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Practical Use Of Economic Profit To Assess The Effectiveness Of Activities

Table 2: Performance analysis of "Altayvagon" JSC

Indicator Year Growth or decline
2017 2018 2019 2018 / 2017 2019 / 2018
1. Net accounting profit, RUB millions -347 1249 5336 1596 4087
2. Average annual cost of equity, RUB millions 1912 2362 3704 450 1342
3. Average annual cost of invested capital, RUB millions 4851 3906 4000 -945 94
4. Rate of return on invested capital (bank interest on deposits), % 6 7 5 1 -2
5. Normal profit after tax (p. 3 · p. 4 – p. 3 · p. 4 ·20%), RUB millions 233 219 160 -14 -59
6. Economic profit (loss) (p. 1-p. 5), RUB millions -580 1033 5176 1613 4143
7. Return on equity (ROE = p. 1 / p. 2 ·100), % -18.2 53 144 71.2 91
8. Return of invested capital on economic profit (p. 6 / p. 3 ·100), % -12 26 129 38 103
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