Proceedings

the average payment time for liabilities, but we will not delve deeper since these are
out our focus for our paper.
Non-current assets are defined as that kind of asset that serves many operating cycles,
that is why its value is recovered through depreciation. Altering the total non-current
asset (non-current asset) alters economic flows in the (comprehensive) income
statement. Thus, the total depreciation expenses, regardless of method used in
determining the depreciation method (linear, accelerated, regressive) changes with the
total altered non-current asset. Moreover, operating non-current assets generates
income, which varies according to non-current asset type and its degree of use. Every
penny worth of non-current assets’ contribution to income can be determined using an
efficiency rate like (Vălceanu, Gh. &co, 2005):
Revenue
Revenue _ per _ asset _ unit = * ( 100)
or(
1000)
Asset
Used revenue for calculation can be operating revenue, sales revenue or even total
revenue, including extraordinary and financial revenue. The asset unit can be
currency, 100 currency units or 1000 currency units, according to the size of the
revenue or the asset. The frequent formula uses 100 currency units worth of assets,
because the result can be further used in correlation with measures such as return
rates.
The economic correlation, which should govern every enterprise’s activity, is the
following:
I ≤ I
EFFORT
EFFECT
E N
Where I represents the base chain index ( ). In our approach, total assets are the
EN
−1
enterprises’ effort necessary for a normal operation, and the revenue represents the
effect from a normal operation. Naturally, a sharper growth of the revenue relative to
the asset would satisfy the efficiency criteria and this would be tantamount to a
sharper revenue growth per asset unit. However, revenue includes specific expenses
as well as a gross margin or profit, as:
Re venue = expenses+
profit
An activity is efficient when the revenue structure modifies to an increasing profit, or
an equal decrease in expenses. This means:
profit
profit
( * 100)
N > ( * 100)
N −
revenue revenue
equal to I REVENUE <
I PROFIT
1
this is from a mathematical point of view
~ 826 ~