Analysis of business activity

click fraud protection

in the financial aspects of business activity evident in the speed at which turn its resources.The profitability of the company reflects its profitability.Analysis of business activity, as well as its profitability is to research the levels and dynamics of various financial ratios, gives an indication of the turnover and profitability.These ratios are relative indicators of financial performance, the company has reached in the course of their activities.

analysis of business activity makes it possible to determine the level of efficiency with which funds are used.Assessment of business activity, as mentioned above, involves consideration of factors.This turnover ratios and profitability.

analysis of business activity makes it possible to understand that these two factor affect business activity in such a way.Suppose that the turnover of working capital (excluding short-term investments) occupies one quarter, and profitability of its core activity in this case is 25%.In this case, the index of business activity for the period will be the same 25% or 0.25.In that case, if the same return on working capital will turn twice as fast, there will be an increase in business activity index also doubled.Then the company by wrapping the same amount of working capital will receive 50kop.the balance sheet profit from each ruble of working capital over the same time period.

Similar conclusions can be drawn, if the analysis of business activity shows that increases (decreases) profitability.In other words, if the turnover has slowed, it is necessary to compensate for the expense of greater profitability.This is possible by reducing costs, reducing costs, etc.In the event that the increase in profitability is not possible - it is necessary to raise the turnover, ieto produce and sell more and more products

Analyzing the business activity today, people can not do without modern methods and means.New technologies are characterized by the increasing role in the analysis of economic activity.This allows you to ease the task of economic analysis, followed by the implementation of a large amount of various calculations presented as absolute and relative deviations, averages, dispersion, percentages, and many others.Among other things, the analysis of business activity involves in its process using different types of evaluations, comparisons, groupings, sorting the original data and comparisons, as well as a number of other operations.The analysis data are obtained requiring tabular or graphical representation.The variety of types of analysis of the economic data now can be treated only with the use of computer technology and innovative software products that are designed and intended for the economic analysis.

Modern computers allow more complex and precise calculations that can not be done manually.In addition it will be possible to provide information in visual form (tables and graphs), and most importantly make the analysis more often and spend at a minimum of time, and it is now a very important issue for many businesses whose activities require an immediate reaction to changing factors ofmedium.