Theme: Socio-economic indicators characterizing activity of firm Plan: Plan: Absolute indicators of efficiency. Absolute indicators of efficiency. Relative indicators of efficiency. Relative indicators of efficiency. Indicators of economic potential of firm. Indicators of economic potential of firm.

An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices(индексы), earnings reports, and economic summaries. An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic indicators include various indices(индексы), earnings reports, and economic summaries.statistic economic activity predictionsbusiness cyclesstatistic economic activity predictionsbusiness cycles

Indicators characterizing activity of firm divided in to absolute and relative. Indicators characterizing activity of firm divided in to absolute and relative. Absolute data characterise scale(масштабы) of operations of firm, its capacity, results of industrial and marketing activity, etc. They contain in the operative and financial reporting of firm. Sales volumes, balance results, profit and other indicators are absolute data. Absolute data characterise scale(масштабы) of operations of firm, its capacity, results of industrial and marketing activity, etc. They contain in the operative and financial reporting of firm. Sales volumes, balance results, profit and other indicators are absolute data. Relative data are the factor, the showing ratio received by absolute indicators. Relative data are the factor, the showing ratio received by absolute indicators.

Groups of absolute and relative indicators characterize: Groups of absolute and relative indicators characterize: economic potential of firm; economic potential of firm; efficiency activity of firm; efficiency activity of firm; competitiveness; competitiveness; financial position of firm. financial position of firm.

Indicators of economic potential of firm: assets, sales volume, net and total profit, fixed capital, a working capital, investments, own and extra capital, capacities, general number of the employees. Indicators of economic potential of firm: assets, sales volume, net and total profit, fixed capital, a working capital, investments, own and extra capital, capacities, general number of the employees.

In economics an asset is any form in which wealth can be held. economicswealtheconomicswealth Assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). ownershipcashownershipcash

Two major asset classes are tangible assets (материальные активы) tangible assets (материальные активы) tangible assets tangible assets intangible assets (нематериальные активы) intangible assets (нематериальные активы)intangible assetsintangible assets tangible assets intangible assets

Tangible assets are those that have a physical substance, such as currencies, buildings, real currenciesbuildingsrealcurrenciesbuildingsreal estate estate, vehicles, inventories, equipment, and precious metals estate, vehicles, inventories, equipment, and precious metalsvehiclesinventoriesequipmentprecious metals estatevehiclesinventoriesequipmentprecious metals real estate- real estate- недвижимое имущество real estate- VehiclesVehicles-транспортные средства Vehicles inventories -материальные запасы inventories -материальные запасы

Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are copyrights (авторские права), trademarks (торговые марки), patents (патенты) and computer programs. Intangible assets are nonphysical resources and rights that have a value to the firm because they give the firm some kind of advantage in the market place. Examples of intangible assets are copyrights (авторские права), trademarks (торговые марки), patents (патенты) and computer programs.copyrightstrademarkspatentscomputer programscopyrightstrademarkspatentscomputer programs

Fixed assets, also known as "tangible assets" or property, plant, and equipment is a term used in accounting for assets and property that cannot easily be converted into cash. This can be compared with current assets such as cash or bank accounts, which are described as liquid assets. accountingassetspropertycashcurrent assetsliquid assetsaccountingassetspropertycashcurrent assetsliquid assets

fixed assets normally include items such as land and buildings, motor vehicles, furniture, office equipment, computers, fixtures and fittings, plant and machinery. landbuildingsmotor vehiclesfurnitureoffice equipmentcomputersmachinerylandbuildingsmotor vehiclesfurnitureoffice equipmentcomputersmachinery fixtures and fittings-крепления и настройки

Fixed assets to equity ratio measures the contribution of stockholders and the contribution of debt sources in the fixed assets of the company. It is computed by dividing the fixed assets by the stockholders’ equity. Fixed assets to equity ratio measures the contribution of stockholders and the contribution of debt sources in the fixed assets of the company. It is computed by dividing the fixed assets by the stockholders’ equity. Other names of this ratio are fixed assets to net worth ratio and fixed assets to proprietors fund ratio. Other names of this ratio are fixed assets to net worth ratio and fixed assets to proprietors fund ratio.

If fixed assets to stockholders’ equity ratio is more than 1, it means that stockholders’ equity is less than the fixed assets and the company is using debts to finance a portion of fixed assets. If the ratio is less than 1, it means that stockholders’ equity is more than the fixed assets and the stockholders’ equity is financing not only the fixed assets but also a part of the working capital. If fixed assets to stockholders’ equity ratio is more than 1, it means that stockholders’ equity is less than the fixed assets and the company is using debts to finance a portion of fixed assets. If the ratio is less than 1, it means that stockholders’ equity is more than the fixed assets and the stockholders’ equity is financing not only the fixed assets but also a part of the working capital. Different industries have different norms. Generally a ratio of 0.60 to 0.70 (or 60% to 70%, if expressed in percentage) is considered satisfactory for most of the industrial undertakings. Different industries have different norms. Generally a ratio of 0.60 to 0.70 (or 60% to 70%, if expressed in percentage) is considered satisfactory for most of the industrial undertakings. Fixed assets to stockholders’ equity ratio is used as a complementary ratio to proprietary ratio. Fixed assets to stockholders’ equity ratio is used as a complementary ratio to proprietary ratio.proprietary ratioproprietary ratio

Working capital is the money needed to fund the normal, day to day operations of your business. It ensures you have enough cash to pay your debts and expenses as they fall due, particularly during your start-up period. Working capital is the money needed to fund the normal, day to day operations of your business. It ensures you have enough cash to pay your debts and expenses as they fall due, particularly during your start-up period.

Current assets - It is rightly observed that “Current assets have a short life span. These type of assets are engaged in current operation of a business and normally used for short- term operations of the firm during an accounting period i.e. within twelve months. Current assets - It is rightly observed that “Current assets have a short life span. These type of assets are engaged in current operation of a business and normally used for short- term operations of the firm during an accounting period i.e. within twelve months.

Production cycle Production cycle

Production cycle– The time taken to convert raw material into finished products is referred to as the production cycle or operating cycle. The longer the duration of production cycle, the greater is the requirement of working capital. Utmost care should be taken to shorten the period of the production cycle in order to minimize working capital requirements. Production cycle– The time taken to convert raw material into finished products is referred to as the production cycle or operating cycle. The longer the duration of production cycle, the greater is the requirement of working capital. Utmost care should be taken to shorten the period of the production cycle in order to minimize working capital requirements.

The working capital ratio, also called the current ratio, is a liquidity ratio that measures a firm's ability to pay off its current liabilities with current assets. The working capital ratio is important to creditors because it shows the liquidity of the company. The working capital ratio, also called the current ratio, is a liquidity ratio that measures a firm's ability to pay off its current liabilities with current assets. The working capital ratio is important to creditors because it shows the liquidity of the company.current ratioliquidity ratiocurrent ratioliquidity ratio Current liabilities are best paid with current assets like cash, cash equivalents, and marketable securities ( рыночные ценные бумаги ) because these assets can be converted into cash much quicker than fixed assets. Current liabilities are best paid with current assets like cash, cash equivalents, and marketable securities ( рыночные ценные бумаги ) because these assets can be converted into cash much quicker than fixed assets.

A ratio less than 1 is considered risky by creditors and investors because it shows the company isn't running efficiently and can't cover its current debt properly. A ratio less than 1 is always a bad thing and is often referred to as negative working capital. A ratio less than 1 is considered risky by creditors and investors because it shows the company isn't running efficiently and can't cover its current debt properly. A ratio less than 1 is always a bad thing and is often referred to as negative working capital. On the other hand, a ratio above 1 shows outsiders that the company can pay all of its current liabilities and still have current assets left over or positive working capital. On the other hand, a ratio above 1 shows outsiders that the company can pay all of its current liabilities and still have current assets left over or positive working capital.working capitalworking capital

Сapacity is often defined as the capability of an object, whether that is a machine, work center or operator, to produce output for a specific time period, which can be an hour, a day, etc. Many companies ignore the measurement of capacity, assuming that their facility has enough capacity, but that is often not the case. Increasingly software programs like enterprise resource planning (ERP) and warehouse management systems (WMS) calculate throughput based using formulas that are dependant on capacity. Сapacity is often defined as the capability of an object, whether that is a machine, work center or operator, to produce output for a specific time period, which can be an hour, a day, etc. Many companies ignore the measurement of capacity, assuming that their facility has enough capacity, but that is often not the case. Increasingly software programs like enterprise resource planning (ERP) and warehouse management systems (WMS) calculate throughput based using formulas that are dependant on capacity.