Back to Search
Start Over
What asset structure generates the highest possible profit for a manufacturing enterprise?
- Source :
- SHS Web of Conferences, Vol 160, p 01006 (2023)
- Publication Year :
- 2023
- Publisher :
- EDP Sciences, 2023.
-
Abstract
- The objective of the paper is to determine the most suitable operational redundant assets and asset structure for a manufacturing enterprise. They are determined by the financial analysis of ratios, vertical and horizontal analysis, and the calculation of Altman Z-score. The recommended sizes of activity ratios are: the turnover of total assets should be equal to the value of 1, the time of inventory turnover should be as short as possible, the turnover of inventories should be as large as possible, the time of debt collection should be the shortest possible, the due date of fulfilling obligations should be equal to 2 or higher. The ratios are compared with the sector and the position of enterprise is assessed. The limit of the research is the incapability to determine the best asset structure, but only the best possible one, on the basis of comparing with the sector that sets the bar in a specific field. Every enterprise aspiring to be competitive should meet the sector standards, at least.
Details
- Language :
- English, French
- ISSN :
- 22612424
- Volume :
- 160
- Database :
- Directory of Open Access Journals
- Journal :
- SHS Web of Conferences
- Publication Type :
- Academic Journal
- Accession number :
- edsdoj.3c0e6407b7774c2ab202cb8c4ab641b4
- Document Type :
- article
- Full Text :
- https://doi.org/10.1051/shsconf/202316001006