How to calculate the economic efficiency of the enterprise. Economic efficiency formula How to calculate the efficiency of an enterprise

How to determine key indicators economic efficiency? What methods of calculation of indicators can be used? Let's talk about it in the article.

You will learn:

What is the essence of the economic efficiency of the enterprise, why should it be calculated.
What indicators for evaluating economic efficiency are known.
What formulas can be used to calculate economic efficiency indicators commercial activities.
What are the methods for calculating economic efficiency indicators.

What is the essence of the calculation of economic efficiency

The economic efficiency of an enterprise is the overall performance of its commercial activities, which is expressed in the ratio of the product obtained and the resources expended. To obtain the coefficient of economic efficiency, it is necessary to correlate the indicators of profitability of the enterprise and the total cost of the resources used. Business project will be effective if the first indicator exceeds the second component.

Indicators for calculating the economic efficiency of an enterprise

The system of indicators of overall economic efficiency includes estimated indicators and indicators for the types of resources used. The key performance indicator of an organization is always profit. Estimated also include the following indicators: product profitability, profitability of production assets, relative savings of fixed and working capital.

These indicators are needed for the development and implementation of new equipment, solving production issues, including the use of interchangeable materials and products, as well as in the design of construction and reconstruction, drawing up business plans, choosing schemes for organizing production in technological and scientific activities.

How are benchmarks determined? To do this, as the value of the economic effect, the savings obtained from the reduction production cost, and as costs - additional capital investments that caused these savings.

Comparative economic efficiency is determined by choosing one of two or more options for solving a particular commercial or economic problem. Thus, you get a characterization of the advantages of one option compared to others.

When comparing two options, a different ratio of the necessary capital investments and the cost of production. The option that requires less capital investment, while providing the lowest cost of production, is recognized as economically viable.

When comparing options, it is necessary to use the reduced costs calculated for each of them. The costs shown for each option are the sum of capital investments and running costs(cost), reduced to a single dimension in accordance with the efficiency standard.

It is also important to understand that the selection economic indicators due to the goals of the functioning of the system under study. For example, when establishing indicators of the comparative economic efficiency of an enterprise in the field of animal husbandry, it is necessary to focus on the growth in production volume, the growth of labor productivity, the payback of the feed used and other costs. Based on this, the following system of indicators can be established: gross output and marketable products per animal, labor productivity, feed payment and cost recovery.

Economic efficiency: calculation formula

The general formula for calculating efficiency is as follows:

E \u003d R / Z, where:

R– production results;

W- the cost of obtaining this result.

It is rather difficult to apply such an efficiency formula in practice, since the numerator and denominator of a fraction in most cases cannot be quantified and cannot be calculated in general units. In most cases, the results of the commercial activities of the enterprise are diverse and it is impossible to combine them into a common result. In some cases, the result is not expressed in numerical form at all, and can only be qualitative.

Efficiency can be determined in 2 ways:

As the ratio of the result of production to the cost of its implementation.
As the ratio of the result of what was produced to what had to be abandoned when choosing an alternative.

How to calculate economic efficiency indicators

You can consider the features of the calculation of the main indicators of the economic efficiency of the enterprise. For example, these include profitability, cost intensity, financial condition, as well as financial and resource management.

Profitability indicators show the ratio of profit to costs, investments, investment costs, that is, they characterize the share of profit per unit of invested costs:

profitability of products (services) R pr i , i.e. the ratio of the profit of the product (P i) to the cost (С i) of the manufactured unit of production,%:

This indicator is used to identify the most cost-effective products;

economic profitability of the company's assets (Rf), i.e. the ratio of the annual profit (P year) to the assets of the enterprise (K act) or the sum of the main (K main) and working (K turnover) capital,%:

Level R f demonstrates the effectiveness of the enterprise (use of assets), i.e. shows the share of profit attributable to 1 dollar of assets. P year includes book profit(P ball) plus interest on the loan attributable to cost.

profitability equity companies (R sc), i.e. the ratio of the company's net annual profit (after taxation) to the equity capital at the end of the reporting period (K int), %:

return on capital employed (R uk, %) shows the efficiency of both equity and borrowed capital (credits, loans, loans) of the company and is calculated by the formula:

The balance sheet of the company at the beginning and end of each reporting period reflects the cost data on fixed assets - the initial cost, the amount of depreciation ( depreciation), residual value.

During the year, there is a movement of fixed assets, so their availability in accounting is shown monthly. The cost of fixed assets at the end of the period (K of.k) is determined according to the balance sheet:

To off.nach - the cost of fixed assets at the beginning of the period;
To of.p - the cost of acquired fixed assets;
To of.v - the cost of retired fixed assets.

The cost of the purchased equipment includes: the purchase price, transportation costs, insurance, assembly, installation, adjustment.

To assess the level of use of fixed assets, it is necessary to have information about average annual cost fixed assets (K sr.of.).

To office nach - the value of fixed assets at the beginning of the year;
To office k - the value of fixed assets at the end of the year.

How to learn to manage expenses: case

The manager needs to be able to manage the budget of his company. The editors of the magazine "Commercial Director" has compiled a detailed algorithm in order to learn how to competently manage costs and get the maximum benefit at the lowest cost.

Methods for calculating economic efficiency indicators

After we have decided on the systems of the main indicators of economic efficiency, we need to work out the methods of calculation.

Absolute criteria will help analyze the main dynamics of various profit indicators for a certain number of years:

economic;
accounting;
received from sales;
calculated in its purest form.

Such indicators are more related to arithmetic calculation than to economic. The figures will be obtained in their pure form without taking into account inflationary processes. At the same time, relative indicators will have certain advantages in terms of the fact that they are not subject to inflation.

The calculation of economic efficiency indicators is the volume of products manufactured, work performed or services rendered. They are the basis for satisfying all needs, for improving the material condition.

Economic efficiency indicators include:

The payback of the main costs is the ratio of the volume of gross output to the total cost of living and materialized labor, which is a generalized indicator.
Profit is the realized part of income in its pure form. The concepts of conducted costs also imply different concepts of making a profit. In the field of economic science, the term profit refers to a meaning that differs from the definition in accounting reports.
Receiving net profit. Includes all net income and payroll. This is the main source of consumption and certain accumulation. In most enterprises, such indicators can only be determined by calculation. Therefore, the obtained "clean" products do not always reflect the actual level of efficiency and the dynamics of production development with maximum accuracy.

When calculating the effectiveness of the use of advertising funds, it is very difficult to determine how much gross income businesses because of advertising. There is no guarantee that the company's revenue would not have increased if the company had not advertised itself or its product. Despite this, the cost-effectiveness of advertising is still considered.

In order to measure how effectively an enterprise uses its workers, two parameters are used. The first is production. The second indicator is labor intensity. The output is calculated as the ratio of the number of goods produced to the cost of personnel:

Economic efficiency formula

The base of economic efficiency is the ratio of the effect and the costs of achieving it. But in addition to the absolute magnitude of the effect, it is important to determine its relative magnitude, which can be calculated by the ratio of the overall result (effect) to the resource costs that led to its receipt.

In practice, the economic efficiency formula is difficult to use, since the numerator and denominator for its calculation most often cannot be measured quantitatively. This is due to the diversity economic activity which is easier to express in qualitative terms than in quantitative ones.

What is the general formula for calculating efficiency

Labor productivity is an indicator that expresses the ratio of the mass of products to the mass of living labor.
Although this approach to determining labor productivity is very universal, there are differences in the calculations and indicators of labor productivity at the macro- and microeconomic levels.
If productivity is calculated on the scale of the national economy, then the annual gross domestic product or national income is usually taken as the result of labor and divided by the number of employees employed in the national economy (average annual number of employees), then at the level of an enterprise, firm, labor productivity is determined by dividing the gross income (proceeds) from the sale of the annual or monthly volume of manufactured products per average number of employees employed at the enterprise. The productivity of living labor accumulates the effect of the interaction of all factors of production. Therefore, labor productivity is an integral indicator of production efficiency.
The labor intensity of products is an indicator that is the inverse of labor productivity, determined by the ratio of the cost of working time to the output. Reducing labor intensity is the most important indicator of increasing labor productivity.
Capital-labor ratio is an indicator that characterizes the level of labor equipment. It is measured by the ratio of the balance (average annual) value of fixed assets (in comparable prices) to the cost of living labor (average annual number of employees).

Effect is an absolute value that indicates the result achieved by any process. The economic effect is the result of human labor that creates wealth. Of course, the result itself is very important, but it is equally important to know what costs it is achieved. Therefore, the commensurability of the effect and the cost of achieving it is the basis of economic efficiency. In addition to the absolute magnitude of the effect, it is also necessary to know its relative magnitude, calculated by dividing the overall result (effect) by the resource costs that led to its receipt.

How to Calculate Cost Efficiency

Despite the fact that competitiveness is unable to shed light on the complex indicators of the economic efficiency of the state, its advantage is a complete and qualitative assessment of one of the aspects of production. The ability to outperform competitors expresses a country's potential in industries such as:

The calculation of economic efficiency is made after determining the final result and relative costs. Let's try to do it ourselves in the following example. Suppose that the end result of the enterprise is the monthly release of a certain product in the amount of 3 million rubles. The direct costs of production are:

Definition of economic effect shows how advantageous it is to carry out one or another action by the enterprise. The indicators are measured as a result of the difference between the profits from the activities of the enterprise and the costs spent on its implementation. Economic detection effect important in the implementation of the investment plan.

The introduction of something new or a metamorphosis of special technology in production is carried out in order to achieve a certain result. Performance can be measured with the help of special indicators. Among them is the economic efficiency .

How to calculate the effectiveness of a marketing campaign

For the sake of attracting new guests, it is possible to “give up” the average bill and cost for a while. Yes, the check can go down, and the cost can go up. But if you are sure that new guests will actually come to the restaurant as a result of the promotion, then this is a normal and even healthy situation.

Strive to increase average check now it is not necessary and even dangerous. Expensive offers and additional sales during a crisis will only scare away. 90% of the efforts should be focused on keeping the old guest and attracting new customers to increase the number of transactions. In the arsenal of a competent restaurateur, now there should be mainly "attractive" and "return" promotions.

Calculation of KPI in Excel examples and formulas

The goal is to provide a product sales plan in the amount of 500,000 rubles per month. The key indicator is the sales plan. Measurement system: actual sales amount / planned sales amount.
The goal is to increase the shipment amount in the period by 20%. The key indicator is the average shipment amount. Measuring system: actual average shipment / planned average shipment.
The goal is to increase the number of customers by 15% in a certain region. The key indicator is the number of customers in the enterprise database. Measurement system: actual number of clients / planned number of clients.

The stimulating factor in the KPI motivation system is cash reward. It can be received by the employee who completed the task assigned to him. The amount of the bonus / bonus depends on the result of a particular employee in reporting period. The amount of remuneration may be fixed or expressed as a percentage of salary.

The formula for calculating the profitability of an enterprise

AT general view profitability shows how many rubles (kopecks) of profit one ruble invested in assets or resources will bring. For the profitability of sales, the formula reads as follows: how many kopecks of profit are contained in one ruble of revenue. Measured as a percentage, this indicator reflects the effectiveness of the activity.

The denominator is the indicator whose profitability needs to be calculated. The indicator is always in value terms. For example, to find the return on sales (ROTR), that is, the denominator should be an indicator of sales in value terms - this is revenue (TR - totalrevenue). Revenue is found as the product of price (P - price) and sales volume (Q - quantity). TR=P*Q.

Profitability of sales

Some entrepreneurs are deluded into thinking that return on sales represents the return on investment. It is not right. The profitability ratio of sales allows you to determine what amount of money in the volume of products sold is the profit of the enterprise minus tax and related payments.

This profitability indicator shows the profitability solely from the sales process itself. That is how much the cost of the goods pays for the costs of the production process of the goods/services (purchase of necessary components, use of energy and human resources etc.).

Sales performance analysis

From a practical point of view, the most important comparative analysis performance indicators for individual periods. This is a simple but effective tool for studying the trends in the internal development of the company, which is of interest not only to the management and current owners of the enterprise, but also to potential investors and creditors.

The basic sequence of indices demonstrates the dynamics of the calculated indicator relative to a fixed (base) period, most often set at the beginning of a year or month.
With a chain sequence, the indicator of the previous period relative to the calculated one is taken as the base value.

18 Aug 2018 890 Alexander Poddubny - Department Lead Specialist corporate clients Antegra consulting company

The economic effect of the introduction of automation tools can only be indirect, since the implemented automation tools are not a direct source of income, but are either an auxiliary means of organizing profits or helping to minimize costs.

You can evaluate the economic effect of using the program in two ways: simple and complex(more time consuming, but more accurate). The easy way is some simplification complicated way subject to various "conditions". For example, if material costs do not change after the implementation of the program, then they can be excluded from the calculation, thereby simplifying it. Full score according to a complex algorithm, as a rule, is carried out by qualified specialists based on the results of a survey of the enterprise's business processes. But if it is necessary to quickly and approximately evaluate the effectiveness of the implementation of an automation tool, then it is possible to substitute estimated cost values in the presented formulas. Of course, when using cost estimates, and not their actual values, the economic effect will not be calculated accurately, but nevertheless will allow to evaluate the profitability and necessity of automation.

The main economic effect of the introduction of automation means is to improve the economic and economic performance of the enterprise, primarily by increasing the efficiency of management and reducing labor costs for the implementation of the management process, that is, reducing management costs. For most enterprises, the economic effect is in the form of savings in labor and financial resources received from:

reducing the complexity of calculations;
reduction of labor costs for the search and preparation of documents;
savings on consumables(paper, diskettes, cartridges);
layoffs of employees.

Reduction of labor costs at the enterprise is possible due to the automation of work with documents, reducing the cost of information search.

The criterion for the effectiveness of the creation and implementation of new automation tools is the expected economical effect . It is determined by the formula:

E \u003d E r -E n * K p,

where Er - annual savings;

E n - normative coefficient (E n =0.15);

K n - capital costs for design and implementation, including the initial cost of the program.

The annual savings in Er is the sum of savings in operating costs and savings in connection with increased productivity of the user. Thus, we get:

E p \u003d (P1-P2) + ΔP p, (1)

where P1 and P2 are, respectively, operating costs before and after the implementation of the program being developed;

ΔР p - savings from increasing the productivity of additional users.

CAPITAL COST CALCULATION FOR DESIGN AND IMPLEMENTATION

If we evaluate the economic effect taking into account all the details, then the capital costs for design and implementation are calculated taking into account the duration of work at this stage. So, let's take a closer look at the calculation of capital costs for the design and implementation of an automation system.

Design refers to the totality of work that needs to be done to design a system, part of a system, or a task. Implementation is understood as a complex of works on putting the system into commercial operation with its possible modifications.

To calculate the costs at the design stage, it is necessary to determine the duration of each work, starting with the preparation of the terms of reference and ending with the execution of documents.

The duration of work is determined either according to the standards (in this case, special tables are used), or they are calculated on the basis of expert assessments according to the formula:

T 0 \u003d (3 * T min + 2 * T max) / 5 (2)

where T 0 is the expected duration of work;

T min and T max ~ the shortest and longest, according to the expert, the duration of work, respectively.

The calculation data for the expected duration of work are given in the table.

Table 1

Table of duration of work at the design stage (example)

Name of works	Duration of work, days
Name of works		maximum
Development of technical specifications
Analysis of terms of reference
Literature study
Working in the Source Library
Getting to know the main steps thesis
Registration of TK
Algorithm development
Program improvements
Program debugging
Economic justification
Making an explanatory note
Execution of posters

Capital costs at the design stage K to are calculated by the formula:

K to \u003d C + Z p + M p + H (3),

where C is the initial cost software product;

Z p - salary of specialists at all stages of design and implementation ;

M p - the cost of using computers at the stage of design and implementation;

H - overhead costs at the stage of design and implementation.

One of the main types of costs at the design stage is the salary of a specialist, which is calculated by the formula:

Z p \u003d Z p *T p * (l + A s / 100) * (l + A p / 100) (4)

where Z p is the salary of the developer at the design stage;

Z d - developer's daily wage at the design stage;

A c - percentage of contributions to social insurance;

And n is the percentage of premiums.

In general, the cost of machine time consists of the cost of processor time (when working with an object or absolute module) and the cost of display time. The calculation formula looks like:

M \u003d t d * C d + t p * C p (5)

where C p and C d - respectively, the cost of one hour of processor and display time;

t d and t p - respectively, the processor and display time required to solve the problem (hour).

Since the program was developed on modern high-speed computers, there is no need for additional processor time; taken as C p =0 and t p =0.

When calculating M n, one should take into account the time for preparing the source texts of programs, their debugging and solving test cases.

Overhead costs according to formula (2) are 80-120% of the salary of the personnel involved in the operation of the program.

If the design and implementation of an automation tool is completely carried out by a third-party organization, then a simplified calculation scheme can be used, i.e. as capital costs for design and implementation, accept the amounts paid to a third party, including the initial cost of the automation tool.

Operating costs include:

content of information expenses;
the maintenance of personnel for the maintenance of the complex technical means;
expenses for the operation of the program;
building maintenance costs;
other expenses.

STAFF COSTS

The costs for various types of employees are determined by the formula:

Z= n i z i *(1+ A c /100)*(1+A p /100)

where ni - the number of personnel of the 1st type associated with the performance of work;

A c - percentage of social security contributions

A p - the average percentage of premiums for the year

PROGRAM OPERATION COSTS

The costs for the operation of the program consist of the costs of machine time and the costs of operating various accessories (paper, printer inks, etc.).

From formula (5) we will calculate the costs for the operation of the program:

M=t d *C d +t p *C p

At the same time, it is possible to estimate similar costs before the implementation of the program and compare the obtained values. When implementing the program, the time of work with the same task is reduced, and this already results in savings.

OVERHEAD CALCULATIONS

The cost of operating accessories is determined by a simple calculation of the cost of purchasing them at wholesale (or free) prices.

OTHER EXPENSES

Other costs range from 1 to 3% of the total operating costs.

before the implementation of the program

P pr1 \u003d (Z + M 1 + H) * 0.03

after the implementation of the program

P pr2 \u003d (Z + M 2 + H) * 0.03

Thus, the operating costs are:

before the implementation of the program

P 1 \u003d Z + M 1 + H + P pr1

after the implementation of the program

P 2 \u003d Z + M 2 + H + P pr2

If the user, when saving i-type using the program, saves T i , hours, then the increase in labor productivity P i (in %) is determined by the formula:

where F j is the time that was planned by the user to perform work of the j-type before the implementation of the program (hours).

table 2

User Work Table (example)

Type of work	Before auto-matization, min Fj	Saving time, min.	Increasing labor productivity Р i (in %)
Information entry
Carrying out calculations
Preparing and printing reports
Data analysis and sampling

The savings associated with an increase in the productivity of the user P will be determined by the formula:

where Z p - the average annual salary of the user.

EXAMPLE

For a better understanding of the material, let us consider, as an example, a small typical Russian organization engaged in the provision of services, in which the accounting department with one workplace is automated. As a means of automation, the software tool of the "1C company" - "1C: Enterprise Accounting 2.0" was chosen. We mean that a third-party organization implements the software tool. The cost of "1C: Accounting Enterprise 2.0" is 10,800 rubles.

The cost of services of a third-party organization for its implementation is 10,000 rubles.

As a result, the capital costs for implementation will be:

K = 10800 + 10000 = 20800 rub.

We calculate the cost of maintaining staff, based on the condition that the employee's salary is 50,000 rubles.

Z = 1 * 50000 * (1 + 34% / 100) = 67000 rub.

In our example, for simplicity, we will consider overhead and other expenses before and after the implementation of the program as unchanged, i.e. the implementation of the program did not cause ink savings in printer cartridges, paper consumption, etc. Thus, the annual savings will be equal to the savings associated with increased user productivity.

We calculate the savings due to an increase in employee productivity. In our example, accounting was carried out on a computer, but manually using various programs that allow you to store data in tables. For example MS Excel. We will use the data given in Table 2 as initial data.

User productivity savings:

P=67000*9= 603000 rub.

As a result, we obtain the following expected economic efficiency:

E = 603000 - 20800 * 0,15 = 599880 rub.

What do these numbers say? Even with an approximate calculation, the economic efficiency from the introduction of the software turned out to be significant. This was achieved by increasing employee productivity.

Accordingly, having spent only 20,800 rubles, we get savings of 599,880 rubles per year!

CONCLUSION

Based on the results of calculating the economic efficiency of designing and implementing automation tools, it is immediately possible that this is beneficial. Although the benefits are indirect, they are usually noticeable in the medium and long term. The introduction of automation tools can lead to adjustments in the business process itself, as tasks are completed faster. Employees can process large amounts of information for their working time, which can be used either to reduce staff costs or to quickly develop a business with the same number of employees involved in information processing.

As practice shows, the automation of business processes, in particular, such as calculating the cost of production, preparing regulated reporting on the results of activities, accounting for mutual settlements with counterparties, generating and accounting for printed documents big potential for development and material gain over time.

In the process of calculating economic efficiency, one property of automation must be taken into account. It consists in the following: the more money and time spent on automation, the higher the economic effect of implementation. This is explained quite simply: if you qualitatively approach the choice of a software product, thoroughly work out all business processes at the design and implementation stage, describe and debug everything, then in the future much less money will be spent on operating the program.

It is important to note that if one software tool automates various departments and employees, then the costs of organizing document flow between them are reduced. Both time and material costs are reduced.

Before choosing the best option for organizing economic activity, it is necessary to determine the criteria for evaluating economic efficiency indicators. How to do this, we will tell in this material.

You will learn:

What are the goals and objectives of assessing economic efficiency indicators.
What is the subject of analysis when choosing them.
What methods are used in the calculation.
How is the economic efficiency of production evaluated?
What methods can make the company more efficient.

Economic efficiency indicators- the main instruments for the implementation of economic strategies at all levels of economic activity (from a particular enterprise to the national economy).

They serve evaluation of the results and substantiation of the decisions made: where to invest, what and how much to produce, how to optimize resource costs, how to improve the pricing policy, and so on.

Cost Calculation Example

Economic efficiency performs a number of tasks:

regulates intraeconomic activity of enterprises;
forms producer/consumer relationships;
translates general economic benefits into the subjective interests of all participants in the economy.

Each economic entity, be it a state or an individual, is interested in obtaining the maximum possible benefits from the available resources. At the same time, each participant in the production or consumption of these goods seeks to maximize their benefits and minimize costs. That is, to act most efficiently and rationally.

Economic efficiency assessment

The same criterion for any economic activities (innovation, investment, improvement of the social sphere and management) is:

focus on achieving the desired result;
need for costs.

Criteria for evaluating economic efficiency are divided into types:

absolute (general);
relative (comparative);
temporary.

Absolute - characterize the magnitude of the effect. They are obtained by subtracting from the cost estimates of the results of an economic activity all the costs associated with its implementation.

These include the cost of funds and objects of labor, labor and other resources spent in the billing period.

They are necessary to evaluate and analyze the efficiency and overall economic results obtained in dynamics and over a certain time period at the micro and macro levels of the economy, as well as to compare across regions and enterprises.

For example, if absolute indicator economic efficiency is the profitability of farming, then relative - the effectiveness of economic activities in comparison with various factors.

When measured, profit can be calculated using the formula:

Pr \u003d PO - SP, where:

ON- the volume of products (produced, sold) for a specific period;

joint venture- its cost.

The calculation of relative indicators is carried out by dividing the cost estimates of economic results by the total resource costs associated with their receipt:

EO = EE / ZS, where:

ee– the value of the achieved economic effect;

AP- the cost of obtaining it.

During a crisis, a businessman may have the idea that the company is not up to growth now: the main thing is to maintain the volumes of last year.

However, the task of the commercial director is not to maintain, but to develop sales. A well-designed, and most importantly, realistic sales plan will help solve this problem.

To do this, it must be divided into three parts: strategic for a year, tactical for a month and individual for a manager for a week.

How to develop such a plan and achieve its implementation? Here step-by-step instruction from the editors of the magazine "Commercial Director".

Sales Plan Templates

Economic effect and efficiency

Efficiency economic system determined by many factors:

production efficiency;
public administration;
socio-economic development;
standard of living, education, healthcare;
business competitiveness.

One of the ways in which the performance of an economy is assessed is through social production , indicating not the growth rate of the volume of the production product, but the resource costs of achieving it.

Indicators of economic efficiency of production most fully characterize the economic activity of the state and individual. When determining them, the effectiveness of the entire state economy, each individual industry, territorial entity, foreign trade, the work of enterprises and each employee.

They also determine how effective the process of creating value as a whole and its individual phases, such as distribution, exchange and level of consumption.

Methods for calculating economic efficiency indicators

Formula EE = Result / Cost- is basic. Therefore, when measuring the effectiveness of each factor of various business entities, the indicators of economic efficiency include:

the ratio of net production (profit) to the average value of current and fixed assets;
the level of profitability and payback of products and PF;
production of goods and services per monetary unit of expenditure;
relative savings in funds, materials, labor, payroll and others.

To measure the economic efficiency of production, such direct and inverse indicators are used, such as:

productivity, which is calculated by the ratio of the results obtained to labor costs (the reverse measure is labor intensity);
material yield calculated by the formula MO \u003d P / ZM, where R- results, ZM- material costs. For this category, the inverse indicator will be material consumption ( M = ZM / R);
return on assets and capital intensity;
efficiency of investments and investments.

Most general indicator economic efficiency is the ratio of the effect obtained from economic activity (national income or GDP) and the total costs to achieve it.

In macroeconomics, when determining efficiency, 2 indicators are used:

increase in the produced gross domestic product per capita;
its production per unit cost.

Due to the huge variety of factors affecting the final results, it is impossible to assess how effective this or that activity is, taking into account any one indicator. Therefore, in practical calculations, a system of interrelated indicators (both absolute and relative) is always used. Thanks to this, all important aspects of the functioning of an economic entity are assessed.

System of indicators of economic efficiency of production

According to the degree of filling, with which the results and costs are taken into account, the relative indicators characterizing economic efficiency are conditionally divided into 3 groups:

generalizing;
private;
integral.

In the first case, one or more types of effects and a number of resource costs are measured, which characterize how economically efficient enterprises, territorial entities, national economies work as a whole. These figures serve as the basis for decision making aimed at change at any level of the economy.

In this group, the main indicators of the economic efficiency of the economy will be:

national income;
gross domestic product per capita;
generalized coefficient of economic efficiency;
labor productivity;
costs per 1 ruble of the product produced;
profit;
profitability of production and products.

For individual elements of production and economic activity, private indicators are used. They provide an opportunity to show the validity of the decision to improve the selected elements.

Thus, general indicators are the goal, and private indicators are a tool for performing calculations and analyzing efficiency.

In the table, some examples of two groups of indicators are given.

General indicators	private indicators.Usage efficiency:
personnel	funds	finance
The degree of satisfaction of market demand. Output of net products per unit of resources used. Costs per unit of product produced. Profit per unit of total costs. Profitability of the enterprise. Increase in production by increasing the intensity of production. Effect for the national economy from the use of a unit of production.	Growth rates of labor productivity. Growth of production due to increased productivity. Coefficient of use of working time. Labor intensity and wage intensity of a unit of production.	Total return on assets (due to the volume of production). Return on assets of the active part of the OF. Profitability of fixed assets. Capital intensity and material intensity of a unit of production.	Turnover of working capital. Profitability of working capital. Release of fixed assets in relative terms. Specific capital investments (per unit of increase in capacity or product). Return on investment. Payback period of invested funds.

When choosing indicators for assessing economic efficiency, one should be guided by the following requirements:

The number of evaluation characteristics is selected depending on the goals of the analysis.
The semantic meaning of each indicator should be perceived simply and clearly, without the possibility of ambiguous reading.
For any indicator, objective quantitative data based on statistics and accounting information should be submitted. Moreover, both maximum and minimum values \u200b\u200bare required to be reflected in the digital range.
If generalizing indicators of economic efficiency are calculated, only cost indicators of results and costs are used, as well as their relative values (percentages, coefficients, indexations).
In the calculations of private indicators, in addition to cost, natural and labor measurement options can be used.

But first you need to solve 2 questions:

Decide on a way to translate various non-monetary parameters into income and expense (cost) meters of private indicators.
Establish algorithms for combining these heterogeneous cost values that in the life cycle of a product differ in place, time, content and relationship with the production and economic interests of the subject into single indicators that generally determine a specific economic system.

Methods for optimizing economic efficiency indicators

It is impossible to demand that the indicators of the economic efficiency of the enterprise and the national economy completely coincide, just as it is impossible to assess the level of the national economy as a whole by simply summing up its parts.

Therefore, when choosing the optimal method for calculating efficiency, it is necessary to take into account the following significant points:

the nature of the program-target orientation of management decisions;
the required level of specification in the calculations;
comparison of the obtained estimates with the basic rate of economic efficiency;
the place of the planned economic event in the full period of circulation of products and the role of the expected results, costs in the sphere of economic interests of economic entities that participate in its implementation.

With all the variety of categories and types of economic decisions, practically only 2 fundamentally different optimization methods are implied:

To produce a larger volume of products and services at a fixed amount of resource costs. The fulfillment of this task requires an increase in labor productivity due to the technical and technological re-equipment of production, the introduction of innovations, the improvement of the qualifications and professionalism of workers, the use of better materials and raw materials. This situation is described by the formula: EN → max at W= const.
Reduce costs while maintaining the achieved volume of production of goods and services. Achieving such results is possible due to the economical use of resources, recycling, the introduction of resource-saving technologies, and a reduction in the number of personnel. WN → min at E =const.

There is also a combined efficiency improvement model that combines the main criteria of the first two options and additionally takes into account other optimization criteria (including natural ones): specifications, effect speed, turnover Money and possible alternatives, sphere (industry) of activity, similar ratings from competitors, average industry values.

This situation is reflected by the following algorithm:

EN/ ZN → max, where N– number of the management decision option under consideration.

Conclusion

The choice of method is determined by each leader independently, taking into account the goals, potential capabilities of the enterprise and the market situation. As a rule, if the economy is growing and consumer demand is increasing, it will be appropriate to use the first method, and when there is a decline in production, the second.

However, with the duration of the crisis, it is more rational to deal with marketing to boost sales, change profile or reorganize the enterprise. And it is important to always adhere to the strategy of using one hundred percent of your own resources, even if their purpose changes.

What is the general formula for calculating efficiency?

Any expedient human activity is connected with the problem of efficiency. In any case, efficiency is determined by prudence, economic efficiency and is measured by the results obtained from each unit of the used resource (factor) of production.

The efficiency of production characterizes its effectiveness, which is reflected in the growth of the welfare of the country's population. Therefore, production efficiency can be defined as the optimal use of resources in relation to social needs.

Are the concepts of "effect" and "efficiency" identical?

To clarify the essence of the economic efficiency of production, determine its criteria and indicators, it is necessary to distinguish between the content of the concepts of "efficiency" and "effect".

Therefore, the commensurability of the effect and the cost of achieving it is the basis of economic efficiency.

In addition to the absolute magnitude of the effect, it is also necessary to know its relative magnitude, calculated by dividing the overall result (effect) by the resource costs that led to its receipt.

What is the difference between overall and comparative economic efficiency? What indicators are used to evaluate them?

In accordance with these definitions, in practice, when economic calculations There are general (absolute) and comparative economic efficiency.

The overall (absolute) efficiency of costs and resources can be determined at all levels of management and is calculated as the ratio of the total value of the economic effect to certain types the cost of basic resources. Two indicators are widely used as generalizing performance indicators at the national economic level:

growth of produced gross domestic product (national income) per capita;
production of gross domestic product (national income) per 1 den. units (unit) costs.

The indicators used to determine the level of efficiency on the scale of the national economy, region, industry, slightly differ from the indicators used at the level of primary economic entities, and are of a particular nature.

At the enterprise level, the system of indicators of overall economic efficiency includes indicators both by types of resources used and estimated ones.

The main estimated indicator of the company's activity is profit. Evaluated performance indicators traditionally include: product profitability; profitability of production assets; production for 1 hryvnia. costs, relative savings of fixed and working capital, as well as material, labor costs and wage fund.

Indicators of the overall economic efficiency of the resources used are indicators of the use of labor resources - production assets.

The indicators of the use of labor resources include:

Labor productivity is an indicator that expresses the ratio of the mass of products to the mass of living labor. Although this approach to determining labor productivity is very universal, there are differences in the calculations and indicators of labor productivity at the macro- and microeconomic levels.
If productivity is calculated on the scale of the national economy, then the annual gross domestic product or national income is usually taken as the result of labor and divided by the number of employees employed in the national economy (average annual number of employees), then at the level of an enterprise, firm, labor productivity is determined by dividing the gross income (proceeds) from the sale of the annual or monthly volume of manufactured products per average number of employees employed at the enterprise. The productivity of living labor accumulates the effect of the interaction of all factors of production. Therefore, labor productivity is an integral indicator of production efficiency.
The labor intensity of products is an indicator that is the inverse of labor productivity, determined by the ratio of the cost of working time to the output. Reducing labor intensity is the most important indicator of increasing labor productivity.
Capital-labor ratio is an indicator that characterizes the level of labor equipment. It is measured by the ratio of the balance (average annual) value of fixed assets (in comparable prices) to the cost of living labor (average annual number of employees).

Indicators of overall economic efficiency characterize the effectiveness of the choice of already implemented, past costs. With their help, the expediency of the costs incurred is determined, reserves for increasing the efficiency of production are identified. Such indicators are used in management and control activities.

AT market economy indicators of comparative economic efficiency are widely used, with the help of which it is possible to determine the most cost-effective options for solving a particular economic problem.

Comparative economic efficiency is determined in the development and implementation of new technology, solving issues related to the production and use of interchangeable materials and products, designing the construction and reconstruction of existing enterprises, drawing up business plans, choosing schemes for organizing production in technological and scientific activities.

When determining comparative economic efficiency, the value of the economic effect is taken to be the savings obtained from reducing the cost of production; as costs - additional capital investments that caused these savings. Comparative economic efficiency is determined by choosing one of two or more options for solving a specific economic problem. It characterizes the advantages of one option compared to others.

When comparing the two options, a different ratio of the required capital investments and the level of production costs is possible. The option that is characterized by lower (or equal) capital investments and at the same time provides a lower cost of production, other things being equal, is recognized as economically viable.

Comparative economic efficiency is based on the analysis of marginal indicators and makes it possible to determine the effectiveness of decisions made in the future, in the future, to identify the best option for using resources.

When comparing options, it is necessary to use the reduced costs calculated for each of them.

The reduced costs for each option are the sum of capital investments and current costs (cost), reduced to a single dimension in accordance with the efficiency standard.

Those of them that turn out to be minimal in the calculation determine the most effective option.

Efficiency expresses the degree of effect and in the most general form is expressed by the formula:

where P - production results;

Z - the cost of obtaining this result.

It is difficult to apply the efficiency formula in practice for calculations, since the numerator and denominator of a fraction in most cases cannot be quantified and cannot be calculated in general units.

Most often, the results of economic activity are diverse and it is impossible to bring them into a single result, even using universal monetary meters. In some cases, the result can only be qualitative, not at all expressed in numerical form.

These are often social outcomes.

The problem of efficiency is always a problem of choice, for example, what to produce, what types of products, in what way, how to distribute them and how much resources to use.

The definition of efficiency is based on the principle of comparative advantage, which is the basis of the specialization of both countries in general and individual producers in particular, as well as the cornerstone of free trade (discovered by D. Ricardo).

It is precisely due to the comparative advantage of using some resources over others that it is possible to determine the most efficient production option that provides the greatest difference between results and costs and to establish the opportunity cost of any resource.

Thus, efficiency can be defined in the same way as the ratio between the values of goods that are produced and the values of goods that had to be abandoned due to their greater opportunity cost.

Consequently, efficiency can be defined in two ways: firstly, as the ratio of the result of production to the costs of its implementation; secondly, as the ratio of the result of what was produced to what had to be abandoned when choosing an alternative.

How to Calculate Cost Efficiency

stumbling block modern economy is its performance, which is determined by the term of economic efficiency. It can be applied both to the work of a single enterprise, and to the entire economic system as a whole.

How to determine economic efficiency

It is possible to calculate the economic efficiency of a certain type of production based on its main indicators, one of which is resource efficiency. It is the ratio of the result of production to the resource spent on its implementation, which can be:

The main indicators of resource efficiency are:

Material return;
Labor productivity.

However, the level of labor efficiency also reflects the degree of economic efficiency on a national scale. Consider its cost using the example of 5 states:

Ireland - 56 thousand dollars;
Luxembourg - 55.6 thousand dollars;
Russia - 18 thousand dollars;
USA - 36.8 thousand dollars.

How to compete

The efficient operation of the economic system can only be achieved if the needs of all members of society are fully met through the use of a prescribed list of resources.

The most visible of all its indicators is competitiveness, which has been studied for two decades by leading economists within the framework of the project “Competitiveness. Global Review".

In 1999, they analyzed in detail all aspects of the economy of 59 countries whose products provided the demand of the world population by 95%. According to statistics, the implementation of a number of reforms in the 90s in Russia significantly reduced the established level of competitiveness of the state.

However, the analysis of doing business by 125 countries by the experts of the World Economic Forum raised Russia to 62nd place. India and China took 40th and 50th place in the ranking, and economically developed countries became its leaders.

Production;
Science and technology;
Economy.

What is economically efficient

Economic efficiency is understood as the ratio of the efficiency of an enterprise to the amount of funds spent to achieve a certain result. It can be expressed:

In monetary terms;
In relative units.

The level of productive use of enterprise resources, or its profitability, can be calculated based on the ratio of profit to:

production costs;
Used capital.

Independent calculation of the profitability of the enterprise

Employee payroll deductions.

If the rate of 10 of them is 20 thousand rubles, and the remaining 15 receive 30 thousand rubles each, then the total amount required for the payment of maintenance will be equal to 650 thousand rubles. Taking into account the 30% tax, 195 thousand rubles come out.

The cost of packaging the product and the required raw materials is 100 thousand rubles.
Expenses for the needs of the enterprise - 80 thousand rubles.

The total amount of all costs amounted to 1,025,000 rubles

3000000 - 1025000 = 1975000.

Before us is a number that demonstrates the level of efficiency of the enterprise in monetary terms for one month. Based on this, let's move on to calculating the relative performance indicator. To do this, you need to divide the amount of all earned money by the amount of costs directed to production.

3000000/1025000 = 2,92

Subtract one

2.92 - 1 = 1.92 or 192%

The resulting percentage determines the efficiency of production.

Since the company is limited to the release of one product, it is necessary to take into account additional costs, which may be:

1. Salary of the management staff of the enterprise

Director - 70 thousand rubles;
Chief engineer - 60 thousand. rub.;
Chief accountant - 50 thousand. rub.;
Management team (10 people) - 35 thousand rubles;
Taxes - 159 thousand. rub.

2. Costs associated with:

Transportation - 50 thousand rubles;
Storage - 60 thousand rubles;
Unforeseen expenses - 70 thousand rubles.

Total: 869 thousand rubles, and the total amount of expenses is 1 million 894 thousand rubles.

The profitability of the enterprise, taking into account all costs, amounted to 58%

Economic effect and economic efficiency: calculation formula

The creation of a formula for calculating economic efficiency could greatly facilitate the life of enterprises. In order to increase profits, every company is trying to improve the quality of products and increase their income or invest money in manufacturing process in order to reduce costs.

Types of efficiency

Efficiency falls into two categories. The first is economic. The second is socio-economic.

With economic efficiency, the criterion is the company's ability to maximize its profits. The criterion of socio-economic efficiency is the level of satisfaction of the interests and needs of the population.

Classic efficiency calculation

The general formula for calculating economic efficiency is as follows:

EkEf \u003d P / Z, where

ЕкЕф - economic efficiency;

P is the result obtained from investment;

Z - the costs incurred to achieve the result.

This formula can be used to calculate the cost-effectiveness of activities whose duration is designed for a short period of time. In another case, this indicator is not able to reflect the feasibility of investments, since additional variables appear in the long run that are not included in the above formula.

Absolute Efficiency

There is also a formula that displays the absolute efficiency. It looks like this:

EEabs \u003d (Ef1 - Ef0) / (I + K * Kn), where

EEabs - economic efficiency;

Ef1 - the overall result after the events;

Ef0 is the result before the events;

And - total costs;

K - capital investments for holding events;

Kn - standard coefficient.

Regulatory coefficient

This index shows what the minimum allowable efficiency in a particular area can be. The parameter is the same for all types of activities in a particular industry, but may differ depending on the area.

The value of the coefficient is in the range from 10 to 33 percent. In trade, this figure is 25%, in the industrial sector - 16%.

Efficiency in the use of factors of production

Any enterprise has labor resources, fixed and working capital. Without them, the production process is unrealistic. Companies are also trying to improve their investment performance to improve performance.

To calculate the effectiveness of the use of each of these factors, their own methods are used. Some of them are based on the same principles.

B \u003d O / Z, where

B - production;

The labor intensity indicator is the reverse of the previous indicator and displays how much money needs to be spent on the personnel of the enterprise in order to produce one unit of output.

T \u003d W / O \u003d B-1 \u003d 1 / B, where

T - labor intensity;

B - production;

O - the volume of products manufactured at the enterprise;

Z - the costs incurred by the enterprise for labor resources.

The formula for calculating the economic efficiency for the company's workforce can be displayed as follows:

EEtr \u003d ((O1 * C - Z1) - (O0 * C - Z0)) / And, where

EEtr - economic efficiency for labor resources;

O1 - the volume of manufactured products after investment in personnel;

C - the price of products;

O0 - the volume of sales of products before investment in labor resources;

Fixed assets (PF)

There are two main parameters for calculating the efficiency of using fixed assets: capital productivity and capital intensity. The return on assets is calculated as the ratio of the value of all products that were produced by the enterprise within one year to the average annual value of funds.

Fo \u003d VP / Ss.g., where

VP - all the company's products in monetary terms (including the cost of semi-finished products and work in progress);

Fo - return on assets;

Ss.y. - the cost of the OF in the calculation for 1 year on average.

The index of capital intensity is the inverse of the return on fixed assets. You can determine the value of the coefficient using several formulas.

Fe \u003d (Fo) -1 \u003d 1 / Fo, where

Fe - capital intensity;

Fo - return on assets.

In the event that the return on fixed assets (OS) is not found, capital intensity can be determined as follows:

Fe \u003d (Cs.g. / VP), where

Fe - capital intensity;

VP - the value of gross output in monetary terms;

Ss.y. - the average annual cost of fixed assets.

All companies are trying to reduce capital intensity and increase capital productivity. An example formula for calculating the economic efficiency of investments in fixed assets is presented below:

EEof \u003d ((O1 * C1 - Z1) - (O0 * C0 - Z0)) / And, where

EEof - economic efficiency for fixed assets;

О1 - the volume of manufactured products after investment in OF;

P1 - the price of products after investment;

P2 - the price of products before investing in fixed assets;

Z1 - the cost of production after the events;

O0 - the volume of sales of products before investment in fixed assets;

Z0 - the cost of production before the events.

Working capital (Ob. C.)

To determine the effectiveness of the use of working capital of the enterprise, three indicators are used:

turnover ratio;
turnover period;
load factor FROM.

Turnover ratio C. Is the same as the return on assets for the OS. It is calculated according to the formula:

Kob \u003d RP / Sobs, where

Cob - turnover ratio;

The workload ratio is the inverse of the turnover ratio:

Kz \u003d (Kob) -1 \u003d 1 / Kob \u003d Sobs / RP, where

Kz - load factor;

Cob - turnover ratio;

RP - goods sold by the company in monetary terms;

Sobs - the average amount of the balance. FROM.

The turnover period is the number of days it takes to working capital made one complete revolution, is calculated as follows:

Tob \u003d D / Kob \u003d D * Sobs / RP, where

Tob - turnover time;

D - the number of days of the analyzed period;

Cob - turnover ratio;

RP - goods sold by the company in monetary terms;

Sobs - the average amount of the balance. FROM.

The formula for calculating the economic efficiency of the proposed measures to improve the use of working capital is based not so much on additional profit, but on cost reduction.

EEobs \u003d Ey / And, where

EEobs - economic efficiency of working capital;

Ey - conditional savings of working capital;

I is the size of the investment.

Economical effect

The formulas for calculating economic efficiency and economic effect are widely used among companies that make short-term cash injections to improve certain aspects of their activities. The formula for its calculation is as follows:

Eph \u003d D - I * K, where

Ef - economic effect;

D - income or savings from events;

I - the cost of events;

Kn - standard coefficient.

Advertising effectiveness

Advertising is a collection marketing tools, the purpose of which is to disseminate information about goods, services, people, companies, as well as to attract customers. The formula for calculating the economic efficiency of advertising displays the result obtained after the advertising campaign. The formula for determining the coefficient looks like this:

EEP \u003d (VD1 - VD0) / And, where

When calculating the effectiveness of the use of advertising means, it is very difficult to determine how much the gross income of an enterprise has grown precisely because of advertising. There is no guarantee that the company's revenue would not have increased if the company had not advertised itself or its product. Despite this, the cost-effectiveness of advertising is still considered.

Economic efficiency of the company

The main indicator in the work of the company is net profit, the part of the revenue that remains after all costs are deducted and all taxes are paid. There is no point in increasing revenues if costs increase at the same or even greater rate.

Thus, the classical calculation of economic efficiency cannot always show how the proposed measures will ultimately affect the final result.

This is due to the fact that it is calculated as the ratio of the result to the costs only to achieve it.

In cases where the result is gross income, the economic efficiency indicator is not accurate, as it does not take into account the possible increase in production costs.

The formula for calculating the economic efficiency of an enterprise can be expressed as follows:

EEP \u003d (CHP1 - CHP0) / And, where

EEP - economic efficiency of the enterprise;

NP1 - net profit after investments;

NH0 - net profit before investment.

Long-term investment project

All of the above methods of calculating efficiency can only be used for short-term activities (up to one year). In the long term, the calculation formula does not take into account discount factors that make it possible to calculate the feasibility of holding, taking into account alternative income.

As such, there is no formula for calculating the economic efficiency of a project that is designed for a long period of time. The expediency of the investment is calculated on the basis of the net present value, as well as the payback period, which shows how long it takes for the investment project to pay off in full and start making a profit.

Net present value is calculated as the sum of all payments and income from the investment, taking into account discount factors for each period. The NTS formula can be represented as follows:

PTS = (CF / (1 + p)1) + (CF / (1 + p)2) + (CF / (1 + p)3) + ... + (CF / (1 + p)n), where

NPV - net present value;

CF is the flow of payments (the difference between income and expenses);

p - calculation percentage;

n - term investment project.

This parameter shows how efficiently the investment funds are used. If the NPV is higher or equal to zero, this means that it is expedient to carry out an investment project. In the case where the net present value is shown to be negative, the internal interest calculation should be done to see how much the money has paid off.

Closer to the completion of work on the business plan of the investment project, the overall picture of how effective investments in the event can become in the complex of considered aspects becomes clear. It must be admitted that preliminary and estimated valuation activities require high competence in the field of financial and analytical practice. This is due to the fact that project performance indicators in terms of composition and combinatorics go far beyond the assessment of local investment effects and depend on numerous factors.

Preparatory measures for calculations

The calculation of investment project (IP) performance indicators is based on the information base prepared by the entire course of the preparatory and actual planning work. The quality of the original and primary processed information is of paramount importance. In second place is the type of project corresponding to the stage life cycle the designer, on the third - the types of efficiency under consideration, etc. An important role is played by the ratio of the effects of various stages of the project. All this, to one degree or another, affects the algorithm for preparing for calculations, calculations and conclusions based on their results.

Types of performance indicators

Criteria for the successful implementation of project performance evaluation have evolved significantly over the past decades. Qualitative and quantitative characteristics of the financial and economic orientation in their expression have absorbed the basic postulates of financial management, AHD of the enterprise, methods for evaluating management accounting data. But the central place in them is occupied by the theory and practice of investment analysis, which is also subject to evolution towards a systematic approach. Of fundamental importance are Guidelines on the evaluation of the effectiveness of investment projects (II edition), issued in mid-1999.

It is these recommendations that lay the foundation for understanding the analysis of investments in fixed capital from the standpoint of a holistic view. Versatility allows you to come close to the division of performance indicators into types, based on the target orientation of the analysis. The purpose of the analysis, of course, depends on the request of stakeholders who want to find an acceptable decision to participate in or start the implementation of a unique task.

However, in addition to the target orientation for the classification of indicators, other criteria can be applied, such as:

the nature of the results and costs, among which social and environmental effects, for example, cannot be ignored;
the method of using the time factor, which determines a number of possible distortions in the value of the benefits and costs received from IP;
the period of accounting for results and costs for the purposes of performance evaluation;
type of summary indicator;
the subject of IP efficiency evaluation.

The criteria presented are not exclusive. Among them, two stand out (by the target and by the subject of assessment), for which the signs of dividing the indicators make it possible to find the characteristics that determine the weighted decision. The classification model of performance indicators is shown below.

Classification of project performance indicators

Local indicators of investment efficiency (NPV, PI, IRR, MIRR, PP, DPP) on our website are given detailed attention in separate thematic articles. We have characterized the types of IP effectiveness in the material devoted to. Let me remind you of the main types of performance indicators, divided by target orientation. These are specialized evaluation criteria:

public efficiency of IP;
commercial effectiveness of the project;
the effectiveness of the company's participation in the investment event;
the effectiveness of investing in the company's shares;
budget efficiency;
efficiency from the perspective of higher-level structures.

Algorithm for preparing and calculating indicators

The process of forming an information basis for calculating IP assessment indicators is the result of the implementation of measures to develop a business plan and covers almost all of its stages. It is executed iteratively, has many cycles in which you can “circle” for a very long time, increasing the quality of numbers by taking into account an increasing number of influencing factors. It's not worth getting into it. We will consider the algorithm for preparing financial and economic information without taking into account cyclic dependence, so as not to turn the article into a long and confusing story. In the center of the section, a diagram of a typical algorithm for preparing data for efficiency analysis is presented.

Step one

Formation of a planning and regulatory foundation for calculating the main items of income and expendable parts project throughout its entire length (in the diagram, fragments of a step are highlighted in light blue). Qualitative and quantitative parameters of sales, required equipment, construction and installation works, budgetary and regulatory platform are collected and consolidated. Analysis of statistics and standards (for an existing enterprise), benchmarking (for a newly designed business) are of lasting importance in order to then have integral characteristics of IP. Consumption rates for goods and materials, their stocks, labor and technological standards, tax model and prices - all this is necessary for budget planning and subsequent assessment.

step two

Preparation and rechecking of key parameters of the dynamics of project events. At the same time, the accrual method, traditional for economic practice, is used first. This step involves a sequence of planning steps following values with a certain logic for the formation of information blocks.

The volume of production and sales revenue before the start of the project, during the implementation of the project and after its completion.
Amounts and schedule of capital investments.
Dynamics of changes in the residual and average annual value of non-current assets (fixed assets, intangible assets) of the company in connection with the implementation of IP. It naturally implies the possibility of calculating the amount of depreciation and property tax.
The reduction of the current costs of the economic activity of the subject in connection with the implementation of the IP into the calculation of the cost of the planned products (services).
Based on the production program of the project and the sales plan, the formation of cost structures for the estimated periods of activity, up to the planned reporting periods.
Calculation of the amount of investments in the stock of circulating material assets, as well as stable liabilities, such as, for example, wage arrears to staff, reserves for future payments, etc.
Calculation of planned values of profit in its standard forms and amounts of income tax planned for payment in accordance with the requirements of the legislation.

Scheme of the algorithm for preparing for the calculation of IP performance indicators

Step Three

Development of three main project budgets: income and expenditure budget (BDR), balance sheet budget (BBL) and financial and investment budget (FIB or cash flow plan) of the project. The main budgets are inextricably linked not only with each other, but also determine the possibility of calculating two key groups of performance indicators. These include parameters of business reliability in the conditions of ongoing work on the project and indicators of economic efficiency of investments.

Step Four

The choice of compositions of indicators and the actual implementation of their calculations.

Financial budgets as sources of calculations

As we noted earlier, the forms and methods for assessing the economic efficiency of investment projects are based on the data of the three main budgets. The first budget in its structure repeats the content of the income statement. This form serves to illustrate a company's comparable revenues arising from its manufacturing and sales sector and expenses over comparable time periods. Naturally, they should be considered in relation to the main processes implemented in connection with the planned investments.

It is worth noting that the actual financial result is an independent indicator involved in a comprehensive assessment of the effectiveness of IP. Its absolute values have their own value both for the organization-designer and for the investor, even until the moment of refining the profit in such relative forms as, for example, profitability. In the traditional context, the financial result is used in the analysis of the effectiveness of economic activity and to search for reserves to increase it through an itemized analysis of income and expenses.

The calculation of income tax (USNO tax, if the business entity is planned (is) on a simplified system) should be carried out taking into account all the nuances of current legislation. In general, tax planning has a significant impact on the effectiveness of the project, so it is advisable to involve professional tax consultants for this work. I'm not talking about the legal model, which is an integral part of tax planning and provides, albeit small, but quite definite opportunities for economic maneuvering.

The balance sheet budget is the second main form of the project's financial plan. It is a table with two parts. In the first of them, according to a given structure, the balances of funds and their placement are presented, and in the second - the balances of sources of funds. Balance - a static form of assessing the financial condition of the company. This distinguishes it from the profit and loss budget and the cash flow budget, which are dynamic plans for income and expenses (cash inflows and outflows). For the purposes of evaluating the effectiveness of the balance sheet budget, it is sufficient to develop it on an enlarged basis, at least at the level of a typical structure of assets and liabilities.

In the article on the issue of planning the financial and investment budget (plan for the movement of the DS) of the project, enough attention is paid. This model of planned project cash flows is the main document for investment analysis and determination key indicators efficiency. The model is based on the notorious Cash Flow methodology. There are a number of significant differences between this approach and the accrual method that separate the FIB from the BDR. The main difference is in depreciation, which is absent in cash flows.

Calculation of profitability and turnover indicators

As we remember, an investment project goes through three main stages: pre-investment, investment and operational. Accordingly, when evaluating the effectiveness of the project, it is advisable to consider two groups of performance indicators.

Performance indicators of the operational stage and indicators of the financial condition of the company (data sources: BDR and BLL).
Investment efficiency indicators calculated on the basis of financial and investment budget data (according to the cash flow method).

The first large group of indicators is often referred to by financiers as "reliability criteria" for doing business. This means that the project should not damage the financial condition of the company, undermine its stability, independence, solvency, and lead to a decrease in profitability. In their pure form, these indicators cannot be considered as evaluating efficiency in its literal sense. However, from the standpoint of project evaluation as a holistic phenomenon, they are certainly included in the complex of system parameters for IP evaluation.

To implement the settlement complex of the first group, only quantitative criteria of financial management are used. Financial reliability includes such integral characteristics as profitability, financial condition criteria, break-even point calculations and financial leverage. Profitability is the most accessible, but very informative parameter of this group. There are several types of profitability and turnover related to the same number of indicators:

return on assets (ROA);
return on equity (ROE);
return on investment (ROI, ROIC, ROACE);
return on invested capital (ROP);
return on sales (ROS);
asset turnover ratio (TAT);
inventory turnover index (ITR).

To the greatest extent, we will be interested in several of the parameters presented above. One of them is devoted to a separate article about. The most recent measure of return on investment is return on average capital employed (ROACE). Equally important for the implementation of a comprehensive performance assessment is the ROP indicator (return on invested capital). It characterizes the company's ability to create profit in relation to the project, regardless of how it is financed. This parameter can be calculated using the formula below.

Return on Invested Capital Formula

Financial indicators and additional analytics

The current and prospective financial condition of the company is associated with the project. Investments are not always able to bring benefit to the enterprise-designer. With carelessness, his financial condition may be subject to a number of risks of worsening credit history and even bankruptcy. Therefore, the analysis uses special criteria for the risk-free implementation of an investment in an IP. They define five subgroups of indicators, for the calculation of which the information of the BBL and BDR of the project is used.

The first subgroup is responsible for assessing the solvency of the company. Under it we will understand the ability to meet the existing long-term obligations of the enterprise without the need to liquidate long-term assets. These indicators just allow us to assess the risk of the threat of bankruptcy. These include the following criteria.

DAR (Dept Ratio to Assets Ratio). The ratio of a company's total liabilities to its total assets, showing how much the company's assets are supported by borrowed capital. The formula below allows you to calculate the indicator.
DER (Total dept to Equity Ratio). The ratio of borrowed funds to the company's own funds shows how many total liabilities of the company account for one ruble of its own funds. In Russia, this indicator is called the coefficient financial independence or financial leverage (see formula below).
TIE (Times Interest Earned Ratio). Interest coverage index. This is a measure of the company's debt service. In domestic financial management, the indicator is often called the interest coverage ratio (see the formula below).

Formulas DAR, DER, TIE in a comprehensive assessment of IP effectiveness

The second subgroup of indicators is responsible for assessing the company's liquidity. This subgroup includes criteria for the current and absolute liquidity. Under the liquidity of assets, we mean the rate at which an asset is converted into cash without a significant loss in value. The first indicator makes it possible to assess the company's ability to meet the requirements for short-term liabilities using current assets, and the second - the most liquid of them. Qualitative differences between these indicators are not so great, however, they are. To implement the calculations, the formulas presented below are used.

Formulas of current and absolute liquidity

The remaining three subgroups of indicators are even further from investment analysis than profitability, solvency and liquidity. However, for a holistic view of the reliability of the project for the general condition of the company, they are also important. We are talking about the stability of the company, the state of relations with customers (accounts receivable), break-even analysis and financial leverage. The stability of the company is determined by the dynamics of criteria such as working capital and net working capital. An equally important role is played by the parameters of sales volume at the break-even point and the level of the company's profit margin in connection with the planned IP. Finally, the effect of financial leverage helps to understand how the changed capital structure, caused by attracting additional sources to the project, can affect the financial result as a whole.

Conclusion

In this article, I have deliberately limited myself to subject area auxiliary tools for a comprehensive assessment of the effectiveness of investments. Many authors focus entirely on the indicators of investment analysis based on the study of cash flows. However, the economic efficiency of the project cannot be limited to 5-6 criteria that use only cash flow. This is due to the fact that in most cases IP is integrated into the entire set of company processes and affects many aspects of the enterprise's economy. A project is a dependent and influencing subsystem.

This position does not in the least detract from the importance of the research complex NPV, PI, DPP, IRR, etc. In addition to the fact that each of these parameters has already been analyzed separately, there is still not a single immersion in through examples of calculations. This is necessary so that together we can clarify the logic of making decisions based on patterns and certain normative recommendations. There is no universal formula for action here. Evaluation of criteria is always a compromise of both interests and conclusions based on the results of dynamic simulation.

What pleases? Very slowly, gradually, recommendations on the development of methods for the normative comparison of numerous parameters begin to appear in the sources. Much can already be taken from the theory and practice of financial management today. For example, the same reference values for liquidity, independence, stability, etc. And, of course, from the standpoint of practice, the challenge for CFOs is to regularly benchmark and build up the analytical capacity of financial ratios. And the financial analysis for a separate company, and the assessment of the economic efficiency of an investment project in a localized format will only benefit from this.