Economic indicators measure the relationship between income and expenditure and show how much income is generated per unit of expenditure. It follows that these indicators are calculated on the basis of data from the profit and loss account (income statement).

Economic indicators measure the relationship between income and expenditure and show how much income is generated per unit of expenditure. It follows that these indicators are calculated on the basis of data from the profit and loss account (income statement).

1. Economy of the overall business

The economy of the overall business relates the total revenues in the observed period to the total expenses of the observed period. It is preferable that the value of the indicator is as high as possible, which means: that the company manages its own resources in a better way in order to generate income. Likewise, a higher value of this indicator, when the value of income is taken, indicates that the company manages its own costs better.

• Economy of business activities

The economy of business activities relates the total income in the observed period to the total expenses of the observed period for a particular business activity. It is preferable that the value of the indicator is as high as possible, which means: that the company manages its own resources in a better way in order to generate income. Likewise, a higher value of this indicator, when the value of income is taken, indicates that the company manages its own costs better.

• Economy of financing

The economic efficiency of financing relates the financial income in the observed period with the financial expenses of the observed period. If the value of the indicator is greater than 1, it can be concluded that financial income exceeds financial expenses.