Business activity determines the efficiency of the economic activity of the enterprise, which can be calculated in one of two ways - by reflecting the efficiency of the enterprise in relation to either the amount of advanced resources, or the amount of their consumption in the production process. It is reflected, first of all, in the rate of turnover of funds of the enterprise. The profitability of the enterprise reflects the degree of profitability, and in general, the coefficients of business activity make it possible to analyze the effectiveness of the use of funds by the enterprise.
Instructions
Step 1
Return on assets is the amount of sales proceeds per ruble of fixed assets. It is calculated as the ratio of sales proceeds to the average annual cost of fixed assets.
Step 2
The turnover of funds in the calculations with an increase is considered as a positive factor, in the case of a decrease in this indicator, a decrease in the volume of sales or an increase in accounts receivable occurs. It is calculated as the ratio of sales proceeds to the average amount of receivables.
Step 3
Inventory turnover characterizes the rate of consumption or sale of raw materials or stocks. It is calculated as the ratio of sales proceeds to the average cost of inventories and costs. It can also be calculated as the ratio of the cost of sales to costs.
Step 4
Accounts payable turnover connects the amount of debt and the amount of goods purchased in the amount of the loan. It is calculated as the average accounts payable multiplied by the analysis interval related to the cost of sales or sales proceeds.
Step 5
The duration of the operating cycle is the time between the purchase of raw materials and the receipt of proceeds from the sale of products. In order to calculate it, add up the turnover of funds in calculations in days and the turnover of stocks in days.
Step 6
The duration of the financial cycle is the period of time from the moment of payment to the suppliers of materials (repayment of accounts payable) and until the moment of receiving money from buyers for the shipped products.
