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Arvind Shrouti,Option Positive

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Presentation on theme: "Arvind Shrouti,Option Positive"— Presentation transcript:

1 Arvind Shrouti,Option Positive
ECONOMICS OF A FIRM Arvind Shrouti,Option Positive

2 Explanation of the Terminologies
TOTAL CAPITAL EMPLOYED = OWN CAPITAL + BARROWED CAPITAL OWN CAPITAL = SHARE CAPITAL + RESERVES & SURPLUS BORROWED CAPITAL = SECURED LOAN + UNSECURED LOAN INCOME = SALES & SERVICES + OTHER INCOME NON FACTOR EXPENDITURE = MANUFACTURING & OTHER EXPENSES EXCLUDING TOTAL EMPLOYEES COST,INTEREST & DEPRECIATION VALUE ADDITION = INCOME – NON FACTOR EXPENDITURE Arvind Shrouti,Option Positive

3 Some More Terminologies I
LABOUR COST = TOTAL EMPLOYEE COST (i.e.. BARGAINABLE & NON-BARGAINABLE LABOUR SHARE = PERCENTAGE OF EMPLOYEE COST IN VALUE ADDITION CAPITAL SHARE = VALUE ADDITION - EMPLOYEE COST RATE OF RETURN TO CAPITAL = RATIO OF CAPITAL EMPLOYED & CAPITAL SHARE Arvind Shrouti,Option Positive

4 Arvind Shrouti,Option Positive
Terminologies II Production OP price-output price/selling price Turn Over=Production X OP price IP price- input price-prices of all inputs Input Cost-raw material, power, admin cost etc Work Intensity=Ratio of Employment & deployment Productivity=Ratio of Out put or Production & Deployment. Arvind Shrouti,Option Positive

5 Arvind Shrouti,Option Positive
Turnover MODEL OF ECONOMICS OF A FIRM I/P Price Capital Employed Return to Capital Value Addition Capital Share Return to Labor O/P Price Labor Share Production Employment Deployment Productivity Work Intensity Arvind Shrouti,Option Positive

6 Arvind Shrouti,Option Positive
THANK YOU Arvind Shrouti OPTION POSITIVE Pune, INDIA Arvind Shrouti,Option Positive


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