AMinistry of Education and Science of Republic of kazakhstan

TURAR RYSKULOV KAZAKH ECONOMIC UNIVERSITY

TERM PAPER

Theme: « Analysis of efficiency of capital investments»

PREPARED BY:

Bolatova B.

Group: Acc-132

SUPERVISED BY:

Seniour Tutor

Bazarbekova A.D.

Almaty 2014

CONTENT

Introduction...........................................................................................................3-5

1. Concept and essence of capital investments.....................................................6-8

2. Analysis of efficiency of capital investments..................................................9-14

3. The composition and structure of capital investments……………………...15-16

4. Ways of increase of economic efficiency of capital investments…………..16-18

Conclusion……………………………………………………………………..19-20

List of eferences.........................................................…………………………...21

Introduction

Now for ensuring rhythmical and profitable work of firm the mobile and competitive experts who are carrying out new functions, dictated by the present are required. One of such functions is an analysis of economic activity of firm. The analysis of economic and financial aspects of future activity of the enterprises is the central part of all procedures connected with planning. Within economic the analysis effects the features revealed in other sections of the analysis find the monetary value: technological, commercial, ecological and social. Here the price of measures which should be accepted for formation of the positive environment of activity is defined. The economic and financial analysis of development plans allows to connect together all benefits and expenses of future activity of the enterprise, and not only for him, but also for the state and society. In an enterprise management system the economic analysis is intermediate between collection of information and decision-making. It is necessary at all stages of preparation and decision-making, in particular at stages of formation of the purpose, selection of the best option and an assessment of results of implementation of the decision. The economic analysis is the general methodology, a way of the decision, the system directed on structuring vaguely certain problem, to establish interrelations, to give a quantitative assessment, to provide a choice of the optimum decision by justification of alternatives, elimination of irrational comparison, a choice of the most preferable options, the analysis of expected results. Thus, the purpose of this work is the theoretical judgment and practical development of methods of the economic analysis on an example research of activity of the enterprise.

For the solution of this purpose the tasks are set:

• Methodological judgment of the analysis on the example of the analysis of efficiency of capital investments

• Practical application of ways and methods of the economic analysis on the example of the enterprise

Conclusion by results of the conducted research regarding possible bankruptcy and a suggestion for improvement of a financial condition of firm

Proceeding from the purpose, in the first part of a term paper we covered theoretical basics of the analysis of efficiency of capital investments, its roles at the present stage of development of economy and for form functioning. Besides the assessment methods, applied indicators, information sources are shown.

Economic efficiency of capital investments — a ratio between costs of production of fixed assets and received results.

Direct result of capital investments is commissioning of capacities and non-productive objects. The end result of capital investments — a gain of production and services, and on the scale of society — a gain of the national income.

Increase of economic efficiency of capital investments — one of the important directions of an intensification of production. For this purpose capital investments go according to the plan to the objects providing optimum proportional growth of a social production during the planned period at probably fuller satisfaction of requirements. Methods of a choice of the most effective objects of investments are applied at all stages of capital construction, including scientific development, drawing up the project and the estimate, construction and development.

Distinguish absolute (general) and comparative efficiency of capital investments. Absolute efficiency represents the relation of a gain of a net production or the national income to capital investments.

As the net production is created in the sphere of production of goods, capital investments are considered only in this sphere and in the volume directed by a pas expanded reproduction (at the expense of accumulation fund). Capital investments into simple reproduction (i.e. at the expense of depreciation fund) aren't taken into consideration. The gain of a net production or the national income belongs to capital investments for previous year as the log in time between capital investments and the results caused by them is considered. It is necessary to distinguish an indicator of efficiency of business assets from an indicator of absolute efficiency of capital investments. This indicator — the relation of a net production (the national income) to funds — characterizes capital productivity.

Absolute efficiency and capital productivity estimate at all levels: on a national economy, branches and subsectors, associations and the enterprises (in the latter case the profit, a commodity or net production is taken into consideration). Growth of capital investments is usually compensated by decrease in the current expenses and pays off during a certain term. Increase of absolute efficiency or capital productivity is result of growth of outputs, improvements of quality of production, reduction of expenses for construction and its terms, acceleration of development of capacities and achievement of design technical and economic indicators, and also the best use of a human factor — qualification, experience, consciousness of workers, engineers and technicians, their aspiration to open and apply new reserves.

Efficiency of capital investments and other expenses to the non-productive sphere is determined by the effect caused by them expressed in natural indicators (by training, to health care, science, culture), and partially and in cost measuring instruments (for example, by consumption). Comparative economic efficiency of capital investments is applied to a choice of the best of possible planned and design options of capital investments. Capital investments and the current expenses are for this purpose compared by compared options.

The option giving their optimum ratio gets out. It is removed proceeding from comparison of a difference of capital investments by options to a difference of the current expenses. Options which both capital investments, and the current expenses have more, than at others are rejected, options at which the difference of capital investments pays off more economically than the current expenses for the shortest term which isn't exceeding the established standard term are accepted. Options can be compared and in size of the given expenses.

For this purpose capital investments are multiplied by the standard of efficiency accepted in a standard technique of determination of efficiency of capital investments.

Efficiency of use of capital investments considerably depends on their structure. Distinguish the following types of structures of capital investments: technological, reproduction, branch and territorial. The technological structure of capital investments is understood as structure of expenses for a construction of any object and their share in the total budget cost. The reproduction structure of capital investments is understood as their distribution and a ratio in the total budget cost in forms of reproduction of the fixed business assets.

The branch structure of capital investments is understood as their distribution and a ratio on industries and a national economy as a whole. The territorial structure of capital investments is understood as their distribution and a ratio in the general set on the certain economic region, areas. The essence of economic efficiency of capital investments consists in increase of productivity of social activities, i.e. in production depreciation.