6. Indicators of movement and use of fixed funds
In the course of time or as a result of changes in technology the part of fixed funds is written off from the balance and, on the contrary, newly acquired fixed funds are enlisted onto the balance of the enterprise.
It is possible to judge about the speed of this process considering coefficients of withdrawal and updating of fixed funds:
,
where Kw - coefficient of withdrawal of fixed funds; Cw - value of fixed funds withdrawn during the year; Сy.b. – acquisition cost of fixed funds at the beginning of the year.
where K ren(update.) - coefficient of renovation (updating) of fixed funds; Ccom - value of fixed funds commissioned during the year; Сy.e. - acquisition cost of fixed funds at the end of the year.
Great values of these coefficients are observed when at the enterprise there is the intensive replacement of the equipment owing to the reconstruction or modernization of manufacturing process.
A number of indicators, among which the major ones are the level of the capital feedback and capital intensity, allow to judge how effectively fixed funds are used.
The capital feedback is a direct value describing the level of the capital feedback. The capital feedback is calculated according to the formula:
Fcap. = B/Can ,
where Fcap. - the capital feedback; B - annual output of production in monetary or natural expression; Can – average annual cost of fixed funds.
The capital intensity or the factor of fastening fixed funds is the inverse value to the index of the capital feedback. It is defined according to the following formula:
Fcap.int. = Can / B ,
where Fcap.int - the capital intensity of a unit of production.
Knowing the capital intensity of goods produced, it is possible to calculate the need in fixed funds.
The capital intensity and the capital feedback belong to generalizing indicators. Besides generalizing indicators, there are special indices of the efficiency of fixed funds usage which characterize the use of separate groups of fixed funds. Indicators of the equipment usage are the most important among these factors. These indices are coefficients of extensive and intensive use of the equipment, and also the integral coefficient.
The coefficient of extensive use of the equipment shows its use in time. There are coefficients of calendar and regime funds of time.
The calendar fund makes 365 * 24 = 8760 hours. The regime time depends on the character of production. For continuous processes it is equal to calendar time, for discontinuous it is equal to the calendar time minus days off and holidays.
Coefficients of the calendar and regime time are calculated according to the following formulas:
K ext.cal. = Tact. / Tcal. ,
where K ext cal. - coefficient of using the calendar time; Tact. - actual (factual) operating time of the equipment; Tcal. - calendar fund;
K ext.reg. = Tact. / Treg. ,
where K ext.reg. - coefficient of using the regime time; Treg. - regime fund.
The coefficient of intensive use of the equipment reflects the level of using it according to its productivity:
K intens. = Pact. / Ptec.norm ,
where K intens. - coefficient of intensive use of the equipment; Pact. - actual (factual) productivity; Ptec.norm - productivity according to the technical norm.
The integral coefficient characterizes the use of the equipment both in time, and according to its productivity:
K integ. = K ext. * Kintens. ,
where K integ. - integral coefficient of using the equipment; K ext. - coefficient of extensive use of the equipment; Kintens. - coefficient of intensive use of the equipment.
The efficiency of the functioning of the enterprise as a whole to a great extent depends on the level of using its fixed funds. Non-material assets also play a great role in the enterprise activity.