KEY INDICIES OF BUSINESS EFFICIENCY ANALYSIS AND EVALUATION

Keywords: efficiency, business efficiency, economic efficiency, efficiency evaluation, return, EBITDA, OIBDA, net cash flow

Abstract

The problems of analytical evaluation of economic entities’ efficiency amid complexity and instability of the market environment have been examined in the article. Meeting the changing information needs of investors and analysts, as well as the improvement of financial analysis methods according to the management demands, the issue of the formation of key indicators system aimed at the analysis and objective assessment of business efficiency is relevant. Within the set objective economic essence of the efficiency has been revealed, characteristics of the methodological approaches to the efficiency analysis and evaluation have been provided: traditional, multifactorial and based on the concept of performance management. It has been found out that to form the system of indicators for efficiency evaluation, it is necessary to take into account the form of ownership, industry characteristics, goals of enterprise’s development and stakeholders expectations. The methods and analytical indicators of the traditional approach typical in the local context have been analyzed, its strengths and weaknesses have been clarified. Taking into account that the methods of business economic efficiency evaluation are being developed and improved, the characteristics of EBITDA and OIBDA indicators and their main differences have been specified. The indicators’ advantages and disadvantages have been systematized and the significance of cash flow analysis as the criterion of solvency and enterprise development have been revealed. The relevance of traditional and modern foreign methods and indicators combination for the complete and objective business efficiency evaluation have been presented.

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Published
2021-03-25
How to Cite
Proskurina, N., & Pushkar’, I. (2021). KEY INDICIES OF BUSINESS EFFICIENCY ANALYSIS AND EVALUATION. Bulletin of Zaporizhzhia National University. Economic Sciences, (1 (49), 39-43. https://doi.org/10.26661/2414-0287-2021-1-49-07