Efficiency of operating activity of agricultural enterprises

• Main Author: Ludmila Todorich
• Format: Article
• Language: English
• Published: Institute of Eastern European Research and Consulting 2018-03-01
• Series: Agricultural and Resource Economics
• Subjects: operational activity; efficiency; profitability; profit; agriculture; transition economies
• Online Access: http://are-journal.com/are/article/view/158

Economic activity at both the micro and macro levels assumes constant comparison of the results of activities and costs associated with it, determining the most effective option for action. Objective assessment of the enterprise activity, involving the calculation and analysis of indicators of efficiency takes priority. The paper deals with assessment of the economic efficiency of operating activities of agricultural enterprises on the basis of an improved approach. The analysis of efficiency of operating activities is based on the example of the data of a particular agricultural enterprise from the country with a transition economy. Analysis of the efficiency of the operating activities of enterprise on the basis of calculating of profitability of sold agricultural products and return of sales are conducted; the necessity of calculation of these indicators based on operating profit is underlined. To obtain more complete information on the state of the enterprise’s efficiency, it is proposed to determine the overall indicator of profitability of operating activities. The mechanism of distribution of total revenues and costs by kinds of production is considered. It is proposed to classify the concept of «operational activities» into operational production and operational non-production activities.