PNIPU: Financial Efficiency Ratio (KEFFi)

Main article: Business Intelligence (BI)

2025: Development of KEFFi

Perm Polytechnic scientists have developed a computer program that automates and accelerates the analysis of the financial effectiveness of the enterprise. The university announced this on May 27, 2025.

Certificate No. 2025660144 was issued for the program. The development was carried out within the framework of the strategic academic leadership program "Priority 2030."

Financial performance is a key indicator of business success that shows how rationally a company uses its resources to make a profit. In other words, the less costs and the more results, the more efficiently the company works. Regular analysis of this indicator helps businesses identify problems (for example, a decrease in profitability, an increase in debts, a slowdown in turnover) and correct them in a timely manner, determine development directions and optimize costs. Investors and banks also evaluate the company precisely by financial indicators.

Existing analysis methods provide a versatile assessment of the enterprise, but require manual calculations, which significantly slows down the work of specialists. In addition, more than a thousand technical, economic and financial indicators were invented to take into account and analyze the activities of industrial enterprises. For these reasons, most companies do not at all calculate how profitable this or that business strategy is - this is too long and difficult. Often they focus only on accounting profit, but this is not enough to assess the profitability of the business. If the specialists nevertheless conduct an analysis of financial efficiency, then most of the indicators are considered in isolation, without taking into account their relationship and the influence of external factors - prices for raw materials, energy resources, the state of accounts receivable and payable, and so on. This approach makes it difficult to correctly evaluate the most profitable development strategy of the company.

Scientists of the Perm Polytechnic University have developed a computer program "Financial Efficiency Coefficient" (KEFFi), which offers a simpler and more comprehensive approach to calculations. It combines key aspects of the company's activities into a single indicator and is designed for quick and accurate assessment and will facilitate the work of economists.

Traditional methods require complex calculations taking into account too many indicators. The polytechnic program focuses only on those that reflect precisely the effectiveness of the financial strategy, that is, at what price this or that profit was achieved and whether the cost-result ratio is adequate. In addition, the program takes into account external factors, which makes the analysis more accurate.

KEFF calculation is based on a simple formula: ratio of useful results to costs. You manually enter key data in the program that is sufficient to evaluate the effectiveness of revenue, variable costs, inventory values, and accounts receivable and payable. Some key figures - for example, variable costs - are signed in more detail. As a result, the user receives a financial efficiency ratio - he shows how rationally the enterprise uses its resources. The higher it is, the more productive the business works, "said Galina Timofeeva, Associate Professor of the Department of Economics and Industrial Production Management, PNIPU, Candidate of Economic Sciences.

With this software, you can choose the most effective business strategy. For example, for one of the enterprises of the Perm Territory, polytechnics calculated three development options with different costs, cost of products, accounts payable and revenue.

For each scenario, KEFF issued its own financial efficiency ratio: 0.27, 1.52 and 1.25. As you can see, the second strategy turned out to have the highest indicator - therefore, it is it that is the most profitable and promising. In the economy, this is called the "breadwinner of liquidity" - the direction of development of the company, capable of bringing stable cash flow and strengthening the financial situation. Thus, KEFFi can be used not only for analyzing the current activities of enterprises, but also for strategic and operational planning and evaluation of projects being implemented.

Automation of calculations with the help of the program of scientists of the Perm Polytechnic allows enterprises to respond to changes faster and make informed management decisions. In the future, the program can be integrated into production management systems, which will further simplify data collection and analysis. It is useful in the development of business strategies, evaluation of investment projects, formation of enterprise plans. The introduction of KEFFi can significantly increase management efficiency and help companies reach new heights in the modern economy.