The profitability of assets in terms of prospects for investment

The result of the transition of the Russian economy in the area of market relations was a fundamental change in relationships to collect from a business entity of information on the economic condition. The financial performance of the company, its economic condition is not only interested in the so-called external users, such as commercial banks, other investors, shareholders, tax, so far without her, but also the internal users of information – first and foremost, the administration, managers, internal financial monitoring service.

As a consequence of the country's transformation throughout the economy was the need of reform and complex financial statements. The main focus in this area should be a compromise between capacity, volume, accuracy and scientific content of financial documents and their understanding of a wide range of recipients. This reporting needs to be readable and, most importantly, as transparent as possible. In conducting such transformations investors and other external users in order to determine the profitability of the assets invested in a particular enterprise. It is clear that for the representatives of internal users, such as administration, special problems, in order to know the real figures such aspects as economic assets profitability is not absolutely any work, because they open all management information, in contrast to external users. And it is the return on assets characterizes in many ways the efficiency of the enterprise. As a result, it is possible transparent and understandable financial statements is for investors and shareholders basic information on the financial status of the organization.

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If our businesses and organizations of different ownership forms, and primarily private, want to be really active and successful market participants in the segment, they should greatly increase the profitability of assets without this indicator, the attraction of investments, especially large ones, is impossible. As you know, throughout the civilized world the capital of shareholders is proobrazom in the development of production, which implies that the reform in the direction of transparency in accounting is one of the most important tasks for business owners, because in this situation the investment pattern will be more favorable.

I would like to point out the fact that no matter how hard the owners and accountant to simplify the information, to do this fully is not possible since it is inherently specific. It is clear that the return on assets characterizes the efficiency of enterprise activity, but also that it is necessary to measure the return of assets allegedly invested in the project, it is necessary to perform an economic analysis to assess the prospects of development, and to understand how sustainable this the economic profitability of assets will be in the future.

An Important aspect of economic analysis of the information obtained from financial statements is the organization of complexity and comprehensiveness. The idea is that analyzing the return on assets and other indicators have been affected all spheres of the organization or enterprise, which allows us to make predictions in the short term and long, that in a greater degree is important for large projects. On the other hand the analysis needs to take into account the fact that each of the analyzed parameters is a separate, often complex system with its own laws.