Video: Business activity of the enterprise
2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:40
Business activity of a business entity is reflected in the financial aspect in the speed of turnover of its funds. At the same time, with the help of profitability, the level of profitability of the activity of this entity is reflected.
Analysis of the business activity of an enterprise is a study of the dynamics and levels of various ratios and profitability, as well as turnover. These indicators are the relative results of the company's performance in financial terms.
The study of business activity can reveal the degree of efficiency in the use of funds by the enterprise. As mentioned above, business activity operates with such indicators as profitability and turnover ratios. They have a significant impact on the evaluation of the company's performance. For example, working capital turns over once a quarter if there is a 25% profitability of the main activity. Then the business activity index for the same quarter will be 0.25 (the same 25%). From this we can formulate the following conclusion: if, with a similar profitability, the turnover of this working capitaldoubles, business activity also doubles.
Similar conclusions are drawn on the issue of reducing or increasing profitability. In other words, if turnover slows down, it must be compensated by higher profitability. And if it is impossible to increase profitability, then it is necessary to regulate this process by turnover, i.e. increase output and sales of products.
Business activity is a dynamic and complex characteristic of entrepreneurial activity, as well as an assessment of the effectiveness of the use of resources available to a business entity. The levels of this indicator reflect the stages of the company's functioning, which consist in considering the origin, development, rise, decline and crisis, and also show the level of adaptation to changing market conditions and the quality of management.
Business activity can be characterized by a motivated managerial macro- or micro-level in the process of stable economic activity of an 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, the effectiveness of the use of labor, material, financial and other resources in all areas of activity is expressed, as well as the quality of management, capital adequacy of the company and the possibility of economic growth.
Recommended:
Public relations is an effective tool in the process of enterprise activity
Public relations, as you know, is a form of establishing a connection between the philosophy of the organization with its practical activities and the interests of the target audience, and also serves as a criterion for assessing the opinion of society. Proper organization of public relations contributes to the development and implementation of plans for ensuring understanding, awareness, perception, activity and support of this very public
Municipal institution and municipal enterprise. Municipal unitary enterprise
An enterprise is an autonomous business entity that is established and operates on the basis of existing national legislation to produce products, provide services and perform work
Business etiquette and business protocol: concept, meaning, rules
From ancient times, in all epochs of the development of civilization, people with pleasant manners were valued in society, who in any situation knew how to show themselves from the most advantageous side, and these qualities gradually made up the rules that today are known as business etiquette and business protocol. In previous centuries, those who knew how to behave in society most often belonged to a special stratum of the population with a noble upbringing. Now it's available to everyone
Rehabilitation of an enterprise is a system of measures for the financial recovery of an enterprise. How to Avoid Bankruptcy
The procedure for reorganizing an enterprise implies a set of measures aimed at preventing a company from going bankrupt, improving its financial position and competitiveness. At the end of the procedure, the debtor enterprise receives financial resources that allow it to fulfill its monetary obligations and restore normal solvency. Reorganization is one of the ways to prevent bankruptcy
Economic analysis of the enterprise on an example. Methods of economic analysis of the enterprise
Economic analysis is carried out by each enterprise. This is a necessary procedure that allows you to determine the effectiveness of the organization of core activities. On the basis of the conducted research, it is possible to identify weaknesses, to determine the most profitable ways for the development of the organization. To understand the principle of such work, it is necessary to consider the example of the economic analysis of the enterprise. The main techniques will be presented in the article
