Key performance indicators of the enterprise, its stability and efficiency

A Sufficient number of products sold in the market, the costs spent on its production, in other words, its absolute cost. Subsequent sales will be profitable. The amount of profit will depend on the proportions in which (according to the analysis) semi-fixed costs, and variable conditional variables as part of the full cost. When the sold quantity of products reaches the minimum limit sufficient to cover the cost, then the profit will start to grow faster than the increase in costs and will be an opportunity for development and investment.

Permanent  and analyzing certain basic performance of the company give a true picture of profitability or loss. If the company reduces economic activity, the profits are reduced and losses are increased ahead of the rate of decline in sales.

The Main indicators of activity of the enterprise – is its performance. To be calculated by the following formula:

PR = CPG – mental retardation

In this calculation: PR – the profits derived from the sale of products.
CRP – the proceeds received from the sale of products.
CRA – the amount of costs is spent on sales and production.

In terms of calculation will be visible economic effect, which characterizes the business, generating profit and exceeding costs. The indicator of economic effect compares the level of costs and resources expended to achieve this. However, indicators such as profitability remains beyond the scope of this analysis and evaluation activities.

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Profitability, net income, return on investment, economic efficiency is a key performance indicators of a business. Profitability gives us an idea of how quickly pay off the costs, and the company will be profitable.

ROI:

• Products: R p =the ratio of profit from sales (sales) / divided by the full cost.
• Assets: is R a = the ratio of profits (in the reporting period) / total SB. Where SB is the average balance. The calculation shows how to use working capital and fixed assets how efficiently and are of interest to the financial and credit institutions, business partners.
• Fixed capital: R OK = balance sheet profit / share on the ATAS. Where is the ATAS - average cost (fixed capital).
• Equity: R SK = net income/divided by the average value of the asset. This indicator shows what proportion of profit for each ruble invested by the owner. Fixed asset - fixed assets.
• Return of capital: T = capital/net income. The calculation shows how soon it will pay off the funds invested in the company, if the conditions of financial-economic activities will not change.  

The Main indicators of activity of the enterprise to form “the break-even point of business”, which can be reduced to answering the question: how many products need to sell to cover the production costs and the reimbursement of conventionally variable costs. Based on the analysis of unit price of products is installed in accordance with all conditional-variable costs, in order to fully cover them and get a steady income.

Records in accordance with market requirements, can be correlated with two groups:

•  Evaluation, which characterize the results of particular activities and the achieved level of development.

•  Expensive that reflect the costs of production and operation.

The Division is rather arbitrary and characterizes the relative performance of the company. The type and focus of the analysis depend on the goals that are set for it. Thus, production costs can be considered as evaluation of the achieved level of costs, but the level can be a number, when do you plan to produce per unit of output, and to provide services. The same can be said about such indicators as profit, which the landlord is not in the first place, it is more important the traffic and statistics of the liquidity of the company.

Therefore, the evaluation of total sales, gross profit and net income (after taxes and interest on loans), economic efficiency, capital turnover is a key performance indicators of the enterprise, describing its position on the reporting date.