Success is 1% talent and 99% perseverance. This wise rule applies to entrepreneurial activity. Therefore, the key to its success is competent strategic and operational planning. For its implementation, the calculation of capital productivity and other financial indicators. They are used to deeply understand the current situation and build scenarios that are promising for the enterprise.
Fixed assets
The calculation of capital productivity, as well as any indicator, it is logical to start with the definition of its components. Fixed assets (funds) - this is one of them. They are one of the important production factors. Fixed assets are means of labor that retain their form when participating in the process of releasing goods. They serve the company for more than one year (production cycle), which is what makes them different from current assets. The cost of fixed assets as they are depreciated is transferred to the finished product using depreciation.
Types of funds
To account for fixed assets (OS) in accounting, their classification is used according to the composition and structure. The following groups of funds are distinguished:
- Production buildings (workshops, warehouses, laboratories).
- Other structures (various engineering and construction objects that create infrastructure for the production of products, for example, roads and tunnels).
- Transmission networks (electric, gas, thermal).
- Equipment and machinery.
- Vehicles.
- Tool.
- Production and household equipment.
- Working cattle and perennial plantings.
- Other funds (including museum and library values).
Analysis of fixed assets
Studying the funds at the disposal of the enterprise is carried out in four directions:
- Analysis of the structure of the OS and the dynamics of their growth or decrease. His tasks include assessing the size of capital and its structure. At this stage, also determines the nature of the impact of fixed assets on the financial position of the company.
- Analysis of the effectiveness of using the OS. Its tasks are determining the direction of movement of funds and the time of their useful operation, calculating integral indicators. At this stage, the calculation of the indicator of capital productivity.
- Cost-effectiveness analysis of equipment upgrades. His tasks include determining the necessary costs for maintenance and overhaul.
- Analysis of the effectiveness of investments in the OS. Its task is to evaluate borrowed funds and their impact on production.
Return on assets value
This indicator illustrates the ratio of gross profit to fixed assets. Return on assets characterizes the efficiency of the enterprise. This indicator was used back in Soviet times. Calculation of capital productivity of fixed assets allows you to determine how much sales are accounted for each unit cost of fixed assets. In essence, this indicator is on a par with the amortization and profitability of the issue. Based on these three indicators, we can conclude how efficiently the enterprise operates. To begin with, the cost of output is compared with the volume of fixed assets. Then the net profit is compared with the necessary depreciation. The calculation of capital productivity of fixed assets allows you to understand whether it is necessary, in particular, the purchase of new equipment. If expenses are less than future income, then such an acquisition is cost-effective.
Return on assets calculation
Analysis of the effectiveness of the use of fixed assets is one of the components of competent management. The calculation of capital productivity can be carried out using several formulas.But in principle, they all come down to the main one. The calculation of capital productivity on the balance sheet begins with the determination of the issue and initial cost of fixed assets. In foreign literature, this indicator is called the turnover ratio. It is used not only to evaluate the efficiency of using the OS, but also to compare work within the industry. One of these indicators is capital productivity. An example of calculation allows you to understand how much production falls on the ruble of fixed assets.
Elements for improving the functioning of the enterprise
The successful work of the enterprise is well traced by the dynamics of indicators of analysis of fixed assets. The return on assets is affected by the following factors:
- The structure of the equipment and its maintenance.
- The ratio of funds for various purposes.
- Capacity utilization.
- Favorable market factors.
However, capital productivity does not take into account, for example, changes in the quality of products. Therefore, it is important to pay attention separately to this indicator in the calculation.
Factors of growth in OS utilization efficiency:
- Technical re-equipment and reconstruction of existing enterprises.
- Changing the structure of fixed assets.
- Use of newer equipment models instead of obsolete ones.
- Improving equipment performance by increasing its use and operating time.
- Automation of production.
- Increase the number of shifts and eliminate equipment downtime.
- Improving the use of newly commissioned facilities.
Efficiency
The purpose of the enterprise is commercial gain. For this, any business seeks to reduce costs and increase its revenues from core activities. Therefore, the problem of increasing the efficiency of functioning is central in market relations. The competitiveness of the enterprise depends on the success of its decision. Efficiency is measured by the amount of profit for each ruble of investments. If the cost of buying new equipment exceeds the expected future income, then this investment is completely unprofitable. A clear idea of the current situation at the enterprise allows you to correctly plan the future. The main thing is to neutralize environmental threats at the expense of our strengths. To do this, the company must identify methods to increase the productivity of fixed assets. So it will reduce the cost of production and provide an increase in gross profit.
Audit as audit
Any enterprise is a complex economic organism. Therefore, it is difficult to imagine its existence without constant revisions. They can be carried out as separate events or as components of financial control of activities. The objectives of the OS audit include:
- Verification of the correctness of documenting financial transactions.
- Determining the initial cost of fixed assets on the balance sheet.
- Verification of the correct calculation of depreciation.
- Determination of residual value of fixed assets.
- Verification of the legality and correctness of business transactions reflected in accounting.
- Assessment of the state of the OS, their safety and performance.
Thus, capital productivity is inextricably linked with productivity. The calculation of this indicator allows you to understand the current situation at the enterprise and plan its further development. To correctly determine the capital productivity, you must first understand what fixed assets are and what factors affect the increase in their productivity in the production process.
