B = Volume of output / Number of man-hours (man-days or average monthly headcount of the enterprise) worked during a given period of time
Indicators of labor efficiency at the japan phone number enterprise
Source: freepik.com
The higher the output rate, the more product each employee produces per unit of time, which means that labor productivity also increases.
Labor intensity
Shows how much labor one worker spent to obtain one unit of output. It is determined by the formula:
T = Amount of time spent on production of a product / Volume of production
In calculation formulas, the volume of manufactured products can be expressed in price or physical terms, as well as in standard hours.
Financial performance indicators of the enterprise
Equity
The organization of any business requires certain financial investments, which are ultimately aimed at generating profit. Accounting reports consider such resources as assets. If not all funds are the personal property of the business owner, then the existing credit obligations are subtracted from the total amount.
In terms of this indicator of the effectiveness of the financial activity of the enterprise, its work is assessed quite simply. If everything functions well, then the amount of capital increases over time, thanks to incoming income. In the case of a zero or, even worse, negative result, it is necessary to take measures to maintain the independence of the company, as well as to pay off existing debts on loans without taking out new loans.
Cash flow forecast
Business is an ongoing process, with income and expenses constantly being generated. The company must settle accounts with suppliers of raw materials and employees, pay taxes, and customers pay for supplies (either by advance payments or upon expiration of the deferment period).
The total flow of incoming cash for a certain period is called "cash flow". There is also the concept of "cash outflow", which means the totality of all payments. These two phenomena form the basis of the forecast, which determines the difference between two amounts - how much money the company should receive and how much it should pay.
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In this case, when analyzing the performance indicators of the enterprise's business activities using formulas, it is necessary to distinguish between the concepts of financial flow and profit. In the first case, we mean a set of income and expenses that the enterprise had in the reporting period. In the second case, we are talking about accounting that combines all income from sales, as well as expense items reflected in the reports for a specific month, even if in fact the basis for their formation arose at an earlier date.
For organizations working with contractors by providing a deferment, it is quite possible for a significant gap to form. That is, a situation may arise when there is potential profit, but it has not yet arrived at the enterprise, so a deficit of cash is formed at the moment. This problem is quite serious and can only be prevented by competently making forecasts.
Income and expenses
Even people who are completely far from business and everything connected with it are familiar with these concepts. The income of an enterprise means all the finances that come into its accounts as a result of selling products or services (i.e., carrying out business activities). Expense items mean production costs, expenses, rent and utility payments, employee salaries, tax deductions, and so on.
Financial performance indicators of the enterprise
Source: freepik.com
The evaluation algorithm looks as simple as possible. If the sum of all incomes is greater than the sum of all company expenses, then the business is developing and the concept of its construction is built competently. If the situation is the opposite, then it is necessary to find out the reasons for this and develop measures to stabilize the activity.
Production volumes and product quality
The more products or services a company sells, the higher its turnover, and therefore its profit will also grow. To better assess the current situation, it is necessary to comprehensively monitor all relative parameters that show how effectively the company operates. The same applies to product quality. When there is stagnation, there is no positive dynamics in the company's performance indicators, and this means that it is necessary to start looking for factors that hinder business development.