The growth rate of wasps is equal to the ratio. Analysis of the efficiency of using fixed capital. Other indicators of the movement of fixed assets of the organization

The coefficient of renewal (input) of fixed assets (K obn) proves the share of new fixed assets in the composition of all fixed assets and is calculated by the formula:

where С input is the initial cost of newly introduced fixed assets for the analyzed period, thousand rubles;

From the end - the cost of fixed assets at the end of the same period, thousand rubles.

The retirement ratio of fixed assets (K select) shows what proportion of fixed assets that were available at the beginning of the reporting period, retired during the reporting period due to dilapidation and wear, and is determined by the formula:

where C select - the cost of retired fixed assets for the analyzed period;

From the beginning - the cost of fixed assets at the beginning of the analyzed period, thousand rubles.

The growth rate of fixed assets (K pr) characterizes the process of updating fixed assets, taking into account the amount of disposal of obsolete assets and is determined by the formula:

An example of calculating the coefficients of renewal, disposal and growth of fixed assets for the analyzed period 2003-2006. is given in table. 1.

Table 1. Calculation of the coefficients of renewal, disposal and growth of fixed assets for the analyzed period

			The cost			Coefficient
	for the beginning of the year	at the end of the year			gain			gain
			fixed assets, thousand rubles
Total for the analyzed period

Each enterprise must independently, based on its capabilities, economic feasibility, as well as development prospects and competitive requirements, determine the advantages and preferences of commissioning, disposal or growth.

The analysis of the technical condition of fixed assets is carried out by comparing the coefficients with each other. So, for example, comparing the coefficient of renewal of fixed assets with the coefficient of retirement makes it possible to establish the directions of changes in fixed assets: if the ratio of the coefficients is less than one, then fixed assets are directed mainly to replace obsolete ones; if the ratio of the coefficients is greater than one, the new fixed assets are directed to replenish the existing ones. In our example, the fixed assets for all the years of research were directed to replenish the existing funds, which ensured their significant growth.

When determining the technical condition of fixed assets, the period of their renewal should also be calculated. This allows the enterprise to see more clearly its capabilities for updating and the prospects for the development of its technical base.

The renewal period of fixed assets (T obn) is determined by the ratio of the initial value of fixed assets at the beginning of the period to the value of the received fixed assets (C input) for the analyzed period:

Based on the data in the table. 1 update period for the years of the analyzed period is as follows (Table 2).

Table 2. Terms of renewal of fixed assets

1. The initial cost of fixed assets, thousand rubles.
2. Commissioning of fixed assets, thousand rubles.
3. Term of renewal of fixed assets, years (line 3 \u003d line 1 / line 2)

As you can see, the fact of a systematic reduction in the renewal period of fixed assets, which decreased by more than 5.5 years during the analyzed period, is positive.

The depreciation rate of fixed assets (K out) characterizes the average degree of their depreciation and is determined by the formula:

where C out - the cost of depreciation of all or the corresponding types of fixed assets, thousand rubles;

С п - the cost of all or certain types fixed assets, thousand rubles

The coefficient of validity of fixed assets (K g) shows what proportion is their residual value of the initial value for a certain period. It is determined by the formula:

The usability ratio of fixed assets can also be calculated by subtracting the percentage of depreciation from 100%.

The calculation of the wear and tear rates of fixed assets is carried out according to table. 3.

Table 3. Calculation of the coefficients of wear and tear of fixed assets at the enterprise for 2003-2006.

	Initial cost of fixed assets, thousand rubles		Residual value of fixed assets, thousand rubles		Depreciation of fixed assets, thousand rubles		Wear factor		Expiry factor
	for the beginning of the year	at the end of the year	for the beginning of the year	at the end of the year	for the beginning of the year	at the end of the year	for the beginning of the year	at the end of the year	for the beginning of the year	at the end of the year
					gr. 6 \u003d gr. 2 - column 4	gr. 7 \u003d gr. 3 - column five	gr. 8 \u003d gr. 6 / gr. 2	gr. 9 \u003d gr. 7 / gr. 3	gr. 10 \u003d gr. 1 - column eight	gr. 11 \u003d gr. 1 - column nine

As you can see, the depreciation of fixed assets at the enterprise is significant (it is 20%), but it is not the deterioration of the coefficient of availability of fixed assets that is positive, but its stabilization.

Analysis of the technical condition of fixed assets requires the enterprise to develop a program for the introduction of new technology and the commissioning of new production facilities. At the same time, special attention is paid to the introduction of advanced equipment, to an increase in the share of highly mechanized and automated production processesthat increase the competitiveness of the enterprise and its products.

To maintain the technical level of the enterprise, its smooth functioning and development, it is necessary to carry out work on the maintenance of fixed assets.

• analysis of the implementation of the plan for the repair of fixed assets;
• determination of the share of expenses for major repairs to the average annual cost of fixed assets and to the amount of depreciation charges;
• analysis of the repair base of the enterprise.

Analysis of the implementation of the plan for the repair of fixed assets on the basis of the primary factory accounting data allows you to determine:

• repair costs - total;
• including the cost of overhaul and from it the cost of repairs carried out in an economic way.

Comparison of costs according to the plan and actual data allows for all analyzed indicators, as well as for calculating the proportion of capital repairs and the share of work performed by the enterprise itself, to analyze the implementation of the plan for the repair of fixed assets.

Calculation of the share of capital repair costs to the average annual cost of fixed assets and to the amount of depreciation allowances to determine how fully the in-plant source of financing is used, and to establish how the volume of repair work changes depending on the average annual cost of fixed assets.

Practice shows that often enterprises do not fully use depreciation funds for repairs or for other purposes.

To determine the amount of financing for repair work and the level of its use, it is advisable to create a repair fund at enterprises. It is especially important to create it at those enterprises where large volumes of repair work are carried out or complex and expensive work for the repair of individual objects. At the same time, the repair fund should not be created in thousands of rubles, as they do in many enterprises, but as a percentage of the average annual cost of fixed assets. This makes it possible to change the amount of financing for repair work for the reporting periods, depending on changes in their average annual cost for the same periods.

The economists of the enterprise with the involvement of the chief mechanic and the power engineer with knowledge of the system of scheduled preventive maintenance of the expected volume of repair work, the volume of repair costs for a number of years of the past period, taking into account the specifics of the enterprise and a number of other factors, determine the estimate of repair costs for the planned year. Next, the specific weight of the cost estimate is calculated as a percentage of the cost of fixed assets at the beginning of the year. And this percentage for the entire planning year is taken as the basis for determining the amount of repair costs for the planned period.

For example, the estimated cost of repairs for 2006 was 200 thousand rubles. The average annual cost of fixed assets is determined for 2006 - 4000 thousand rubles. Determine the proportion of the estimate of repair costs to the cost of fixed assets (200/4000) × 100 \u003d 5%. Next, the amount of repair costs for each reporting period is calculated. If at the end of the first quarter the cost of fixed assets was 3800 thousand rubles, then the amount of financing for this period was 190 thousand rubles. (3800 thousand rubles. × 5%), and if for the II quarter the fixed assets amount to 4300 thousand rubles, then the volume of financing for repair work will be 215 thousand rubles. (4300 × 5), etc.

This approach to the formation of repair costs allows you to determine the amount of costs in advance with a sufficient degree of accuracy, to prevent sharp fluctuations in the cost of production for the reporting period and to predetermine the expected profit.

To determine the repair capabilities of the enterprise and the need for development, an analysis of the repair base is carried out. To do this, it is recommended to compare, over a 3-5-year period of time, the average number of workers in the enterprise with the number of workers employed in repair services, as well as the number of units of installed equipment in the plant with the number in repair services. At the same time, if possible, it is necessary to take into account the technical parameters of the equipment used, the change in repair costs in the cost of production, the qualification level of the repair personnel, their average level. wages and other indicators.

Analysis of technical economic indicators use of fixed assets

Analysis of technical and economic indicators of the use of fixed assets includes:

• analysis of equipment utilization indicators in terms of time and power;
• analysis of equipment utilization indicators by quantity;
• analysis of the shift ratio;
• general analysis of return on assets;
• factor analysis of capital productivity;
• analysis of the effectiveness of the development of fixed assets.

Analysis of equipment utilization indicators by time and power

The analysis of the use of equipment over time (extensive use) is reduced to determining the changes that have occurred in reporting period compared to the baseline due to the reduction of various kinds of downtime and unplanned interruptions.

Extensive use of equipment consists in determining the time of its actual operation and comparing it with various funds of time: calendar (T k), regime (T p), located according to the plan (T pl).

The level of equipment use over time is characterized by coefficients calculated as the ratio of the actual hours worked: to the calendar fund; to the regime fund; to the fund available according to the plan (see Table 4).

Table 4. An example of calculating the use of equipment by time per month

Index	Symbol	Absolute expression
Number of calendar days in a month
Number of working days
Number of shifts
The established duration of the shift, hours
Number of equipment installed
Number of equipment in operation
Calendar fund of time, machine-hours (30 × 24 × 10)
Operating fund of installed equipment (22 × 2 × 8 × 10)
Scheduled repair time, machine-hours
Planned fund of time, machine-hours (3520 - 120)
Downtime, machine-hours
Actual hours worked, machine-hours
Odds: a) T fact / T k b) T fact / T p c) T fact / T pl

The analysis of the use of equipment by capacity (intensive use) expresses the degree of utilization of the equipment power during its actual operation.

The level of use of equipment in terms of power is characterized by the coefficients of the intensive load of the equipment (K in), calculated as the ratio of the basic specific labor intensity of the product (T c.b) to the reported specific labor input (T c. From):

The specific labor intensity (T y) of products, respectively, in the base or reporting periods is determined by the ratio of the actual labor intensity of the product (T fact) to the actual volume of production (VP) in value terms:

At enterprises where homogeneous products are produced, the rate of intensive use of equipment is determined by the formula:

where H fact is the actual output of products per unit of time in the corresponding natural units of measurement;

H max - the maximum possible number of products according to the standards of equipment performance for the same period of time and in the same units of measurement.

The rated potential productivity of the equipment per unit of its operation time is taken as the norm of productivity.

Analysis of equipment utilization indicators by quantity

An analysis of the use of equipment by quantity shows a quantitative change in the use of equipment at the enterprise in the reporting period compared to the baseline.

Available equipment - all equipment of the enterprise, regardless of its location and technical condition.

Installed equipment - equipment that has been put into operation, including equipment undergoing major repairs and modernization.

Actually operating equipment - equipment that was in operation regardless of the duration of its operation during the reporting period.

The level of equipment utilization in terms of quantity is characterized by the coefficients calculated as ratios:

a) installed (or actually working) equipment to available, that is, This coefficient is used to analyze the dynamics of the use of the available equipment park on the balance sheet, and allows you to find out the number of uninstalled equipment and outline measures to accelerate its commissioning;

b) actually operating equipment to the installed one, that is, This coefficient characterizes the degree of use of the amount of equipment intended for work at one enterprise within a certain period.

An example of the calculation is given in table. five.

Table 5. Analysis of equipment use

Equipment type	amount	Including in workshops:
		production			subsidiary
			from it in groups			from it in groups
			metal cutting			metal cutting
1. Available equipment
2. Installed equipment
3. Actually working Odds: page 2 / page 1 page 3 / page 1 page 3 / page 2

The impact on the return on assets of a quantitative change (reduction or increase) of uninstalled and unused (or surplus) equipment in the reporting period compared to the baseline is determined by comparing the return on assets for the base period based on the baseline output:

a) at the cost of fixed assets in the base period;

b) at the basic cost of fixed assets minus (or adding) the amount of reduction (or increase) of unidentified and unused (or surplus) equipment in comparison with the base period.

Example 1

The cost of fixed assets in the base period is 15,000 thousand rubles, and the volume of gross output is 30,000 thousand rubles. In the reporting period, uninstalled and unused equipment decreased by 1,000 thousand rubles. The change in capital productivity will be:

a) with the cost of fixed assets and the volume of gross output in the base period capital productivity is equal to: 30,000 / 15,000 \u003d 2 rubles;

b) with the basic volume of gross output and the basic cost of fixed assets, taking into account their reduction by 1000 thousand rubles. return on assets is equal to: 30,000 / (15,000 - 1,000) \u003d 2.14 rubles.

The increase in capital productivity as a result of the reduction of unidentified and unused equipment will be: 2.14 - 2 \u003d 0.14 rubles, or 14 kopecks. from each ruble of the cost of fixed assets.

Shift rate analysis

Shift factor (K cm) - an indicator characterizing the use of the equipment fleet in terms of quantity and time. It reflects the time of the whole shift use of a unit of installed equipment and is defined as the ratio of worked machine-tool shifts (P 1, P 2, P 3) to the number of installed equipment (P set):

K cm \u003d (P 1 + P 2 + P 3) / P set.

Example 2

The enterprise has installed 300 pieces of equipment, in the first shift there were 200 machines, in the second - 150, in the third - 100 machines. The shift ratio (K cm) is: (200 + 150 + 100) / 300 \u003d 1.5 shifts.

The change in capital productivity due to the change in the shift ratio (ΔF cm) in the reporting period compared to the baseline is determined by the formula:

Example 3

Capital productivity in the base period (F b) was 5 rubles, the shift ratio in the reporting period (K see from) - 1.5; in the base (K see b) period - 1.4. The decrease in capital productivity due to the change in the shift ratio was ≈ 0.36 rubles, or 36 kopecks.

The growth rate of fixed assets is a value that displays the degree of increase in fixed assets for a certain period. It is assumed that the number of operating systems will increase due to their updating.

How the OS is increased

An increase is observed when the value of funds that appeared at the enterprise during the year exceeds the value of the retired funds. Funds can be understood as a variety of objects: equipment, vehicles, structures. It is the received assets that are taken into account. That is, those objects that were commissioned or capitalized. Consider the traditional sources of income for fixed assets:

• Purchase.
• Rent.
• Construction, development at the enterprise itself.
• Transfer free of charge.
• Acquisition based on an exchange agreement.
• Receipt as an investment in the authorized capital.
• Posting based on the results of the inventory.
• Receipt from a subdivision or head office.
• Privatization.

An outflow of fixed assets is observed under these circumstances:

• Liquidation.
• Write-off of those objects that are no longer serviceable.
• Transfer as a contribution to the authorized capital of another company.
• Sale, donation, exchange.
• Sending to another department.
• Detection of shortages during the inventory.
• Loss, theft, destruction.

The OS may also retire together with a person who leaves the management of the LE.

Formulas for determining the coefficient

To determine the coefficient, you can use this formula:

(OSpos - OSselected) / OSk.

The following values \u200b\u200bappear in the formula:

• OSpos - funds received by the enterprise for the period of interest.
• OSleft - funds that have been disposed of during the same period.
• OSK - the cost of funds that are in the enterprise at the end of the period.

This is the main, but not the only formula for calculations. You can also determine the growth using this formula:

SK - SSV - (NSk - NSn).

The formula uses the following values:

• SK - size capital investmentsperformed throughout the year.
• CER - funds accompanying the disposal procedure.
• НСк - construction in progress at the end of the year.
• НСн - construction in progress at the beginning of the year.

If you need not narrow, but more ambitious and strategic values, the following formula is used:

PFC * (GDPp - GDPb - PRVVP).

The formula uses these values:

• PFC - the design capacity of the commodity funds at the end of the planning period.
• GDPp - GDP for the planning period.
• GDPb is the output of gross goods in the reference period.
• PRVVP - GDP growth in the planning period relative to the base period (growth is provided by reducing the capacity of funds).

This formula is relevant for those cases when it is necessary to determine the value for the future.

To establish the growth of the OS, the following information will be required without fail:

• OS cost at the end of the period of interest.
• OS that were put into operation.
• OS that left the company during the period of interest.

The increase in OS can be determined using this simple formula:

OSpr / OSK.

The formula uses the following values:

• OSpr - the amount of fixed assets growth for the reporting period.
• OSK - the cost of fixed assets at the end of the period.

NOTE! Fixed asset gain is the difference between fixed assets that have been put into operation and those that are retired.

What does the growth rate mean?

The value allows you to characterize the relative increase in the cost of operating systems that arose as a result of their upgrade. An increase is observed only if the cost of the new OS exceeds the cost of the old funds. With a negative difference, there is not an increase, but an outflow.

There is no specific rate of growth. That is, it is impossible to say with perfect certainty what this or that coefficient speaks about. All the necessary characteristics can be obtained as follows:

• Comparison with industry averages.
• Monitoring the dynamic change in the coefficient over a long period.
• Comparison with other coefficients that give an idea of \u200b\u200bthe movement of the OS.

The value is an indication of manufacturing and other processes. It allows you to set the magnification production capacity institutions. The coefficient is determined with the following goals:

• Deciding whether an OS upgrade is reasonable.
• Search for funding sources for renovation.
• Establishing technical capacity.
• Control over the production development of the institution.

The resulting coefficient must be analyzed in conjunction with other indicators. In particular, you can establish what exactly influenced the change in the coefficient. For example, it can be the execution of a plan. Based on the value, it should be analyzed whether the OS update affected the operation of the enterprise not only quantitatively, but also qualitatively.

Qualitative changes can be established by considering the dynamics of change in the coefficient over 1-5 years. Another way to determine qualitative changes is to consider all the indicators that were taken into account when establishing the coefficient. It is recommended to evaluate each object in a separate order. For example, the construction of new buildings and the disposal of worn-out objects is considered a positive trend.

fixed asset growth rate

where Fк is the cost of fixed assets at the end of the year, thousand rubles.

Fн - the cost of fixed assets at the beginning of the year, thousand rubles.

Desired value this coefficient - above one. In this case, an increase in OS occurs, otherwise, a decrease; online 2 fresh episodes watch online in Moscow

update rate

where Fpost is the cost of fixed assets received for the period, thousand rubles.

This ratio characterizes the share of new fixed assets in their total balance at the end of the period. The growth of the indicator is a positive trend;

fixed asset renewal period

It characterizes the average period of assets renewal in years. The decrease in this indicator is positively assessed;

retirement rate

where Fvib is the cost of fixed assets retired for the period, thousand rubles.

This ratio characterizes the share of retired fixed assets relative to their total balance at the beginning of the period. An increase in this indicator can be interpreted in two ways. On the one hand, this is a negative trend, indicating a reduction in production potential, on the other hand, under conditions of technical re-equipment, this is a normal phenomenon;

wear factor \\

where A is the accumulated depreciation for fixed assets, thousand rubles,

Fperv - the initial cost of fixed assets, thousand rubles.

This ratio shows what part of fixed assets is completely worn out, i.e. transferred its value to products. The maximum value of the coefficient is 1. Growth of the indicator is a negative trend;

shelf life

where Fres is the residual value of fixed assets, thousand rubles.

Table 5 Data on the movement and technical condition of fixed assets

The information in Table 5 shows that for the reporting year, the technical condition of fixed assets at the enterprise has deteriorated somewhat due to a decrease in fixed assets renewal.

The efficiency of the use of fixed assets is characterized by a system of generalizing and particular indicators.

Generalizing indicators reflect the level of use of the entire set of fixed assets of the organization and its production units.

Private indicators assess the use of certain types of fixed assets or characterize any aspect of their functioning in the production process.

Fund profitability

where P is the profit of the organization, thousand rubles;

Analysis of the structure and dynamics of fixed assets

ROF shows how much profit was received for 1 rub. OS. An increase in the ROF indicator indicates an increase in the efficiency of using the analyzed assets;

Return on assets

where N is sales proceeds, thousand rubles;

F - average annual cost fixed assets, thousand rubles

The return on assets shows how many products were received per 1 ruble. fixed assets. The growth of the indicator is a positive trend;

Go to page:
12 3

How to find the growth rate

Expert Advice - Business Consultant

Related Photos
In order to calculate the growth rate for any financial indicator, it is enough to know its numerical expression at different points in time and be able to apply a simple formula. Just follow this simple step by step tipsand you will be on the right track in your business.

Quick Step by Step Business Guide

So, let's get down to action, tuned in to a positive result.

Step 1
Select the financial indicator, the growth rate of which you need to calculate. Remember that the growth rate shows in which direction the indicator has changed over time, so you need to know two values, for example, the amount of gross revenues in 2010 and 2011.

Fixed assets growth rate

Having done this, proceed to the next steps.

Step - 2
Calculate the growth rate. To do this, divide the indicator for the new period by the indicator for the previous period. Subtract 1 from the obtained value, multiply by 100%. For gross revenue, the formula is (2011 Gross Revenue / 2010-1 Gross Revenue) * 100%. Having done this, we proceed to the next steps.

Step - 3
Do not confuse the growth rate with the growth rate, the latter is calculated using the formula: (Gross Revenue 2011 / Gross Revenue 2010) * 100%. The growth rate always has a positive sign, even if, for example, gross revenue (or any other financial indicator) fell from 100 conventional rubles in 2010 to 50 in 2011. The calculated growth rate is 50%, and the growth rate is -50% ... Having done this, we proceed to the next steps.

How to define economic growth - indicators of measuring economic growth ... 04.12.2011

Step - 4
Check yourself. Before calculating the growth rate, compare the financial indicators of the two periods. If the data of an earlier period is greater than that of a later one, then there has been a real reduction in the studied value, and the growth rate will be negative. On the contrary, if the indicator has increased over time, then the growth rate will have a positive sign. Having done this, we proceed to the next steps.

Step - 5
Please note that you can use the growth rate not only in cases where there are two consecutive values \u200b\u200bof one financial indicator. Growth and growth rates are also calculated to compare data from a specific period of one year, for example, a month or a quarter, with data from the same period of the previous year. That is, you can see if October 2011 gross revenue has increased compared to October 2010 gross revenue.

Population Growth Rate - Dictionary of Economics 06/08/2010 Population Growth Rate is the increase in the population of a country over a period of time, usually one year, expressed as a percentage of the population

We hope that the answer to the question - How to find the growth rate - contained useful information for you. Good luck! To find the answer to your question, use the form - Site search.

Tags: Business

T.A. Frolova
Enterprise economy
Lecture notes. Taganrog: TTI FYUU Publishing House, 2012.

Topic 2. BASIC PRODUCTION FUNDS

7. Efficiency of use of fixed assets

A system of indicators is used to assess the level of use of fixed assets.

I. Generalizing indicators of OS use:

How to calculate fixed assets formula. Average annual cost of fixed assets - formula

Return on assets - the indicator of output per one ruble of the average annual cost of fixed assets:

where Fо - capital productivity;

TP - volume commercial products, rub.;

Fsg - the average annual cost of fixed assets, rubles.

2. Capital intensity - the inverse of the return on assets. It shows the share of the cost of fixed assets attributable to each ruble of manufactured products:

where Fe - capital intensity.

Capital productivity should tend to increase, and capital intensity - to decrease.

3. Labor-to-labor ratio shows the cost of OPF per employee:

where Fв - capital-labor ratio, rubles / person;

Chsr.sp - average headcount industrial and production personnel for the year.

4. Technical equipment of labor (Fv.tech):

where Fact is the average annual cost of the active part of the OPF.

5. Profitability of fixed assets (return on assets) shows the share of profit attributable to the ruble of the cost of fixed assets:

where P is profit (balance or net).

6. The criterion of the effectiveness of the use of OPF at the enterprise(Eef). Shows how many percent of the increase in labor productivity falls on 1% of the increase in the capital-labor ratio:

where DPT is the rate of increase in labor productivity for the period,%;

DFв - growth rate of capital-labor ratio for the period,%.

II. The movement of fixed assets is characterized by the following indicators:

1. Coefficient of receipt (input) Kvv:

2. Cob refresh rate:

This indicator characterizes the degree of technical progress of the Facility for a certain period.

3. Retirement rate Kvyb:

4. The coefficient of liquidation Kl:

5. Coefficient of growth Kpr:

6. Replacement coefficient Kzam:

7. Coefficient of expansion of the Krassch machinery and equipment park:

Crassh \u003d 1 - Kzam.

III. Technical condition OPF is characterized by indicators:

1. Coefficient of validity (Ke):

2. Wear factor (Ki):

IV. The use of equipment is characterized by indicators:

1. Equipment extensive utilization rate is determined by the ratio of the actual number of hours of equipment operation to the number of hours of its operation according to the plan:

where Фф is the time actually worked by the equipment, h;

Фэф - planned effective fund of equipment time for the same period, h.

2. Equipment intensive use ratio is determined by the ratio of the actual performance of the equipment to its technical (passport) performance:

where Vf is the actual volume of production for the period, rubles;

Vpl - established output (production) for the same period, rubles.

3. Integral equipment utilization factor is equal to the product of the coefficients of intensive and extensive use of equipment and comprehensively characterizes its operation in terms of time and productivity:

Quint = Ke * Key .

4. Equipment shift factor - attitude total spent machine shifts to the number of installed equipment:

where tс is the number of worked machine-tool shifts;

N is the total number of equipment;

MS1, 2, 3 - the number of machine-shifts of equipment operation only in one shift; in two shifts; in three shifts.

Equipment load factor - the ratio of the shift ratio of work to the planned shift of equipment (Kpl):

The main directions for improving the use of processing plants and production facilities:

- reduction of equipment downtime and increase of its shift ratio;

- replacement and modernization of worn out and outdated equipment;

- implementation the latest technology and intensification of production processes;

- rapid development of newly commissioned capacities;

- motivation for the effective use of fixed assets and production facilities;

- timely and high-quality implementation of scheduled preventive and capital repairs;

- timely updating of the active part of the OPF in order to prevent excessive moral and physical wear and tear.

In short: Revenue ratio is relative rate, characterizing the growth of profits with increasing income of the enterprise. There is no specific standard for it, but the lower the value, the better for the company.

In detail

The purpose of any business activities is making a profit. Profit is the amount of revenue, net of all taxes, fees and other costs not related to the conduct of the main activity.

Revenue is the result from the main activity. In trade, it is the amount of money received from the sale of goods or services. In other words, it is the volume of sales for a certain period.

Revenue ratio (CV) - the ratio of the volume of revenue without variable costs to the amount of revenue.

In simple words: CV is an indicator indicating how proportionally the profit of an enterprise will grow with an increase in revenue.

Calculation formula

The formula for calculating CV is as follows:

• B - the amount of revenue;
• RP - variable costs.

Revenue without variable costs is gross margin. It is an analytical indicator that is used to calculate other economic indicators.

Reference! Variable costs are costs, the amount of which depends on the volume of production. They are constant per unit of production. In other words, if N volume of electricity is spent on the production of 1 vase, then the same volume will be spent on casting the second copy.

For the correct calculation of the indicator, it is important to correctly isolate variable costs from the cost structure. The company may mistakenly attribute fixed costs to variables.

Reference! Fixed costs do not depend on production volumes. These costs remain unchanged. These include: rent for premises, marketing expenses, depreciation. With a decrease in production, there is an increase in fixed costs per unit of output.

If you need to find the increase in profit with an increase in revenue by 1 ruble, you can use the formula:

• ΔП - change in profit;
• ΔВ - change in revenue.

For calculation, values \u200b\u200bare taken in absolute terms (thousand rubles).

Indicator value

This indicator characterizes the amount of income that goes to cover fixed costs and generate profits. It can be expressed in absolute value and as a percentage.

All fixed costs are served from the company's revenue.

Analysis of the efficiency of using fixed capital

And if it decreases, then the share of profit also decreases.

Important! The larger the coefficient, the more significant the fluctuations in profit will be. This is one of those indicators, an increase in which indicates a negative trend.

A high CV value can only be afforded by companies with a consistently high demand for their products. In this case, they will not be so afraid of a drawdown in income, because even in this case, an increase in revenue will cover all costs and contribute to an increase in profits.

With unstable demand, there is a high probability that, in fact, the revenue will be less than planned, and a loss will occur. The higher the coefficient in this case, the greater the risks.

The growth of CV is a reason to think about creating additional reserves money and other liquid assets in order to use them when the company's solvency decreases.

Standard

There is no standard value for CV. Recommendations will depend on the scope of the company, the demand for its products and other factors. For most businesses, it is better to have a low ratio. In this case, we can talk about low fluctuations in revenue, low risk of loss.

How to lower the CV value?

The CV value should be reduced for:

• Reducing the likelihood of fluctuations in revenue.
• Strengthening solvency.
• Reducing the risk of liquidity shortage.

It is possible to reduce the CV value by increasing the share of variable costs and reducing fixed costs.

Calculation example

The easiest way to calculate economic indicators is in an Excel table. You can download the file with the example table here.

		Variable costs, i.e.
September

The CV of the conditional enterprise in 2017 was 46.27%. The lowest value was recorded in December (31.82%), the highest - in June (55.41%). June had the lowest earnings; this month the company was most vulnerable.

Figure: 1. Diagram of CV changes

Figure 1 shows a graph of the change in the value of the coefficient during the year.

conclusions

The revenue ratio is one of the indicators that is used for financial and economic accounting and break-even point analysis. This indicator is auxiliary, it indicates trends and helps the leader to make decisions. There is no optimal value for it. But one thing can be said: the lower the coefficient, the better for the enterprise.

Questions and answers on the topic

No questions have been asked about the material yet, you have the opportunity to do it first

Related References

Expert Advice - Business Consultant

Related Photos

In order to calculate the growth rate for any financial indicator, it is enough to know its numerical expression at different points in time and be able to apply a simple formula. Just follow these simple step-by-step tips and you will be on the right track with your business.

Quick Step by Step Business Guide

So, let's get down to action, tuned in to a positive result.

Step -1
Select the financial indicator, the growth rate of which you need to calculate. Remember that the growth rate shows in which direction the indicator has changed over time, so you need to know two values, for example, the size of gross revenues in 2010 and 2011. Having completed this, proceed to the next steps.

Step -2
Calculate the growth rate. To do this, divide the indicator for the new period by the indicator for the previous period. Subtract 1 from the obtained value, multiply by 100%. For gross revenue, the formula is (2011 Gross Revenue / 2010-1 Gross Revenue) * 100%. Having done this, we proceed to the next steps.

Step -3
Do not confuse the growth rate with the growth rate, the latter is calculated using the formula: (Gross Revenue 2011 / Gross Revenue 2010) * 100%. The growth rate always has a positive sign, even if, for example, gross revenue (or any other financial indicator) fell from 100 conventional rubles in 2010 to 50 in 2011. The calculated growth rate is 50%, and the growth rate is -50% ... Having done this, we proceed to the next steps.

Step -4
Check yourself. Before calculating the growth rate, compare the financial indicators of the two periods. If the data of an earlier period is greater than that of a later one, then there has been a real reduction in the studied value, and the growth rate will be negative. On the contrary, if the indicator has increased over time, then the growth rate will have a positive sign. Having done this, we proceed to the next steps.

Step -5
Please note that you can use the growth rate not only in cases where there are two consecutive values \u200b\u200bof one financial indicator. Growth and growth rates are also calculated to compare data from a specific period of one year, for example, a month or a quarter, with data from the same period of the previous year. That is, you can see if October 2011 gross revenue has increased compared to October 2010 gross revenue.

Fixed assets growth rate - reflects the relative increase in fixed assets due to their renewal.

Fixed assets growth rate formula

Fixed assets growth rate \u003d (The cost of newly introduced fixed assets - the cost of retired fixed assets) / The cost of fixed assets at the end of this period

Synonyms

Fixed assets growth rate

Was this page helpful?

More found about the growth rate of fixed assets

1. Methodology for the analysis of certain types of non-current assets according to the data of Form No. 5 "Appendix to the Balance Sheet" of the accounting (financial) statements Balance of fixed assets at the beginning of the period Growth rate of fixed assets Increase received - retired fixed assets Balance of fixed assets at the beginning
2. Analysis of long-term financial decisions of the corporation based on consolidated statements Growth rate of non-current assets% - 7.58 Ratio of commissioning of fixed assets% 14.04 22.86 Growth ratio
3. Problems of analysis of fixed assets of the enterprise Table 4 - Calculation of the coefficients of renewal of the disposal of the increase in fixed assets of JSC AIP for the period 2012-2013 Indicator 2012
4. Features of the analysis of the organization's fixed assets Table 2. Indicators of the condition of fixed assets of LLC XXX Indicators 12/31/14 12/31/15 Absolute growth rate of growth% Coefficient
5. Ratio of input of fixed assets The rate of growth of reduction of fixed assets depends on the value of this indicator and the rate of retirement of fixed assets.If the rate of input is greater than the rate of retirement, then expanded reproduction takes place
6. Methodological approaches to analyzing cash according to the accounting statements of an insurance company Identifying key sources of income and main areas of spending money II Interconnection of the net profit indicator and cash growth ... funds in the organization III ... Calculation interpretation and analysis of the dynamics of the efficiency ratio of the use of funds Calculation interpretation and analysis of the dynamics of the profitability ratio of positive cash flow
7. Property status To assess the property status of an enterprise, the indicators are used the amount of economic assets at the disposal of the enterprise the share of the active part of fixed assets wear rate coefficient of renewal rate of retirement rate of growth of real assets share of current assets
8. Analysis of cash flows as a tool for assessing the availability of cash at the enterprise on the example of OAO Nizhnekamskneftekhim DSexpenditure - expenditure of funds - Ratio of net cash flow sufficiency Kdchd K dchd ChDP Dkz where NPP -
9. Features of the analysis of fixed assets and financial investments based on new reporting forms (explanations to the balance sheet and the profit and loss statement) If fixed assets prevail in investment assets and in their growth, then the direction investment strategy - real investments for the development of its own production base If ... Indicators of the state of fixed assets, especially the input coefficient characterizing investment activity, largely determine the future state of the company's production potential, its competitiveness
10. Assessment of the impact of the tax system on the efficiency of industrial innovations Here, 1.123 sales growth factor Similarly, labor costs are calculated insurance payments Net positive ... Negative cash flow is an increase in working capital and investments in fixed assets The discount rate for the project is 15% per
11. Analysis of the movement of fixed assets on the example of JSC Generating company JSC Generating company for the period 2012-2014, the main coefficients characterizing the movement of fixed assets were calculated, presented in Table 1. 1 Table 1 Name of the indicator Calculation formula Period 2012
12. Depreciation deductions and their role in the formation of the investment potential of the enterprise In case of unprofitable production, it is possible to use decreasing coefficients to the current depreciation rates The use of accelerated depreciation of fixed assets in the depreciation policy of enterprises will allow
13. Methodology for analyzing the property status of a commercial organization according to the balance sheet data Since almost all financial ratios that characterize the property status have an industry specificity, then they do not have universal recommended values \u200b\u200bProduction ... Growth rate% Growth rate% Amount thousand rubles Share% Amount thousand rubles Share% Amount ... Intangible assets 2 Fixed assets 3. Construction in progress 4 Long-term investments in material assets and 5. Long-term financial
14. Methodology for the analysis of the consolidation of the cash flow statement Annual growth rate% The share of factors in the change in cash flows% Previous year Fiscal year Previous year ... Assessing the structure of inflows and receipts, it can be noted that the main source of receipts in the absence of information on cash receipts from operating activities is attracting ... For further calculations, namely the calculation of ratios based on the cash flow statement, it is necessary additional Information Table 9 Table 9.
15. Problematic aspects of managing the company's own capital life cycle high cost in comparison with alternative borrowed sources of capital formation unused opportunity to increase the return on equity ratio by attracting borrowed funds, since without such attraction it is impossible to ensure the excess of the financial profitability ratio of the enterprise over ... An enterprise using only equity capital has the highest financial stability of its the autonomy coefficient is equal to one but limits the pace of its development m k cannot ensure the formation ... An enterprise using only its own capital has the highest financial stability; its autonomy coefficient is equal to one but limits the rate of its development m k cannot ensure the formation of the necessary additional volume of assets during periods of favorable market conditions and does not use financial opportunities to increase the return on invested capital Operating enterprises must have sufficient p The size of equity capital that will provide ... It is assumed that it should be sufficient to form not only the main but also own working capital.Thus, the protective and regulatory functions of capital will be provided
16. Comprehensive analysis of the efficiency of the use of intangible assets of TPR - the rate of increase in the share specific type intangible assets Share of the active part of intangible assets 10 intangible assets HMAtotal ... Ratio of intangible assets and fixed assets 14 intangible assets where intangible assets are the cost of intangible assets from the section of non-current assets of reporting ... Calculation algorithm Depreciation rate 7, 13 or utilization rate of intangible assets 10 to IAn to where
17. Determination of the optimal capital structure: from compromise theories to the APV model NWC - investments in the growth of net working capital CA - investments in fixed assets and intangible assets For calculation
18. On the issue of managing own and attracted financial resources of organizations An organization using only its own capital has the highest financial stability, its autonomy coefficient is equal to one, but it limits the pace of its development since it cannot ensure the formation ... Using borrowed capital, an organization has a higher financial potential for its development due to the formation of an additional volume of assets and opportunities to increase the financial profitability of activities due to the use of the effect of financial leverage However, this activity is such ... However, at the same time, the activities of such an organization to a greater extent generate financial risk and the threat of bankruptcy, which increase with the increase in the share of borrowed capital in the total amount of capital used The main source of financing for investments in fixed assets russian organizations in 2013 were borrowed funds
19. Methodology for analyzing form No. 3 “Report on changes in capital” of accounting (financial) statements Result from revaluation of fixed assets 1.4.3. Net profit 1.4.4. Reorganizations legal entity 2. Disposal of equity capital in total ... Based on the results of analytical calculations, a conclusion is drawn about the main factors that caused the receipt and disposal of equity capital of a commercial organization and their impact on the change ... Further, the coefficients characterizing the movement of receipt of disposal of the increase in equity capital of a commercial organization are calculated and analyzed. the organization as a whole and also defining
20. Methodology for assessing the business activity of an agro-industrial complex enterprise by indicators of cash flows Assessment of financial activity can be carried out on the basis of comparing interest receivable and interest payable, as well as the increase in the authorized capital to its value at the end of the reporting period You can determine investment activity on ... based on the renewal rate of fixed assets, i.e. the more fixed assets enter the organization, the greater