How to calculate enterprise performance

An enterprise can be considered effective if it not only pays for itself, but also makes a profit. The higher the production results and the lower the costs, the more efficient the enterprise.

Instruction manual

1

Calculate the cost of manufactured products. This includes expenses for basic materials, salaries for employees, expenses for rent of premises or utilities. The cost item also includes transport and overhead costs of the enterprise, which are mandatory for paying taxes and fees. Overhead costs include the cost of advertising, modernization of production, the introduction of new technologies, etc. Calculate for a month or a year.

2

Calculate the profit of your company for the same period. The income to the enterprise is provided by the sale of manufactured products. Profit is the sum of the proceeds from the sale of products produced during the billing period, minus the cost of producing the goods sold. The more profit the company received from the sale of products in relation to the costs incurred for its production, the higher its efficiency.

3

The introduction of new technologies, the modernization of production increase costs. But at the same time, these costs affect the improvement of product quality, increase labor productivity, resource saving and, as a result, increase the volume of sales and enterprise efficiency. Consider the effectiveness of certain areas aimed at improving product quality and increasing sales. For example, how effective is this or that technology, how much does shift-by-mode operation increase productivity, etc. Important factors affecting the efficiency of the enterprise are the policies adopted by the company and the rational use of attracted investments. Of great importance is the activity of the marketing service, which deals with the study of supply and demand, as well as implements tactics of behavior and increases the competitiveness of the enterprise in the market.