Summary indicators: capital productivity, capital ratio, average annual value of fixed assets

Funds (PF) - the most important element of national wealth. This concept characterizes the material values that are created and reused in production, and the cost of which is transferred in parts to the manufactured products and services, without changing its own natural form.

Funds in accounting are reflected in such a way that their original value, physical condition and financial losses are visible.

The accounting of fixed assets is accepted to carry out in kind and monetary forms. The monetary valuation allows us to characterize the structure, composition, total size, dynamics, and the amount of depreciation charges.

Indicators such as capital intensity, return on assets, fund-raising allow to assess the economic efficiency of using OF. The basis for their calculation is the average annual value of fixed assets

The state and quality of fixed assets are assessed by:

- at the initial cost, consisting of the purchase price, the cost of delivery and installation of the facility, which is unchanged the entire period of the operation of fixed assets, except for cases of their partial liquidation or reconstruction;

- at a replacement cost reflecting the costs required to purchase similar fixed assets in the current market conditions;

- at a residual value, which is the difference between the initial book value and the amount of depreciation.

The presence of PF as a whole, as well as separately by types, their estimated indicators can be calculated on any date, or for a certain period of time. In the first case, moment indicators are obtained, in the second case, the so-called interval indicators, that is, the average for the period. The dynamics of the movement of fixed assets and their actual availability are shown monthly.

An important indicator required in accounting for the performance of an enterprise is the average annual value of fixed assets, the formula for calculating it

Фсг = Фн + Фвв * n1 / 12 - Фв * n2 / 12,

Where the value of fixed assets is indicated: Fbv - newly introduced, Fv - retired, Fn - at the beginning of the year. The designation n1 and n2 is the number of months of action, respectively, of the entered and retired OFs.

If the fixed assets were put into operation or disposed of in different periods during the year, the average annual value of these objects is calculated separately for each given the period of actual use, the results are then added.

In order to assess how effectively the fixed assets are used, generalizing indicators are used, namely, the return on capital, the capital intensity, the capital adequacy, and so on.

Capital productivity shows how the volume of gross output and the average annual value of fixed assets are correlated, that is, how much output is produced per unit of capital invested in fixed assets. More efficient work of the enterprise is characterized by a higher rate of return on assets.

The capital intensity, in fact, is the reciprocal of the return on capital. The average annual cost of fixed assets per unit of output or services performed is used to assess the use of PF.

When the capital intensity decreases, the return on assets increases accordingly, this indicates that the efficiency of the use of fixed assets is increasing. The value of capital productivity and capital intensity is greatly influenced by the fund-raising ratio - the average annual value of fixed assets per average number of employees per year.

Knowledge of the correct calculation of generalized indicators for fixed assets is necessary for managers, accountants and economists in order to take appropriate steps to improve the work of the enterprise.