Investment performance indicators. Calculations of investment activity indicators

Introduction

The investment process plays an important role in the economy of any country. Investment largely determines the economic growth of the state, employment of the population and constitutes an essential element of the base on which the economic development of society is based. Therefore, the problem associated with the effective implementation of investment deserves serious attention.

The relevance of the topic of the course work lies in the fact that the investment activity of an enterprise inevitably requires in-depth analysis, which allows a more accurate assessment of the uncertainty of the situation using modern quantitative research methods. In this regard, the priority and role of analysis increases significantly, the main content of which is a comprehensive systematic study of the technical, economic and financial indicators of the investment activities of an industrial enterprise in order to assess the degree of financial risks and predict the level of return on capital.

The object of the course work is the technical, economic and financial indicators of investment activity of an industrial enterprise.

The subject of the course work is the pattern of investment activity of an enterprise.

The purpose of the course work is to study the systems of technical, economic and financial indicators of investment activity of an industrial enterprise.

To achieve this goal, it is necessary to consider the concepts and tasks of investment activity, subjects and objects of investment activity, methods for assessing efficiency, and assessing the effectiveness of investment activity of a virtual enterprise.

The course work consists of an introduction, two chapters, a conclusion, a list of sources used and applications. The introduction substantiates the relevance of the chosen topic, defines the purpose, objectives, and subject of the course work. The first chapter is devoted to consideration of the concept of investment, its types, the concept of investment activity, objects and subjects of investment activity. The main indicators of investment activity are also considered. In the second chapter, calculations of the main indicators for the virtual enterprise are carried out. In conclusion, the main conclusions and results of the course work are formulated.

Theoretical basis of investment

Enterprise activities

1.1 Concept and objectives of investment activity

Investments are an integral part of the modern economy. From loans, investments differ in the degree of risk for the investor (lender) - the loan and interest must be repaid within the agreed time frame, regardless of the profitability of the project, investments are returned and generate income only in profitable projects. If the project is unprofitable, the investment may be lost in whole or in part.

Investments are long-term investments of capital with the aim of making a profit.

Based on the types of activities that generate income for enterprises, three areas of investment are distinguished:

1. Real investments are the investment of capital in the creation of real assets associated with conducting operational activities and solving the socio-economic problems of an economic entity. An investor enterprise, making real investments, increases its production potential - fixed production assets and the working capital necessary for their functioning. In other words, real investments are investments in material assets: buildings, structures, machinery and equipment, transport and public facilities (schools, universities, hospitals, etc.) aimed at updating and expanding fixed capital, and not at creating “ paper assets by purchasing securities. Corresponds to the term “capital investments”. Real investments include investments in fixed capital, inventories; intangible assets.

2. Financial (or portfolio) investments - investing capital in various financial instruments, primarily in securities, as well as assets of other enterprises. When they are implemented, the investor increases his financial capital, receiving dividends and other income. In other words, speaking in the language of the average person, a financial investment is a simple investment of money. Bought, for example, real estate, jewelry and various types of coins (collectible coins), etc., and this will be considered an investment. This belief is based on the belief that after some time all purchased items will become much more expensive and, if something happens, they can be sold at a better price.

3. Intellectual investments - investment of capital in the scientific potential of society, in intellectual property arising from copyright, patent and invention rights, rights to industrial designs and models (purchase of patents, licenses, know-how, training and retraining of personnel, etc. .).

According to the forms of income, investments of industrial enterprises are divided into 3 categories:

– generating income in the form of distributed net profit from the sale of products (dividends on shares, cooperative shares and other forms of equity participation in the capital of a commercial enterprise);

– generating income in the form of pre-agreed interest (income on bonds, deposits, credit agreements, loan agreements);

– generating income in the form of an increase in the value of assets from the moment of their acquisition to the moment of sale (income in the form of exchange rate differences in securities, currency values).

There is a definition of investment activity, which is contained in the Federal Law “On investment activity in the Russian Federation, carried out in the form of capital investments.” According to this Law, investment activity is making investments and carrying out practical actions in order to make a profit and (or) achieve another useful effect.

Thus, investment activity can be understood as the purposeful activity of one person or a set of persons (investment subjects - investors) in the preparation, planning and implementation of investments of property and non-property assets (investment funds) in any other property (assets), non-property assets, new types of entrepreneurial and other activities, capital and participation shares in legal entities, other objects to achieve socially useful goals and the creation of socially significant potential (investment objects) from appropriate sources.

Investment activity is one of the types of entrepreneurial activity; it is characterized by such signs of entrepreneurship as independence, systematicity, legitimacy, property responsibility, registration of the entity conducting the activity, initiative and risk.

Despite the fact that entrepreneurial and investment activities have common characteristics, investment activities have their own specifics, which consists in the fact that investor funds are invested in business objects in order to make a profit from the use and operation of these objects in the future.

Any enterprise, in order to start any investment activity, must solve many problems:

– Determine investment goals;

– Develop an investment policy;

– Develop an investment project;

– Establish a developed investment project;

– Determine in what respect own/borrowed funds will be used;

– Determine the risk of future investment;

– Assess the effectiveness of the developed investment policy.

Investment project - justification of the economic feasibility, volume and timing of capital investments, including the necessary design and estimate documentation developed in accordance with the legislation of the Russian Federation and duly approved standards (norms and rules), as well as a description of practical actions for making investments (business plan).

Sources of financing for investment projects are selected in the first phase of the investment cycle.

Sources of investment financing:

Financing from the federal budget;

Own sources: raised funds (through the issue of shares); self-financing (depreciation, net profit); charitable and similar;

External sources: foreign investments; borrowed funds (loans, issuance of bills); funds from entrepreneurship support funds.

The development of investment policy involves: determining the long-term goals of the enterprise, selecting the most promising and profitable capital investments, developing priorities in the development of the enterprise, assessing alternative investment projects, developing technological, marketing, financial forecasts, assessing the consequences of the implementation of investment projects.

1.2 Subjects and objects of investment activity

All participants in investment activity can be classified either as subjects (who invest) or objects (in what they invest).

Based on this classification, the following main subjects of investment activity are identified:

1. Investors are subjects of investment activity who invest funds in the form of investments and ensure their intended use. Individuals, legal entities, state and municipal entities can act as investors;

2. Customers are subjects of investment activity who are authorized by investors to implement the investment project. To achieve this goal, the investor grants the customer the rights to own, use and dispose of investments for the period and within the powers established by the investment agreement and in accordance with the law. The customer must not interfere with the business and other activities of other participants in the investment process. Customers can be investors, as well as any individuals and legal entities;

3. Work performers are persons vested with certain powers to implement the investment project by virtue of an agreement concluded with them. The contractor does not acquire the authority to own, use, or dispose of investments; the customer allocates him the funds necessary to perform certain work;

4. Users are the subjects for whom the object of investment activity is created. Users can be individuals, legal entities, the state, municipalities.

The Law on Investment Activities provides for the right of subjects of investment activities to combine the functions of two or more participants. So, for example, the investor himself can perform the function of implementing the contract, that is, be the customer, the functions of the user and the investor can be combined, etc.

The responsibilities of subjects of investment activities are defined in the said law very briefly and can be formulated in the form of a general obligation to comply with the requirements of legislation, government bodies and officials within their competence. If the investor (customer) refuses to further invest in the project, he is obliged to compensate the costs to its other participants, unless otherwise provided by the contract.

The objects of investment activity are newly created, modernized fixed assets and working capital, securities, targeted cash deposits, scientific and technical products, other property, as well as property rights and intellectual property rights.

Objects of investment activity can be:

1. Enterprises, buildings, structures and other fixed assets under construction, reconstruction or expansion, intended for the production of new products and services;

2. Production of new products (services) on existing production facilities;

3. Introduction of new technology into existing production.

1.3 main indicators of the enterprise’s investment activity

The system of technical, economic and financial indicators of the investment activity of an industrial enterprise characterizes the effectiveness of the project and reflects the ratio of costs and results of the investment project.

An investment project is a systematized set of settlement, financial, organizational and legal documents containing a detailed plan for the development of events with assessments of the feasibility and efficiency of capital investments.

To compare different investment projects (or project options) and select the best one, the following indicators are used:

1. Net income or economic (commercial) effect (E) of investments. It is calculated by subtracting from the amount of income (D) the amount of investment costs (IZ).

E = D – IZ. (1.1)

2. Economic (commercial) efficiency is measured by the efficiency coefficient (E). It is calculated by dividing the amount of income (D) by the amount of investment costs (IZ).

E = D / IZ. (1.2)

3. Payback period of investments (T OK). Calculation and comparison of the payback period indicates the magnitude of the risks of non-return on investment: the longer the payback period, the higher the risk of non-return on investment. It is calculated by dividing the amount of investment costs (IZ) by the amount of net annual income (EG).

T OK = IZ / E G. (1.3)

4. Payback period of investments taking into account depreciation costs (T Ok). In the case of significant investments, calculated depreciation has a significant impact on the payback period. It is calculated by dividing the amount of investment costs (IZ) by the amount of net annual income (EG), taking into account annual depreciation costs (A).

T OKa = IZ / (E G + A). (1.4)

5. Return on investment (R). It is calculated by dividing net income (E) by investment costs (IZ). Calculated as a percentage.

R = (E/IZ)*100%. (1.5)

NPV). Calculated for future payment streams, for example, when assessing the economic efficiency of investments. The value of net present value is calculated as the difference between the present value of future cash flow and the cost of the initial investment.

NPV = ∑ CF k / (1 + i) k - CF 0 (1.6)

where i is the discount rate. It reflects the rate of change in the value of money over time, the higher the discount rate, the greater the speed; CF 0 - investments made at the initial stage; CF k– net cash flow at the corresponding point in time; k is the moment in time.

If NPV is greater than 0, then the investment is economically effective, and if NPV less than 0, then the investment is not economically profitable.

7. The internal rate of return (IRR) is the interest rate at which the net present value (NPV) is 0. NPV is calculated based on the stream of payments discounted to today. Therefore, the IRR formula will look like this:

CF 0 = ∑ CF k / (1 + IRR )k(1.7)

Profit and profitability are two fundamentally different criteria. Maximizing them quite often leads to different results. In contrast to profit, profitability is higher for small projects, which, as a rule, use by-products of large projects.

One of the most common indicators for assessing the effectiveness of investments is the payback period. In most cases, it is understood as the period during which investment investments are covered by the total results of their implementation, or, in other words, the minimum time interval beyond which the integral effect becomes and subsequently remains non-negative.

Calculations of investment activity indicators

Let's consider the activities of a virtual enterprise based on digital materials from the “Fifth Sector” laboratory experiment. Let's calculate the investment activity indicators of the virtual enterprise "Mir".

Calculation of investment activity indicators of the Mir enterprise.

Data taken from Appendix 1 and Appendix 2.

The total share (authorized) capital is 1,313 thousand rubles.

1. Net income or economic (commercial) effect is calculated by subtracting the amount of investment costs (Table 2) from the amount of income (Table 3).

E = D – IZ = 13,403,000 – 1,313,000 = 12,090,000 rub.

2. The efficiency ratio is calculated by dividing the amount of income (Table 3) by the amount of investment costs (Table 2).

E = D / IZ = 13,403,000 / 1,313,000 = 10.21

3. The payback period for investments is calculated by dividing the amount of investment costs (Table 2) by the amount of net annual income, which is calculated in the first paragraph.

T OK = IZ / E G = 1,313,000 / 12,090,000 = 0.11

4. The payback period for investments, taking into account depreciation costs, is calculated by dividing the amount of investment costs (Table 2) by the amount of net annual income (calculated in paragraph 1) taking into account annual depreciation costs (Table 3).

T OKa = IZ / (E G + A) = 1,313,000 / (12,090,000 + 420,000) = 0.11

5. Return on investment is calculated by dividing net income (calculated in point 1) by investment costs (Table 2).

R = (E/IZ)*100% = (12,090,000 / 1,313,000)*100% = 920%

6. Net present value ( NPV) is calculated as the difference between the present value of future cash flow (Table 3) and the cost of the initial investment (Table 2).

NPV = ∑ (CF k / (1 + i) k) - CF 0 = (– 1 313/(1 + 0,10) 0 + ( 12 090 – 1,313) / (1 + 0.10) 1 + (13,299– 1,313) / (1 + 0.10) 2 + (14,628.9– 1,313) / (1 + 0.10) 3) = – 1,313 + 9797.27 + 9905.78 + 10,004.43 = 28,394.48 thousand rubles.

The sum of all these values is the true net present value, which is equal to 28,394.48 thousand rubles. Since NPV is greater than zero, the investment is economically efficient.

7. Internal rate of return (IRR).

NPV = 0. NPV is calculated based on the flow of payments discounted to today, i.e. for the first year.

CF k = 12,090 thousand rubles; CF 0 = 1,313 thousand rubles.(Tables 2,3).

CF 0 = ∑ CF k / (1 + IRR )k

1 313 = 12 090 / (1 + IRR ) 1

IRR = 12,090 / 1,313 - 1

IRR = 9.2%

Table 1

Indicators of investment activity "Mir"

table 2

Contribution and credit of enterprises

Table 3

Enterprise profit plan

Let us summarize the data obtained and the data from the theoretical part in Table 4.

Table 4

Table of connections between theory and practice

Conclusion

In conclusion, it should be noted that investments are the most important factor influencing the growth of the value of the company, and, consequently, its development as a whole. It is investments that allow you to increase the company's assets and its intangible assets. Thus, it seems legitimate to assert that the investment activity of an enterprise is its purposeful and creative function.

Each company, starting its activities, must clearly imagine the future need for financial, material, labor and intellectual resources, the sources of their receipt, and also be able to accurately calculate the efficiency of using available funds in the process of the company’s work.

In this course work, an analysis of the technical, economic and financial indicators of the investment activities of the Mir enterprise is carried out.

Based on the results of the analysis in the second chapter, it is clear that the Mir enterprise has indicators of financial and economic activity: annual net profit - 13,403.0 thousand rubles, economic effect (E) from investment activities is 12,090.0 thousand. rub.

The economic efficiency of investments (NPV) of the Mir enterprise is equal to 35,468.09 thousand rubles, it is greater than 0, which means that the investment is economic.

The internal rate of return (IRR) of the Mir enterprise is 9.2%. This is the maximum price at which it makes sense to attract resources so that the investment project remains break-even. The investment project uses a loan in the amount of 1,100 thousand rubles. at a rate of 1% per annum, the IRR exceeds the percentage per annum, which means this once again confirms that the investments are effective and the profitability of the enterprise is high.

The payback period for investments (T OK) for the Mir enterprise is 0.11. The payback period for investments taking into account depreciation costs (T Ok) of the Mir enterprise is 0.11.

The return on investment (R) of the Mir enterprise is 320% and the efficiency coefficient (E) is 10.21.

Conclusion: The investment policy of an enterprise is the most important component of its overall development strategy. For an investment project to be effective, we must be able to develop and implement it.

MINISTRY OF AGRICULTURE AND FOOD OF THE RF

ULYANOVSK STATE AGRICULTURAL ACADEMY

COURSE WORK

By discipline: Finance of the agro-industrial complex

Subject: “Evaluation of the effectiveness of an enterprise’s investment activities”

Completed by a student

2 correspondence courses

Faculty of Economics

Kuramshina R.R.

Introduction 3

Theoretical foundations of the effectiveness of investment activity management 5

1.1 Essence, role and classification of investments 5

1.2 Methods for economic justification of investment decisions 9

1.3. Factors for intensifying investment activity at an enterprise 12

State of development and assessment of the effectiveness of investment activities of the Lenin SEC 14

2.1 Organizational and legal status of the farm 14

2.2 Volume and structure of investments in fixed assets 15

2.3 Types of investment activities and their economic efficiency 21

Main ways to improve the efficiency of capital investments 24

3.1 Justification of the investment plan for the enterprise 24

3.2 Product cost analysis 26

3.3 Analysis of working capital of the farm 29

3.4 Analysis of the dynamics of the farm’s own working capital and net assets 30

3.5.Development of ways to improve the problems of forming an investment portfolio of an economy 32

Conclusion 35

Bibliography 39

Introduction

Acquisition of complete property complexes.

New construction.

3. Repurposing.

4. Reconstruction.

5. Modernization.

6. Updating certain types of equipment.

7. Innovative investment in intangible assets.

8. Investing the increase in inventories of tangible current assets.

A feature of investing in working capital is not only the length of service life of current assets (one year), but also the fragmentation of the composition, which entails a fractional investment. These features are important for ensuring flexibility of financial policy in the field of its management:

Determine the correct asset structure;

They strive to have the minimum possible amount of inventory;

Accelerate the flow of funds, receive money from both buyers and customers in a timely manner;

Increasing production volume;

Develop an investment strategy suitable for the farm.

In the context of the financial crisis that has been brewing over the past few years and has broken out in Russia, the topic of investing may seem irrelevant.

The course work was carried out on the basis of materials from the Lenin SEC in the Saratov region.

The purpose of the course work is financial diagnostics of assessing the effectiveness of investment activities of a farm enterprise, the formation of proposals for improvement, and the solution of problems of portfolio formation aimed at increasing the efficiency of farm activities in a market economy.

The objectives of the course work are: express diagnostics of the current activities of the Lenin SEC, identification of problems in the formation of an investment portfolio, assessment of financial activities, selection of options for management decisions to improve the financial condition of the economy.

1 Theoretical foundations of the effectiveness of investment activity management

1.1 Essence, role and classification of investments

Investments of an enterprise are investments of capital in all forms into various objects of its economic activity with the aim of making a profit, as well as achieving other economic or non-economic effect, the implementation of which is based on market principles and is associated with factors of time, risk and liquidity.

According to the objects of capital investment, real and financial investments are divided. Real (or capital-forming) investments characterize the investment of capital in the reproduction of fixed assets, in innovative tangible assets, in the increase in inventories of inventory and other investment objects related to the implementation of the operating activities of the enterprise or the improvement of working and living conditions of personnel.

Real investments are made by enterprises in various forms, the main ones being

1. Acquisition of complete property complexes. It represents an investment operation of large enterprises that ensures sectoral, product or regional diversification of their activities. This form of real investment usually provides a “synergy effect”, which consists in the total value of the assets of both enterprises in comparison with their book value, due to the opportunities for more efficient use of their overall financial potential, complementarity of technologies and product range, opportunities to reduce the level of operating costs, joint use of the sales network in various regional markets and other similar factors.

2. New construction. It represents an investment operation associated with the construction of a new facility with a completed technological cycle according to an individually developed project in specially designated territories, the enterprise resorts to new construction with a radical increase in the volume of its operating activities in the coming period, its industry, product or regional diversification (creation of branches, subsidiaries, etc.).

3. Repurposing. It represents an investment operation that ensures a complete change in the technology of the production process to produce new products.

4. Reconstruction. It represents an investment operation associated with a significant transformation of the entire production process based on modern scientific and technical achievements. It is carried out in accordance with a comprehensive plan for the reconstruction of the enterprise in order to radically increase its production potential, significantly improve the quality of products, introduce resource-saving technologies, etc. During the reconstruction process, the expansion of individual production buildings and premises can be carried out (if new technological equipment cannot be placed in existing premises); construction of new buildings and structures of the same purpose instead of those liquidated on the territory of an existing enterprise, the further operation of which is recognized for technological or economic reasons inappropriate.

5. Modernization. It is an investment operation associated with improving and bringing the active part of production fixed assets to a state corresponding to the modern level of technological processes, through constructive changes to the main fleet of machines, mechanisms and equipment used by the enterprise in the process of operating activities.

6. Updating certain types of equipment. It is an investment operation associated with the replacement (due to physical wear and tear) or addition (due to an increase in the volume of activity or the need to increase the productivity of the existing fleet of equipment with certain new types of equipment that do not change the general scheme of the technological process. Updating certain types of equipment characterizes mainly the process of simple reproduction of the active part of production fixed assets.

7. Innovative investment in intangible assets. It is an investment operation aimed at using new scientific and technological knowledge in the operating and other activities of the enterprise in order to achieve commercial success. Innovative investments in intangible assets are carried out in two main forms: a) through the acquisition of finished scientific and technical products and other rights (acquisition of patents for scientific discoveries, inventions, industrial designs and trademarks; acquisition of know-how; acquisition of franchising licenses, etc.). P.); b) through the development of new scientific and technical products (both within the enterprise itself and upon its order by the relevant engineering firms). Implementing innovative investment in intangible assets can significantly increase the technological potential of an enterprise in all areas of its economic activity.

8. Investing the increase in inventories of tangible current assets. It is an investment operation aimed at expanding the volume of used operating assets of the enterprise, thereby ensuring the necessary proportionality (balance) in the development of non-current and current operating assets as a result of investment activities. The need for this form of investment is due to the fact that any expansion of production potential provided by the previously discussed forms of real investment determines the possibility of producing additional volumes of products. However, this opportunity can be realized only with a corresponding expansion of the volume of use of tangible current assets of certain types (stocks of raw materials, materials, semi-finished products, low-value and wearable items, etc.).

All of the listed forms of real investment can be reduced to its three main areas: capital investment or capital investments (the first six forms); innovative investment (seventh form) and investment in the growth of current assets (eighth form).

The choice of specific forms of real investment of an enterprise is determined by the tasks of industry, product and real diversification of its activities (aimed at expanding the volume of operating income), the possibilities of introducing new resources and labor-saving technologies (aimed at reducing the level of operating costs), as well as the potential for the formation of investment resources (capital and monetary and other forms attracted to make investments in real investment objects).

The specific nature of real investment and its forms are determined by certain features of their management at the enterprise.

Real investment management of an enterprise is a system of principles and methods for preparing, evaluating and implementing the most effective real investment projects, aimed at ensuring the achievement of its investment goals.

Management of real investments of an enterprise in modern conditions is based on the methodology of the “Project Management” system - a new scientific direction that has become widespread in Western countries with developed market economies.

Project management is a modern system methodology for implementing all processes of development and implementation of an investment project of any type throughout its entire life cycle, ensuring the effective achievement of its goals.

1.2 Methods for economic justification of investment decisions

Taking into account the Project Management methodology, the overall process of managing real investments of the enterprise is built. This process is carried out in the context of the following main stages.

Analysis of the state of real investment in the previous period.

In the process of this analysis, the level of investment activity of the enterprise in the previous period and the degree of completion of previously started real investment projects and programs are assessed.

At the first stage of the analysis, the dynamics of the total volume of capital investment in the growth of real assets, the share of real investment in the total volume of investments of the enterprise in the pre-planning period are studied.

At the second stage of the analysis, the degree of implementation of individual investment projects and programs, the level of development of investment resources provided for these purposes, in the context of real investment objects are considered.

At the third stage of the analysis, the level of completion of previously started real investment projects and programs is determined, and the required amount of investment resources for their full completion is specified.

At the fourth stage of the analysis, the level of efficiency of completed real investment projects at the stage and its compliance with the projected indicators are examined.

2. Determination of the total volume of real investment in the coming period. The basis for determining this indicator is the planned volume of growth of the enterprise's fixed assets in the context of their individual types, as well as intangible and current assets that ensure an increase in the volume of its production and commercial activities. The volume of this increase is specified taking into account the dynamics of the volume of previously unfinished capital construction (unfinished capital investments).

Determination of forms of real investment. These forms are determined

based on specific areas of investment activity of the enterprise, ensuring the reproduction of its fixed assets and intangible assets, as well as the expansion of the volume of its own current assets.

4. Development (selection) of investment projects that correspond to the goals and forms of real investment. All forms of large-scale real investments (except for the renewal of certain types of mechanisms and equipment due to their wear and tear) are considered as real investment projects. The preparation of such investment projects requires the development of business plans within the enterprise itself. For small real investment projects, it is allowed to develop a short version of a business plan (presenting only those sections that directly determine the feasibility of their implementation).

In addition, during this stage of management, the current offer on the investment market is studied; individual real investment objects are selected for study that most fully correspond to the areas of investment activity of the enterprise (its sectoral and regional diversification); the possibilities and conditions for acquiring individual assets (equipment, technologies, etc.) are considered to update the composition of their existing types; A thorough examination of selected investment objects is carried out.

Assessing the effectiveness of individual investment projects taking into account the risk factor. Investment projects developed or selected at the preliminary stage are subject to detailed analysis and evaluation from the standpoint of their effectiveness according to the criterion of ensuring an increase in the market value of the enterprise. At the same time, the risks inherent in each specific investment project are identified and assessed, and the compliance of their general level with the expected level of profitability of the projects is checked.

During this stage of management, along with the risks of individual investment projects, the risks associated with the actual investment of the enterprise as a whole are assessed. This area of investment activity is associated with the diversion of equity capital in large amounts and, as a rule, for a long period, which can lead to a decrease in the level of solvency of the enterprise for current obligations. In addition, the financing of individual investment projects is often carried out by attracting a significant amount of borrowed capital, which can lead to a decrease in the financial stability of the enterprise in the long term. Therefore, in the management process it is necessary to predict in advance what impact investment risks will have on the profitability, solvency and financial stability of the enterprise.

1.3. Factors for activating investment activity in an enterprise

Formation of a real investment program for an enterprise. Based on individual investment projects, during this stage of management they are ranked according to the criteria of the level of profitability, risk and liquidity, compliance with the general goals of the enterprise’s investment policy, etc. Based on objective restrictions - the total volume of planned real investment and the possible volume of formation of investment resources, the investment program includes investment projects that ensure the highest rates of its development in the strategic period and growth of market value.

If this program is formed according to a defining priority goal (maximizing profitability, minimizing investment risk), then there is no need for further optimization of the real investment program. If a balance of individual goals is provided, then the enterprise’s investment program is optimized according to various target criteria to achieve their balance, after which it is accepted for immediate implementation.

Ensuring the implementation of individual investment projects and investment programs. The main tools ensuring the implementation of each specific real investment project are the selected scheme for its financing, as well as the developed capital budget and calendar schedule for the implementation of the investment project.

The project financing scheme determines the financial basis for its implementation and is the basis for the formation of the necessary investment resources and the development of budgets for the implementation of individual works.

The capital budget is developed for a period of up to one year and reflects all expenses and receipts of funds associated with the implementation of a real project.

The calendar schedule for the implementation of an investment project determines the basic time periods for performing certain types of work and assigning responsibility for execution to specific representatives of the customer or contractor in accordance with their functional responsibilities set out in the contract for the work.

Ensuring constant monitoring and control of the implementation of investment projects and the investment program. This stage of real investment management is implemented within the framework of investment control organized at the enterprise according to the main performance indicators of each investment project (before the end of its life cycle) and the investment program as a whole.

2 State of development and assessment of the effectiveness of investment activities of the Lenin SEC

2.1 Organizational and legal status of the farm

The document defining the organization of management of the affairs of the SEC is the charter. The highest governing body in the SEC is the general meeting of collective farmers. The board of the SEC is elected by the general meeting of collective farmers and is a test-distributing body for managing the affairs of the SEC. The board consists of department heads and specialists. The board is headed by the chairman of the SEC. The board includes a deputy chairman. Responsibilities are distributed among the remaining employees of the board by industry (crop farming, livestock farming).

The audit commission, elected by the general meeting of collective farmers, exercises control over the economic and financial activities of the board and officials of the collective farm. Guided by the Charter of the SEC, it exercises control over their compliance, the safety of property, and the expenditure of funds and material assets.

SPK "im. Lenin" includes the Central estate located in the arid steppe zone of the Saratov region.

Points for delivery of industrial products of the SPK "named after. Lenin" is a meat processing plant, a dry and skim milk plant.

Basically, the territory of the region, due to the relief conditions, is suitable for mechanized tillage and harvesting using complex agricultural machines and tools.

The soil cover of the region is represented mainly by chernozem type soils. According to natural conditions, the territory of the region is divided into two subzones: steppe and mountain-forest. The climate of the area is sharply continental, with frequent dry winds and black storms. The average annual precipitation is from 400 to 500 mm, the amount of precipitation for the period with temperatures above 10 degrees is 201-250 mm. The duration of the frost-free period is 111-115 days.

Land funds are the most important component of agricultural resources. Rational use of land ultimately leads to improved soil quality and increased crop yields. Structure of the land fund of the SEC named after. Lenin is presented in Table 1.

Table 1 Indicators of farm size and production

Indicators
Indicators
Total land area
Total farmland
of which: arable land
hayfields
pastures
Forest area

Based on the data in Table 1, we can say that there have been no significant changes in the composition of agricultural lands. In 2008, there was a slight decrease of 3 hectares compared to 2006. This suggests that the farm is not working to improve the land and bring it into circulation.

2.2 Volume and structure of investments in fixed assets

The economic conditions on which the results of economic activity depend include the provision of enterprises with land and labor resources, fixed and working capital. Let's consider these conditions.

The farm has: a machine and tractor park (MTP), a storeroom, a sawmill, a mill for providing services to the population, and a gas station. Cultural and community facilities: kindergarten, store, canteen, high school, cultural center, collective farm board, mosque.

Labor force, creating surplus value, plays a dominant role in production. Proper organization of work and the availability of qualified personnel is one of the main factors in achieving high production results at the enterprise. To analyze the state of labor resources, consider the following indicators in Table 2.

The indicators in Table 2 indicate that the Lenin SEC showed some changes in the number and structure of employees during the period under study. In 2004, the total number of employees increased by 20 people compared to 2002. As the analysis showed, the main reason for the increase in numbers was the increase in the number of cattle, pigs, and sheep.

Table 2 Composition and structure of labor resources

Indicators							2008 as a percentage of 2006
Indicators							2008 as a percentage of 2006
Workers of all
Workers engaged in agriculture
permanent workers
tractor drivers - mash-you
operating milking machine
Employees
managers
specialists
Workers in auxiliary industries. production
Trade and catering workers
Workers engaged in construction

The provision of the economy with basic means of production is an important factor on which the results of economic activity, the completeness and timeliness of work, and, consequently, the volume of production, its cost, and the financial condition of the enterprise depend. Let's consider the composition and structure of fixed assets of the Lenin SEC in Table 3

Table 3 Composition and structure of fixed assets

Indicators							2008 as a percentage of 2006
Indicators							2008 as a percentage of 2006

Facilities
Machinery and equipment
Vehicles
Other household equipment
Draft livestock
Productive livestock
Other types of OS

The indicators in Table 3 indicate that a significant part of fixed assets in 2008 was buildings - 48%, structures - 11%. During the analyzed period, the structure of fixed assets changed significantly, in particular, in 2004, the share of buildings in the total amount of fixed assets increased by 90% compared to 2006. Minor changes occurred in 2008 in the category “Drafting Livestock” by 2 times and “Industrial and Household Equipment” by 56% compared to 2006 figures.

The financial condition of an enterprise characterizes its solvency, creditworthiness as of a certain date, usually on the 1st day of the period. The nature of its relationships with suppliers, buyers, and banks depends on the financial condition of the enterprise. Sources of information for calculating these indicators of financial condition are accounting and statistical reporting: the balance sheet of the enterprise, the statement of financial results and their execution, the cash flow statement, etc.

A general analysis of the financial condition of the SEC is carried out on the basis of the absolute values of the balance sheet indicators of the SEC.

Table 4 Calculation results for analyzing the balance of the Lenin SPK

Become a balance				Changes
Become a balance				thousand roubles.
I Non-current assets
II Current assets
Inventory and VAT
raw materials and materials
animals for growing and fattening
costs in work in progress
Cash
Accounts receivable (due less than a year)
Balance
III Capital and reserves
IV Long-term liabilities
V Current liabilities
Accounts payable

An analysis of the assets of the Lenin SEC for 2006–2008 showed an increase in “Non-current assets” by 11,515 thousand rubles, a decrease in “Current assets” by 6,846 thousand rubles. The share of “Cash” changed from 0.02% to 0.2%, its growth rate is positive (8%). There is also a decrease in “Receivables” by 2,386 thousand rubles. Despite the increase in fixed assets in absolute terms, their share has decreased, and the fixed assets of the SEC create conditions for the production of products and the most liquid assets that allow the SEC to pay its obligations on time.

An analysis of liabilities showed low rates of growth in equity (Capital and Reserves) of 5% compared to the growth rate of balance sheet currency (10%), with a sharp increase in accounts payable, which accounted for 45% of the change in balance sheet currency. An analysis of the liabilities of the SEC showed an increase in the share of “Capital and Reserves” by 5% and an increase in accounts payable by 1,625 thousand rubles.

In the structure of inventories and costs, the share of costs in work in progress increased by 2 times. There is also a decrease in the cost of “Raw materials and materials” by 47%. The structure of “Inventories and VAT” under the SEC has not changed significantly. To analyze the financial stability of the Lenin SEC, consider the following table.

Table 5 Calculation of indicators to determine the financial stability of the Lenin SEC.

In this case, the surplus of own funds in 2008 decreases compared to 2006, but the financial condition of the Lenin SEC is stable, since inventories and costs are provided from its own working capital.

An analysis of balance sheet liquidity is performed to assess the creditworthiness of the SEC. We consider the results for analyzing balance sheet liquidity in the following table.

Table 7 Calculation results for analyzing the liquidity of the balance sheet of the Lenin SEC

Indicators
1. Cash
2. Short-term liabilities
3. Liquidity

An important condition for the growth of gross and marketable output of an agricultural enterprise is the development of production potential.

According to Table 8, it can be seen that the cost of agricultural production assets: per 100 hectares. agricultural land in 2008 compared to 2007 increased by 123.9 thousand rubles, and compared to 2006 by 212 thousand rubles; per 1 average annual employee in 2008 increased by 23.5 thousand rubles compared to 2007, and by 47.1 thousand rubles compared to 2006.

Types of investment activities and their economic efficiency

Energy capacity: per 100 hectares. agricultural land in 2008 compared to 2007 decreased by 8 horsepower, and compared to 2006 by 9.9 horsepower; per 100 hectares. crops in 2008 compared to 2007 increased by 2.1 horsepower, and compared to 2006 decreased by 21.6 horsepower; per 1 average annual employee in 2008, compared to 2007, decreased by 2.3 horsepower, and compared to 2006, decreased by 2.2 horsepower.

Table 8 Resource availability and use

Indicators
Indicators
Cost of agricultural production assets, thousand rubles. For 100 hectares of farmland
Per average annual employee
Accounted for energy resources, hp: For 100 hectares of agricultural land
Per 100 hectares of crops

Load per 1 average annual worker, ha Agricultural land

Crops
Gross output received, thousand rubles: For 100 hectares of agricultural land
For 1 average annual employee
Profitability level, %
Cost recovery level, %

Energy capacity: per 100 hectares. agricultural land in 2008 compared to 2007 increased by 1.9 horsepower, and compared to 2006 decreased by 6.1 horsepower; per 100 hectares. crops in 2008 increased by 2.7 horsepower compared to 2007, and by 4.8 horsepower compared to 2006; per 1 average annual employee in 2008 compared to 2007 increased by 1.6 horsepower, and compared to 2006 decreased by 0.7 horsepower.

Strengthening the material and technical base of agricultural production and its industrialization determine a change in the nature of agricultural labor and a transformation in the professional and qualification composition of personnel.

In SPK im. Lenin, there is a tendency to increase the number of workers employed in agricultural production - in 2004, the total number of workers increased by 10 workers compared to 2006. The load on 1 average annual worker of agricultural land in 2008 is 1.7 hectares less than in 2007, by 1.8 hectares. than in 2006; arable land in 2008 by 1.4 hectares. less than in 2007, by 1.9 hectares than in 2006; There were 1.1 hectares less crops in 2008 than in 2007, and 2.1 hectares less than in 2006.

Gross output produced: per 100 hectares of agricultural land compared to 2007 by 288.1 thousand rubles, compared to 2006 by 304.5 thousand rubles; per 1 average annual employee is 38.7 thousand rubles more compared to 2007, and 46.5 thousand rubles more than in 2006.

Profitability characterizes the performance of a farm. Profitability indicators allow you to evaluate how much profit a business has from each ruble of funds invested in assets.

Also, the level of cost recovery in 2008 is higher than in 2007 by 51.2%, and compared to 2006 by 89.5%.

3. The main ways to increase the efficiency of capital investments

3.1 Justification of the enterprise investment plan

Profit and profitability are important indicators of production efficiency. Profit is, on the one hand, the main source of enterprise funds, and on the other, a source of income for state and local budgets. It is important to take into account not only the size and increase in profit, but also the level of profitability; know how much profit is received for each ruble of production assets.

The amount of profit and the level of profitability are influenced by many factors. Profit and profitability of an enterprise are general indicators of the intensification of production and marketing activities.

For an in-depth analysis of profit, it is advisable to group the factors influencing its size.

The group of external factors includes: natural (climatic) conditions, transport and other factors that cause additional costs for some enterprises and determine additional profits for others; changes not provided for by the enterprise plan, selling prices for products, consumed raw materials, materials, fuel, purchased semi-finished products, tariffs for services and transportation, trade discounts, markups, depreciation rates, wage rates, charges on it and tax rates and other fees paid by enterprises; violations of discipline by suppliers, supply and sales, higher economic, financial, banking and other bodies on economic issues affecting the interests of the enterprise.

In the group of internal factors, they distinguish: the main factors that determine the results of work, and factors associated with violation of economic discipline by the enterprise.

Factors associated with violation of economic discipline are:

violation of the current procedure for establishing and applying prices, as well as trade markups;

savings obtained as a result of failure to implement necessary measures for labor protection, improvement of working conditions and safety regulations, failure to implement the plan for routine repairs of fixed production assets, underutilization of funds for training and advanced training of personnel, failure to carry out activities to test and develop new equipment, etc. ;

savings obtained from the production of products with deviations from the conditions of standards, recipes, technical conditions and violation of production technology.

To assess the formation of a real investment portfolio of an economy, we use four main indicators: value added (VA), gross result of investment exploitation (BREI), net result of investment exploitation (NREI) and economic profitability (ER).

The value of added value indicates the scale of the economy's activities and its contribution to the creation of national wealth and is defined as the cost of products produced by the economy during the analyzed period (including an increase in finished goods inventories and work in progress), minus the cost of consumed material means of production and services of other organizations.

The SEC expanded its activities, the value added indicator for 2006-2008. increases from 9547 thousand rubles. up to 13426 thousand rubles, i.e. over two years is 40.6%.

Table 9 Calculation of added value (thousand rubles..)

Indicators
1. Revenue
2. Finished products (GP)
3. Work in progress (WP)
4. Material costs
5. Added value (1)+(2)+(3)-(4)

The next indicator is the gross result of the operation of investments. BREI is used as one of the main intermediate results of financial and economic activities. By its economic nature, BREI represents profit before depreciation, financial costs of borrowing and income tax. The BREI value is the primary indicator of the sufficiency of funds to cover all these expenses.

The share of BREI in added value is an indicator of the efficiency of enterprise management and a guideline for the level of its potential profitability.

BREI is obtained by subtracting labor costs and social contributions from value added.

3.2 Product cost analysis

Product cost analysis is aimed at identifying opportunities to improve the efficiency of use of material, labor and monetary resources in the production process, supply and marketing of products. Studying the cost of production allows us to give a more correct assessment of the level of profit and profitability indicators achieved at enterprises.

In the system of indicators of economic efficiency of production in sectors of material production, such indicators as production per 1 unit are planned and analyzed. costs, as well as a reduction in costs by 1 unit. products (works).

Table 10 Analysis of cost dynamics per 1 rub. products sold

In the Lenin SPK in 2008, costs per 1 rub. sales of products decreased by 0.15 rubles.

An important section of product cost management is the analysis of the relationship between cost, sales volume and profit. Marketing analysis should answer the question of whether to sell a small number of products, but at a relatively high price, targeting a wealthy buyer with individual needs, or. sell many products aimed at mass buyers at a relatively low price. The second way requires a solution. problems of reducing costs and production costs; This requires an analysis of spending behavior. On this basis, all expenses are divided into variable (proportionally changing with the volume of production), semi-variable, semi-fixed (remaining constant up to certain limits of growth in production volume) and constant (constant within the reporting period). All four groups of expenses in accounting are divided into conditionally variable and constant. The former constitute the technological cost of production and are accounted for as direct costs. Variable and fixed costs are classified according to the sources of costs: variables characterize the costs of economic activity associated with the growth of production, and constants characterize costs associated with the ability to manage, i.e. show the effectiveness of management. These expenses include investment costs (depreciation), management fees, costs of developing economic policy (advertising, scientific developments, etc.).

The most important condition for increasing production efficiency is faster growth in labor productivity compared to the growth of average wages. This ratio at a rate ensures savings in production costs for the wage element.

Table 11 Analysis of the ratio of growth rates of labor productivity and average wages and its impact on costs

Indicators	Change	Growth rate, %
Indicators		Growth rate, %
Average annual production per 1 worker, thousand rubles.
Average annual salary of 1 worker, t.r.
Cost of products sold, thousand rubles.
Advance coefficient (page 1/page 2)
Share of wages in the cost of goods sold, %(d)(page 7/page 3)*100%
The size of the decrease (increase) in s/s due to the relationship between the growth rates of labor and avg.

In the SEC, the average annual salary of one employee increased by 790 rubles. or by 11.4%, and labor productivity by 33.8%. Thus, the growth in labor productivity outpaces its payment, as a result of which the cost decreased by 0.15 rubles. per 1 rub. revenue.

Planning and cost accounting at enterprises is carried out according to cost elements and costing items.

Cost elements: material costs (raw materials, purchased components and semi-finished products, fuel, electricity, heat, etc.), labor costs, social contributions, depreciation of fixed assets, other costs (depreciation of intangible assets, rent, mandatory insurance payments, interest on bank loans, taxes included in the cost of production, deductions to extra-budgetary funds, etc.).

3.3 Analysis of working capital of the farm

Working capital is a set of funds advanced for the creation and use of circulating production assets and circulation funds to ensure the continuous process of production and sales of products

To characterize the turnover of working capital, a number of indicators are used:

the working capital turnover ratio is defined as the ratio of sales proceeds to the average balance of working capital;

consolidation coefficient – the inverse value of the turnover ratio;

the average duration of one turnover in days is calculated as the ratio of the duration of the period to the turnover ratio

From the calculations of Table 3.7 it follows that the turnover of farm assets in 2008 increased: all working capital by 0.4 turnover, including inventories by 0.4. Accordingly, the duration of one turnover was reduced: all working capital by 27 days, including inventories by 26 by 1 day. The accounts receivable ratio increased by 2 turns, as a result of which the duration of one turn decreased by 3 days.

Table 12 Analysis of working capital turnover

	Indicators			Change
	Indicators			Change
	Sales revenue, thousand rubles.
	Average balance of fixed assets, thousand rubles.
	Average balance by type of fixed assets
	Inventories
	Accounts receivable
	Wed. duration of 1 revolution, days (365 days/number of revolutions)
	All working capital
	Inventories
	Accounts receivable
	Turnover ratio, revolutions
	All working capital (1/2)
	Inventory (1/4)
	Accounts receivable(1/5)

The change in the turnover ratio (R) is influenced by two factors: revenue (B) and average working capital balances (O). Let's build a factor model of the turnover ratio: .

3.4 Analysis of the dynamics of the farm’s own working capital and net assets

Current (current) assets are formed both from equity capital and from short-term borrowed funds. It is desirable that they be formed half from their own capital and half from borrowed capital. Then a guarantee of repayment of external debt is provided.

Table 13 Analysis of the availability and movement of own working capital, thousand rubles.

Indicators	to the beginning reporting period	reporting period	change
Authorized capital.
Extra capital.
Retained earnings.
Total sources of own funds
Excluded:
Fixed assets
Construction in progress
Long-term financial investments
Total non-current assets.
Own working capital.

The lack of own working capital leads to an increase in the variable and a decrease in the constant part of current assets, which is formed at the expense of equity capital, which also indicates the strengthening of the financial dependence of the enterprise and the instability of its position.

The ultimate goal of the economy is for investments to bring more profit.

3.5 Development of ways to improve the problems of forming an investment portfolio of an economy

The problem of forming an investment economy is to distribute the accumulated net profitability of own funds to increase wages and to develop production. This process is carried out under the direct influence of the norm of distribution (NR) adopted by the enterprise, which shows what part of the net profit is paid as wages.

Here it is logical to introduce the term “internal growth rates” - this is the rate of increase in the economy’s own funds as a necessary condition for increasing turnover and development of the economy. Obviously, the growth rate of turnover depends on the internal growth rate (IGR). Achieving high turnover rates increases the possibility of increasing the farm's own funds.

Net return on equity is characterized by (РСС):

the upper limit of potential production development;

upper level of profit.

If you refuse to distribute profits, you can increase your own funds by the amount of return on your own funds, and if you refuse to finance development, you can increase wages in the amount of RSS. If the farm decides on both directions, then it is necessary to look for the optimal relationship between the rate of distribution and the percentage increase in own funds, i.e. internal growth rates.

G
de VTR – internal growth rates;

РСС – net return on equity;

HP is the rate of distribution of profit on wages.

Let's calculate the internal growth rates as of 2004.

Table 4.1 Calculation of VTR for the Lenin SEC

Indicators	Meaning
1. Asset minus accounts payable, rub.
2. Passive, incl.
2.1. Own funds, rub.
2.2. Borrowed funds, rub.
3. Turnover, rub.
4. NREI, r.

6. Profit tax rate in rel. units
7. The rate of distribution of profit per salary

Let's calculate the key indicators:

ER = NREI/Turnover x 100 x Turnover/Asset = 15.57%

EGF = (1-0.3) x (ER – SRSP) x ZS/SS = 0.026%

RSS = (1-0.3) x ER + EGF = 10.87%

Thus, a farm with VTR = 8.12% has the opportunity to increase its own funds from 41,281 to 44,633 thousand rubles. But then, without violating the ratio between borrowed and equity funds, you can increase the debt.

Consequently, without changing the structure of the liability, you can increase its volume to 48,590 thousand rubles, i.e. by 8.12% compared to 2004. Consequently, the asset will increase by 8.12% and amount to 48,590 thousand rubles. Based on the calculated VTR, we will draw up a forecast balance.

Thus, with a constant structure of liabilities and a constant transformation coefficient by the value of VTR, it is possible to predict an increase in the value of the farm’s turnover.

The larger part of the net profit is paid to increase wages, the less retained profit remains for self-financing of development. An increase in the distribution rate entails a decrease in internal growth rates, which, in turn, imposes a limit on the rate of revenue growth and reduces the possibility of attracting loans (the less equity, the less chance of obtaining a loan on suitable terms). But this may have a negative impact on the market price of the farm. Therefore, it is necessary to choose the most optimal production development policy.

Conclusion

SPK im. Lenin’s organization of voluntarily united peasants to conduct farming based on means of production and collective labor. It operates on land owned by the state.

Points for delivery of industrial products of SPK im. Lenin is a meat processing plant, a dry and skim milk plant.

Land funds are the most important component of agricultural resources. Rational use of land ultimately leads to improved soil quality and increased crop yields. The total land use area of the farm is 7370 hectares, of which 6925 hectares are agricultural land, including 5293 hectares of arable land.

The provision of the economy with basic means of production is an important factor on which the results of economic activity, the completeness and timeliness of work, and, consequently, the volume of production, its cost, and the financial condition of the enterprise depend. In 2004, a significant portion of fixed assets consisted of buildings - 48%, structures - 11%.

During the analyzed period from 2006 to 2008, there was an increase in balance sheet liquidity due to an increase in the most liquid assets to cover current liabilities.

As calculations show, profitability in 2008 is higher than in 2007 by 51.2%, lower than in 2006 by 89.5%.

Also, the level of cost recovery in 2008 is higher than in 2007 by 51.2%, and compared to 2006 by 89.5%.

The SEC expanded its activities, the value added indicator for 2006-2008. increases from 9547 thousand rubles. up to 13426 thousand rubles, i.e. over two years is 40.6%. There is an increase in the gross operating result of investments, but the growth rate of BREI lags behind the growth rate of DS. This is evidenced by the decrease in the share of BREI in added value. The value of ER in 2008 was 98.9%; there was an increase in ER compared to 2006 by 66.4%.

The average annual salary of one worker increased by 790 rubles. or by 11.4%, and labor productivity by 33.8%. Thus, the growth in labor productivity outpaces its payment, as a result of which the cost decreased by 0.15 rubles. per 1 rub. revenue.

The turnover of farm assets in 2008 increased: all working capital by 0.4 turnover, including inventories by 0.4. Accordingly, the duration of one turnover was reduced: all working capital by 27 days, including inventories by 26 by 1 day. The accounts receivable ratio increased by 2 turns, as a result of which the duration of one turn decreased by 3 days.

As a result of the increase in the working capital turnover ratio, a significant amount of working capital was released: current assets – 1821 thousand rubles, inventories – 1474 thousand rubles.

By the end of the year, the farm’s own working capital decreased by 4,026 thousand rubles.

through contributions to fixed assets of the economy. The value of net assets increased by 2892 thousand rubles.

The problem of forming an investment portfolio of an economy is to distribute the accumulated net profitability of own funds to increase wages and to develop production. This process is carried out under the direct influence of the norm of distribution (NR) adopted by the enterprise, which shows what part of the net profit is paid as wages.

Consequently, without changing the structure of the liability, you can increase its volume to 48,590 thousand rubles, i.e. by 8.12% compared to 2008 Consequently, the asset will increase by 8.12% and amount to 48,590 thousand rubles. Based on the calculated VTR, we will draw up a forecast balance.

ZS/SS * X/ 44941 = 3955 thousand rubles.

Thus, with a constant structure of liabilities and a constant transformation coefficient by the value of VTR, it is possible to predict an increase in the value of the farm’s turnover.

The ultimate goal of the farm is for investments to bring more profit and to replenish the farm’s investment portfolio more every year.

Bibliography

1. Abryutin M.S., Grachev A.V. Analysis of the financial and economic activities of the enterprise. M.: Business and Service, 2007. 180 p.

2. Artemenko V.G., Belendir M.V. Financial analysis: Textbook. M.: DIS NGAEiU, 2007. 128 p.

3. Bakanov M.I., Sheremet A.D. Theory of economic analysis. M.: Finance and Statistics, 2007. 218 p.

4. Dontsova L.V., Nikiforova N.A. Analysis of annual financial statements. M.: DIS, 2008. 216 p.

5. Efimova O.V. The financial analysis. M.: Accounting, 2007. 208 p.

One of the most important areas of an enterprise’s economic activity is its investment activity related to the investment of funds in the implementation of long-term and medium-term projects.

Investment activity can be defined as a set of operations for the acquisition and sale of long-term (non-current) assets, as well as short-term (current) financial investments that are not equivalent to cash.

An enterprise can make investments of various types and in various organizational forms: the formation of an investment portfolio, participation in investment projects, etc. The areas of investment activity of an enterprise have a different nature, degree of responsibility and, accordingly, the nature of the consequences and the level of risk.

The main directions of investment activity of the enterprise are:

· renewal and development of the material and technical base of the enterprise or expanded production of fixed assets of the enterprise;

· increasing the volume of production activities;

· development of new types of activities.

The process of making management decisions of an investment nature is based on the assessment and comparison of the volume of expected investments and future cash receipts, i.e. it is required to somehow compare the amount of investment with projected income based on the use of various formalized and informal methods and criteria.

This requires an in-depth investment analysis in the following areas:

· retrospective analysis of financial and economic activities in order to determine the weakest points in the activities of various divisions of the enterprise;

· justification and comprehensive analysis of the investment business project;

· feasibility study of a loan and other types of external financial resources if they are attracted;

· assessment of the influence of external and internal factors on the overall effectiveness of the project.

Financial analysis of investment projects is the most important component of the strategy of any business entity. Its implementation allows you to make informed decisions on the feasibility of investments and the profitability of their activities.

The main indicators for assessing the effectiveness of an investment project are:

Net present value (NPV);

Profitability Index (PI);

Internal rate of return (IRR,%);

The payback period of the initial costs, calculated taking into account discounted cash flows (T).

The net present value method is based on a comparison of the discounted value of cash receipts (investments) generated by the enterprise during the forecast period. The purpose of this method is to identify the real amount of profit that can be received by the organization as a result of the implementation of this investment project.

Net present value is quantified in the following ways:

where: CF - cash flows by year

I - volume of investment

i - discount rate

n - number of periods (years)

This model assumes the following conditions:

The volume of investment is accepted as completed;

The volume of investment is taken into account at the time of analysis;

The return process begins after the investment is completed.

The discount rate r can be used:

· - bank lending rate;

· - weighted average cost of capital;

· - opportunity cost of capital;

· - internal rate of return.

If the analysis is carried out before the start of investment or the investment is planned for several years, then the amount of investment expenses should also be brought to the present moment. The model for calculating net present value will take the form:

The indicator reflects a forecast assessment of changes in the economic potential of a commercial organization in the event of the adoption of the project under consideration.

If NPV>0, then the project is profitable, increasing the actual cost of the organization by the NPV amount.

If NPV<0, то проект является убыточным и должен быть отвергнут.

If NPV = 0, then the project is neither profitable nor unprofitable, that is, from an economic point of view, it is indifferent whether to accept this project or not; if the projects are alternative, then the project with the higher net present value is accepted.

The key point when calculating net present value, as with other methods of analysis based on discount valuations, is the choice of discount rate. The discount rate is chosen by the developer independently. In this case, one should take into account the size of risk-free rates, the projected inflation rate for the period, the rate of opportunity costs, uncertainty and risk when planning distant cash receipts, etc. The rationale for choosing a discount rate in each case is individual and depends on the conditions and goals of the analysis, as well as analyst qualifications.

The investment return index is the income per unit of invested funds. It is defined as the ratio of the current value of the cash flow of income to the current value of investment costs and is calculated by the formula:

Unlike net present value, the profitability index is a relative indicator: it characterizes the level of income per unit of cost, i.e., the efficiency of investments - the higher the value of this indicator, the higher the return on each ruble invested in a given project. Thanks to this, the PI criterion is very convenient when choosing one project from a number of alternative ones that have similar NPV values (in particular, if two projects have the same NPV values, but different volumes of required investments, then it is obvious that the one that provides greater investment efficiency is more profitable ), or when completing an investment portfolio in order to maximize the total NPV value.

The higher the profitability indicator, the more preferable the project. If the index is 1 or lower, then the project hardly meets or even does not meet the minimum rate of return (in practice, an index close to one is acceptable in some cases). An index of 1 corresponds to zero net present value.

The internal rate of return on investments is the rate of return (barrier rate, discount rate) at which the net present value of the investment is zero, or the discount rate at which the discounted income from the project is equal to investment costs.

Its value is found from the following equation:

That is, the internal rate of return is the level of return that, when applied to the earnings from an investment over its life cycle, results in a net present value of zero.

In particular, the economic meaning of the IRR criterion is that an enterprise can make any investment decisions, the profitability of which is not lower than the current value of the “cost of capital” (CC) indicator. The latter means the entire totality of the costs of the available sources of financing for the project.

Making a decision on an investment project based on the IRR criterion is based on the rule: if the IRR value is greater than the project financing rate, then this project should be accepted, and vice versa.

The discounted payback period is the period of time required to recover the discounted cost of an investment from the present value of future cash flows. This indicator is determined by dividing the investment by the discounted net cash flow.

When evaluating investment projects, criteria T can be used under the following conditions:

a) the project is accepted if payback occurs;

b) if the calculated payback period is less than a certain maximum allowable payback period that the company considers acceptable for itself, then the project is accepted;

c) from a number of alternative investment projects, the one whose payback period is shorter is accepted.

In contrast to the NPV, IRR and PI criteria, the T criterion allows us to obtain estimates, albeit approximate ones, of the liquidity and riskiness of the project.

When analyzing investment projects, you should adhere to the following rules:

1. When comparing projects, consistently apply the same quantitative approaches to them.

2. Use quantitative assessment methods as useful, but not the only information for decision making.

3. Do not exclude any assumptions made in the analysis and interpret the meaning of the results obtained.

MINISTRY OF AGRICULTURE AND FOOD OF THE RF

ULYANOVSK STATE AGRICULTURAL ACADEMY

COURSE WORK

By discipline: Finance of the agro-industrial complex

Subject: “Evaluation of the effectiveness of an enterprise’s investment activities”

Completed by a student

2 correspondence courses

Faculty of Economics

Kuramshina R.R.

Introduction 3

Theoretical foundations of the effectiveness of investment activity management 5

1.1 Essence, role and classification of investments 5

1.2 Methods for economic justification of investment decisions 9

1.3. Factors for intensifying investment activity at an enterprise 12

State of development and assessment of the effectiveness of investment activities of the Lenin SEC 14

2.1 Organizational and legal status of the farm 14

2.2 Volume and structure of investments in fixed assets 15

2.3 Types of investment activities and their economic efficiency 21

Main ways to improve the efficiency of capital investments 24

3.1 Justification of the investment plan for the enterprise 24

3.2 Product cost analysis 26

3.3 Analysis of working capital of the farm 29

3.4 Analysis of the dynamics of the farm’s own working capital and net assets 30

3.5.Development of ways to improve the problems of forming an investment portfolio of an economy 32

Conclusion 35

Bibliography 39

Introduction

Acquisition of complete property complexes.

New construction.

3. Repurposing.

4. Reconstruction.

5. Modernization.

6. Updating certain types of equipment.

7. Innovative investment in intangible assets.

8. Investing the increase in inventories of tangible current assets.

Determine the correct asset structure;

They strive to have the minimum possible amount of inventory;

Accelerate the flow of funds, receive money from both buyers and customers in a timely manner;

Increasing production volume;

Develop an investment strategy suitable for the farm.

In the context of the financial crisis that has been brewing over the past few years and has broken out in Russia, the topic of investing may seem irrelevant.

The course work was carried out on the basis of materials from the Lenin SEC in the Saratov region.

1 Theoretical foundations of the effectiveness of investment activity management

1.1 Essence, role and classification of investments

Real investments are made by enterprises in various forms, the main ones being

3. Repurposing. It represents an investment operation that ensures a complete change in the technology of the production process to produce new products.

The specific nature of real investment and its forms are determined by certain features of their management at the enterprise.

... grade internal investment potential enterprises And efficiency his investment activities. At the first stage of analysis, the total volume is studied investment activities enterprises ...

Investment activity enterprises (5)

Thesis >> Financial Sciences

AND assessments efficiency investment activities enterprises 1.1 Concept, types and legislative and regulatory framework investment activities 1.2 Scorecard assessments efficiency investment projects 1.3 Procedure assessments efficiency capital...

Grade efficiency economic activities enterprises and the state of its balance (1)

Coursework >> Economics

... ASSESSMENTS EFFICIENCY ECONOMIC ACTIVITIES ENTERPRISES AND THE STATE OF ITS BALANCE 1.1 Essence assessments efficiency economic activities enterprises 1.2 Sources assessments efficiency economic activities enterprises... arrived, investment And...

Approaches to assessment efficiency economic activities

Abstract >> State and law

... assessment is also due to the need to increase efficiency investment management (real investment management, assessments efficiency investment activities enterprises). Comprehensive express assessment efficiency ...

The effectiveness of investments is assessed by quite a large number of indicators. They are used by specialists -. For investors, a few of them are usually enough to make an investment decision. Below is the necessary list.

This indicator gives the investor information about what absolute amount of money he will receive for the entire investment.

To calculate it, you need to know the nature of the cash flows that the investment will generate and how they will change over time.

In the graph below we see how total cash flow changes. The first phase of investment, labeled "Pre-Production Period" in the chart, can be considered a one-time investment if it is made within one year. Or maybe as a process over a period of a year or more. In this case, the calculation of the net present value of investments must take into account the changing cost of investments in the investment project, that is, it is calculated with discounting at the discount rate r, which is determined based on the criteria chosen by the investor. The main criteria when choosing a discount rate can be called:

cost of capital of the invested object;
lending rate of banks in the financial environment;
industry average return on capital for the invested object;
profitability of financial instruments on the stock market;
internal rate of return.

Cash inflows to the invested object in the form of cash receipts NV are calculated as follows:

CIt - investments for the entire life cycle of the project;
CFt - cash receipts for the entire life cycle of the project;
n - investment life cycle.

Here are the cash receipts for the entire investment cycle does not include cash flows from operating activities and financing activities They are taken into account during the implementation of the investment process.

For net present value calculations, cash flows are discounted at a rate r.

Calculation of the net present value of the project at the preliminary stage of investment is carried out according to the formula:

ICt - in the period from i=0 to T;
CFt - cash flow from investments in t-year;
n is the duration of the investment life cycle;
r is the discount rate.

If investments are made simultaneously, then the formula takes the form:

where ICo is the initial investment.

To simplify NPV calculations, the quotient of

are called the discount factor and their values, for different r, are summarized in special tables, where you can easily determine the required coefficient for given conditions. These tabulated values are easy to find on the Internet.

Indicator at the preliminary stage of investment:

serves as a criterion for the feasibility of investing in a given investment object,
an evaluation indicator when choosing options;
an absolute indicator of future return on investment.

At the same time, the indicator, if it is equal to 0, shows the maximum level of profitability at the lower limit reflected by the selected discount rate r. If they do not pay off, then the investment will bring the investor an increase in his capital. Obviously, the choice of discount rate affects the final result when deciding on investments.

The higher the efficiency of the operating capital into which investments are made, the lower the capital gain will be, all other things being equal. In other words, it is advisable to make highly effective investment projects in highly efficient production.

For example:

1 investment property with a capital cost of 25%;
2 investment object at the level of 15%;
Investment life is 3 years;
The amount of initial investment is 60 million rubles;
The industry average profitability of enterprises in this industry is 14%.

Investment income receipts:

For 1 object:
For 2 objects: 1 year - 27 million rubles; 2 year - 33 million rubles; 3 year 35 million rubles.

For 1 object, a discount rate of 14% is unacceptable, since the investment project will reduce the cost of its capital, so it can be no lower than 25%. Let's calculate NPV at this discount rate: NPV = -60 +27/1.25 + 33/1.5625 + 35/1.953 = -60 + 21.6 + 21.12 + 18.14 = 0.86.

For 2 objects: NPV = -60 +27/1.15 + 33/1.322 + 35/1.52 = -60 + 23.47 + 24.96 + 23.02 = 11.45.

The example shows that the same project for enterprises with different discount rates can be low-profit and profitable. To eliminate the ambiguity of such assessments, relative indicators of the effectiveness of investment projects come to the rescue.

Discounted profitability index of an investment project

The discounted return index is the ratio of all income from investments, discounted at the rate of attracting capital to investments over the life cycle of the project to the size of all investments, also discounted at the time of these investments. The profitability index is designated as DPI (Discounted Profitability Index) and the formula for calculating it looks like this:

It is also obvious that the discounted investment return index must be greater than 0.

Investment return index

For small investment objects with a implementation period of about a year or a little more, a simplified formula for the investment return index is used, which looks like this:

where ICo is the initial investment.

So for the previous example we get:

For 1 object = 60.86 / 60 = 1.014.

For 2 objects = 71.45/60 = 1.19.

In this case, the profitability index confirms that object 2 is more profitable than object 1. The investor will prefer object 2, although the cost of capital of the investment object for object 1 is significantly higher and its financial stability is also higher.

Internal rate of return of an investment project

The internal rate of return is widely used in the evaluation of investment projects and in their analysis; it is designated IRR (Internal rate of return). The mathematical expression for the internal rate of return looks like this:

IRR = r, with NPV = 0, or in more detail:

CFt - cash flow from investments in the t-th year;
ICt - investment flow in the t-th year;
n - project lifespan.

That is, if income and investment are equal, the resulting rate represents the lower limit of the rate of return at which investment is not advisable. If the resulting IRR is lower than the weighted average return on capital of the investee, the project must be abandoned.

In addition, the resulting internal rate of return can serve as a discount rate for cash flows when calculating investment project evaluation indicators.

When comparing several investment options, IRR serves as a criterion for selecting the more effective option. The IRR indicator is expressed as a percentage, therefore, as a relative indicator, it is used to compare even projects of different sizes and with different life cycles.

The indicator is calculated using the method of successive approximation. The NPV(r) function is non-linear because the denominator in the above equation is a power function. Therefore, r is determined that is close to the NPV = 0 indicator, and in this range, r is selected, at which the equation NPV = 0 is satisfied.

The graph below shows what this looks like:

The value NPV≥0 is found on the graph and the value NPV≤0 is found on the graph.

This calculation shows for option 1 25.88%, which means that the project must provide such an average rate of return for the entire life of the project and since IRR > r, which we took equal to 25%, we will implement the project.

For option 2, 18%, the weighted average cost of capital is 14%, and the industry average profitability of enterprises in the industry is 15%. and can be offered to the investor for sale.

A modified internal rate of return is necessary when calculating the effectiveness of investment projects in which the profit from it is annually reinvested at the rate of the cost of the total capital of the invested object. In this case, the formula takes the form:

Where:

MIRR—modified internal rate of return;
d - weighted average cost of capital;
r is the discount rate for cash inflows;
CFt - cash inflows in the t-th year of the project life;
ICt - investment cash flows in the t-th year of the project’s life;
n is the life cycle of the project.

Both indicators have a common drawback: cash inflows from investment activities must be relevant, i.e. incremental throughout the entire process. If flows of different signs occur, the calculation of indicators will not reflect the real picture.

Indicators for evaluating investment projects include several simple and visual indicators that are widely used by investors, and the most common among them is the payback period of investments.

Payback period of initial investment

This indicator tells the investor about the time frame for returning his initial investment.

The general formula for calculating the payback period is as follows:

Where:

PP - payback period of investments;
Io - initial investment in the project;
t is the period for calculating the payback period.

If it is possible to determine the average annual or average monthly income from invested funds, then: where CFcr is the average annual return on investment.

This indicator is simple and clear, but does not take into account the factor of changes in the value of money over time.

If this factor is included in the calculation of the payback indicator, then it will be called the payback period of the initial investment, calculated taking into account discounted cash flows (DPP):

CFt - cash flow from investments in the t-th year;
r is the discount rate for cash receipts.

From a comparison of these formulas, it is obvious that DPP > PP is always present.

There is another drawback of these indicators: outside the payback period, cash flows can change at different rates and, with the same payback period, the amount of accumulated cash flow may be different.

In other words, you cannot rely on this indicator when comparing investment options; a mandatory absolute assessment of the accumulated cash flow over the life cycle of the project is necessary.

If you look carefully at the formula for calculating the investment ratio, it is easy to see that it is, in meaning, the reciprocal of the payback period of investments:

If is the residual (liquidation) value of investments in the project, determined by selling property and equipment after its completion.

CFcr is the average annual cash flow from the project over the life of the project. This is especially visible when If = 0. Then there is no need to take it into account in the formula, and it takes the form:

PP is the payback period of the project.

All of the above indicators characterize investments from an economic point of view. The investor is also interested in indicators characterizing the degree of risk of the investment project. These indicators include probabilistic estimates of the achievement of the parameters laid down in the investment project. Risk indicators are characterized by the mathematical expectation of risk events in a given range. Risk events are determined by analyzing the characteristics of the invested object, such as the return on its capital, the financial stability of the invested object, the turnover of its assets and the liquidity of capital. Indicators of economic efficiency, together with indicators of risk, form project indicators. On their basis, the investor makes a decision on the advisability of investing in a particular project.

Investment performance indicators. Calculations of investment activity indicators

Indicators

Balance

Table 8 Resource availability and use

Indicators

Table 10 Analysis of cost dynamics per 1 rub. products sold

Indicators

Table 12 Analysis of working capital turnover

Indicators

Bibliography

Investment activity enterprises (5)

Grade efficiency economic activities enterprises and the state of its balance (1)

Approaches to assessment efficiency economic activities

Discounted profitability index of an investment project

Investment return index

Internal rate of return of an investment project

Payback period of initial investment