The Factor Analysis on the Efficiency of Use of the Fixed Assets of Enterprises

• Main Authors: Buzhymska Kateryna O., Overchuk Alla V.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2017-05-01
• Series: Bìznes Inform
• Subjects: fixed assets; returns on assets; shift index; index of intensive use of fixed assets; index of extensive use of fixed assets; index of validity; average initial value of the equipment unit
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2017-5_0-pages-90_96.pdf

The article is aimed to modify the factor model of returns on assets to uniquely evaluate its dynamics by identifying hierarchical links in the system of performance indicators for the enterprise’s fixed assets. A modified factor model of returns on assets has been proposed, which includes indicators of the status and movement of fixed assets as well as partial indices of the use of equipment. The article substantiates the algorithm of considering the impact of factors of the average initial value of the equipment unit together with the index of validity, which is necessary to uniquely evaluate the dynamics of returns on assets as integrated indicator of efficiency of use of fixed assets. Application of the proposed factor model together with the algorithm will provide an opportunity to: evaluate the impact of indicators of movement and the status of fixed assets along with the partial indicators of efficiency of their use for returns on assets; identify reserves of efficiency in the use of fixed assets; clearly evaluate the dynamics of returns on assets.