Types of factors in factor analysis
Posted: Sun Dec 22, 2024 10:17 am
enterprise is an open system consisting of subsystems (interrelated parts). Such elements of the organization include current material assets, non-current assets, finances, personnel. In the enterprise economy, they are considered as production resources.
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The enterprise (process) and the economy play the role of the environment (according to Kleiner, the environment is a system of relationships between economic objects and the place where its processes occur).
Current material assets . This subsystem includes the organization's inventory (production stocks, finished goods in stock and shipment, work in progress). The life cycle of such elements is no more than 12 months, and for some of them this is one production cycle.
Non-current non-financial assets . These include tangible and intangible assets. These are fixed assets of production, intellectual assets, capital investments. Their life cycle is not less than 12 months.
Finance . This subsystem includes own funds and loans. This is money in kind, in the form of shares and bonds, and entries in accounts.
Personnel — the subsystem includes the employees of the enterprise. They are divided into categories: permanent and temporary workers, employees and specialists, management. Personnel is hired for a certain period of time and is related to attracted resources.
Organization . The environment consists of departments that are part of the enterprise structure, the relationships between them, the responsibilities of departments as a whole and specific employees.
Economy . The environment is represented by a list of economic characteristics of resources and financial results of the enterprise, as well as their mathematical dependence on each other.
Factor analysis of enterprise profit is a mathematical method of finding the relationship between resource parameters and financial results. Using this method, you can understand how individual factors affect the results of the organization's activities.
Types of factors in factor analysis
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Economic models use the division of factors into extensive and intensive.
Extensive
These are natural indicators of resources: the number of employees, the cost of fixed assets, the size of the wage fund, the price of working capital, the size of fixed or working capital.
Intensive
These are derivatives of extensive parameters: labor productivity, material productivity, capital productivity, asset productivity, and wage productivity.
The economic efficiency of a business depends on intensive production factors that allow, without attracting additional resources, to increase revenue and financial results. In this case, factor analysis of profit and profitability shows positive dynamics of these indicators, which ultimately indicates an increase in the competitiveness of the enterprise.
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The results are divided into:
production - manufactured goods, rendered services, completed work;
financial - revenue, profit;
marketing - entering the market, winning a certain share of it;
target - achieving leading positions in the industry in terms of technological or financial indicators.
Let's see how extensive and intensive factors influence the increase in revenue from product sales. We will select economic indicators for our model that correspond to the leading subsystems of the organization. Their composition for the evolutionary model is shown in the table.
Types of factors in factor analysis
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can mexico number for whatsapp guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
Advertising Channels Efficiency Calculator: Optimize Your Budget and Increase ROI by 70%
A Killer Commercial Proposal Template That Increases Conversion to Deals by 60%
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153116
The enterprise (process) and the economy play the role of the environment (according to Kleiner, the environment is a system of relationships between economic objects and the place where its processes occur).
Current material assets . This subsystem includes the organization's inventory (production stocks, finished goods in stock and shipment, work in progress). The life cycle of such elements is no more than 12 months, and for some of them this is one production cycle.
Non-current non-financial assets . These include tangible and intangible assets. These are fixed assets of production, intellectual assets, capital investments. Their life cycle is not less than 12 months.
Finance . This subsystem includes own funds and loans. This is money in kind, in the form of shares and bonds, and entries in accounts.
Personnel — the subsystem includes the employees of the enterprise. They are divided into categories: permanent and temporary workers, employees and specialists, management. Personnel is hired for a certain period of time and is related to attracted resources.
Organization . The environment consists of departments that are part of the enterprise structure, the relationships between them, the responsibilities of departments as a whole and specific employees.
Economy . The environment is represented by a list of economic characteristics of resources and financial results of the enterprise, as well as their mathematical dependence on each other.
Factor analysis of enterprise profit is a mathematical method of finding the relationship between resource parameters and financial results. Using this method, you can understand how individual factors affect the results of the organization's activities.
Types of factors in factor analysis
Source: shutterstock.com
Economic models use the division of factors into extensive and intensive.
Extensive
These are natural indicators of resources: the number of employees, the cost of fixed assets, the size of the wage fund, the price of working capital, the size of fixed or working capital.
Intensive
These are derivatives of extensive parameters: labor productivity, material productivity, capital productivity, asset productivity, and wage productivity.
The economic efficiency of a business depends on intensive production factors that allow, without attracting additional resources, to increase revenue and financial results. In this case, factor analysis of profit and profitability shows positive dynamics of these indicators, which ultimately indicates an increase in the competitiveness of the enterprise.
Read also!
"Marketing Department KPI: 11 indicators and calculation example"
Read more
The results are divided into:
production - manufactured goods, rendered services, completed work;
financial - revenue, profit;
marketing - entering the market, winning a certain share of it;
target - achieving leading positions in the industry in terms of technological or financial indicators.
Let's see how extensive and intensive factors influence the increase in revenue from product sales. We will select economic indicators for our model that correspond to the leading subsystems of the organization. Their composition for the evolutionary model is shown in the table.
Types of factors in factor analysis