Performance indicators of the enterprise: why are they needed, which ones to choose for analysis
Posted: Sun Dec 22, 2024 10:18 am
What are we talking about? Performance indicators of an enterprise are needed for quantitative and qualitative assessment of results. Thanks to them, strategic goals are compared with achievements over a certain period of time.
What to pay attention to? Depending on the purposes of the analysis, different indicators are used. Financial indicators include net profit, profitability, income and expenses, and commodity cost. Material indicators include commodity intensity and turnover of working capital. The calculation of any of them is carried out using your own formula.
The article explains:
The concept of enterprise efficiency
The Importance of Assessing Enterprise Performance Indicators
Objectives of the analysis email database lists australia of enterprise performance indicators
Performance indicators of the enterprise's material and production activities
Indicators of labor efficiency at the enterprise
Financial performance indicators of the enterprise
Selection of performance indicators for an enterprise
Example of Key Performance Indicator Analysis
Stages of assessing the effectiveness of enterprise activities
Frequently asked questions about enterprise performance indicators
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
The concept of enterprise efficiency
It can be said that a company operates efficiently if it makes a profit, uses all its resources to the maximum possible extent, and incurs minimal costs.
There is no general indicator that would cover all aspects of an enterprise’s production activities and indicate how effective they are.
Performance indicators of an enterprise include an assessment of the profitability of the organization and its assets, a study of the rate of asset turnover, growth in labor productivity, and the efficiency of using the organization’s resources and available equipment.
In other words, to evaluate the performance indicators of the enterprise, you need to calculate certain financial ratios and then conduct a comprehensive analysis of the obtained values. This way, you will be able to see the full picture of how effectively the enterprise operates as a whole.
Efficiency can be determined by the general formula:
Ef = Production results / Production costs
But in practice, this formula is inconvenient to apply, since it can be difficult to evaluate both the results and all production costs in quantitative terms. For example, the results of work can only be analyzed from a qualitative perspective, and therefore it is difficult to reduce everything to a common single result in this case.
What to pay attention to? Depending on the purposes of the analysis, different indicators are used. Financial indicators include net profit, profitability, income and expenses, and commodity cost. Material indicators include commodity intensity and turnover of working capital. The calculation of any of them is carried out using your own formula.
The article explains:
The concept of enterprise efficiency
The Importance of Assessing Enterprise Performance Indicators
Objectives of the analysis email database lists australia of enterprise performance indicators
Performance indicators of the enterprise's material and production activities
Indicators of labor efficiency at the enterprise
Financial performance indicators of the enterprise
Selection of performance indicators for an enterprise
Example of Key Performance Indicator Analysis
Stages of assessing the effectiveness of enterprise activities
Frequently asked questions about enterprise performance indicators
In-Depth Guide: How to Cut Your Ad Costs by 25% with Artificial Intelligence
Download for free
The concept of enterprise efficiency
It can be said that a company operates efficiently if it makes a profit, uses all its resources to the maximum possible extent, and incurs minimal costs.
There is no general indicator that would cover all aspects of an enterprise’s production activities and indicate how effective they are.
Performance indicators of an enterprise include an assessment of the profitability of the organization and its assets, a study of the rate of asset turnover, growth in labor productivity, and the efficiency of using the organization’s resources and available equipment.
In other words, to evaluate the performance indicators of the enterprise, you need to calculate certain financial ratios and then conduct a comprehensive analysis of the obtained values. This way, you will be able to see the full picture of how effectively the enterprise operates as a whole.
Efficiency can be determined by the general formula:
Ef = Production results / Production costs
But in practice, this formula is inconvenient to apply, since it can be difficult to evaluate both the results and all production costs in quantitative terms. For example, the results of work can only be analyzed from a qualitative perspective, and therefore it is difficult to reduce everything to a common single result in this case.