Economic indicators of the enterprise include quite a few individual components. Analysis of economic indicators of the enterprise is carried out in order to obtain data on the level of development of the enterprise, its effectiveness. Based on these data, conclusions are drawn about possible ways to improve the work of the enterprise and increase its efficiency.
First of all, they include liquidity ratios , showing the company's ability to pay on short-term debt obligations .
Economic indicators of the activities of enterprises in this category are divided into indicators of current, urgent liquidity and working capital.
Current liquidity shows the result of the ratio of the company's current assets to the total volume of short-term liabilities.
Derivative liquidity is calculated as the ratio of highly liquid current assets to the total liabilities of a short-term enterprise. Such assets include receivables, financial investments, cash.
Working capital is the difference between all assets and liabilities of a short-term nature.
In addition to liquidity ratios, economic indicators of an enterprise include turnover ratios (business activity) , which reflect how efficiently the use of assets of the enterprise occurs. These indicators include inventory turnover, receivables, payables, assets and fixed assets.
Inventory turnover demonstrates the speed of implementation of the stocks of goods available to the enterprise. This indicator is calculated as the ratio between variable costs and the average value of stocks (calculated in the number of times).
The turnover of receivables is an indicator of the number of days that are required to collect the debt owed to the enterprise. To calculate this indicator, it is necessary to average the debt for a certain period (per year) divided by the amount of revenue of the same period and multiplied by 365 days.
Accounts payable turnover reflects how many days an enterprise needs to pay its own debts. The indicator is calculated as the average debt for the year, divided by the sum of all purchases and multiplied by 365 days.
The turnover of fixed assets (capital productivity) characterizes the overall efficiency of the use of fixed assets available at the enterprise. If the effective indicator is low, then the investments are too large or the sales levels are insufficient. The indicator is calculated as the amount of annual revenue divided by the average amount of fixed assets (or non-current assets).
Asset turnover reflects the effectiveness of the disposal of assets that the company has.
The following economic indicators of the enterprise include solvency ratios , which reflect the ability of the company to settle long-term obligations without resorting to the liquidation of fixed assets. These financial and economic indicators of the company’s activity include the amount of liabilities in relation to assets (which part of the assets was obtained from long-term or short-term liabilities) and the financial independence ratio (shows the company's dependence on loans from external sources).
And finally, such economic indicators of the enterprise as profitability ratios , showing the degree of profitability of the company. This includes indicators of gross, net profit (calculated as the ratio of the share of profit in sales), assets (by reading profit divided by assets) and equity (calculated by dividing net profit by the amount of equity).