To analyze the production activities of the company, it is necessary to consider the indicators of economic efficiency of the enterprise.
First of all , production efficiency for a certain time period is determined by the volume of manufactured goods, which is estimated using conditionally-natural, in-kind and value indicators.
The volume of production is determined by commodity, gross and sold products. The gross output indicator is the total volume of goods produced, calculated in monetary terms. This category includes completed final, as well as unfinished products and semi-finished products, components and goods, the manufacture of which has already begun. Products sold include goods and products already sold. The whole volume of final goods produced by the enterprise is ranked as a commodity category.
Evaluation of the economic efficiency of the enterprise is carried out using indicators such as gross income, profit and net income.
Gross income is calculated by excluding depreciation and material costs from all gross output . Net income is determined by subtracting its total cost from the value of gross output.
Profit, as well as the above indicators of economic efficiency, allows you to evaluate the work of the enterprise. The formation of this occurs as a result of the sale (sale) of products. The value of this indicator is defined as the difference between the proceeds from the sale of goods and the cost of production and the sale itself.
Economic performance indicators include in their composition and costs. They are divided into one-time and current. The latter are directly related to the sale and production of goods and form the cost of production. The volume of current costs depends on various factors. A certain type of product can be made from various materials and types of raw materials. The main indicator of the effectiveness of current costs is the profitability of production. This category is determined by the ratio of the profit received from the sale to the cost of goods.
One-time costs are indicators of economic efficiency that arise with the updating and expansion of production. Usually, this includes a one-time large investment of capital funds. The non-recurring cost-effectiveness indicator is calculated by the ratio of profit growth, net or gross income to investment.
And yet, profit is the most important economic indicator, which is the final financial result of the enterprise. It acts as the basis for economic development at the level of both an individual organization and the state as a whole.
Profit, like other indicators of economic efficiency, describes the specific production activities of the company. The level of profit in comparison with other firms shows the quality of managers' work, their ability to carry out business activities.
Profit is an internal main source of formation of financial results of a company. The more profit a company receives, the less it is required to attract external sources of financing. Unlike other internal sources, profit is constantly reproduced, and in conditions of successful management, it expands.
It is this indicator that forms the market value of the enterprise. The higher the level and amount of capitalization of profits, the greater the value the assets of the organization acquire, and, accordingly, its market value also increases.