scholarly journals ASPECTS OF THE ANALYSIS OF ENTERPRISE’S RATE OF RETURN

2019 ◽  
Vol 31 (1) ◽  
pp. 27-32
Author(s):  
Rositsa Ivanova
Keyword(s):  
Theory And Practice ◽  
Added Value ◽  
Rate Of Return ◽  
Book Value ◽  
Analysis And Evaluation ◽  
Tangible Assets ◽  
Business Analysis ◽  
Business Efficiency ◽  
Separate Object ◽  
The Impact

The main objective of an enterprise is to achieve business efficiency and added value for the owners. The efficiency of enterprise’s business, considered as a separate object of the business analysis, may be expressed either as a ratio of achieved results to the resources used for their achievement, or as a ratio of input resources to the achieved results, due to the use of the same resources. As a resultative indicator, efficiency may be analysed and assessed in three aspects. The first of them refers to the efficiency of use of the enterprise’s production resources. We speak about the enterprise’s fixed tangible assets (production fixed capital), short-term assets (working capital) and workforce. The second aspect refers to the efficiency of income and expenses, and the third one – to the enterprise’s rate of return calculated on varied bases.Rate of return is a summary indicator that characterises the efficiency of the overall business of an enterprise. Enterprise’s rate of return may be analysed and assessed in two aspects. On one hand, rate of return is studied as a resultative indicator by identifying and evaluating the impact of direct factors on its dynamics. On the other hand, rate of return is analysed and assessed as a factor indicator that has impact on the dynamics of other key business indicators that characterise the enterprise’s business.Two approaches for studying and evaluating of enterprise’s rate of return as a resultative indicator exist in the theory and practice of business analysis. These are the accounting and the financial approach.The accounting approach is based on the use of profit to calculate enterprise’s rate of return. By means of this approach, the profit is compared to different bases that may be as follows, depending on the determined objectives and tasks and on the needs of information of the enterprise’s management: assets, capital, equity, expenses, revenue, etc. Furthermore, different values of profit may be also used – accounting profit, book profit, profit from principal activity, profit from sales, etc.The financial approach for analysis of business efficiency is based on the added value for capital owners.The object studied in this publication is the rate of return calculated as a percentage ratio of the book value to the average amount of enterprise’s assets (accounting approach).The studied subject is the model of the economic added value, which is a kind of connection between the accounting and the financial approach for analysis and evaluation of business efficiency.This publication is aimed at presenting a model that binds the economic added value and the enterprise’s asset-based rate of return.

scholarly journals Relation between intangible assets, macroeconomic environment, and market value of German public companies - period from 1999 to 2016

2020 ◽  
Vol 11 (3) ◽  
pp. 1-14
Author(s):  
Tiago De Vasconcelos ◽  
Rogerio Marino
Keyword(s):  
Intangible Assets ◽  
Methodological Approach ◽  
Credit Default Swap ◽  
Market Value ◽  
Added Value ◽  
Rate Of Return ◽  
Public Companies ◽  
Tangible Assets ◽  
Physical Form ◽  
The Impact

The present paper is aimed to investigate the relation of intangible assets, macroeconomic data and market value of German public companies from 1999 to 2016. This paper innovates in relation to those who used the theoretical reference of the neoclassical production function by introducing ranges of variations for the main variables of the model (growth rate of sales, rate of return to fixed capital, rate of return for German bonds, internal product growth rates, discount rates) to verify if the contribution of intangibles is supported by significant changes in the variables essential for estimating the model. Entrepreneurs and executives believed that the key to success in business was associated with its tangible assets and what they were able to produce.  Recently it was realized that the value of a company is not restricted to tangible assets, but also to the assets  with no physical form, such as trademarks, intellectual capital, patents, and other intangible assets. The verification of the impact of the intangibles on the company's market value is made through proxies according to the methodology proposed by Gu & Lev (2011), the Euribor rate and the Credit Default Swap as a country risk proxy and sensitivity analysis for the weighting weighing of Ebitda and for economic growth assumptions. The methodological approach is a test-based quantitative research by using analysis of correlation and regression with panel data using STATA-15 software in order to determine the impact of intangible assets on the market value of the company. The sample was extracted from the Capital IQ database of all public companies listed in Germany from 1999 to 2016 on annual basis. As a result, it was verified that Ebitda is a consistency element of intangibility, and it  impacts the IDE and IC calculation over time, with positive relation with Market Value of German companies, but partial evidences that generate  added value to shareholders.

Capturing Effects of Maintenance Practices in Highway Asset Valuation: Replacement-Cost Approach Versus Book-Value Method

2003 ◽  
Vol 1824 (1) ◽  
pp. 57-65 ◽  
Author(s):  
Poovadol Sirirangsi ◽  
Adjo Amekudzi ◽  
Pannapa Herabat
Keyword(s):  
Pavement Management ◽  
Added Value ◽  
Replacement Cost ◽  
Asset Valuation ◽  
Book Value ◽  
Cost Approach ◽  
Trade Offs ◽  
Study Results ◽  
Asset Value ◽  
The Impact

The replacement-cost approach and the book-value method as decision support tools for selecting maintenance alternatives under budget constraints and for capturing the effects of maintenance practices on highway asset value are investigated. By using a case study based on the Thailand Pavement Management System, the replacement-cost approach and the book-value method are applied to analyze maintenance alternatives for selected highways. The versatility of these asset-valuation methods is explored for capturing trade-offs in the type and timing of maintenance and for incorporating the added value of effective maintenance practices and the impact of deferred maintenance in the overall asset value. The study demonstrated that the replacement-cost approach is a more versatile tool for considering the maintenance-related value of highways in maintenance decision making, whereas the book value may be a simpler financial accounting tool. The two approaches may be used together to clarify how maintenance expenditures are being translated into facility replacement value or how the overall value of the infrastructure is being preserved. The study results are potentially useful to agencies interested in capturing the added value of effective maintenance practices in the overall value of their asset base.

scholarly journals The essence of risks of business activity and their assessment with the aim of sediment and disability in management of efficiency and competitiveness development

2018 ◽  
pp. 52-58
Author(s):  
Valentina Aranchiy ◽  
Mykola Іhnatenko
Keyword(s):  
Theory And Practice ◽  
Entrepreneurial Activity ◽  
Analysis And Evaluation ◽  
Managerial Decisions ◽  
Economic Methods ◽  
Long Run ◽  
Methods Of Evaluation ◽  
General Scientific ◽  
The Impact

The subject of the research is to identify the risks of entrepreneurial activity, their types and nature. It also discusses the classification of the main types of risks, the substantiation of evaluation and analysis methods in order to avoid, minimize or neutralize to ensure the efficiency and competitiveness of enterprises. The purpose of the work is to identify the business risks, their content, the classification of species, the substantiation of the leading methods of evaluation and analysis in order to avoid and minimize and on this basis – ensuring the efficiency and competitiveness of the operation and development of enterprises. The methodological basis of the article became the main methodological provisions of the enterprise's economy, regulatory and legislative acts on the development of entrepreneurial activity, general scientific and special economic methods of cognition. Among them are generalization, grouping, extrapolation, method of comparative analysis, statistical, expert estimations, mathematical forecasting and programming. Results of work. In the process of writing the article, the essence of entrepreneurial risks was identified, their types were identified, classification and grouping according to the types and areas of manifestation were made. This gave an opportunity to substantiate the methods of their further analysis and evaluation. In turn, taking into account and preventing risks on this basis will allow to ensure the tactics and strategy of the development of enterprises with proper efficiency and competitiveness. The field of application of results. The results of the study can be used in the theory and practice of business risk management. Risk assessment and analysis will be appropriate in the economy, in the finances of enterprises, in the analysis of entrepreneurial activity, in developing strategies for its development in the future. Conclusions. Risks of entrepreneurial activity have different spheres of manifestation and degree of influence on it. They can be evaluated both qualitatively and quantitatively. In addition, the proposed grouping and classifications allow, in a certain way, to identify managerial decisions, at least in terms of spheres of manifestation. In general, assessing the types and extent of the impact of business risks and their inclusion in tactical and strategic management will be a significant factor in ensuring the efficiency and competitiveness of enterprises in the long run.

scholarly journals Analisis Usaha Agroindustri Minuman Tradisional Kunyit Asam di Paon Jamu (Curcuma domestica Val. – Tamarindus indica L.)

2020 ◽  
Vol 8 (1) ◽  
pp. 9
Author(s):  
Luh Putu Melia Dewi ◽  
Sri Mulyani ◽  
I Ketut Satriawan
Keyword(s):  
Sensitivity Analysis ◽  
Net Present Value ◽  
Payback Period ◽  
Added Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Tamarindus Indica ◽  
Present Value ◽  
Operational Costs ◽  
Business Analysis

Paon Jamu traditional beverage business is one of the traditional beverage businesses in the Tanjung Benoa area. Judging from the development of his business, Paon Jamu is one of the businesses that have just been established including many similar traditional beverage businesses. This study aims to determine the financial feasibility of the tamarind turmeric beverage business, determine the added value generated, determine the feasibility of a tamarind turmeric beverage business if there is an increase in operational costs and a decrease in revenue using a sensitivity analysis. Tamarind turmeric beverage business is feasible to run, the Net Present Value result is Rp. 6.144.470 for 300 ml packaging. Internal Rate of Return of 13% for 300 ml packaging and 14% indicates that the rate of return is greater than the specified bank interest rate. Payback Period for 2 years 5 months for 300 ml packaging. The B / C ratio is 1,42 for 300 ml packages. The added value of the business of turmeric acid is the added value obtained is Rp. 49.416 for a 300 ml package with a ratio of 47% The sensitivity analysis scenario shows that 300 ml package is sensitive to a 3 and 4% reduction in income in scenario II and III. Keywords: Tamarind turmeric, business analysis, Paon Jamu

scholarly journals ABOUT THE ANALYSIS OF THE RATE OF RETURN OF ENTERPRISE’S ASSETS AND EQUITY

2019 ◽  
Vol 34 (1) ◽  
pp. 17-23
Author(s):  
Rositsa Ivanova
Keyword(s):  
Financial Management ◽  
Fixed Capital ◽  
Rate Of Return ◽  
Management Approach ◽  
Sufficient Information ◽  
Analysis And Evaluation ◽  
Use Of Resources ◽  
Business Efficiency ◽  
Resource Input ◽  
Efficiency Indicators

The issue of enterprise’s business efficiency is topical at all phases and stages of its development. Efficiency is a key concept in economy. Efficiency indicators are relative values which help to commensurate the achieved results and the resources used by the enterprise for their achievement.Efficiency should be analyzed and evaluated in two interrelated aspects. We speak about efficiency in its capacity of resultative indicator that characterizes the enterprise’s operations. The first aspect of efficiency shows the ratio between the value of the result achieved from operations per resource input of BGN 1, and the second one – the amount of resource input for the achievement of enterprise’s result from operations of BGN 1.Depending on the absolute values used for the calculations of the efficiency indicators, they can be classified as follows: indicators for efficiency of use of resources; indicators for efficiency of income and costs; indicators for rate of return.The system of indicators for analysis and evaluation of the efficiency of use of resources may comprise the following indicators. The coefficients of fixed tangible asset workload and absorptiveness are used for analysis and evaluation of the efficiency of use of production fixed capital. The efficiency of use of material resources (part of the production working capital) is analyzed and evaluated by means of the coefficients of material input and material output, and the indicator for analysis and evaluation of the efficiency of use of manpower is the efficiency of labor.The coefficients for efficiency of income and efficiency of costs are used for analysis and evaluation of the efficiency of income and costs. An objective relation exists between these two coefficients and the net income-based and cost-based rate of return, which is of crucial practical and applied significance and provides the enterprise’s management with useful information.Rate of return is a summarizing indicator that characterizes the enterprise’s operations. The level of rate of return may be identified on varied bases: assets, capital, equity, fixed capital, income, cost, etc.Efficiency of enterprise’s operations can be analyzed and evaluated by using different analysis approaches and models. These are the accounting (traditional) approach based on the accounting information, the financial approach based on the quantitative business assessment, and the management approach based on the mission, vision and strategy of the enterprise.This publication reviews the enterprise’s rate of return, and its subject matter covers the rate of return of enterprises’ assets and equity.Our purpose is to demonstrate the significance and importance of the rate of return of enterprise’s assets and the methodology of its analysis. To prove the benefits of the analysis of asset rate of return for the economic practice, i.e. the benefits of the accounting approach for analysis and evaluation of business efficiency. We are trying to demonstrate that the use of the indicator for equity rate of return only, while ignoring the rate of return of assets, is improper, inexpedient, misses’ logics and does not provide the financial management with sufficient information for making proper and reasonable decision for the management of the enterprise and its business. This is explained by the fact that the analysis of the rate of return of the enterprise’s equity does not provide information about the efficiency of use and management of assets in which owner’s capital is input.

Art, Idleness and Food: The Ethics of War Communism and the Origins of Production Art, 1918–1919

2019 ◽  
Vol 29 (1) ◽  
pp. 273-287
Keyword(s):  
Theory And Practice ◽  
State Institutions ◽  
Early Production ◽  
Policy Measures ◽  
Soviet Ideology ◽  
The Right ◽  
The Impact ◽  
The City ◽  
Further Development ◽  
Theory Of Production

The article examines the impact of the discourses concerning idleness and food on the formation of “production art” in the socio-political context of revolutionary Petrograd. The author argues that the development of the theory and practice of this early productionism was closely related to the larger political, social and ideological processes in the city. The Futurists, who were in the epicenter of Petrograd politics during the Civil War (1918–1921), were well acquainted with both of the discourses mentioned, and they contrasted the idleness of the old art with the dedicated labor of the “artist-proletarians” whom they valued as highly as people in the “traditional” working professions. And the search for the “right to exist” became the most important goal in a starving city dominated by the ideology of radical communism. The author departs from the prevailing approach in the literature, which links the artistic thought of the Futurists to Soviet ideology in its abstract, generalized form, and instead elucidates ideological influences in order to consider the early production texts in their immediate social and political contexts. The article shows that the basic concepts of production art (“artist-proletarian,” “creative labor,” etc.) were part of the mainstream trends in the politics of “red Petrograd.” The Futurists borrowed the popular notion of the “commune” for the title of their main newspaper but also worked with the Committees of the Rural Poor and with the state institutions for procurement and distribution. They took an active part in the Fine Art Department of Narkompros (People’s Commissariat of Education). The theory of production art was created under these conditions. The individualistic protest and “aesthetic terror” of pre-revolutionary Futurism had to be reconsidered, and new state policy measures were based on them. The harsh socio-economic context of war communism prompted artists to rethink their own role in the “impending commune.” Further development of these ideas led to the Constructivist movement and strongly influenced the extremely diverse trends within the “left art” of the 1920s.

scholarly journals SUPPORT FOR MANAGING PARTLY CONFIGURABLE MODULAR SYSTEMS

2021 ◽  
Vol 1 ◽  
pp. 2791-2800
Author(s):  
Jarkko Pakkanen ◽  
Teuvo Heikkinen ◽  
Nillo Adlin ◽  
Timo Lehtonen ◽  
Janne Mämmelä ◽  
...  
Keyword(s):  
Portfolio Management ◽  
Product Variety ◽  
Added Value ◽  
Modular System ◽  
Product Management ◽  
Design Decision ◽  
Product Portfolio ◽  
Modular Systems ◽  
Engineer To Order ◽  
The Impact

AbstractThe paper studies what kind of support could be applied to the management of partly configurable modular systems. The main tasks of product management, product portfolio management and product variety management are defined. In addition, a partly configurable product structure and modular system are defined. Because the limited support in the literature for managing partly configurable modular systems, the article reviews previous product development cases in which authors have been involved on lessons learnt basis, i.e., if the methods and tools used in the cases could provide support for the research objective. As a result, the existing definition of the modular system should be extended by the concepts of non-module and design decision sequence description when dealing with partly configurable modular systems. This is because engineer-to-order should be made possible in cases where it brings clear added value to the customer compared to completely pre-defined solutions that may limit the customer's interest in the offering. Tools to assess the impact of changes to the product offering are required. These should be taken into account in frameworks that are used in method and tool development.

scholarly journals Turnover intentions, training and motivations among Australian union staff

2021 ◽  
pp. 0143831X2110172
Author(s):  
Nick Brander-Peetz ◽  
David Peetz ◽  
Paula Brough
Keyword(s):  
Online Survey ◽  
Turnover Intentions ◽  
Voluntary Turnover ◽  
Intention To Leave ◽  
Theory And Practice ◽  
Organisational Support ◽  
Intrinsic Motivations ◽  
Perceived Organisational Support ◽  
The Impact ◽  
Labour Market Mobility

Staff loss and demotivation can be costly for unions. In this article the authors investigate factors influencing expected voluntary turnover, that is Intention to Leave (ITL), of union employees by conducting an online survey of 160 staff in three Australian unions. Moderated multiple regression analyses revealed that perceived organisational support, shortcomings in training and unmet intrinsic needs predicted ITL, after controlling for burnout, labour market mobility and intrinsic motivations. Critically, the results suggest an interaction effect involving training in some circumstances. Training buffered the impact of low support on ITL, however the adverse effect on ITL of organisational failure to meet staff expectations regarding service to members remained, independent of training. Implications for theory and practice are discussed, including the separate significance of resources and purpose.

scholarly journals Understanding Social Impact and Value Creation in Hybrid Organizations: The Case of Italian Civil Service

2021 ◽  
Vol 13 (7) ◽  
pp. 4058
Author(s):  
Paolo Esposito ◽  
Valerio Brescia ◽  
Chiara Fantauzzi ◽  
Rocco Frondizi
Keyword(s):  
Value Chain ◽  
Social Impact ◽  
Civil Service ◽  
Added Value ◽  
Hybrid Organizations ◽  
Case Study Analysis ◽  
Public Resources ◽  
Five Elements ◽  
Definition Of ◽  
The Impact

The aim of this paper is twofold: first, it aims to analyze what kind of value is generated by hybrid organizations and how; second, it aims to understand the role of social impact assessment (SIA) in the measurement of added value, especially in terms of social and economic change generated by hybrids. Hybrid organizations are a debated topic in literature and have different strengths in responding to needs, mainly in the public interest. Nevertheless, there are not many studies that identify the impact and change generated by these organizations. After highlighting the gap in the literature, the study proposes an innovative approach that combines SIA, interview, interventionist approach and documental analysis. The breakdown of SIA through the five elements of the value chain (inputs, activities, outputs, outcomes, and impact) guarantees a linear definition of the value generated through change with procedural objectivity capable of grasping hybrid organizations’ complexity. The value generated or absorbed is the change generated by the impact measured based on the incidence of public resources allocated. Through the SIA and counterfactual approach, the civil service case study analysis highlights how the value generated by public resources can be measured or more clearly displayed in the measurement process itself.

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