The efficiency of using the company's fixed assets is characterized by several indicators. One of these indicators is capital intensity. It reflects how many basic production assets are in 1 ruble of manufactured products.
Instructions
Step 1
The capital intensity of basic industrial production assets is defined as the ratio of the average annual value of fixed assets involved in the production process to the volume of output in value terms. If this indicator at the enterprise decreases, this means labor savings.
Step 2
The capital intensity indicator allows you to determine how much money needs to be invested in fixed assets in order to get the required volume of production. If fixed assets are used at the enterprise more efficiently, then this indicator decreases.
Step 3
The reverse indicator of capital intensity is capital productivity. It characterizes the volume of production that the organization receives from each ruble of fixed assets. Return on assets serves to determine the economic efficiency of the production assets available at the enterprise.
Step 4
When analyzing the return on assets from all production assets, their active part is distinguished (working machines and equipment). To determine the influence of the structure of fixed assets on the efficiency of their use, it is necessary to compare the growth rates and percentages of the plan for capital productivity per 1 ruble of the cost of production assets and 1 ruble of the cost of their active part. In this case, the second indicator should increase, provided that the proportion of the active part of fixed assets increases.
Step 5
Increasing the level of efficiency in the use of basic industrial production assets makes it possible to increase the volume of production without additional financial investments in fixed assets and in a shorter time. If the capital productivity increases, and the capital intensity, accordingly, decreases, this indicates an acceleration in the rate of production, a decrease in the cost of reproducing new assets, and therefore, a decrease in production costs.
