What are the financial indicators to measure the economic efficiency of a company?

What are the financial indicators of a company's economic performance?

The financial indicators to measure the economic efficiency of an enterprise are

Gross profit margin

Profit margin on sales

Total asset turnover

Current asset turnover

Inventory turnover

Accounts receivable turnover

These are the operating indicators, which measure the operating condition of the enterprise

Gearing Ratio

Current Ratio

Quick Ratio

Interest Coverage Multiple

Return on Net Assets

Profit Margin on Total Assets

The economic efficiency of an enterprise refers to the proportionality of the gross product of an enterprise to the cost of production. From the point of view of its connotation and ways to improve the economic efficiency of enterprises can be divided into potential economic efficiency, economic efficiency of resource allocation, economic efficiency of scale and economic efficiency of technological progress and management economic efficiency.

How to strengthen financial management to improve the economic efficiency of enterprises

Financial efficiency analysis

Financial efficiency analysis is based on investment and cost estimates, the preparation of financial statements, the calculation of financial analysis indicators, from the point of view of the project (enterprise), to examine the project's profitability, solvency and financial viability, and accordingly to evaluate and judge the financial feasibility of the project is an economic evaluation method.

Objectives of Financial Benefit Analysis

Profitability Objective

Liquidity Objective

Financial Viability Objective

Basic Statements of Financial Benefit Analysis

Income Statement

Cash Flow Statement

Calculation of Borrowing Debt Service

Source and Utilization of Funds

The following is a list of financial indicators that can be used to evaluate and judge the financial viability of a project from the perspective of the project (enterprise). Statement of Sources and Uses of Funds

Balance Sheet

Structure of Cash Flow Statement

Project Cash Flow Statement (All Investments)

Establishment of Project Comparison Basis

Cash Capital Flow Statement (Own Funds)

Examination of Own Funds' Profitability to Determine Whether External Borrowing is Favorable

Cash flow statement of investing parties

Prepared separately by different investing parties

Financial management rules the professional management and various business activities through the fund-raising, transfer, use, accounting, analysis and assessment of funds. Financial management is good, the activities may be around the enterprise to pursue profit optimization and benefit maximization of the fundamental purpose of the work.

First, the importance of financial management in business activities

1. Through scientific forecasts to reflect the enterprise may reach the future indicators. Business activities must be built on the basis of correct decision-making, and scientific forecasting is the premise and basis for correct decision-making. Financial management with the help of the qualitative and quantitative accounting information and other relevant information, the use of certain statistical methods to analyze and study the regularity of the movement of funds, the future movement of funds for the enterprise to carry out scientific forecasts, so as to coordinate the economic activities of the enterprise. For example, financial management through the forecast of funds, can be a certain period of time in the future business activities of the funds required, the effect of capital utilization and the expansion of the kit business needs to be additional funds for estimation and projection, so as to determine a reasonable proportion of mobilization, reduce the risk of mobilization. At the same time, financial management through the forecast of profits, can be a certain period of time in the future to understand the profitability of the enterprise in advance. Forecast of costs and expenses, scientifically determine the level and trend of costs and expenses in a certain period of time in the future. So that through the scientific forecast of the business operation of a variety of situations have an understanding of the market situation, so as to analyze the market situation, more accurately reflect the business trend, more effective concentration of manpower, material and financial resources, so that business operations can be guided by the development of scientific forecasts.

2. The use of "quantity and profit" analysis, to determine the critical point of profit and loss. Enterprises can avoid losses and profits, the key is to know whether the marginal contribution to offset all fixed costs, in the case of sales, costs, the size of the marginal contribution depends on the level of sales, so the enterprise needs to carry out profit planning. Setting target profit, first need to determine what level of sales, the marginal contribution to offset all fixed costs in order to preserve capital. This requires the use of financial management in the volume, cost, profit analysis, income, cost, sales, profit of these changes in the formation of the difference between the contact with each other to analyze the various variables are attributed to different mathematical models, through the relationship between the solution, resulting in the "volume of the best value". On this basis, the enterprise now or in the future may reach the level of sales, with the capital sales level for comparison, it can be determined that the enterprise has made a profit or loss, so that enterprises can be targeted to reduce consumption, expand sales, the development of the lowest cost target, in order to obtain the maximum economic benefits.

3. Through participation in decision-making, to improve economic efficiency. The development of the modern economy so that the center of gravity of each enterprise management falls on the decision-making. Due to the formation of funds, distribution, consumption and compensation, planning, organization, accounting and supervision, the need to develop and select financial activities, in order to provide for the direction of the enterprise's use of funds to determine the objectives of various activities and ways to achieve, therefore, the need for financial decision-making activities. Financial management through participation in decision-making, you can analyze the quality of goods, material consumption, capital consumption, cost, sales level, etc., to find out the weak links, and promote the development and improvement of enterprise measures to achieve the correct reflection of the past, accurately predict the future, effective control and role in the present, and play a wide range of financial resources to improve the economic efficiency of the enterprise's role.

At the same time, financial management through the control and evaluation of the assessment and analysis, faithfully reflecting the business process of the economic activities of the situation for the enterprise's target prediction, the implementation of business decision-making, acting as a counselor for the enterprise to achieve the best benefits to create good conditions.

Second, strengthen financial management, improve the economic efficiency of enterprises

Currently, in the development of a socialist market economy, the establishment of a modernized enterprise system in the process of financial management has become increasingly important. Therefore, how to improve financial management, give full play to the important role of financial management is the management of business leaders must pay attention to the issue, specifically should work from the following aspects:

1. Business managers must have a clear sense of financial management, in the business activities should strive to do, where the decision-making about the operation of the financial sector should be allowed to participate in the personnel; where to carry out the analysis of business activities, should let the financial sector to participate in the analysis of the financial sector, should let the financial sector to participate in the analysis of the business activities, should let the financial sector to participate in the analysis of the financial sector. The analysis of business activities, the financial sector should be allowed to play a leading role; any changes in the market, the development of basic projects, we must ask the financial sector to predict the economic benefits; to promote the financial management of enterprises to play a central role in the business activities to ensure that the completion of the economic efficiency targets.

2. Financial management should actively update the concept of attention to strengthening the sense of participation, the establishment of financial forecasting to improve the economic efficiency of enterprises as the goal of decision-making system. In the planned economy, the financial management of enterprises is centered around the state directly manage and monitor the enterprise. And the modern enterprise system makes it clear that the enterprise legal person has the right of management, and bears the obligation of legal operation and tax payment according to law. Therefore, the role of enterprise financial management work should be changed from the original service in the financial accounting to the service of enterprise management, its function should be changed from financial accounting, supervision and management and control to business management, in order to achieve the change of financial focus, should be established to optimize the allocation of resources for the purpose of cost, benefit comparison, distribution as a means to ultimately improve the economic efficiency of the enterprise as the goal of the financial forecasting, decision making The work of the system.

In the specific work, can be based on the enterprise to determine the overall goal, investigation and collection of internal and external information, to assist business managers to establish a simulation of the market, to determine the overall goal of the factors related to the goal, and to assist business managers, for decision-making and target prediction and analysis, put forward a number of feasible options. Secondly, based on the information on the scientifically measured factors of the alternatives, scientific and technical methods can be utilized to forecast the projected revenues and costs of the alternatives, and to prepare a comparative analysis table. Based on the economic efficiency of the alternatives to screen, to determine the optimal program for the enterprise decision makers. Again, based on the identified program, the preparation of the budget, the decision-making objectives of the program specificity and efficiency, in order to facilitate the implementation and monitoring, and for the assessment and evaluation of performance to provide an appropriate yardstick and criterion

What is economic efficiency? What are the main ways to improve the economic efficiency of enterprises?

Economic efficiency is the social labor savings achieved through the external exchange of goods and labor, that is, as little as possible to achieve as many business results, or the same labor costs to achieve more business results. Economic efficiency is a comparison between the use of capital, cost expenditures and useful production results. The so-called good economic efficiency means less capital utilization, less cost expenditure and more useful results. Improving economic efficiency is of great importance to society and so on.

Ways to improve the economic efficiency of enterprises

(1) rely on scientific and technological progress, the use of advanced technology, armed with modern science and technology, to improve the scientific and cultural level of the enterprise workers and labor skills, so that the enterprise's mode of economic growth from the crude to intensive change.

(2) Adopt modern management methods, improve the level of business management, increase labor productivity, with the least consumption, produce the most products to meet market demand.

Relying on scientific and technological progress, the use of modern management methods to improve the economic efficiency of enterprises is the objective requirements of the law of value.

The importance of improving the economic efficiency of enterprises

(1) Improving economic efficiency is conducive to enhancing the market competitiveness of enterprises.

(2) Improvement of economic efficiency can fully utilize limited resources to create more social wealth and meet the growing material and cultural needs of the people.

(3) Improve economic efficiency, improve the state-owned large and medium-sized enterprises, in order to enhance the comprehensive national strength, consolidate the main position of public ownership, and play the superiority of the socialist system.

What is the impact of financial management on the economic efficiency of enterprises

In the context of economic globalization, with the establishment of China's market economic system, enterprise financial management in all aspects of a certain degree of development, and the traditional financial management is very different.

(a) The impact of WTO accession on enterprise financial management

1. The impact of changes in the financial market on the financial management of enterprises

First, the enterprise financing will be more arduous, and the cost and risk of financing will be greater.

Regardless of the nature of the enterprise in the financial market will be in a position of fair competition, only by virtue of its good economic performance, optimistic market prospects and sustained high economic growth and access to funds, enterprises everywhere from the potential pressure of competition from other enterprises, therefore, the difficulty of enterprise financing will be more difficult to raise funds, funding costs and risks will be greater, the enterprise's financing channels and financing methods The channels and methods of financing must be careful and prudent, in order to strive to maintain the optimal state of the capital structure.

Second, investment opportunities and investment risks coexist.

In order to enhance the competitiveness of products in the international and domestic markets, with strong capital and technology-intensive enterprises should increase investment in high-tech industrial base, but increasingly fierce market competition will make the investment risk will be accompanied by a larger enterprise to obtain a higher investment returns must strive to reduce investment costs and risk losses.

2. Changes in economic structure on the impact of enterprise financial management

The World will lead to changes in the structure of China's economy, China's original some of the protected sectors and capital- and technology-intensive sectors will be in the process of economic globalization by the impact of a larger, some of the poorer quality of the assets of the enterprise to accelerate the closure of the business. Some enterprises in order to strengthen and reshape their competitive advantage and internal restructuring, or take mergers and acquisitions, reorganization and other capital operations to implement external expansion.

3. Regulations, the impact of changes in the fiscal environment

Enterprise financial managers must be familiar with the new legal and regulatory environment, otherwise, it will be possible to lead to financial decision-making errors, bringing unnecessary losses to the enterprise.

(B) the characteristics of modern enterprise financial management

Modern enterprise financial management is in accordance with the requirements of the modern enterprise system, according to the financial laws and regulations and the principles of financial management, the organization of enterprise financial activities, financial relations, an economic management work.

1. Finance and investment has been an important part of the financial management of enterprises

Modern enterprises can absorb investment, issuing stocks and bonds, borrowing from banks, financial leasing and other ways to finance, investment, is completely corporate behavior. Whether it can do beforehand accurate prediction, strict control in the matter, after the serious analysis, the relationship between the survival of the enterprise.

2. Financial management has risen to the center of enterprise management

Financial management activities, including fund-raising, investment, consumption, recovery and distribution of five aspects. Fund-raising constraints on the scale and development of the enterprise; capital investment to determine the direction of development and the potential of the enterprise; the consumption of funds related to the enterprise's production costs and competitiveness; the recovery of funds affecting the enterprise's debt servicing credibility and capital turnover; the distribution of funds to determine the enterprise's consumption and accumulation, as well as the interests of investors, operators, employees and other parties. It can be seen that financial management is related to the survival and development of enterprises.

(C) the status of modern enterprise financial management

The new situation of enterprise ownership and operation rights are separated, the enterprise has become the main body of self-supporting management. The efficiency of the enterprise depends entirely on the external market environment and the level of internal management. Financial management department as a capital operation management department, its importance has been highly valued. This is mainly manifested in the financial management of the comprehensive: modern enterprise financial management throughout the whole process of business operations.

1. From the fund-raising, financial management to study the scale of fund-raising, fund-raising, how to borrow, or issue shares, is the internal fund-raising, or debt management, to regulate the proportion of its own funds and borrowed funds, to give full consideration to the financial risks that can be borne to avoid causing a loan to a loan of the vicious circle.

2. On the use of funds. Financial management to regulate the proportion of productive expenditure and non-productive expenditure, the proportion of good regulation of the relationship between the various sectors of the enterprise, in particular, to regulate the proportion of investment between the various products to focus on the main products, secondary products as a supplement.

3. In terms of the business environment, financial management to study the geographical location of the enterprise, regional policies, living standards. If you enter the economic development zone, or high-tech parks, based on which aspects of the preferential policies can make the enterprise to achieve optimal economic efficiency, in order to avoid decision-making errors due to policy reasons, resulting in unnecessary losses.

4. In terms of marketing strategy, the implementation of the market economy, enterprises from the procurement of raw materials to product processing, sales and a series of business activities, by the enterprise according to the market and the situation of the enterprise's own arrangements, business risks borne by the enterprise itself, so that the enterprise must be by the financial management department of the market situation to predict the market, collect and manage the market information in order to develop marketing strategies.

Third, the current situation of China's enterprise financial management and improvement

(a) the main problems in the current enterprise financial management

Rising enterprise costs, declining efficiency is a direct manifestation of the weakening of financial management. In recent years, the reform of the economic system, including the reform of the enterprise financial system gradually deeper and deeper, the gradual expansion of corporate autonomy, which is to enhance the vitality of enterprises on the effectiveness of the obvious, but there is also a tendency to ignore the necessary regulation and strict supervision of the financial behavior of enterprises, resulting in the current financial management of enterprises in the existence of a number of problems.

1. Investment decision-making and management loopholes. At present, the management of many enterprises are still stuck in the workshop management level, the management of investment decisions do not pay enough attention, and even the management of blind spots. Part of the enterprise blindly spread, on the project, a focus on investment, ignoring the investment decision-making and management, so that the investment can not have the corresponding output, so that the enterprise to carry a heavy burden, and may also seriously jeopardize the survival of the enterprise.

2. capital management problems. Shortage of funds is a deep headache for enterprises. However, in fact, many enterprises are not missing in the total amount of funds, but due to poor management, resulting in poor capital ring back. Now some enterprises to the higher orders in disregard of the five, engage in extra-budgetary funds, engage in "small treasury", resulting in funds outside the body back to the circle, not only affecting the normal turnover of funds, but also for the production of corruption provides a breeding ground.

3. Lax cost management. Some enterprises have serious short-term behavior, a little accumulation in the non-productive expenditure, some in the predicament of loss, profligate spending is not stingy, the main problem is the use of power for personal gain.

4. Cost management is not in place. Many enterprises on the production and management of the lack of strict scientific management, labor without assessment, consumption without quotas, no one to manage the device, the cost is not accounted for, the assessment of no rewards and punishments. Many enterprises on how to plug the loopholes in the production process, the development of by-products, strive for more output does not pay attention to, resulting in waste.

At present, part of the financial management of enterprises to appear larger slippery slope, the phenomenon of loose financial discipline is prominent, there is a considerable part of the financial management of the enterprise's groundwork for a serious regression, many enterprises to varying degrees of inconsistency between the accounts, account discrepancies, or account of the fact that there is nothing, there are no accounts, no account of the problem of the material, as well as a virtual profit and loss of the intersection of the question.

(B) strengthen the enterprise financial management to improve the efficiency of the enterprise countermeasures

1. Update the concept of financial management

With the reform of the deepening and the development of the market economy, enterprises have become the main body of the market, survival, development and vitality of today's enterprises has become the overall goal of the market economy requires that the enterprise production and management, financial managers must change their minds as soon as possible to establish the correct financial concept. Correct financial outlook. Set up independent financing, the concept of self-restraint, the cost of capital and the concept of time price, debt management and the concept of financial risk, the concept of debt servicing.

2. Implementation of comprehensive budget management

The implementation of budget management is an important means of improving the overall management level of the enterprise, the core of budget management lies in the future behavior of the enterprise's prior arrangements and plans for the enterprise's internal departments and units of the allocation of various resources, assessment, control. In order to make the enterprise act in accordance with the established goals, so as to effectively realize the enterprise development strategy.

3. Strengthen capital management

Capital management is the core content of enterprise management, first of all, we must reasonably raise funds to ensure that the funds occupied and the lowest cost of funds. In addition to consider the trend of bank lending rates, rationalize the structure of short-term borrowing and long-term borrowing to ensure that the use of funds and the lowest cost of funds; secondly, we must rationalize the use of funds to strengthen the control of the process of using funds, which requires on the one hand, the financial sector and the production and circulation departments to rationalize the allocation, on the other hand, strengthen the daily monitoring of the cash flow, the implementation of the capital approval reporting system to economize the use of funds. Funds.

4. Establishment of the financial director system, improve financial management

The financial director is decided by the owners of the enterprise, on behalf of the owners of the enterprise's financial activities to exercise supervision and management responsibilities. The most economical way to strengthen enterprise management is to strengthen the supervision and control of enterprise finance. Financial director as the person in charge of accounting work, directly involved in the financial management of enterprises, and play a supervisory role in management.

5. Realize the integration of corporate finance and business

With the continuous development and growth of enterprises, management links more and more, the financial management should be extended to the company's financial management of all the production and operation of the field to achieve the meticulous, for each position, each specific business has established a set of corresponding workflow and business norms, pay close attention to the implementation of the practice to achieve the integration of corporate finance and business. business integration. The synergistic development of financial management and business is the highest level of financial management, the perfect combination of business and finance.

Fourth, conclusion

Enterprise financial management is an important part of business operations, it runs through the entire chain of business operations, so it is necessary to implement a comprehensive budget management to control business costs, strengthen the management of funds to rationalize the use of funds, the establishment of a financial monitoring system to play an important role in financial management, and to promote the integration of enterprise finance and business. Improve the economic efficiency of enterprises.

Why should enterprises improve economic efficiency? You think there are ways to improve the economic efficiency of enterprises?

The purpose of the enterprise is to make a profit to achieve sustainable development. If the loss and show a continuous state, resulting in the enterprise has no money, to bankruptcy. So the enterprise must improve the economic efficiency. What is a business and what is the definition of economic? It is difficult to clarify the relevant information. As with your question, some seemingly simple issues are actually very complex and not boring.

The way to improve the economic efficiency of the enterprise: the product or commodity is marketable; the price is fair and equitable; there is a fixed sales object, the demand for fixed personnel; smooth capital turnover, cash flow and active.

Performance management and enterprise economic efficiency

The so-called performance management refers to the managers and employees at all levels in order to achieve organizational goals *** with the participation of the performance plan development, performance coaching and communication, performance assessment and evaluation, application of performance results, and performance goals to enhance the continuous circle process, the purpose of performance management is to continue to enhance the performance of the individual, the department and the organization.

Performance plan development is the foundation of performance management, can not develop a reasonable performance plan can not talk about performance management; performance counseling and communication is an important part of performance management, this part of the work is not in place, performance management can not be put into practice; performance appraisal evaluation is the core part of performance management, this part of the work of the problem performance management will bring serious negative impact; performance results Application is the key to the success of performance management, if the incentives and constraints on the employees of the mechanism there are problems, performance management is unlikely to achieve results.

Performance management emphasizes the consistency of organizational and personal goals, emphasizing the synchronous growth of the organization and the individual to form a "win-win" situation; performance management embodies the idea of "people-oriented" in all aspects of performance management requires managers and employees to *** with participation. The performance management embodies the idea of "people-oriented" and requires the participation of managers and employees in all aspects of performance management.

The concept of performance management tells us that it is a process of two-way communication between managers and employees. At the beginning of the process, managers and employees communicate seriously and equally to agree on the work objectives and tasks for the coming period (usually one year), and to establish the work objectives of the employees for the coming year, which are expressed as Key Performance Objectives (KPIs) and Balanced Scorecard in the higher level of performance management. scorecard.

The role of performance management

1. Performance management promotes the improvement of organizational and individual performance

2. Performance management promotes the optimization of management processes and business processes

3. Performance management ensures the realization of the organization's strategic objectives

How many criteria are used to evaluate the economic efficiency of an enterprise?

There are several standards for evaluating the economic efficiency of an enterprise:

① The standard of program objectives, measured by the program objectives set by the enterprise, which is the basic standard for evaluating the economic efficiency of an enterprise.

② Historical standards, the actual level of an enterprise's economic efficiency indicators with the same level of the previous year or the best level of history for comparison.

③ Industry standard: the advanced level that has been achieved in the same industry in China as a yardstick for evaluation.

④ National standards: the standards for evaluating economic efficiency approved by the state according to the requirements of economic policies in different periods and the situation in different regions and sectors of the country.

What is the economic efficiency of an enterprise? How to improve the economic efficiency of enterprises?

The economic efficiency of an enterprise The economic efficiency of an enterprise is the proportional relationship between the gross product of the enterprise and the cost of production.

Methods to improve the economic efficiency of enterprises

First, we must rely on science and technology to make the enterprise's mode of economic growth from the rough to intensive

Second, the scientific and cultural level of the enterprise's labor force and the level of technology

Third, mergers and bankruptcy of the enterprise is to improve the economic efficiency of the enterprise is an effective measure