Business activity

Business activity of a business entity finds its reflection in the financial aspect, the turnover rate of its funds.This is reflected by a return on the level of profitability of the activities of the entity.Analysis of business activity - the study of the dynamics and levels of various factors and profitability, as well as turnover.These figures are the results of the relative performance of the company in financial terms.

surveys of business activity, you can determine the degree of effective use of enterprise funds.As mentioned above, the business activities operated by indicators such as turnover and profitability ratios.They have a significant impact on the assessment of the results of the company.For example, working capital turns on a quarterly basis in the presence of 25% operating margins.Then the index of business activity in the same quarter will be equal to 0.25 (the same 25%).Hence it is possible to formulate the following conclusion: if the same return on turnover of working capital incr

eases doubled the business activities also increased by half.

Similar conclusions are formulated and on the decrease or increase profitability.In other words, the deceleration of turnover is necessary to compensate for its greater profitability.And if it is impossible to increase the profitability, it is necessary to regulate the process of turnover, ieincrease output and sales.

Business Activity - is a dynamic and complex characteristics of entrepreneurial activity, as well as the evaluation of the effectiveness of using the available resources of a business entity.The levels of this indicator reflects the stages of operation of the company, is to consider the origin, development, recovery, recession and crisis, but also show the level of adaptation to changing market conditions and the quality of management.

Business activity can be characterized by motivated managerial macro or micro level in a stable economic activity of the organization, which is aimed at ensuring the growth of employment and efficient use of resources in order to achieve market competitiveness.

Using the business activity index, expressed efficient use of manpower, material, financial and other resources in all areas, and is characterized by the quality of management, adequacy of capital and the possibility of economic growth.

important influence on this indicator have macroeconomic factors, the impact of which contributes to a favorable climate and stimulating conditions for the active conduct of a business entity, or is a prerequisite to the curtailment of business activity.