An integrated approach to analyzing the efficiency of an economic entity

Abstract

Importance: analysis and assessment of the efficiency of an economic entity is a necessary condition for justifying management decisions. Production and economic activity is reflected in a system of numerous indicators, to one degree or another related to efficiency. Professor Sheremet A.D. back in the 70s, he justified their combination into appropriate blocks and presented them in a well-known block diagram of comprehensive economic analysis, successfully used in scientific, practical activities and the educational process. For a comprehensive analysis of the effectiveness of the activities of an economic entity, additional justification for performance indicators, their hierarchy and stages, and the sequence of implementation is required. Purpose: to substantiate the initial and private indicators for a comprehensive analysis and assessment of the effectiveness of the activities of an economic entity. Research design: to achieve this goal, an analysis of scientific literature was carried out to determine the essence, content of the concept of efficiency and the indicators that form it. The points of view of the authors are systematized, which do not contradict, but complement the content of the concept of efficiency and form the indicators that determine it. Results: the importance of added (newly created) value and profit as initial indicators for analysis and evaluation of efficiency is substantiated. The phases of analysis of initial and partial performance indicators have been defined. The relationship and difference between intensity and efficiency are formulated, their role in achieving the goals of an economic entity is determined.