COMPARATIVE ANALYSIS OF KEY INDICATORS TO ASSESS PRODUCTION EFFICIENCY

Abstract

The next problems exist when assessing the economic efficiency of production industries, as well as when choosing the most effective investment projects. So, to assess the economic efficiency of various production, a single standard indicator should be used; but in fact, a system of indicators is used. This system of indicators does not allow ranking production according to their level of efficiency. The existing methodology for measuring production efficiency, which is based on the cost approach, is less informative than the resource approach. The resource approach makes it possible to construct a comprehensive indicator of the overall efficiency of production on the basis of its constituent factors: capital productivity, material productivity and worker productivity. In this article are analyzed the evaluation properties of the following priority evaluation indicators of economic efficiency of production: economic effect, profitability of revenue and profitability of production capital (assets). The general characteristics of these indicators are given, their terminology is clarified, classification and calculation formulas are also given. A quantitative relationship is determined between the indicators of general and self-financing efficiency, and between the indicators - return on revenue and return on production capital. Using the example of forming an investment plan for the technical requipment of production, the preference of using such a relative efficiency indicator as the profitability of production capital is proved in comparison with the absolute indicator - the economic effect. The authors of the “revenue profitability” indicator performed additional calculations to select the highest priority indicator. As a result, it was established that the indicator of the overall efficiency of the applied production complex capital is the main, most informative assessment indicator both at the stage of creating production and at the stages of its operation.