The concept of "income dynamics" is used in the financial analysis of an organization. It shows how much the level of receipts in the reporting period exceeded the same indicator in the past.
It is necessary
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Instructions
Step 1
Take the indicators of income for the base period, on the basis of which the calculations will be made. This is the period of time in the past in relation to which you want to find the dynamics. Simply put, you need to determine the movement of the indicator, get information about whether receipts have increased or, conversely, decreased compared to a specific time period in the past. And you also need to find out how much the difference is.
Step 2
Calculate the indicators in the reporting period - they will be useful for comparison. Income in a broad sense refers to the amount of funds received by the company. In practice, the term is often confused with net profit, but the two are not synonymous. Income is formed at the expense of receipts, from the amount of which the amount of expenses aimed at ensuring current activities is subtracted (rent, storage and sorting of goods, natural loss, the introduction of new capacities). It also includes taxes. And the net profit is the amount of funds remaining in the enterprise after taxation.
Step 3
Use the formula: DD = Dotch / Dbaz * 100, where DD is the dynamics of income; Dotch is the amount of income in the reporting period; Dbaz is the amount of income in the base period. Dynamics is calculated as a percentage. Therefore, if, as a result of calculations, you received a number with a value greater than 100, then there is an increase in income, if less than 100, there is a decrease.
Step 4
Calculate the deviation, it will complement the existing picture. To do this, subtract the base amount from the value of the indicator for the reporting period. The final number can be either positive or negative. The minus sign should be interpreted as the presence of a loss.
Step 5
Record the information received - in any case, they will be useful for calculating indicators for the following time periods.
