Any production strives for more productive and efficient work, thanks to the use of its assets, which can increase the company's profits by several times.
Return on assets is one of the important indicators that helps to calculate whether the company is doing its job correctly. production activities. In other words, capital productivity is the main measure of a company's performance.
Return on assets is a criterion that can reflect the degree of effective work when using fixed assets. Such a ratio shows how profit has a ratio per unit price size for the main Money.
If only the return on assets indicator is used, in the future it will be impossible to draw a conclusion about the effectiveness of the used money capital. This criterion is able to clearly show how the income received and the price of the assets used by production are related.
In order to correctly determine the effectiveness of the main assets of production, it is necessary to analyze the return on assets that has been obtained over the past few years and compare them with current readings.
The criterion of this indicator has no generally accepted meaning. This is due to the fact that it is heavily dependent on the industrial sector. All this can be seen on the example of capital-intensive companies, where the bulk of their cash in assets is large, which means that the indicator will be at the lower limit. If the coefficient is in an active increase, it means that the enterprise uses its equipment at the peak of efficiency.
In order to properly increase the return on assets indicator, it is necessary to increase the profit of the company or get rid of unnecessary machines that do not generate income for the company. Thus, you can reduce the cost in the coefficient indicator.
Like any other indicator that shows efficient work production, capital productivity is relative. It can reflect the dependence of the income received on the value of the main stock investments.
In order to make calculations, it is necessary to find the ratio of the proceeds to the proceeds from the sale of fixed assets or to active share Money.
The main values of the benefit and the price of funds are most often measured in rubles. Therefore, capital productivity is measured as rub / rub. In most cases, after all calculations, the result is multiplied by 100%, and then the result will be measured as a percentage.
Experts use this formula:
Return on assets \u003d profit received / amount of fixed cash
If the enterprise requires a more accurate result, for this it is necessary to replace the denominator with an average criterion for the price of fixed assets taken over a certain period of time. To find out it, it is necessary to add up the results for the initial and final period of calculations and divide the result by two.
Some experts are of the opinion that the calculations must be done taking into account the very first cost of capital. But in many cases, the final price is used, because it is reflected in the accountant's report.
The indicator of capital productivity is typical for turnover in production. But, unfortunately, it is not able to give complete information on how much assets and liabilities are being used.
There are also other indicators:
They are also calculated by dividing total cost profit on the amount of liabilities or various assets.
This indicator reflects the amount of main cash, which is calculated for one ruble of goods produced. The lower this coefficient is, the more efficient production works. Also, a decrease in capital intensity over a certain period of time is positively reflected in the development of the company.
If during the calculations this indicator grows, and the return on assets decreases, it follows that the enterprise is operating irrationally, not having a full workload.
For all types of industries of any production there is an indicator. Experts recommend that analysis be carried out only for similar production.
To make calculations to determine capital intensity, you must:
The cost of the average annual funds taken for the initial period of the year / profit received.
(efficiency of non-circulating capital) - a coefficient equal to the ratio of the cost of produced or sold products after deducting VAT and excises to the average annual cost of fixed assets.
It is calculated in the FinEkAnalysis program in the Business Activity Analysis block as return on assets.
Shows what is the return on each ruble invested in fixed assets, what is the result of this investment.
The general formula for calculating the coefficient:
Calculation formula according to the old balance sheet:
| K f = | p.010 |
| 0.5*(p.120 n + p.120 j) |
where line 010 is the line of the income statement (form No. 2), lines 120 n and line 120 k are the lines of the balance sheet (form No. 1) at the beginning and end of the reporting period.
Calculation formula according to the new balance sheet:
Return on assets is an indicator that reflects the level and effect of the operation of fixed assets. The value of the indicator depends on industry specifics, the level of inflation and the revaluation of fixed assets.
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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 rate of return on assets will indicate what kind of return in the form of a share of proceeds from the sale of finished products brought each 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, the residual value of fixed assets is used to obtain a one-time indicator.
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 output by more effective use equipment, or 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 The volume of all output / Average annual cost 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.
In English literature, for a similar in its own way economic sense indicator, the term is used in literal translation from English turnover ratio (turnover) of fixed assets(English) fixed assets turnover ratio).
This indicator is used to characterize the dynamics of the efficiency of using fixed assets of an enterprise, as well as for a comparative assessment of the efficiency of using fixed assets at enterprises in the same industry.
The rate of return on assets is determined by dividing the annual volume of production in value or physical terms by the average annual total book value production fixed assets. Determines the quantity of products produced per ruble or per 1000 rubles of production fixed assets. Capital productivity indicators are calculated for existing and newly commissioned enterprises, they can be calculated for all funds and separately for the active part of fixed assets.
The return on assets indicator is calculated according to the following formula:
F O \u003d Volume of marketable output / Average annual cost of fixed assets
The numerical value of the indicator depends on industry specifics, the level of inflation and the revaluation of fixed assets.
The higher the value of the indicator, the more efficiently fixed assets are used. This means that for each ruble of fixed assets, the organization receives more products. In other words, for each ruble of revenue, the organization spent less fixed assets.
The main factors of capital productivity growth are:
The return on assets indicator is called capital intensity.
F e \u003d 1 / F o
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Synonyms:Capital productivity … Spelling Dictionary
An inverse indicator of the efficiency of the use of fixed assets. Economic dictionary. 2010 … Economic dictionary
The indicator is the reverse of capital intensity. See also: fixed assets Financial vocabulary Finam ... Financial vocabulary
capital productivity- Quantity of manufactured products in physical or value terms per unit cost of fixed production assets and working capital [ Terminological dictionary for construction in 12 languages (VNIIIS Gosstroy of the USSR)] return on assets ... ... Technical Translator's Handbook
The parameter, inverse to the parameter of capital intensity, is calculated as the ratio of the cost of annual output to the cost of fixed assets. F. characterizes efficiency economic activity companies. Dictionary of business terms. Akademik.ru… … Glossary of business terms
Exist., Number of synonyms: 1 return (27) ASIS Synonym Dictionary. V.N. Trishin. 2013 ... Synonym dictionary
return on assets- [efficiency of capital] is the reciprocal of the capital intensity of production, the volume of production per unit of production assets used: p/x2 is the average F. (for designations, see the article Production function). Also used is... Economic and Mathematical Dictionary
RETURN ON ASSETS- - a generalizing indicator characterizing the use of fixed production assets. There are several calculation methods. The most common is the calculation of gross output, i.e. comparison of the value of gross output and ... ... Concise Dictionary economist
Output per unit cost of production fixed assets (See Production fixed assets) (fixed capital). AT socialist economy indicator F. characterizes the level of efficiency of use ... ... Great Soviet Encyclopedia
G. Quantity, volume of gross or marketable output per one ruble of production assets [fund I 1.], as one of the indicators economic efficiency; economic indicator efficient use of fixed assets. ... ... Modern dictionary Russian language Efremova
