Indicators of use of fixed assets

The problem of survival in a changing market economy situation for organizations is becoming increasingly important. The management of enterprises is difficult for someone to rely on when making 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 issues in order to achieve the prosperity of the company, and not get into credit "bondage", not turn into bankrupt.

To analyze the state of the organization, it is necessary to use indicators of the effectiveness of the use of fixed assets. For an optimal result, experts recommend to compose a complex of them.

The most optimal and general indicators of the use of fixed assets are as follows:

• Capital intensity;
• Capital productivity;
• Capital adequacy ratio.

Let us consider in more detail their content and application features.

Capital productivity is calculated as the next fraction: the volume of output for a calendar year at the enterprise to the full average annual cost of all OF. If we are talking about industries, the first indicator will be the GVA. At the level of the economy, the value of GDP.

Such indicators of the use of fixed assets are necessary in order to promote an increase in the production of products and income of the nation. Increasing its value will help increase the size of products, without resorting to additional capital investments. And this will take a shorter time. As a result, the industrial pace will accelerate, the cost of creating new funds will decrease, and costs will also decrease. The economic effect as a result will be an increase in labor productivity in the enterprise.

The capital intensity is the reciprocal of the return on assets, which characterizes how much fixed assets will account for one ruble of output. In order to obtain this value, it is necessary to average the average amount of industrial PF, created on the basis of the original price, divided by the total volume of all produced products. If the value decreases, this will mean the appearance of labor savings.

Stock-equipping is recommended to be used in order to analyze and characterize the degree of equipping the professional activity of employees. This value is calculated as follows: the average annual cost of PF must be divided into the average number of employees.

The above indicators of the use of fixed assets are in direct relationship. Let us outline the main regularities and rules for their application:

• If the use of OF is increased, then the return on assets will increase, but the capital intensity, on the contrary, will decrease.
• When calculating the first indicator from the complex of PF, the working equipment and machines will be allocated.
• Stock-equipping has a tremendous impact on the size of the capital ratio and the return on assets. Therefore, a constant analysis of the use of fixed assets is necessary.
• Thus, the assets-and-output ratio is linked to each other by means of the labor productivity index, which is calculated by the following formula. The value of output should be divided into the average number of employees. As a result of this understanding, the return on capital will be calculated as a fraction of the productivity of labor to the labor-endowment.

The allocated indicators of the use of fixed assets are used in order to increase the efficiency of production. In this case, it will be very important to ensure the outstripping growth of the existing production in comparison with the development of the PF.