Trend Analysis of Activity of the Communal Infrastructure Enterprises As a Prerequisite for Effective Investing

Abstract

The article analyzes the current state and patterns of development of the municipal infrastructure of the Odessa region. In our research were selected nine enterprises of the communal infrastructure of the southern region of Ukraine. The analysis of their activity was carried out, in particular the trend analysis of the operation of typical enterprises of communal infrastructure. It proved that the profitability of enterprises does not depend on what types of services they provide. The enterprise's profitability is calculated, which characterizes the efficiency of the invested fixed and current assets of the enterprise. As a result of research, we see, that in the typical enterprises (KP "Chornomorskteploenergo" and OKP "Mykolaivoblteploenergo") until 2016 the profitability was decreasing. However, starting from 2017 the level of profitability of KP "Chornomorskteploenergo" began to increase rapidly, while at the enterprise OKP "Mykolaivoblteploenergo" the negative tendency to decline of profitability proceeded. We determined indicators for assessing the effectiveness of investment projects for municipal infrastructure enterprises as well. We can recommend to calculate both ways -static (return on investment, payback period) and discounted (net present value of the project, return on investment project index, internal rate of return, modified internal rate of return) indicators. That indicators are closely interrelated and allow us to estimate efficiency comprehensively. For example, the profitability index characterizes by simplicity, and shows us the marginal level of profitability, the value of which the company can compare with the cost of equity or borrowed capital and have an initial idea of the effectiveness (feasibility) of the project; the payback period also allows you to quickly and effortlessly (simply) form an idea of the feasibility of the project. At the same time, discounting methods take into account the value of money over time, as well as depreciation deductions as a source of cash flow. The net present value of a project will indicate whether it will be profitable if the present amount of its future net income (cash flows) is reduced to the present time and the present value of the investment is deducted from them.