Analysis of business activity of the enterprise
In the financial aspect, business activityenterprise manifests itself in the speed with which its means turn around. Profitability of the enterprise reflects its profitability. Analysis of the business activity of the enterprise, as well as its profitability, consists in carrying out studies of the levels and dynamics of various financial ratios, which allow one to judge turnover and profitability. These ratios represent the relative indicators of financial results achieved by the enterprise in the course of its activities.
Analysis of business activity of the company givesthe ability to identify the level of efficiency with which funds are used. Evaluation of the business activity of the enterprise, as mentioned above, involves consideration of the coefficients. These are the turnover and profitability ratios.
Analysis of business activity of the company givesthe opportunity to understand that the two data coefficients affect business activity in this way. Suppose that the turnover of working capital (without short-term investments) takes one quarter, and the profitability of core activities at the same time is 25%. In this case, the index of business activity for this period will be the same 25% or 0.25. In the event that, with constant profitability, working capital will turn out to be twice as fast, there will be an increase in the index of business activity, also twice. Then the enterprise, having wrapped up the same volume of working capital, will receive 50 kopeks each. balance profit from each ruble of working capital for the same time period.
Similar conclusions can be drawn if the analysisbusiness activity of the enterprise shows that profitability is increasing (decreasing). In other words, if there is a slowdown in turnover, it needs to be compensated, due to greater profitability. This is possible with lower costs, lower costs, etc. In the event that an increase in profitability is not possible - it is necessary to raise the turnover, i.е. produce and sell more products
Carrying out the analysis of business activity of the enterprisetoday, a person can not do without modern methods and means. New technologies are characterized by an increasing role in the analysis of economic activity. This makes it easier to carry out economic analysis, accompanied by the implementation of a large volume of various computations represented by absolute and relative deviations, mean values, variance, percentages and many others. In addition, the analysis of the business activity of the enterprise involves in its process the use of different types of assessments, comparisons, groupings, sorts of input data and comparisons, as well as a number of other operations. The analysis results in data that requires a table or graphical representation. The variety of varieties of analysis of economic information today can be processed only with the use of computer technology, as well as innovative software products that are created and designed for economic analysis.
Modern computers allowmore complex and precise calculations that can not be performed manually. In addition, it appeared possible to present information in a visual form (tables and graphs), and most importantly to analyze more often and spend a minimum of time, and this is now a very important moment for many enterprises whose activities require instantaneous reaction to the changing factors of the external environment.
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