The problem of survival in a changing market economy is becoming increasingly important for organizations. It’s hard for company management to rely on someone to make decisions. It is necessary to use a system of indicators that can show the effectiveness of their implementation. The important question is how to make the best decision in economic matters in order to achieve the prosperity of the company, and not fall into the credit "bondage", not become bankrupt.
To analyze the state of the organization, it is necessary to use indicators of the effectiveness of the use of fixed assets. To obtain the best result, experts recommend making a complex of them.
The most optimal and general indicators of the use of fixed assets are as follows:
- capital intensity;
- return on assets;
- capital-labor ratio.
Let us consider in more detail their content and application features.
Return on assets is calculated as the following fraction: the volume of output for a calendar year at the enterprise to the total average annual value of all fixed assets. If we are talking about industries, then GVA will be used as the first indicator. At the economic level, the value of GDP.
Such indicators of the use of fixed assets are necessary in order to increase the production of products and income of the nation. Increasing its value will help to increase the size of products without resorting to additional capital investments. And it will take a shorter time. As a result, industrial rates will accelerate, the costs of creating new funds will decrease, and costs will also be reduced. The economic effect as a result will be an increase in labor productivity in the enterprise.
Capital intensity - the reciprocal of the return on assets, which characterizes how many fixed assets will fall on one ruble of output. In order to obtain this value, it is necessary to average the amount of industrial assets created on the basis of the initial price, divided by the total volume of all production. If the value decreases, it will mean the occurrence of labor savings.
The capital-labor ratio is recommended to be applied in order to analyze and characterize the degree of equipment of the professional activities of workers. This value is calculated as follows: the average annual value of PF must be divided by the average number of employees.
The above indicators of the use of fixed assets are in direct relationship. We single out the main laws and rules for their application:
- If the use of PFs increases, then the capital productivity will increase, but the capital intensity, on the contrary, will decrease.
- When calculating the first indicator, working equipment and machines will be allocated from the PF complex.
- The capital-labor ratio is of great importance on the value of capital intensity and capital productivity. Therefore, a constant analysis of the use of fixed assets is necessary.
- So, the capital-labor ratio and return are interconnected using the labor productivity indicator, which is calculated by the following formula. The value of output must be divided by the average number of employees. As a result of this understanding, capital productivity will be calculated as a fraction of labor productivity versus capital-labor ratio.
The selected indicators of the use of fixed assets are used in order to increase production efficiency. In this case, it will be very important to ensure the outstripping growth of existing production in comparison with the development of public funds.