation of net profit are presented in the formula described earlier. To assess the influence of factors, it is necessary to evaluate their relative and absolute changes for 2013-2014. This will allow us to draw the following conclusions:
- How did the factors change during the year?;
- Which factor had the greatest change in net income?
In financial analysis, these approaches are called “Horizontal” and “Vertical analysis”, respectively. Below are shown the factors that form the amount of net profit and their relative and absolute changes during the year. The analysis was made for the enterprise OJSC "Surgutneftekhim".
As we see, during 2013-2014, other expenses and other income changed as much as possible. The figure below shows the change in the factors that form the net profit for 2013-2014 for Surgutneftekhim OJSC.
Let's consider the second method of assessing and analyzing the net profit of an enterprise.
Statistical method for analyzing the net profit of an enterprise
To estimate the future amount of net profit, various forecasting methods can be used: linear, exponential, logarithmic regression, neural networks, etc. The figure below shows a forecast of net profit based on an analysis of changes in the indicator over 10 years. Forecasting was carried out using linear regression, which showed a downward trend in 2011. The accuracy of forecasting economic processes using linear models has an extremely low degree of reliability, so the use of linear regression can serve more as a guide to the direction of changes in profit.
Comparison of net profit with other indicators of enterprise performance
In addition to assessing and calculating the net profit of an enterprise, it is useful to conduct a comparative analysis with other integral indicators that characterize the efficiency and effectiveness of the enterprise. These indicators include: sales revenue (minus VAT) and net assets. Net assets show the financial stability of the enterprise and its solvency, revenue reflects its production and sales performance. The figure below shows a graph of a large Russian enterprise, OJSC ALROSA, and the relationship between its three most important indicators. As you can see, there is a close relationship between them, and it can also be noted that there is a positive growth trend in the enterprise’s net assets, this indicates that funds are being directed to expand production capacity, which in the future should increase the amount of net profit received.
Is the credit rating of a company related to the amount of net profit?
In my research, I analyzed the relationship between the amount of net profit for the Rosneft OJSC enterprise and the credit rating of the international agency Standard & Poor's. There is a close relationship and correlation shown in the figure below - this proves the importance of such an indicator as net profit as a criterion of investment attractiveness not only in the national space, but also in the international arena.
Summary
Net profit is the most important indicator of the effectiveness and efficiency of an enterprise. Net profit reflects investment attractiveness for investors, solvency for creditors, sustainable development for suppliers and partners, efficiency/performance for shareholders and owners. To analyze net profit, two methods are used: factorial and statistical. Based on the factor analysis method, the absolute and relative influence of various indicators on the formation of net profit is assessed. The statistical method is based on forecasting time series of changes in net profit. The conducted study of the close relationship between the credit rating of the international rating agency Standard & Poor's proves the importance of the net profit indicator in assessing an enterprise in the international financial arena.
Ph.D. Zhdanov Ivan Yurievich
