The profit from ordinary activities (POA) is an important key figure for evaluating the operating performance of a company.
The POA is calculated by adjusting the operating result for impairments. The operating result is the balance of a company's operating income and operating expenses. Operating income is made up of various sources of income, such as net interest income, income from securities and investments, the balance from commission business, the balance from financial transactions and other operating income. Operating expenses, on the other hand, include the costs incurred for the operation of the business, such as administrative expenses (personnel expenses and material expenses), depreciation on property, plant and equipment as well as other operating expenses.
Value adjustments, on the other hand, include write-downs on securities or other assets that have lost value due to impairment or other factors.
The profit on ordinary activities provides information on how successful a company is in its core business and shows whether it is in a position to achieve positive results in the long term. A positive POA indicates good business performance, while a negative POA may be an indicator of weaknesses in the business model or in the management of the company.
