business activity of a commercial organization is measured by a system of qualitative and quantitative indicators.Thanks coefficient business fails to analyze how efficiently funds are used by the enterprise.Analysis refers to the study of the dynamics and level of financial turnover rates.
The role of qualitative criteria are the company's business reputation, broad market, the competitiveness of firms, suppliers and the availability of a permanent market for finished products.These criteria can be compared with those of competitors who operate in the industry.Information can be taken from market research and financial statements.
as quantitative indicators of business activity are allocated relative and absolute figures.These quantitative parameters should be compared to the dynamics of the number of periods.All rates are expressed in times, and turnover period in days.For the organization of these indicators are very important.The annual turnover is dependent on the size of the annual turnover.The relative value of the production costs associated with turnover.The financial position of any company depends on how soon the funds that invested in assets that will be converted into real cash assets.
Business activity of the company is estimated by using two groups of indicators: total turnover indicators, as well as indicators of asset management.
to assess how effectively now use its resources, regardless of their source, a so-called asset turnover ratio.It can be used to characterize the number of complete cycles of production and obraschencheskih for which the company may be obtained profits.
asset turnover ratio: calculation method
For starters need to fill in the balance sheet of the company in the form №1.Analysis of turnover is carried out using 1 and 2 accounts.Requires reflect the information on intangible assets, construction in progress, fixed assets, inventory, investments, raw materials, receivables and cash.We must now take stock of the rows 190 and 290, and then sum up and get the balance of the assets reported on line 300.
is followed to generate the report on profits and losses of companies in the form №2.Asset turnover ratio is calculated using the value of the line 010, which is information about the company's revenue from sales of products, works and services.This line taken form on the basis of accounting as a sum of credits to the accounts: 90.1 "Revenue", without taking into account the debit of the account is 90.3 "VAT" and 90.4 "Excise".
Now you can get the asset turnover ratio, you can calculate it as the ratio of revenue from sales of goods to the total price of the assets of the enterprise.The result is the ratio indicating the number of monetary units of goods sold, which refers to a unit of assets.After analysis of the results can determine the nature of the turnover of funds available to the company.The higher the score, the more out of each unit of asset price the company receives profits.It is best to calculate the coefficient for each reporting period, then to carry out a comparative description.
The financial analysis can be used as the degree of return on assets, asset turnover if you multiply by a factor of net profit.
