Economic indicators of the enterprise include quite a few individual components. The analysis of the economic performance of the enterprise is conducted with the aim of obtaining data on the level of development of the enterprise, its effectiveness. Based on these data, conclusions are drawn about possible ways to improve the operation of the enterprise and improve its efficiency.
First of all, they are liquidity ratios, showing the ability of the enterprise to pay off short-term debt obligations.
The economic performance of an enterprise of this category is divided into indicators of current, urgent liquidity and circulating net capital.
Current liquidity shows the result of the ratio of the company's current assets to the total volume of short-term liabilities.
Urgent liquidity is calculated as a ratiohighly liquid working capital to general liabilities of a short-term enterprise. These assets include accounts receivable, financial investments, cash.
Negotiable net capital equals the difference between all assets and liabilities of a short-term nature.
In addition to liquidity ratios, the economic performance of the enterprise includes turnover ratios (business activity), which reflect how effectivethe use of the assets of the enterprise occurs. These indicators include inventory turnover, accounts receivable, accounts payable, assets and fixed assets.
Inventory turnover demonstrates the speedimplementation of the available inventory of goods. This indicator is calculated as the ratio between variable costs and the average cost of stocks (calculated in the number of times).
Receivables turnoveris an indicator of the number of days that are required to recover the debt owed to the enterprise. To calculate this indicator, the average value of the debt for a certain period (per year) is divided by the amount of revenue of the same period and multiplied by 365 days.
Turnover of accounts payableIt reflects how many days an enterprise needs to pay its debts. The indicator is calculated as the average value of the debt for the year, divided by the sum of all purchases and multiplied by 365 days.
Turnover of fixed assets (capital productivity)characterizes the overall efficiency of the use of fixed assets available at the enterprise. If the bottom line is low, it means that capital investments are too large or sales levels are not enough. The indicator is calculated as the sum of annual revenues divided by the average amount of fixed assets (or non-current assets).
The turnover of assets reflects the effectiveness of the disposal of assets that the company has.
The following economic indicators of the enterprise include solvency ratios, reflecting the capabilities of the enterpriseto settle for long-term obligations without resorting to liquidation of fixed assets. These financial and economic indicators of the enterprise include the amount of liabilities in relation to the assets (which part of the assets was obtained from long-term or short-term liabilities) and the financial independence ratio (shows the company's dependence on loans from external sources).
And, finally, such economic indicators of the enterprise as profitability ratiosshowing the degree of profitability of the company. This includes indicators of gross, net profit (calculated as the ratio of the share of profit in sales), assets (reading profits divided by assets) and equity (calculated by dividing net income by the amount of share capital).