The gross income of a commercial enterprise as an indicator of its market value

In a market economy, the objective of the enterprise's activity is to increase its market value. The main factors of value creation are cash flow, which takes into account the variability of external and internal factors and interaction with competitors.

To the state, the problem of efficiency is represented by such problems as gross income and profit, intensification of production and productivity growth, maximization of the volume of profit in the context of the fulfillment of approved tasks. Profit at the enterprise level is normalized and its maximization is based on increasing the volume of output or minimizing total costs at stable prices. In these conditions, profit maximization does not occur in order to increase the competitiveness of products relative to other enterprises, but in order to meet the planned volume of output in conditions of stable prices and standards and to ensure the gross income of the enterprise.

The problem of selecting the criteria for evaluating an enterprise becomes acute due to the large gap between supply and demand. Therefore, profit can not fully express the real result of the work of the enterprise and its production structures. Profit also can not fully take into account the real needs of intensive development of the enterprise. The increase in profits, perhaps, and with a large depreciation of fixed assets and when issuing obsolete, but cheap products. There is a situation when the profit indicator is not generalizing on micro- and macrolevels. This invariably leads to an integral index, such as gross income, the gross added value in the products sold, currently formed at the level of branches and the entire national economy.

Gross value added should be formed as the difference between the sale of goods and the consumed material costs. In the main models of the assessment of the concept of "income" and income as an indicator of efficiency "are used rarely, the predominant is the use of the indicator" gross income ", reflecting the extensive nature of the economy.

The concept of "income" is blurred due to the use in the models of indicators such as cash flow, gross cash flow, profit, gross income, value added, monetary value added and others.

The study of different points of view of economists on the disclosure of the economic essence of the concept of "income" showed that most of them can be grouped by several indicators:

- in terms of newly created value;

- by the indicator of "cash inflow or receipt of tangible assets that have a monetary value";

- in terms of "increasing economic benefits as a result of asset growth or repayment of liabilities that provide an increase in equity."

Gross income is basically equated to the profit from sales, based on the definition of which is the revenue from the sale of goods. The use of revenue from the sale of products as the initial indicator for calculating profits in most models of revenue estimates is unlikely to be justified, since the full amount of revenue depends on:

- Firstly, from the chosen method of its account ("on payment" or "on shipment");

- Secondly, the sales proceeds also include material costs purchased from outside. At their specific weight in the cost of industrial enterprises 60-90%, these costs can not be recognized as an inflow of money and considered income. On the contrary, it is an outflow of funds. As a consequence, 50-90% of the cost of materials, fuel, energy, components in the cost price can hardly be considered an income. The latter, in its essence, must provide income to all participants in production: to the employees of the enterprise, to the owners of capital, to the state.