For a comprehensive assessment of the enterprise it is necessary to spend a lot of calculations, and then analyze the results.An important part of the diagnosis is to analyze how efficiently the company operates.In turn, this can be determined by finding the indices of the two groups and business profitability.We can not say that some of them are more important than others, but they characterize the effectiveness of a number of different.Now I want to take a closer focus on indicators of business activity.
business activity means that no matter how intense it is using its available resources.In numerical form it describes the two types of indicators: turnover ratio and duration of turnover.
to determine the turnover ratio should be to find the ratio of revenue or cost to the value of an asset or liability.Use in calculating the cost or revenue determined by the properties of the turnover we want to know.Thus, the calculation of the turnover of assets is done using the revenue and reserves - with costs.
If you want to correctly identify the asset turnover, it is necessary to understand what are the values used for substitution in the formula.The fact that the statements can easily learn the amount of revenue for the period, but the value of the assets is determined only at a specific date and for a period can vary greatly.In view of these circumstances, you can use the value of the end of the period, but would be more correct to use the average value of assets.
assets structure of its highly heterogeneous, which means that the turnover of assets as a whole does not allow objectively evaluate the intensity of use of each.Non-current assets vary little, and used for a long time, so their turnover is paid little attention.In turn, the turnover ratios of current assets are extremely important.It is this group of assets is directly related to the provision of the current activities of the company.
Special attention should be paid to the fact how important it is to determine the turnover of assets, the duration of which depends on the financial and operating cycle of the business.These include inventory and accounts receivable in terms of receivables.The slow-moving assets, the longer these cycles, which adversely affects the activity of the company.
turned his attention should be on the calculation of the turnover of some liabilities.Most important to estimate the rate of turnover of equity capital, as well as accounts payable.Again, to determine the length of the financial cycle, you need to know the value of the term for which the company turns payable before suppliers and contractors.In this case, a good thing is, oddly enough, the increase in this period, that is, slowing turnover.
As you can see, for the most objective determination of the degree of intensity of resource use, it is advisable to determine not only the turnover of assets, but also some liabilities.Nevertheless, it should be understood that apart from other Turnover can not fully characterize the financial condition of the company.In this regard, it is advisable to calculate the margins, as well as to determine the degree of financial stability and dependence.
