Analysis of the financial and economic activities of an enterprise plays an important role in improving the efficiency of its activities, identifying strengths and weaknesses, and strengthening its financial condition. Economic analysis contributes to a more rational use of fixed assets, material, labor and financial resources.
Instructions
Step 1
Remember that when analyzing the activities of an enterprise, the principle of economic efficiency is used, which assumes the achievement of the greatest result at the lowest cost. The most generalized indicator of efficiency is profitability. Its particular indicators include:
- the efficiency of using labor resources (profitability of personnel, labor productivity), fixed assets (capital intensity, capital productivity), material resources (material consumption, material efficiency);
- the efficiency of the investment activity of the enterprise (return on capital investments);
- the effectiveness of the use of assets (indicators of turnover);
- the efficiency of capital use.
Step 2
After calculating the system of coefficients of the financial and economic activity of the enterprise, compare them with the planned, normative and sectoral indicators. This will lead to a conclusion about the effectiveness of the organization and its place in the market.
Step 3
To draw a general conclusion about the efficiency of the enterprise, calculate the level of profitability, which is the ratio of the enterprise's profit to the value of fixed assets and working capital. This indicator combines a number of ratios (return on equity, sales, goods, etc.). Profitability is an integral indicator of business performance. It shows the measure of the profitability of an enterprise, its attractiveness for investors.
Step 4
When analyzing the activities of an enterprise, please note that for a more detailed study of its state, it is necessary to conduct a factor analysis of the results obtained. After all, each indicator reflecting the use of production resources is influenced by other indicators.
