One of the main generalizing indicators characterizing the level of efficiency in the use of fixed production assets is capital productivity.
The return on assets is an indicator of the efficiency of the use of fixed assets, calculated as the annual output divided by the cost of fixed assets with which this product was produced, in the most generalized form, the return on assets characterizes the level of use of fixed assets (funds).
Return on assets is defined as the ratio of output (gross, marketable, net) to the average annual value of fixed assets. The capital productivity indicator is used in the analysis of the level of use of fixed assets, the planned justification of production volumes and the growth of new capacities.
where VP - output, thousand rubles.
Fsr - the average annual cost of fixed production assets, thousand rubles.
The return on assets shows how much production in value terms was produced in a given period per 1 ruble of the cost of fixed production assets. The better the fixed assets are used, the higher the return on assets.
The level and dynamics of capital productivity in the enterprise is affected by:
The volume of output in physical terms and the price of products;
The composition and structure of fixed assets (in particular, the age structure, the share of the active part of the main production assets);
Productivity, price and other technical and economic indicators of machines and equipment; the level of depreciation of elements of fixed assets;
Share of unused elements of fixed assets; degree of loading of machines and equipment; coefficients for the use of production space and production capacity of the enterprise.
Intensity of capital -- an indicator, the return of capital productivity; characterizes the cost of production fixed assets attributable to 1 rub. products.
The capital intensity of products is used in determining the need for fixed assets in the development of long-term plans, the choice of effective options for technical development, for the study economic efficiency operating production.
Depending on the participation of fixed assets in the output of products, capital intensity is divided into direct, indirect and full.
Straight- takes into account the cost of fixed assets of a particular enterprise.
Indirect- includes only the value of fixed assets that operates at other enterprises and indirectly participates in the creation of component products for this enterprise.
Complete- the total value of direct and indirect capital intensity.
production economic resource material
Allocate also incremental capital intensity indicator. It is calculated as the ratio of the increase in fixed assets to the increase in production for a certain period of time (month, quarter, year). Incremental capital intensity is usually used to establish the reasons that influenced the level of capital intensity in the analyzed year.
With the help of indicators of capital intensity, one can trace the dynamics of the level of use of fixed assets, identify the relationship between productivity and capital-labor ratio, and evaluate the effectiveness of forms of intensive expanded reproduction.
Capital-labor ratio is an indicator that characterizes the equipment of employees of enterprises in the sphere material production basic production tools. The capital-labor ratio is defined as the ratio of the value of fixed assets of an enterprise to the average annual payroll number of employees.
where N is the average number of employees.
There is a relationship between capital productivity and labor productivity and capital-labor ratio:
where Fo - capital productivity, rub.;
VP is the volume of production, thousand rubles;
Fsr - the average annual cost of fixed assets, thousand rubles;
H - the average number of employees, people.
PT - labor productivity, thousand rubles;
Fv - capital-labor ratio, thousand rubles.
To increase the return on assets, it is necessary that the growth rate of labor productivity outstrip the growth rate of its capital-labor ratio.
Along with the above indicators, when analyzing the economic efficiency of using fixed production assets, the profitability of fixed production assets is calculated:
where P is the annual amount of profit, thousand rubles;
Fsr - the average annual cost of fixed assets, thousand rubles.
The indicator of profitability of fixed production assets depends on the structure of fixed assets, their size and use, the range of manufactured products, prices for finished products and raw materials.
In this lesson:
Comment.
The phrase "increasing the use of fixed assets" is translated into normal language as "increasing the return on assets." This indicator was actively used in Soviet times, and therefore it is recommended to read the article " Return on assets". The formulas for return on assets are indicated there. The article details all the inferiority of the use of this indicator and the reasons for this.
Please note that when a modern economist talks about fixed assets, he means the current residual value (initial value minus accrued depreciation), while the "Soviet" economist means their initial cost and it does not matter that all fixed assets are already 50-60 years old . Therefore, "increasing utilization" simply means increasing output from existing capacity and nothing more.
Solution.
Return on assets = 180 million / 120 million = 1.5
Now we "ensure the growth of capital productivity" by 2%
We receive a new volume of production.
120 x 1.53 = 183.6 million
Well, let's find the difference.
180 - 183.6 = 3.6 million rubles
Comment. As you can see, the answer could also be obtained by simply multiplying the volume of production by 1.02 (since we have increased the use of OF by 2%, then the production will come out by 2% more). But then there will be no such chain of insane calculations that the teacher needs so much ...
Answer: 3.6 million rubles
Using the data in the table below, determine for two years:
|
Indicators |
Values |
|
Manufacture of marketable products in wholesale prices, thousand UAH. | |
|
The cost of the annual output of marketable products, thousand UAH. | |
|
The annual payroll fund of employees at the enterprise with deductions for social events, thousand UAH. | |
|
The cost of fixed production assets at the beginning of the year, thousand UAH. | |
|
During the year, fixed assets were put into operation at the beginning of the year, thousand UAH. | |
|
Including by quarters: | |
|
During the year, fixed assets were decommissioned, the total cost of which is, thousand UAH. | |
|
Including by quarters: | |
|
Average annual cost normalized working capital, thousand UAH. | |
|
Average number of employees, thousand people | |
|
Observation data for the operation of metalworking equipment within two working days: | |
|
Number of machine-shifts worked in two days | |
|
Number of metalworking equipment, pcs. |
Solution.
Find the average annual cost of fixed production assets. It can be found using the formula:
OF N- the cost of fixed production assets at the beginning of the year, thousand UAH.
OF in i- the cost of fixed production assets introduced in the i-th month, thousand UAH.
tpi- the period from the moment of introduction of fixed assets until the end of the year (number of months of use of fixed assets that are introduced during the year), months.
OF bi- the cost of fixed production assets that retired in i-m month, thousand hryvnia
t at i- the period from the date of disposal of fixed assets until the end of the year (the number of months in a year during which the retired fixed assets are not used), months.
n - the number of cases of the introduction of OPF.
m - the number of cases of disposal of the OPF.
Substitute the values into the formula.
OF avg =1500+ (300*9/12+300*6/12) - (110*9/12+190*6/12) =1500+(225+150)-
-(82.5+95)=1500+375-177.5=1697.5 thousand UAH.
Now let's find the return on assets. The return on assets shows the annual volume of production of marketable products per one hryvnia of the average annual cost of fixed assets. It is determined by the formula:
TP- commercial products.
OF Wed. - the average annual cost of fixed production assets.
Substitute the values into the formula.
FD in \u003d 2000 / 1697.5 \u003d 1.178
Now let's find the capital intensity. This indicator is the return on assets, shows what part of the average annual cost of fixed assets is used for the production of marketable products worth 1 hryvnia.
Capital intensity can be found by the formula:
FU \u003d 1,697.5 / 2,000 \u003d 0.84875
Now let's find the capital-labor ratio. The capital-labor ratio can be found using the formula:
Ch r- the average number of employees of the enterprise, people.
OF Wed- the average annual cost of fixed production assets.
Substitute the values in the formula:
EF o =1697.5/4=424.375 UAH/person
Let's find asset retirement ratio. It is calculated as the ratio of the value of fixed production assets retired during the year to total cost fixed production assets at the beginning of the year.
Substitute the values into the formula.
K vyb \u003d 300/1500 \u003d 0.2
Let's find coefficient of renewal of fixed production assets. It is determined by dividing the value of fixed production assets introduced during the year by the total value of fixed production assets at the end of the year.
To find the cost of fixed assets at the end of the year, we need to add to the total value of fixed production assets, the introduced fixed assets and subtract the retired fixed assets.
Substitute the values in the formula.
To update =600/(1500+600-300)=600/1800=0.33
Let's find the shift factor of metalworking equipment. It shows how many shifts each piece of installed equipment is used on average. This coefficient is found by the formula.
Reading 9 min. Views 133 Published on 11.11.2018
Every owner of a large company wants to have information about overall efficiency firm's activities. To assess the performance of the company, special tools are used. Consider efficiency economic activity, it is necessary to carry out a deep analysis, using data for several recent years. This approach allows you to obtain information about the results of labor activity, and determine further ways of developing production. In order to visually reflect the efficiency of production, indicators such as profitability, capital productivity and capital intensity are used. In the framework of this article, we propose to discuss the question of what capital intensity is and how this coefficient is calculated.
Efficiency is considered one of the basic phenomena for assessing the activities of an enterprise based on the results of the period
Capital intensity is one of the financial ratios used to reflect Money, which must be transferred to the fixed assets of production. These resources will be used for the subsequent production of marketable products. The use of this tool allows you to find out how much should be spent to make a profit in the amount of one ruble. The company's fixed assets category includes assets such as real estate, automobiles and production equipment. This category also includes all means that are used to ensure the regular operation of production. Also, the tool under consideration is often used to divide a specific business segment into several groups, according to the volume of investments in non-current funds.
The economic tool came into use in the 1960s. For the first time, the concept of capital intensity was used in the preparation of the balance sheet of fixed assets National economy. During the preparation of these calculations, it was revealed that the specificity of the coefficient depends on the specific line of business and whether products belong to a particular product group. This explains the recommendation of experts to use this tool only when comparing similar products with similar characteristics.
Capital intensity shows the amount of money that needs to be invested in the development of production in order to reduce overall costs.
Entrepreneurs using this indicator get the opportunity to produce more marketable products without increasing the item of regular costs. As a rule, such coefficients are used in those industries that require large investments. In most cases, in such a business, production capacity is not tied to other components. This indicator is often used in the field of mining, construction and timber harvesting.
The type of capital intensity depends on the degree of use of fixed production assets (OPF) in the process of manufacturing goods. To date, there are the following varieties of the considered coefficient:
In addition to the above coefficients, there is such an indicator as the total capital intensity of goods. This indicator is used when it is necessary to justify the increased rate of expansion of the company. Based on the information obtained using this analytical tool, you can evaluate the performance of a specific market segment, and make plans effective use fixed assets.
Capital intensity along with capital productivity and profitability indicators allows you to most fully reflect the efficiency of the organization Commodity capital intensity is an indicator that depends on the effectiveness of production activities. A company moving from a one-shift operation to non-stop production consumes the main resources much more. In such a situation, there is a drop in the coefficient. A decrease in this indicator demonstrates an increase in production efficiency due to the rational use of appropriate equipment. From the foregoing, it can be concluded that in order to increase economic indicators, company management should optimize the production process. The expansion of the company also allows to achieve the required economic result.
The main disadvantage of using this tool is the absence in the calculations of the cost price - manufactured products. This is explained by the fact that the leadership of the USSR was aimed at large-scale production. In many industries, there has been an increase in costs despite a decrease in the quality of the final product. Based on the foregoing, we can conclude that the use of this tool is advisable only if it is necessary to evaluate a specific unit or compare one workshop with another. Experts conducting such an analysis need to take into account the fact that a certain part of the products remains unclaimed and is stored in a warehouse. The price of the rest of the goods may differ from the forecasts. This means that the information obtained as a result of the analysis rarely shows the real picture.
Many experts note that the use of technology that saves energy, financial and labor resources, can lead to an increase in the considered coefficient. In this case, the growth of the coefficient does not indicate a decrease in the efficiency of the production process. In this case, the capital intensity of production increases due to compensation for losses from a decrease in capital productivity.
In order to determine the value of the coefficient under consideration, all accounting reports that reflect the company's income will be required. In addition, a balance sheet is required, which describes all fixed assets. To determine the capital intensity, the formula "Line 1150 BB / STR 2110 OFR" is used. The first line indicates the price of the underlying assets, and the second line indicates the amount of proceeds received for reporting period.
In order to find out the capital intensity of goods, the accountant needs to divide the cost of fixed assets by gross profit received during the reporting period. At the next stage of calculations, it is necessary to divide the cost of fixed assets by the profit received from the sale of manufactured products.
Capital intensity shows the ratio of the value of fixed assets to one of the types of profit The formula for calculating capital intensity according to the balance sheet differs somewhat from the generally accepted procedure for compiling calculations. In order to determine the value of the considered coefficient by general formula, it is necessary to divide the average annual cost of fixed assets by the revenue received by selling marketable products. It is possible to make such calculations only if there is information about the company's income for billing period. To obtain this information, it is necessary to multiply the cost of one commodity unit by the total volume of goods produced. To obtain information on the average annual value of fixed assets, add the value of fixed assets at the beginning of the year to the price of fixed assets at the end of the reporting period. To determine the value of the coefficient under consideration, you can use such an analytical tool as capital productivity. For this purpose, it is necessary to apply the formula "1 / return on assets \u003d capital intensity".
Some financial experts recommend that people making such calculations take into account various types of profit. To calculate the coefficient based on income received from the sale of marketable products, the following formula is used: "Profit received from the sale of products / average annual cost of fixed assets". In order to obtain information about the value of this income item, it is necessary to subtract the costs of providing the production process from the total revenue. In addition, when making calculations, you can use such an indicator as gross income. In this case, it is necessary to divide the average annual cost of fixed assets by the gross profit. To determine the value of the latter indicator, it is necessary to subtract the technological cost of products from the company's revenue received by selling goods.
The capital intensity formula given above is often referred to as commodity capital intensity. This name is explained by the fact that the result of the calculations allows you to assess the level of exploitation of the assets of the enterprise during the production process. It is important to note that even the unfinished cycle of manufacturing marketable products can be included in such calculations.
In order to better understand the order of application of the considered coefficients, it is necessary to bring practical example. Let's look at the procedure for making calculations based on information from the balance sheet of the organization Vladimir and KO LLC. As we noted above, when making such calculations, it is very important to compare several reporting periods. In our example, we will consider a comparison of economic indicators at the end of two thousand and sixteen and two thousand and seventeen.
The cost of the company's fixed assets is reflected in the line under the number "1150". In two thousand and sixteen, the price of an OS was ninety thousand rubles. At the end of two thousand seventeenth year, this figure increased to one hundred and thirty thousand rubles. The company's revenue is recorded in the "2110" line of the balance sheet. On December 31, two thousand and sixteen, the company earned one hundred and fifty thousand rubles. The following year, the company's revenue was one hundred and ninety thousand.
Gross profit is reflected in the "2100" line. In the sixteenth year, this figure was one hundred thousand rubles, and in the seventeenth year the company received one hundred and twenty thousand rubles of gross income. The profit received from the sale of marketable products is indicated in the line under the number "2200". The value of this indicator at the end of two thousand and sixteen was seventy thousand. In two thousand and eighteenth year, the company managed to earn fifteen thousand rubles more.
In order to determine the capital intensity of fixed assets, the company's accountant needs to add together the value of assets at the end of the sixteenth and seventeenth years. The result obtained must be divided by the revenue received at the end of the billing period. Having performed simple arithmetic operations, we will get a result equal to 0.58 kopecks. It is this value of fixed assets that is used to receive one ruble net profit.
Capital intensity is also reflected as the reciprocal of capital productivity The performance of a manufacturing company depends on many factors, among which it is necessary to highlight the speed of supply of consumables, raw materials and components. The value of the total capital intensity depends on the following indicators:
When making such calculations, it is necessary to take into account the number of counterparties with which the enterprise cooperates. This approach allows you to get the most up-to-date information.
Based on the foregoing, we can conclude that the reduction of the considered coefficient allows to increase the efficiency of the company. For this purpose, it is necessary to regularly update equipment and timely repair equipment that has failed. You can reduce the coefficient by developing new markets.
The use of technological innovations and devices with increased production capacity also allows you to increase the efficiency of the company. One of the important factors affecting the final cost of products is the quality of the goods. Increasing this parameter, together with the competitive properties of products, can significantly increase the income of the enterprise.
return on assets shows how effectively these funds are being used. By calculating this indicator using the formula below, we can draw a definite conclusion about financial stability enterprises.
The calculated return on assets ratio will indicate what kind of return in the form of a share of the proceeds from the sale finished products brought every ruble invested in fixed assets. This indicator will clearly demonstrate whether equipment, other machinery and fixed assets are being used effectively.
The formula for calculating return on assets (RO) is as follows:
FO \u003d VP / OSsg,
VP - revenue from sales of finished products (net of value added tax and excises);
OSsg - the average annual cost of fixed assets at the beginning of the year.
If we use the balance sheet data, then this formula will take the following form:
FD \u003d line 2110 in form 2 / ((line 1150 Bng + line 1150 Bkg) / 2),
Bng and Bkg - lines in the balance sheet at the beginning and at the end of the year, respectively.
When using the average annual cost of fixed assets (hereinafter - OS) in the calculation of capital productivity, a more accurate result is obtained. However, in most cases, to obtain a one-time indicator, one uses residual value OS.
Like capital productivity, capital intensity is an indicator of whether fixed assets are being used effectively. Only in contrast to the return on assets, capital intensity shows what proportion of investments in fixed assets falls on each ruble of output.
If the efficiency of the use of equipment grows (with a lower amount of costs for machinery and equipment, output increases), then the capital intensity falls, and the return on assets increases.
You can read about the analysis of other such assets in our article.
The standard value of return on assets is set for each industry, i.e. there is no standard. Thus, for industries with a large number of machines and equipment, the coefficient will be lower than in less capital-intensive industries.
To increase the return on assets, it is necessary either to increase production through more efficient use of equipment, or to sell / liquidate those funds that are little or inefficiently used. Improving the efficiency of using existing equipment is achieved through:
The return on assets ratio will clearly indicate how efficiently the equipment is used. An analysis of the indicator in dynamics will allow us to draw conclusions about whether there is progress in the utilization of production capacities. And if the indicator continues to grow, then it is necessary to make a decision to replace the equipment with a more efficient one or to increase its load.
Role economic analysis efficiency of use fixed assets for the successful functioning of the entire enterprise cannot be overestimated. In this case, three main indicators are usually used - capital productivity, capital intensity and capital-labor ratio. As a rule, their change in dynamics is considered.
Based on the results of the study, conclusions are drawn about the rationality or irrationality of the use of available funds, errors and problems are revealed, reserves are found to increase the efficiency of the use of fixed assets.
To calculate the indicators of capital intensity, capital productivity and capital-labor ratio, the value is used "average annual cost of fixed assets". The formula for determining this indicator is as follows:
OS medium = OS ng + OS input * N1 / 12 - OS select * N2 / 12
The value of fixed assets at the beginning of the year can be taken from the balance sheet. To determine the cost of fixed assets put into operation, you need to familiarize yourself with the debit turnover on account 01 “fixed assets” (the source of information can be turnover balance sheet on this account). To calculate the value of the funds written off the balance sheet, it is enough to look at the credit turnover on the same account.
The return on assets indicator is calculated as follows:
Return on assets \u003d Volume of all output / Average annual cost of fixed assets
Return on assets shows how much of the finished product falls on 1 ruble of fixed assets. That is, the higher the value of return on assets, the more efficiently the enterprise uses its fixed assets. Accordingly, the increase in the indicator in dynamics is regarded positively.
If the reverse situation occurs, this is a serious reason to think about the reasons for the irrational use of existing equipment. After all, over time, problems can lead the company itself to significant losses.
The capital intensity indicator is the inverse of the capital productivity indicator and is calculated by the formula:
Capital intensity \u003d Average annual cost of fixed assets / Volume of output.
The value of capital intensity shows what amount of fixed assets falls on each ruble of finished products. Naturally, the lower this indicator, the more efficiently the enterprise equipment is used. A decrease in the indicator over time is a positive trend in the development of the enterprise.
Capital intensity (FU) and return on assets (FO) are paired, interrelated indicators. If one value is known, another can be found by subtracting the known indicator from unity.
If there is a situation at the enterprise in which the FU increases, and the FD falls, this means that production capacity are used irrationally, their workload is not full enough. Accordingly, you should start looking for additional reserves as soon as possible.
For example, it may be worth increasing the number of shifts or making the work week six days (which does not mean that each individual worker will work 6 days a week, it is only a question of redistributing labor resources).
The capital-labor ratio reflects security of workers enterprises fixed assets and is calculated according to the following formula:
Capital-labor ratio \u003d Average annual cost of fixed assets / Average number of employees.
It is possible to draw conclusions about the change in this indicator only in relation to the value of labor productivity. If the growth rate of labor productivity lags behind the growth rate of capital-labor ratio, this indicates an irrational use of enterprise resources. Perhaps we are talking about the multiplicity of the organization's management apparatus or the unmotivated growth of the passive part of fixed assets.
The analysis of these three simple indicators will allow you to recognize in time the problems that threaten the profitability of the enterprise, and find ways to eliminate them.
