Let's start with the general concept. Analysis is an ancient Greek word for the division of an object or phenomenon into its constituent elements for their detailed study. For example, when a child unscrews the doll’s head to see what she squeals inside, he analyzes her device. The familiar phrase “spectral analysis” also studies the composition of objects, but without unscrewing the head, and using a special technique, studying the radiation spectra of matter.
Definition
You can study with analysis almost everything. We will focus on economic analysis, which in its essence is fully consistent with the original Greek meaning.
Economic analysis is a study of the economic activity of an enterprise through the study of individual indicators. In other words, it is a disintegration of one whole into elements. Everything is being studied: the causes of changes in such indicators, the relationship between them and other phenomena, etc.
Today, in the financial and analytical sphere of business, an excellent collection of methods of economic analysis has gathered. There are many methods, they differ in goals, ways of grouping them, mathematical nature, and so on. It is extremely interesting to study them, and correctly applied is a real intellectual pleasure.
What is analyzed and why
The main area of ​​interest of economic analysis is the current activity of the enterprise with the study of its property and financial condition. The scope of such a study may include production and logistics components, the functioning of individual units, etc. The set of indicators depends solely on the tasks of a specific study, although the common goal of any economic analysis is always the same: the search for reserves and additional resources to improve business efficiency.
Not everyone agrees that the methods of analysis in economics are a science, although the expression “theory of economic analysis” is very popular in many sources. The methods and technologies for its implementation are well described, tested and structured, which makes the subject of economic analysis a full-fledged academic discipline.
How it all started
It was a gradual transformation of the bookkeeper in black ruffles with wooden bills on the table into a financial analyst with a sky-high salary and a silver laptop in his hands. Accounting has long been the main source of information on the financial and general economic condition of the enterprise. This account consisted of individual indicators. Accountants have long been interested in everything: where did the money come from, what are reserves, what threatens stability, and so on. They had at their disposal two powerful assistants in analysis: mathematics and statistics.
Surprisingly, so far in most companies the share of informational contribution from accounting in the overall analysis is approximately 70%.
In modern formats of economic analysis, all aspects of the economic activity of companies are studied. The progress in developing methods for collecting and processing information is enormous. Without a preliminary economic analysis, today no one will begin any reforms, innovations or new areas of business. Competent analysis today is an integral part of an effective and growing business.
Classification of methods of economic analysis
All types and methods of analytical studies of the company are divided into two analysis groups:
- Managerial.
- Financial.
Such a division of the methods and techniques of economic analysis is due to the difference in the content and tasks set for the study.
Before reviewing the main types, it should be noted that recently, the separation of analytical methods in business has become more and more arbitrary. However, for understanding and a competent choice of methods in your work, it is better to study the methods of analysis in the traditional way: method by method.
Financial analytics
Financial analysis is divided into two subspecies of research:
- External financial analysis is carried out solely to assess the overall financial situation in the company, including its liquidity, solvency and other indicators. Such checks are carried out by banks, audit firms, tax inspectorates - all to whom it is entrusted to interested or authorized organizations.
- Internal financial analysis can be carried out with a variety of tasks. Despite the fact that such a study is carried out on its own, it is much tougher and more critical than all external checks. The methods and techniques of economic analysis for internal use allow you to control profitability and profit over time, track the effectiveness of the use of own and borrowed funds, determine the portfolio value of the company with fixing points of change and so on. The indicators are diverse and very serious. Such analysis techniques are always aimed at finding managerial decisions to optimize the work and improve the financial landscape of the company. Therefore, the difference between internal financial and management analysis is sometimes blurred.
Management analytics
Management analysis is for internal use only. The scope of issues and indicators in this case is extremely wide, it can change as necessary. With this type of research, almost all structural divisions of the company take part in the collection of information and its analysis. Often we are talking about technical or production indicators that need to be studied. This may include all sorts of "resource" issues: the efficiency of use of fixed assets, human resources, supplies. The most important part of management analysis are indicators related to the sale of goods or services: their volume, cost, changes in customer preferences. The methodology and methods of economic analysis for management decisions can be very diverse, there are no limits on the format of research.
Methods of analysis by functions and tasks
Consider the different methods of analyzing the state of the company.
1. Marketing
One of the most common methods of analysis for evaluating various markets: supplies and raw materials for production, sales, competitors, customer groups, etc.
2. Investment
One of the most serious and full-fledged types of research, which many experts regard as a completely independent element of the theory of investment, although in essence it is a close "relative" of internal financial analysis. The goal in this method is extremely simple: to evaluate the object for making a decision on investing. Hence the broad coverage of indicators with detailed detail and tracking changes in these indicators over time.
3. Functional value
A great option for systematic research when you need information about a specific process, product, unit or level of management. Usually the task is to find cost minimization in a particular business sector.
Types of analysis by scope of activity
A comprehensive or complete type of analysis is widely used, which includes all aspects of the company.
There is also a thematic analysis that examines the individual elements. This may be, for example, an analysis of the reasons for the high turnover of human resources in a company.
These criteria include a variety of objects of study. The analysis may relate to microeconomic studies of individual business units: workshop, warehouse, repair base, factory, etc.
Macroeconomic analysis deals with individual industries, regional economies, or complex cross-sectoral research.
Economic analysis by its time
Research can be carried out for a different period of time of the company. The following types of economic analysis are distinguished:
- Preliminary. It is especially useful when developing a business plan or any other new project. The task of such an analysis is usually to find out whether the company or its unit is able to cope with the planned volumes and changes.
- Current. Often resembles classic operational reports, which are put every morning on the table to the leader. Today they may not be on the table, but on the monitor screen, but the essence remains the same: according to the given parameters, an operational report is prepared to monitor economic activity in dynamics.
- The final. Extremely useful information that some leaders neglect. This retrospective study of past periods can help draw valuable conclusions for future strategies and optimizing a company's performance.
- Perspective. It is mainly engaged not in predicting the future, but in accurately calculating the expected results in the planned period of time. Professional forward-looking analysis should play a decisive role in future business development plans.
Analysis of quantity and quality
The classification of methods and techniques of economic analysis includes two types of studies, which could be designated as "mathematical" and "lyric". Both fit perfectly into the concept of “unity of opposites.”
Factor (quantitative) analysis
The most popular method among financiers and accountants allows you to get information based on a comparison of quantitative indicators. Both absolute and relative values ​​are used here. This type of analysis involves a different type of comparison: with average indicators, with the best, worst, with the past. In such cases, statistical techniques of economic analysis are very popular. Many enterprises use traditional accounting methods in the form of double and balance sheets.
Chain substitutions, mathematical groups, indexing, integral formulas - all this refers to the methods of analysis of the "mathematical" subgroup.
Qualitative Analysis
Here, comparative characteristics and expert assessments of economic processes and phenomena are assumed to a greater extent. This technique has more “lyrics”: it can even be business games or brainstorming, script development and other techniques for facilitating expert groups. The main thing is to correctly correlate the array of information received and issue it in the form of a harmonious resume. Qualitative analysis is best done by experienced professionals so that the risk of information distortion is not realized due to the subjectivity of the opinions of individual experts.
Variability of methods of economic analysis
We examined many types of research on the economic situation of companies. In addition, there is an express analysis.
In this case, the name speaks for itself. In some urgent situations, it is not necessary to use the basic techniques and methods of economic analysis in the form of fundamental studies of a full array of indicators. If during the tender, for example, you need reliable information about the counterparty, express diagnostics of the financial condition of the company by analyzing selected key indicators will be sufficient.
In some cases, the marginal method is used.
This is already a method and method of economic analysis with mathematical modeling, the purpose of which is to search and determine the best option for any problem. The margin method is associated with the calculation of the breakeven point. The main indicator is the marginal income, which must be done by all means above, since the size and rate of profit depends on it. Purely mathematically, marginal revenue is the difference between tax-free sales revenue and variable costs.
Dynamic and static research methods should also be mentioned.
In fact, these methods are opposite to each other. If the static analysis includes constant performance indicators, then the dynamic one is in control and monitoring of the block of indicators in the course of their changes over time. The reporting period can be anything from a month to a decade. The main thing is to track the dynamics of changes with their key factors. This may be, for example, the growth rate of total costs or the dynamics of revenue from sales of products.
Criterion - Efficiency
Operational economic analysis can be applied at any level of management or functional unit. Its main advantage is the timeliness of the study and the maximum time proximity to the processes of economic activity. This is not an express analysis, where the minimum required number of indicators is examined. Operational analysis can be carried out covering a large number of indicators. In most cases, the tasks of this analysis technique are to find the causes of failures or failures for immediate solutions to eliminate them.
Summary is the most important
The final economic analysis is the most comprehensive and detailed type of economic research of the company. It refers to the main methods of economic analysis and is prepared according to the results of various reports of the enterprise. Such a study provides a final assessment of the company's activities for a specific period (most often for a year). This type of analysis is the most accurate tuning fork in setting up a company to improve the quality of work in the future. This can be done only with an honest and most objective study of all actions with a special focus on points that can be optimized or improved.
No one will say how many modern methods of economic analysis exist today. Because it is one of the most volatile areas of business economics. The choice of the method of research and assessment of the real state of affairs depends on many factors. But there is one general immutable rule: to conduct economic analysis constantly and in the most serious way.