In the financial aspect, the business activity of an enterprise is manifested in the speed with which its funds are circulated. The profitability of the enterprise reflects its profitability. Analysis of the business activity of the enterprise, as well as its profitability, consists in conducting research on the levels and dynamics of various financial ratios, which allow us to judge the turnover and profitability. These ratios are relative indicators of financial results that the company achieved in the course of its activities.
Analysis of the business activity of the enterprise makes it possible to identify the level of effectiveness with which the funds are used. Assessment of business activity of the enterprise, as mentioned above, involves the consideration of the coefficients. These are turnover and profitability ratios.
Analysis of the business activity of the enterprise makes it possible to understand that the two given coefficients affect business activity in this way. Assume that the working capital turnover (without short-term investments) takes one quarter, while the profitability of the main activity is 25%. In this case, the business activity index for the given period will be the same 25% or 0.25. In the event that, with constant profitability, working capital turns around twice as fast, there will be an increase in the index of business activity, also twice. Then the company, wrapping the same amount of working capital will receive 50kop. retained earnings from each ruble of working capital for the same time period.
Similar conclusions can be made if an analysis of the business activity of the enterprise shows that profitability is increasing (decreasing). In other words, if there is a slowdown in turnover, it must 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 increase the turnover, i.e. produce and sell more products
Carrying out the analysis of business activity of the enterprise today, 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 conduct an economic analysis, accompanied by a large amount of various calculations, represented by absolute and relative deviations, average values, variance, percentages, and many others. Among other things, the analysis of the business activity of an enterprise involves in its process the use of various types of estimates, comparisons, groupings, sorting of source data and comparisons, as well as a number of other operations. The analysis results in data requiring a tabular or graphical representation. The variety of varieties of analysis of economic information today can only be processed using computer technology, as well as innovative software products that are created and designed to carry out economic analysis.
Modern computers allow for more complex and accurate calculations that cannot be done manually. In addition, it became possible to present information in a visual form (tables and graphs), and most importantly, to analyze more often and spend at the same time a minimum of time, and this is currently a very important point for many enterprises whose activities require an instant response to changing external factors Wednesday.