The analysis of business activity of the enterprise includesEvaluation of its activities, economic potential and efficiency of capital use. Analyzing the efficiency of the enterprise and its financial status is helped by such documents as the "Balance Sheet" and the "Profit and Loss Statement".
Concept and essence of business activity of the enterprise
Business activity of the enterprise in a broad senseMeans the activity of an enterprise aimed at promoting its products on the market, increasing production volumes, economic growth of the enterprise as a whole, and raising financial indicators. In particular, the concept of business activity of an enterprise includes a description of its commercial and production and economic activities.
Business activity of the enterprise depends onVarious factors: the specifics of the enterprise, the market, competitors, production and price factors. Analysis of the business activity of the enterprise helps to characterize its main production activities. For example, the efficiency of the enterprise in analyzing its business activity is indicated by the growth of such indicators as: sales proceeds from the sale of products on the market, the rate of sales of new products, profits from the sale of a unit of production and others. When analyzing the business activity of an enterprise, an assessment should be made of the performance indicators of the enterprise production plan and the use of resources.
Indicators of business activity of the enterprise
The business activity of the enterprise provides himFinancial sustainability. Analyzing the business activity of the enterprise is helped by the profitability indicators, the turnover of funds and other financial indicators characterizing the efficiency of the enterprise. Thus, analyzing the financial condition of the enterprise, it is necessary to pay attention to the turnover ratios and the efficiency of the company's use of resources in general.
It is the estimation of the turnover indicatorsThe enterprise gives an idea of the level of its profitability. At the same time, various indicators of the turnover of the enterprise are analyzed, for example, such as the turnover ratio of current assets, receivables and payables, inventories, fixed assets and capital.
For example, the asset turnover ratioThe enterprise speaks about how much revenue the enterprise receives from the sale of each unit of assets over a certain period. The higher this indicator, the faster the company's capital turns. On the contrary, at low rates of turnover, the enterprise is forced to raise additional funds in circulation.
Consequently, the turnover ratioAssets characterizes the intensity of the use of assets in the enterprise. Thus, the more efficiently the assets are used, the higher the business activity of the enterprise.