Gross (internal, private) Investments (Ig) are a total amount of the costs of companies in a given country, directed during this year to reimbursement and an increase in fixed capital and gains in stock.
The main difference between macroeconomics is that if microeconomics studies the features of equilibrium in individual markets, then macroeconomics studies the economy as a whole, that is, this is the science of aggregated behavior in the economy.
National Economy: Structure and measurement of results
1. The structure of the national economy and macroeconomics.
2. Problems of the National Economy.
3. Basic macroeconomic indicators.
1. Macroeconomics - this is a branch of economic science examining the functioning of the economy generally From the point of view of providing conditions, sustainable economic growth, full employment of resources and minimizing inflation levels .
The above definition emphasizes, firstly, the difference between the subject of macroeconomics from microeconomics ( generally!), Secondly, outlines the circle of the main problems that this science studies. Let us dwell on the differences in micro and macroeconomics.
... Microeconomics, as you know, studies the behavior of individual economic entities on individual markets. The result of microanalysis is the statement that the market mechanism, which is the interaction of supply and supply on the basis of competition, ensures the effective use of resources. Microeconomics gives answers to questions: how the price of the goods is determined, what is the volume of production of this product, how (and what) resources are sent to the production of goods, who will receive the goods?
This means, first of all, that macroeconomics explores all markets of benefits as one market, as if the whole economy consists of one company (manufacturer) and one household (consumer). All labor markets are treated as one market. The same applies to capital markets, financial markets. Of course, aggregation distorts and simplifies reality, but it gives the opportunity to study regularities of the economy as a whole. As a result of aggregation, the national economy appears as the interaction of four macroeconomic subjects:
1. Household sector;
2. Entrepreneurial sector;
3. State sector;
4. the "rest world" sector.
The nature of the behavior is also subject to aggregation: in Macroeconomics, we are not dealing with "demand", but with "cumulative demand"; Not with the "proposal", but with the "cumulative offer."
Macroeconomics uses specific indicators - aggregates. The aggregates (or aggregate) characterize the total production volume, the overall level of prices, cumulative labor.
At the same time, it should be emphasized that aggregation does not boil down to simple summation: the properties of the whole are not reduced to the sum of the properties of its parts.
2. In the above definition, there are three major problems that make up the subject of the study of macroeconomics: employment, inflation, and economic growth. Many economists believe that the range of problems of macroeconomic analysis is significantly wider (some bring their number to thirty). Indeed, the specifics of macroeconomics is that its object is constantly transformed. In addition, one of the specific features is the immediate connection of macroeconomics with economic policies (therefore, in macroeconomics, a positive and regulatory analysis is especially intertwined). And finally, at present, in the era of globalization, national economies are all closely intertwined with each other. Therefore, it seems legitimate allocation of the following problems as the subject of macroeconomics:
· unemployment (employment);
· inflation;
· the economic growth;
· national product;
economic cycle;
· macroeconomic policy;
· external interaction of national economies.
However, with all the difference between macroeconomics from microeconomics, it should be emphasized that these are sections of a single science with a single subject - the economic behavior of people. This similarity is reflected on the similarity of the method: both micro and macroeconomics use equal approach In the analysis of economic processes.
3. National invoices are based on the use of a system of generalizing indicators (aggregates), reflecting the results of the functioning of the national economy as a whole during a certain period of time (usually 1). The initial indicator in the national account system since 1992 is the indicator gross domestic product (GDP ). Until 1992, this indicator was gross National Product (GNP).
GDP is a cumulative value of all finite goods and services produced at market prices. inside the country For a certain period of time (usually for 1 year).
As GDP measures the volume of national annual production, it serves as a source of growth national wealth of the countrywhich is the total value of property (assets) belonging to private individuals, legal entities, as well as the state.
All the products produced during this period is divided into intermediateand finite. Dividing products to the intermediate and the final is necessary in order to avoid when counting GDP repeated account.
Intermediate Products are products that are produced in this period, and in the given period is sent to further processing or resale. (for example, grown in this year potatoes and in the given year sold by the enterprise producing starch).
The final products are products that are manufactured and purchased during this period for final consumption (personal or productive), that is not used as intermediate products. (For example, grown in this year potatoes and sold to the public for personal consumption or manufactured in this year and sold equipment for the production of starch). Exactly and only This product is included in GDP. It should be emphasized that the growth of inventories is also considered as a final product, which, accordingly, is included in GDP. (For example, the growth of potato reserves or produced, but the remaining equipment remaining in the warehouse).
In order for the total amount of products to eliminate intermediate products use the calculation method "By value added."
The added value of the company is the volume of sales of the company (general revenue) minus the value of raw materials and materials purchased from other firms for the production of products.
(Added value of the firm \u003d depreciation + factor income.)
To obtain GDP It is necessary to fold the added value of all firms.
Although GDP Measures the volume of all finite products and services, in practice, it is impossible to take into account all the final goods and services, as part of them does not pass through the market (for example, home owners). In addition, in all countries there is a shadow economy: goods and services produced in it pass through the market, but cannot be taken into account in GDP, since the shadow business does not pay taxes.
It should be emphasized that GDP takes into account the goods and services produced in this period. Transactions with previously created assets are not included in GDP This period. For example, the price of the house purchased in this year, but the last year built last year will not enter GDP This year, but the payment of the services of the mediator - will enter. For the same reason in GDP The purchase of used goods is not taken into account.
IN GDP Not included transfer payments (since it is gratuitous payments to the population).
GDP Measures the production of products created on the territory of this country, regardless of who owns resources. However, the country may have the property abroad, the citizens of this country are leaving for earnings to other countries. On the other hand, foreign enterprises can operate in this country and foreign citizens work. To measure the volume of goods and services produced using the country's own resources, use the indicator gross national product (GNP) . Until 1992 exactly GNP served as the initial indicator of the system of national accounts. GNP - This calculated at market prices total value of all finite goods and services produced using own resources Countries for a certain period of time (regardless of which territory was carried out by production).
GNP \u003d GDP + Clean revenues from abroad
For most major countries GDP »GNP. (This does not apply to Russia, where capital leakage is very large). Therefore, in further analysis, we will not take into account the difference between them.
Calculus GDP (GNP) by market prices means that GDP and GNP Enter pure indirect taxes. (Pure indirect taxes are the difference between the total amount of indirect taxes and the amount of subsidies of firms).
Indicator GDP Often used to compare the welfare of people in different countries. However, for these purposes, the GDP indicator is usually complemented by the system of social indicators of an individual welfare assessment. These indicators are grouped into the following blocks:
1. Education;
2. Health;
3. Work and quality of working conditions;
There are two ways to measure GDP (and GNP).
First method Tied with dimension flow flow necessary to redeem produced goods and services included in GDP (or GNP). It is called the calculation GDP (or GNP) by expenses.
Second way Tied with dimension flood incomeobtained by the owners of the factors of the production used for the production of the same goods and services, and is called the calculation GDP (or GNP) by income.
Obvious the relationship between two methods of measurement GDP (GNP): the costs of buyers of goods and services form revenues of sellers of factors of production, therefore
Cost GDP \u003d income GDP.
GNP according to expenses \u003d GNP for income.
Excellent GDP. Gross and net investments.
1. households Buy consumer goods and services, i.e. implement personal consumer spending (FROM);
2. business sector (firms) buys (and produces) investment goods, and goods to replenish inventories - carry out investmente. costs (Ig.). (This includes all the construction, including housing.)
Pure investments are gross investment less depreciation (capital consumption costs):
3. government sector (the state) buys various goods and services (weapons, buildings for government bodies, public educational institutions, civil servants service, etc.), that is, government spending for the purchase of goods and services (G).
4. the rest of the world. Part GDP (GNP) Countries redeem foreign consumers, firms and states, that is, they carry out export costs (X.). At the same time, consumers, firms and state carry out expenditures on import (M.) Goods from other countries. The difference between them is called cost exports:
X - m \u003d xn.
Summarize.
GDP According to expenses consists of the amount of expenses (four macroeconomic entities) necessary to redeem the entire volume of the country produced in the country GDP:
GDP according to expenses \u003d C + Ig + G + XN
(GNP According to expenses consists of the same parts: the difference between GDP and GNP (net receipts from abroad) will only affect the meaning XN..)
WED can also be obtained by another:
GDP - amortization \u003d ChVP (pure indoor product);
ChVP - CCN (pure indirect taxes) \u003d WED (domestic income).
Therefore, if internal income add pure indirect taxes, we'll get pure indoor product. If you add to it depreciation, I get GDP by incomewhere, obviously includes two surreax values: depreciation (this is not income, and part of the costs of production) and pure indirect taxes (state's income, and not a factor income).
Internal income is a pure inner product measured in factor prices (excluding indirect taxes).
Similarly, you can get GNP for income:
GNP - depreciation \u003d CNP (pure national product).
CHNP - CCN \u003d ND(national income).
Thus, we received one of the most important macroeconomic categories - national Income (ND).
Clean investments are a specific increase in the cost of capital's capital. It is customary to calculate net investments, presenting them in the form of a difference between investments in depreciation and gross financing. At the same time, the exact amount of clean investments will be measured quite difficult to compare with gross investment. This is due to the fact that capital wear is analyzed in accordance with the loss of capital value in the market, with physical and moral depreciation of fixed capital.
Production financing is necessary to any enterprise to provide progressive development.
Consider a simple example. The company is going to expand production. A stock package is produced to then purchase equipment, build objects. Shares begin to sell. At the same time, the income received will be considered investment only after completing trading. Private investments are such funds derived from the implementation of shares. Sometimes investing provides individuals, banks, investment companies.
Now more and more often began to count on foreign capital. In this case, private investments are embeddings made by foreign companies. But to attract foreign capital is not so simple. Here everything will depend on the direction of activity, the demands of products in the world market.
There is another way to get financing. In this case, private investments are the investment of own capital founders of companies. Unfortunately, this feature is not always realized. This is related to economic risk: it is advisable to invest in different projects, wanting to reduce the level of risk.
Consider several situations.
When this financing is carried out on a state scale, investing is necessarily positively reflected in the amount of national income. An investment in connection with the growth of inflation becomes a particularly important role. Financing should overlap this indicator.
It is necessary to understand that the investment is not so easy to attract. Investors have a large selection. They are as much as possible to define the most promising objects for financing. They take into account the volumes of net profit, be sure to follow the movement of funds. All financial flows need to objectively reflect in accounting reports. Of great importance here is the size of investments.
We will make the basic conclusion: net investments are a serious objective indicator of the company's condition, production level, efficiency. It is pure financing that becomes a bright testimony of the development pace. When it works in effectively, investors will definitely begin to invest their capital there.
Pure investments are the difference between depreciation and gross investments.
Let us dwell on the types of investments in accordance with the method of accounting.
You can classify the attachments, separating them on clean and gross.
It is impossible to divide the concepts of pure and gross investments, since net investments become an integral part of gross financing. At the same time, it is pure investments that have a special purpose: they are needed precisely for the growth of the company's total capital. First of all, these investments are focused on growing production, expansion and optimization of production as a whole.
Let us dwell on the accurate definition of depreciation investments. When depreciation deductions are subtracted from the total volume of gross attachments - they receive pure financing, calculate their exact size. At the same time, depreciation deductions are an indicator of the degree of wear of the company's funds. They are sent to replace worn transport, equipment, updating industrial premises in need of repair, restoration.
Profit - it is pure investments. Gross investments belong to the total income of the enterprise. This is a serious difference between the two types of financing. Capital growth source - net investments, and not gross.
Pure investments are always additional funding, which is positively reflected in the growth of the capital of the company. The key role of such funding is to be the basis for optimizing, expanding production, the growth of its capacities, an increase in the volume of products. Such financing may be investing in real estate, as well as in turnover and fixed assets.
Such real capital is extremely important for the creation of new equipment, the construction of new production buildings, expansion of areas. Consequently, financing for the growth of real capital is the process of accumulation of funds.
Types of net investment:
It is very important to do everything to provide positive clean investment. This is how the liquidity of the enterprise, the sustainability, success of its development, the stability of the company as a whole is confirmed.
According to the same criteria, it can be judged about the economic condition in the country. These attachments are constantly being analyzed constantly, and detailed reports are provided to economists, government. On them and judge the level of development of the economy. Specific measures are then taken to ensure the growth of net investments.
It is customary to share the sources of net investment on external and internal.
External sources:
Internal sources:
When the company works successfully, it has a steady position, demonstrates good economic indicators, the balance of financing from external and internal sources is achieved. First of all, it can be associated with the presence of good profits and worthy investment. The company works well: achieves profit growth, increasing attractiveness for investors. Even successful companies willingly use external sources, because they thus reduce the load on the capital of the enterprise, reduce the risk of their own investments.
To assess the level of economic development of any state, enterprise, companies, it is sufficient to determine the dynamics of pure financing growth. They are how the most objective indicator, reflect the efficiency of work. As soon as the growth of investments goes to a decline, we can talk about a decline in the economy. If the growth is absent - this is a crisis indicator.
An increase in such investments is of great importance. It immediately provokes the growth of the well-being of the population, an increase in employment, growth in production. Clean investments are growing in separate enterprises - there is an increase in the country's economy as a whole. When attachments increase, in related industries, too, it is also beginning to produce more products of folk consumption, products, materials, more housing are building.
Briefly focus on factors that can significantly affect investment volumes.
Clean investments have a huge impact on the overall economic situation in the country.
Investors invest their finances in the company's capital. And neither begin to grow together, to profit. It is important to give an accurate forecast of the growth of the liquidity of the company so that the investment is justified. Faster to recoup short-term investments, however, long-term, medium-term deposits have great prospects.
There is a formula for private clean investment. It is necessary for an objective analysis of the economic condition: the formula is used in the process of determining key indicators of gross investment of the various sphere of the state and the economy.
This is how they denote net investments:
Cht \u003d VT - AT.
We decipher the formula:
If specifying the formula, it becomes clear that in this case the volume of gross attachments is just clean investments. They retain the cost. However, the statistics include gross investments, which also includes the financing of working capital. The revolving and fixed capital is growing. Of course, thus calculate the volume of clean investments is easier.
Such financing includes extension in real estate, in working capital and in fixed assets.
Let us dwell on the definition of such investments. Pure private internal investments are gross private internal financing, but except for the volume of investments that have gone to the acquisition of new equipment, construction of structures. There are in mind those cases where equipment, objects are already worn and need to be replaced by objective reasons.
The term gross is no longer so easy to determine. Gross private internal investment (7g) is the production of all investment goods intended for replacement of machines, equipment and structures that are consumed during production in the current year, plus any net capital gain in the economy. Gross investments include both reimbursement and capital gains. Clean private internal investments mean only capital gains during the current year.
Transform GDP in the ChVP is not difficult, using Table. 7-3. In the revenue part of the table, we comply with the consumption of fixed capital. All other articles in the amount are the amount of ChVP equal to 6021 billion dollars. In the expenditure part, we bring gross private internal investments to pure private internal investments, deducted from the first amount of replacement investments that are equal to the consumption of fixed capital. So, in 1994, as a result of subtraction from gross investments, which make up 1038 billion dollars, depreciation of $ 716 billion. We get clean private internal investments equal to 322 billion dollars., and, therefore, ChVP equal to 6021 billion dollars.
What is the difference between gross private internal investments and clean private internal investments. If you needed to calculate the pure inner product by the cost method, which of these two indicators of investment costs would use explain why.
Why changes in reserves take into account in the composition of investment spending suppose that during 1996 reserves decreased by 1 billion dollars. How this will affect the size of gross private internal investments and the gross domestic product in 1996 explain why.
The main types of national expenses include households (C) gross private internal investments (IQ) Public procurement of goods and services (G) net exports (HP).
Gross private internal investments are expenses aimed at creating new capital assets or material accumulations that bring revenue. This is usually the cost of buying so-called investment goods. In the investment goods, mainly the construction of construction (residential buildings, roads, etc.) and capital goods (cars, equipment, production buildings, etc.). Since the GNP is measured for a certain period, for example, for the year, the problem of assessing changes in stocks of investment goods to the beginning and end of the period arises. Usually, the change in stocks is defined as the difference between reserves at the beginning of the period and reserves at the end of the period (the result may have a minus sign, plus and zero assessment). This difference is added to the investment spending. In general, the structure of investment spending in the private business sector is such all final purchases of capital goods plus the value of all construction and plus a change in stock investment products. As for state investment costs, they, as a rule, are reflected in the composition of government spending on the purchase of goods and services.
Gross private internal investment - one of the components of the GNP, which characterizes the cost of investment
Gross private internal investment (/). They are the costs of the private entrepreneurial sector of this state to increase investment in this year (net investments), as well as investment goods intended for compensation for cars, equipment, devices, etc., i.e. Depreciation.
Gross private internally investments - the cost of manufacturing equipment manufacturing equipment, tools and buildings, as well as to replenish inventory stocks.
Gross private internal investment interest and other rental payments
Investment / means gross private internal investments. Investments are understood as adding capital to the physical stock. Following this definition, the acquisition of financial papers (shares, bonds) are not investments. Investments - housing construction Erectation of factories, offices, equipment installation, increment of trade in stocks of the firm. The term internal investments means that these are investments produced by residents of a given country, but this is not at all necessary for the cost of goods purchased in the country. It may be the cost of imported goods. Term private investment means that we do not turn on
The GNP is measured in three methods 1) the summation of all expenses of all consumers buying finite goods or services in this year. Expenditures are divided into 4 species a) personal consumer spending, b) gross private internal investment, c) government procurement of goods and services, d) net exports (clean - due to the difference between export and import sums 2) summation of all revenues that manufacturers received Goods and services and owners of production factors in this year. The income includes depreciation, indirect taxes on business, remuneration for the labor of employees, rental payments, loan interest, revenues from property or income of the non-corporate business sector, the net income of the enterprise, corporate profits. 3) Summates the value added or the value of the conditionally pure products of all the served economy, which reflects the real contribution of each entrepreneur in the creation of the value of a particular product. GNP should be the same, regardless of the method of calculation.
Years gross savings gross private internal investment savings - investment balance of current accounts statistical discrepancies
Gross private internal investment (I). They include. Three components Expenditures on (1) shopping machines, machinery, equipment (2) Construction, (3) Reserves change. Gross part
Investments or gross private internal investments consist of fixed investments and cost of goods in warehouses.
Growing economy -Economic, characterized by excess of the gross volume of private internal investments over the amount of depreciation, that is, the economy in which the clean
Pure private internal investments - gross volume of private internal investment minus depreciation.
A growing economy is an economy characterized by the exceeding the gross volume of private internal investments over the amount of depreciation deductions, that is, a condition in which the net volume of private internal investment is positive (greater than zero).
Gross and net investments. Our definition of investment and investment goods covers the acquisition of machinery and equipment, all construction and change in stocks. Now let's dwell on three concepts - gross, private and internal investments. The second and third term emphasize that it is about the costs of private companies, in contrast to governmental (state) bodies, and that investments are carried out within the country, and not beyond its limits.
Pure private internal investment (Net Private Domesti Investment) - gross private internal investment minus
There are 3 methods for measuring GNP (GDP):
1. By expenses (final use method).
2. By value added (production method).
3. By income (distribution method).
When calculating GNP by expenses The costs of all economic agents using GNP (households, firms, states and foreigners) are summed up. In fact, we are talking about the total demand for the produced GNP.
Summary costs can be decomposed into several components:
GNP \u003d.Y \u003d.C +.I +.G +.Nx
where C is personal consumer expenses, which include household costs on long-term goods and current consumption, services (except for the cost of buying housing).
I - gross private internal investment. Includes industrial investments (investments in the main industrial funds), investments in housing and investment in stocks (TMC).
Investments are understood as adding capital to the physical stock. Acquisition of financial papers (shares, bonds) is not investment. The term "internal investment" means that these are investments produced by residents of the country (including export costs). The term "private" investment means that they do not include government investments. The term "gross" means that depreciation is not deducted from the investment:
Gross Investments \u003d Pure Investments + Depreciation.
The growth of stocks is taken into account with the "+" sign, and the reduction with the minus sign.
G is government procurement of goods and services (construction and content of schools, roads, army, national defense expenses, salary of civil servants, etc.). This does not include transfer payments. State transfers are payments not related to the movement of goods and services. They redistribute state revenues through benefits, pensions, social insurance payments.
NX - Pure exports. It is equal to the difference in value exports and imports. If the country exports more than imported, on the world market, it acts as a "net exporter", and GNP exceeds the volume of internal spending. If imported more, it is a "net importer", the amount of pure export is negative. The amount of expenses exceeds the volume of production.
This PMP equation is called the main macroeconomic identity or identity of national accounts.
When counting GNP production method Conducted the cost added at each stage of the final product.
Value value (DS) is the difference between the cost of products produced by the company andthe cost of intermediate products acquired by the company.
The value of the GNP in this case is the amount of the value added of all producing firms. This method allows you to take into account the contribution of various firms and industries to the creation of GNP.
GNP \u003d Σ Add value + Indirect taxes - government subsidies.
For the economy as a whole, the amount of all DS should be equal to the value of finite goods and services.
When calculating GNP by income Among all types of factor income (salary, rent,%), as well as 2 components that are not income are summarized: depreciation deductions and net indirect taxes on business (taxes minus subsidies).
There is a connection between the indicators of GNP and GDP:
GNP \u003d GDP + Pure Factor Revenues from abroad.
Clean factor income from abroad - This is the difference between the income received by citizens of a given country abroad, and the incomes of foreigners obtained in the territory of this country.
If the GNP exceeds GDP, it means that residents of this country are more obtained abroad than foreigners earn in a given country.
By the method of obtaining income in the composition of the GNP, the following types of factor income are distinguished:
§ compensation for labor employment (salary, premium);
§ revenues of owners;
§ rental income;
§ Profit of corporations (remaining after paying and% for a loan; it allocate dividends of shareholders, retained earnings and income tax);
§ Clean% (the difference between interest payments by other sectors of the economy and interest payments received by firms from other sectors - households and the state).
Of the three methods, the production and finite use method are more often used.
The effective functioning of any enterprise depends on the proper investment policy of the management. When developing a faithful course, it is important to confidently operate with the concepts of gross and net investments, understand how they affect the organization's condition and the level of confidence.
In the article, we will consider what gross and net investments are in what the differences are, from which sources they are formed and what needs are sent, as well as find out what the calculated values \u200b\u200bof these indicators are indicated.
Before talking about such concepts as gross and net investments, it should be determined with the concept of "investment". So, investments are monetary or material investments in order to obtain profits or other benefits. Investment objects can act as production and in the face of health, education, culture organizations.
In the modern economy, it is difficult to overestimate. They affect all spheres of society through regulation and redistribution of goods. Consider a simple example: Financial investments in the manufacturing enterprise allowed to open a new workshop. In order to build it and pave the infrastructure, they attracted construction organizations, which made it possible to earn. The new workshop needs workers, so the number of jobs increased, the unemployment rate in the country has decreased and the well-being of the population has increased. Due to the opening of the workshop, the production volume has increased, therefore, the profit of the business entity has increased.
Workers of the new workshop have the opportunity to spend earned money on education, culture or invested them in real estate. This example is quite conditional, but clearly reflects the value of investment activities for the country's economy as a whole. Of course, the effectiveness of investment in the production sphere is much easier to evaluate, so we will further consider investments in the microeconomic sense, that is, from the point of view of a separate manufacturing enterprise.
It is customary to distinguish between real and financial investments. Financial investments include the acquisition of securities issued by a state or other business entity. Real investments include investments in basic and working capital, new construction, repair of production assets, the acquisition of real estate and land facilities, as well as investments in intangible assets: licenses, patents, research, professional development. Thus, we smoothly approached gross investments that are the category of real investments.
When it comes to gross investments, primarily meaning precisely actual, but financially can also be attributed to the shaft, if the investor acquires shares of the enterprise with their primary emissions. The means obtained from the primary emission of securities go primarily to the expansion of production assets and intangible assets: the purchase of equipment, rental of premises, the acquisition of a license, etc. Gross investments are investments in the main production facilities and working capital.
The gross investment is primarily aimed at maintaining and expanding the fixed capital, which includes:
Also gross investments are the source of increasing the volume of working capital. First of all, we are talking about stocks of raw materials and materials that will be needed when expanding production, for example, after opening a new workshop.
An important component of gross investments are funds spent on the purchase of intangible assets:
Non-material assets of the enterprise also include human capital, so gross investments can be sent to personnel training, medical insurance. Such investments contribute to the growth of the prestige of the company in the market and indirectly affect the value of its shares.
Based on the directions of investments, gross investments can be divided into two groups:
The first group is depreciation. For accumulation of this type of investment, depreciation funds create. The volume of the fund is determined by the depreciation coefficient, which is calculated based on the life of a specific type of equipment or a building to their full physical wear. The cost of the asset is transferred to the finished products, and after its implementation, the inclined amounts are accumulated in the depreciation fund.
The second group is investments aimed at increasing capital, they are called clean. These include all types of investments mentioned above, except for amortization.
The formula for calculating gross investment is as follows:
Vi \u003d a + chi where
V - gross attachments;
A - amortization;
Chi - net investments.
The ratio of the magnitude of gross investments and the volume of depreciation suggests at what stage of development is an economic entity. The growth phase is characterized by an excess of gross investment over depreciation. If the situation is reverse, this is an indicator of a lack of production potential.
Gross investments in the macroeconomic system can also be calculated on the basis of gross domestic product, which characterizes the total production of goods and services in the country:
Vi \u003d GDP - RP - RG - RCHE, where
GDP - gross domestic product;
RP - consumer expenses;
RG - state expenses;
RCHE - Costs for clean exports.
The sources of formation of the total gross investment include:
Many enterprises are trying third-party investors for their development. This is especially true when implementing investment projects. As a rule, risks in them are large enough, and the company is trying to diversify them by reducing the volume of own investments and an increase in third-party infusion. At the same time, the organization retains complete control over the project.
State funds are involved in the implementation of large projects that are important not only for a specific business entity, but also for the country as a whole. An example of public-private partnerships is often infrastructure projects. There are also cases of state investment of rights to land and mineral deposits. Special mention deserve situations when whole state enterprises are acting as an investment.
Clean investments are part of gross investment, which goes to expand the production potential of the enterprise and an increase in capital. Pure investments are equal to the difference between gross attachments and depreciation.
The indicator of pure investments is important when evaluating the state of the enterprise. The positive value of the indicator means that the enterprise is in the growth phase, develops and expands. The zero value speaks of a simple and negative value signals that the enterprise does not even have enough funds to update the production assets, the organization is in a state of crisis and has a real risk to go bankrupt.
Sources of pure investments are similar to gross and divided into own funds of the enterprise, clean private investments and borrowed funds of banks, leasing and microfinance organizations. The main internal source is the profit from the sale of goods and services and the authorized capital. In addition, the internal resources include profits from the sale of unnecessary, already burned property. An indicator of the volume of net investments from internal sources is an indicator of the stability of the organization. It affects the level of confidence in the enterprise of third-party investors and credit institutions.
Clean investments relate to real investments, the purpose of which is to expand the production and ultimately an increase in profits. The net current value of investment affects not only the stability of a particular enterprise, but also affect related industries in the country: from construction to health, education and culture. Thus, investment activities contribute to the development of the country's economy as a whole and the growth of the welfare of the population.
The reduction in net investment signals the beginning of the recession in the economy and the approach of the crisis. The level of confidence in investors is reduced, and they translate investments from real financial, which generally aggravates the situation. Thus, work on the removal of the country from the crisis falls on the shoulders of the state.
Investments play an important role in ensuring stable development of both a particular organization and the economy of the mills in general. Gross investments relate to real investments and are sent to reproduction and increasing basic and working capital, as well as intangible assets. Gross investments consist of depreciation and net investment. Clean investments are the part of the investment that is going on the expansion and modernization of production, the acquisition of patents and licenses, conducting research and professional development. The volume of net investment is an indicator of the stability of the enterprise and affects the level of confidence in external investors and credit organizations.
