Economic performance indicators of the use of working capital in an agricultural enterprise

The majority of an agricultural enterprise's current assets — seed, planting material, feed, feed additives, organic and mineral fertilizer, livestock animals in the process of rearing and fattening, etc. — directly influence the increase in production. Uninterrupted supply of these resources and their quality to a great extent determine production efficiency. At the same time, enterprises need to utilize all current assets rationally. The following system of indicators is used to characterize the economic efficiency of their utilization. 1. The current assets turnover ratio (K ob), which shows the amount of revenue received per 1 ruble of the value of available current assets:

where P is the revenue from the sale of products and services provided, in thousand rubles; M is the value of young livestock transferred to the main herd, in thousand rubles; C is the monetary revenue from sold livestock of the main herd, in thousand rubles; CA is the total sum of current assets for the same period, in thousand rubles.

Accelerating the turnover of current assets contributes to their absolute and relative release from circulation and their rapid conversion into a monetary form. 2. The average duration of one turnover of current assets (T) (in days):

T = Number of days in the period/K ob.

In practice, such calculations are carried out for periods with a duration of 360 (year), 180, 90, and 30 days. The duration of one turnover (T) of current assets is determined by the ratio 360/K ob. In agricultural enterprises, the significant length of the production cycle results in relatively low industry turnover indicators and a long duration of the turnover period. 3. Material return of current assets (MR), defined as the ratio of agricultural produce (GP) to the sum of current assets (CA).

MR = GP/ CA or as the ratio of gross income (GI) to the sum of current assets:

Material return (MR) shows what volume of gross produce or gross income (in rubles) can be obtained per

The inverse indicator of material return is material intensity. The lower the material intensity and the higher the material return, the more efficiently current assets are utilized.

Economically, material return reflects the value of material current assets used for the production of a unit of gross produce and gross income. Specific (natural) indicators of material intensity include feed intensity, fuel intensity, etc. 4. The profit margin represents a general indicator of the efficiency of using fixed and current assets and is determined as the percentage ratio of profit to their total value.

Improving the utilization of current assets is a condition for increasing economic efficiency of production at an enterprise. More complete and rational utilization of current assets is achieved through: ◊ improving quality and reducing the production cost of own material current assets; ◊ accelerating the turnover of current assets and increasing commodity turnover; ◊ increasing crop yield and livestock productivity; ◊ material incentives for efficient utilization of current assets; ◊ improving standardization and compliance with norms and standards; ◊ preventing various types of losses; ◊ using progressive material- and energy-saving technologies; ◊ optimal concentration of production; ◊ improving organization and management.

What means of production are classified as objects of labor? Characterize

Which part of the means of production belongs to the means (or tools) of labor and what characterizes them? 3. What economic form do objects of labor and means of labor take? 4. What are total production funds? 5. How is the structure of production funds determined? 6. How are fixed assets evaluated? 7. What does the residual value of fixed assets mean? 8. What stages does the depreciation process of fixed assets consist of? 9. How are depreciation charges included in the cost of agricultural products? 10. What two types of depreciation are distinguished in economics? Characterize obsolescence. 11. What are the advantages of accelerated depreciation? 12. What does market demand for means of production for agriculture depend on? 13. What indicators determine the equipment level of agricultural enterprises with fixed assets? 14. What factors influence the level of fixed assets provision? 15. How is capital-labor ratio determined? 16. What indicators express the efficiency of fixed assets utilization? 17. What is the economic essence of the profit margin indicator? 18. How can the efficiency of utilizing fixed assets of production in agriculture be increased? 19. What is included in the composition of current assets? 20. What are circulation funds or commodity current assets? 21. What serves as a source for the formation of current assets? 22. At what valuation are current assets included in the cost of products (works, services)? 23. What is the difference between current assets in agriculture and current assets in other industries? 24. What is the purpose of current asset consumption norms? 25. Which indicators characterize the efficiency of current assets utilization? 26. How are material intensity and material return determined? 27. How can the efficiency of current assets utilization be increased in

10.1.Tasks and principles of rational

Labor organization is linked to manual labor and ensuring the functioning of the workforce. Within an agricultural enterprise, as in any other, it represents a system of measures ensuring the rational use of labor and means of production. Rational labor organization implies the maximum consideration of scientific achievements and best practices, ensuring the full and efficient use of labor and other factors of production with the goal of achieving better economic results in all sectors of production.

Competent labor organization on an agricultural enterprise is a direct saving of resources and working hours. Rational techniques for performing field and farm work allow for the avoidance of downtime, the thrifty use of working capital, and obtaining maximum returns from machinery. Without clearly tuned processes, it is impossible to achieve high economic efficiency of the farm.

Key tasks and principles of effective work

At an enterprise, labor organization solves two interconnected groups of tasks. The first is technical and economic: creating conditions for rhythmic work in every area, full utilization of working time and machinery, as well as stimulating workers through fair remuneration. The second group of tasks is social: alleviating working conditions, ensuring safety, preventing premature fatigue, and developing the team's responsibility for the overall result.

The experience of agricultural enterprises shows that the greatest return is provided by forms of work built on the following principles:

• Stability of personnel and a high level of qualifications, ensuring the interchangeability of workers during peak periods of sowing and harvesting;
• Long-term assignment of land plots, tractors, combines, production equipment, and productive livestock to subdivisions;
• Execution of the full complex of work on the production of a specific type of product by the labor collective;
• Material incentives based on final work results and material liability for failure to meet assumed obligations;
• Strict accounting of costs and comparison of income received with production expenses;
• A democratic approach to team management, stimulating the initiative of every worker.

The main directions for improving the labor process on the farm remain the competent division and cooperation of labor, the introduction of justified output standards, the improvement of workstation maintenance, and the systematic implementation of advanced work techniques.