The analysis of economic activity is a system of techniques developed by the scientific method, thanks to which it becomes possible to study the economy of an enterprise. With its use, production reserves are identified in accordance with reporting and accounting information, and the most effective ways of their application are developed.
The methods of business statistics allow us to solve the problems of uncertainty in economic reasoning. Using them, the accountant is able to anticipate upcoming winnings. This, in turn, helps prevent a reduction in capital and
unforeseen expenses.The results that a comprehensive analysis of economic activity provides are used in transactions such as commercial and consumer loans, futures and options contracts, hedging, diversification in various manufacturing sectors, securities transactions and more. An accountant who is interested in a successful outcome will not ignore past experience, which allows us to move from uncertainty to a probable assessment of the expected upcoming event. So, an entrepreneur is able to form various reserve funds, carry out exchange operations, and plan capital expenditures.
A comprehensive analysis allows you to evaluate the current solvency of the organization and its activities for a long period. This, in turn, helps to ensure that owners, investors and lenders can correctly assess the existing potential.
As the information base used in the analysis, is the company's financial statements, as well as accounting information within production.
Assessment is a set of indicators that reflect many or all aspects of the processes occurring in the enterprise.
A comprehensive 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 units in them. A factor indicating profit is considered to be income from sales before tax, as well as from ordinary activities.
Comprehensive analysis reflects information about profitability. They are the ratio of income to average asset. Comprehensive analysis involves the use of various numbers. In particular, non-current, current and net assets are used in the assessment.
A five-factor type profitability model is used as one of the analysis methods. Thanks to it, it becomes possible to influence the productivity of an organization: material consumption, cost-intensiveness, turnover of funds, capital-intensiveness and so on. Profitability is considered a relative indicator, which determines the level of profitability of the enterprise and business as a whole, the effectiveness of its different areas (investment, commercial, production).