Analysis of economic activity is a system of techniques developed by the scientific method, thanks to which it becomes possible to study the economics of an enterprise. With its use, production reserves are identified in accordance with reporting and accounting information, and the most effective ways to use them are developed.
Techniques of business statistics allow us to solve problems of uncertainty in economic reasoning. Using them, the accountant is able to anticipate future gains. This, in turn, prevents capital cuts and unexpected expenses.
The results of a comprehensive analysis of economic activity are used in transactions such as commercial and consumer loans, futures and options contracts, hedging, diversification in various production areas, securities transactions, and so on. An accountant who is interested in a successful outcome will not ignore the experience of the past years, allowing you to move from uncertainty to a probable estimate of the expected upcoming event. So,an entrepreneur is able to form various reserve funds, carry out exchange transactions, plan capital expenditures.
Comprehensive analysis allows you to assess the current solvency of the organization and its activities for a long period. This, in turn, helps owners, investors and lenders to correctly assess the existing potential.
The information base used in the analysis is the company's financial statements, as well as accounting information within production.
Evaluation is a set of indicators that reflect many or all aspects of the processes taking place in the enterprise.
Complex analysis acts as a tool for accounting and planning, an indicator of the technical condition of an object, an indicator of the effectiveness of commercial activities of organizations and departments in them. In this case, income from sales before tax, as well as from ordinary activities, is considered a factor indicating profit.
Comprehensive analysis reflects profitability information. They are the ratio of income and the average value of the asset. Comprehensive analysis involves the use of various numbers. In particular, indicators of non-current, current and net assets are used in the assessment.
As one of the analysis methods, a five-factor type profitability model is used. It provides an opportunity to influenceorganization productivity: material intensity, payment intensity, turnover of funds, capital intensity, etc. Profitability is considered a relative indicator that determines the level of profitability of an enterprise and business as a whole, the effectiveness of its various areas (investment, commercial, production).
