The economic effectiveness of the proposed activities shows how expedient the investment was.
They can be divided into two groups:
The criteria for each category are different. The main one in calculating the indicators of economic efficiency is considered to be how much the company can maximize its profits, and how efficiently capital investments are used. When determining the effectiveness of socio-economic nature, the main parameter of the assessment is the level of satisfaction of the needs of the population.
In order to have a highsocio-economic efficiency, the economic system must satisfy a number of human needs. These include material, spiritual, social needs, guarantees of high quality and standard of living.
Efficiency reflects how much profitbrings 1 unit of money invested. The higher its value, the better the enterprise will manage the invested funds. The calculation of the economic efficiency of the proposed activities is carried out in order to determine how effectively the financing was carried out.
Classical calculation is the ratioresult (profit) to the expenses incurred to receive it. The formula for calculating the economic efficiency of the proposed activities can be presented as follows:
EE = Eph / 3, where
There is also a formula of absolute economic efficiency for production and non-productive spheres of activity. It can be represented as follows:
EE = (EF1 - Eph0) / (I + K * KMr.), where
The normative coefficient is an indicator that characterizes the minimum permissible efficiency of activity in a given sphere. It differs depending on the sphere.
In order to evaluate the effectiveness of capital investment, two formulas are used:
The calculation of economic efficiency from the proposed measures differs in the spheres of production and trade. For production, the calculation formula is:
HERP = (C-CC) / K, where
Speaking about the sphere of trade, it should be noted that the formula for calculating the economic efficiency of the proposed measures has a slightly different form:
HERP = (H-H) / K, where
The second indicator, used in assessing the effectiveness of activities - this is the time for which the invested funds pay off. General formula of the payback period:
T = K / EF, where
To calculate the payback period of measures in the sphere of trade the formula is used:
T = K / (C-CC), where
In the commercial sphere, the payback period is defined as follows:
T = K / (H-H), where