Net income refers to a certain proportion of the balance sheet profit, which must remain at the disposal of the company after the payment of taxes and other mandatory payments.
Instructions
Step 1
Determine the period for which you want to calculate the company's net profit. You can take a year, quarter or month for a similar billing period.
Step 2
Calculate the net profit using the following formula: Net profit of the company = financial profit + value of gross profit + other operating profit - sum of tax deductions.
Step 3
Please note that you need to take the indicators for the calculation for the period of time for which you decided to make the calculation.
Step 4
You can calculate the amount of net profit in another way. To do this, you need to use the indicators from the financial statements. In this case, the company's net profit is formed on the account in the accounting "Profit and loss".
Step 5
Determine your gross margin. To do this, you will need the following amounts: revenue for the required period and the value of the cost of production. To calculate the gross profit of the firm, subtract the second from the first coefficient.
Step 6
Find the operating profit amount. It is determined in the form of the difference between all other operating costs and revenues. In turn, in order to calculate the financial profit, you need to subtract the costs of this category from the amount of financial income.
Step 7
Calculate the amount of net profit after calculating the required indicators. If you get a value with a negative sign "-", it will mean that the company has suffered losses during the analyzed period of time.
Step 8
You can generate net income from balance sheet profit. In this case, it is calculated as the difference between the balance sheet profit, which is subject to taxation and the amount of tax deductions, taking into account the benefits due to the company.
Step 9
Check the values obtained. They should be equal, because you calculated the same indicator in different ways. If the amounts do not add up, then there was a mistake in the calculations.
